Prilosec policy clarification

     Earlier this year, the Ohio Department of Job and Family Services passed policy that the net cost of the ulcer drug prescribed to Medicaid patients must be the drug with lowest price.  This doesn't mean that the generic drug for Prilosec (omeprazole) must be prescribed once it is released. Normally, the first company to market a generic drug receives a 180-day period of exclusivity, according to federal law.  The price of the generic drug is usually close to the price of the brand-name drug. 

     When the 180 days term has ended, more manufacturers may release their generic products, and that is typically when the price will have a significant drop.  This would be the time when other generic products will begin to appear on the market.  Because of these factors, it is possible that the Medicaid committee's new policy will not be in full effect until 2003.