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Raleigh, N.C. – The North Carolina State Health Plan announced today that generic drugs will be dispensed free of charge to State Health Plan members, from January 1 through March 31, 2007. Members will not be responsible for copayments when they use a participating network pharmacy. The generic copayment waiver program is being offered to approximately 615,000 State Health Plan members. Participation in the program is voluntary.

"The goal of our 90-day free generics program is to encourage generic drug prescribing and generic drug use, resulting in significant cost savings to the member and the State Health Plan over time," said Executive Administrator George C. Stokes. "As requested by members, we continue to seek additional ways to improve their health, while expanding choice and improving affordability."

Dr. Nancy Henley, Medical Director for the State Health Plan, emphasized that quality of care is likely to be improved: "A member’s physician must indicate that generic use is acceptable, and the member always retains the choice of brand name versus generic drugs. Medical research has shown improved medication compliance when cost to the patient decreases, as with waiving or decreasing copayments. We expect improved medication use and increased overall satisfaction."

To participate, members will take new prescriptions or refills for generic drugs to their local participating network pharmacy, and present their State Health Plan ID card. The pharmacy will automatically waive the copayment.

Most generic drugs are the same as brand name drugs in dosage, safety, strength, how the drugs are taken, quality, performance and intended use. Before approving a generic drug product, the Food and Drug Administration (FDA) requires many rigorous tests and procedures to assure that the generic drug can be substituted for the brand name drug. By law, a generic drug product must contain the identical amounts of the same active ingredient(s) as the brand name product. State Health Plan members are encouraged to speak to their doctor or pharmacist if they have any questions.

Three NC SmartChoice^SM Blue Options^SM PPO plans were offered to State Health Plan members for the first time, along with the current indemnity plan, during the 2006 open enrollment. State Health Plan members covered under all of these plans are eligible to participate in the generic copayment waiver program.

The State Health Plan also announced a second member-focused initiative today: Members are eligible to receive cost-effective smoking cessation therapy through the Plan’s pharmacy benefit. Generic, over-the-counter (OTC) nicotine replacement therapy patches will be a covered benefit beginning January 1, 2007. Through the generic copayment waiver program, members will receive generic patches free for the first three months of the program. Thereafter, the appropriate copayment will apply. To participate, members must first obtain a prescription for generic OTC nicotine replacement therapy patches from a physician.

About the State Health Plan:
The North Carolina State Health Plan covers approximately 615,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, state hospital staff and their dependents. More than 310,000 active employees; more than 146,000 dependents; more than 157,000 retirees and their dependents, with one or more members covered primarily by Medicare; and finally, more than 2,000 COBRA participants and their dependents. Dependents include spouses and unmarried children under age 19 (or under age 26 if full-time students). The State Health Plan is self–insured and exempt from ERISA as a government–sponsored plan.