Generics Cut Costs, Not Quality

By Scott Culver
Communications Specialist
WEA Trust

March 2003

Using generic prescription drugs is an easy way for you to slow rising prescription drug costs without sacrificing quality.

About half of all prescription drugs available in the United States have generic equivalents, which generally cost 30% to 60% less than their brand-name counterparts. By asking your doctor if there’s a generic drug that’s suitable for your condition, you not only may save money on copayments, but you also can help cut costs for your health plan without compromising your health care.
FDA approves generics

Contrary to some preconceived notions about generic medications, the difference between brand-name drugs and generics lies not in quality but in cost.

Generic drug manufacturers must get approval from the Food and Drug Administration for their medications. To get FDA approval, generics must contain the same active ingredients as the brand-name products and meet the same strict standards of quality, strength, and purity. Generic manufacturers must also prove that their drugs produce the same effect in the body as brand-name versions.

The only difference between brand-name drugs and their generic equivalents are the inactive ingredients, such as dyes, which may affect the medication’s appearance but not its effectiveness. In rare cases, some individuals may develop an allergic reaction to these inactive ingredients.

Why are generics cheaper?

Generics cost less than brand-name drugs because generic manufacturers do not have to pay for the drugs’ initial development costs. In addition, once generic drugs are approved, the increased competition keeps prices down.

Mold contamination grows into large issue

Molds have been around for millions of years, but only in recent times have they become the subject of headlines and multimillion-dollar lawsuits.

Driven in part by increased media attention and trial lawyers, the number of insurance claims for mold contamination in homes has exploded in recent years. One report found that mold-related homeowner’s insurance claims nationwide topped $1 billion in 2001.

Damage from mold, by itself, generally is not covered under most insurance policies, including a WEA Trust homeowners policy. However, mold that arises as a result of another loss that is covered by your insurance policy is usually covered up to a stated amount.

For example, if a water pipe burst in your home, resulting in mold contamination, in most cases the Trust would consider that a covered loss. On the other hand, if mold arises after flooding, the Trust would not consider that a covered loss because flooding is excluded from coverage.

Is mold really harmful?
In most cases, mold does not represent a serious health risk. According to the U.S. Centers for Disease Control and Prevention (CDC), there is always a little mold everywhere – in the air and on many surfaces. If individuals in your home are highly allergic or suffer from a weak immune system, the effects from mold contamination could be more severe.

The common health concerns from mold include skin irritation and respiratory problems, most commonly hay fever and asthma. If you or a family member has these conditions, consult a health care professional for diagnosis and treatment.

Preventing mold
For the most part, you should take routine measures to prevent mold growth in the home. According to the CDC, eliminate any sources of water from outside, such as ice dams, clogged storm gutters, and roof leaks.

The CDC also recommends:

• Keep the humidity level in your house below 50%.
  
• Use an air conditioner or a dehumidifier during humid months.
  
• Be sure your home has adequate ventilation, including exhaust fans in the kitchen and bathrooms.
  
• Use mold inhibitors, which can be added to paints.
  
• Clean the bathroom with mold-killing products.
  
• Do not carpet bathrooms.
  
• Remove and replace flooded carpets.
  

If you get mold in your home, in most cases you can remove it by a thorough cleaning with bleach and water. For more widespread mold contamination, contact an experienced professional to handle the cleanup.

Trust can offer help
If you have questions concerning mold or other issues related to homeowners coverage, you can always call the Trust at (800) 279-4010.

Posted March 10, 2003