This is not a leadership transition, simply an announcement of official titles. Matulonis and Patton will continue to run the company together with Matulonis focusing on day-to-day operations and Patton overseeing growth and company direction. They will also both continue acting as outward-facing representatives for the company.

“Rebecca is the right option for CEO because she has proven unequivocally that her character is second to none,” said Michael Patton. “We have been through a lot of highs and lows and I know she has the best interest of Excel at heart and always puts it first. She is dependable, smart, organized, polished, and proven internally. It is for these reasons we are making this announcement. I am extremely proud of Rebecca, and she deserves this!”

Matulonis joined Excel Health Plans LLC in 2022 as the Chief Operating Officer (COO). She brings nearly two decades of business acumen to bear, fostering change and assembling a cohesive team dedicated to enhancing lives through accessible, high-quality healthcare solutions. Her journey at Excel exemplifies her commitment to driving impactful change and aligning with values that prioritize making a meaningful difference in people’s lives.

“I am privileged to assume the role of CEO following my tenure as COO,” said Matulonis. “My highest priority is ensuring that every decision made enhances the lives of our members. As CEO of Excel, I am able to combine my business acumen and passion for helping people to achieve excellence within the organization.”

As part of the title changes, Michael Patton will be named President of the company, where he will continue to focus on growth via new partnerships, sales channels, and product development.

Since co-founding Excel Health Plans LLC, Patton has proven that there is a real marketplace for lower cost higher quality health plans. With zero venture funding during the first three years of inception, he built the vendor relationship and plan designs for the company while simultaneously establishing sales channel partnerships and broker relationships.

These leadership titles are expected to become official by July 15, 2024, and Matulonis will be named CEO effective on that date.

About Excel Health Plans LLC
Excel provides employers, unions, and other organizations with turnkey level-funded self-insured health plans that offer high-quality, affordable care. Excel’s solutions for employer health benefits include zero-dollar point-of-care options, flexible PPO provider networks, and cost controls that enable employers to maintain affordable coverage for their employees. With members across 47 states, Excel supports employers and unions by enabling thousands of employees and families to access better care with zero co-pay telehealth and personalized care navigators. Excel Health Plans — Quality Healthcare. At Fair Prices. For a Change.
For more information, please visit www.excelhealthplans.com.

Looking forward

These title changes at Excel Health Plans LLC represent a significant milestone for the company and the healthcare industry as a whole. With Matulonis at the helm and Patton’s continued leadership, the company is poised to build on its strong foundation, drive innovation, and enhance the overall member experience. As Excel Health Plans LLC embarks on this new chapter, the company remains committed to its mission of delivering high-quality, affordable healthcare to its members and supporting the well-being of the communities it serves.

The post Excel Health Plans Announces Official Leadership Title Changes appeared first on Excel Health Plans.

Lee Lewis, Chief Strategy Officer, Health Transformation Alliance. Lee has advised healthcare strategy at Fortune 10 employers, insurance companies, medical associations and the Depts. of Justice and Labor. Lee has played key roles in the founding and incubation of two dozen health benefit companies.  A sought-after speaker and consultant, Lee is co-founder of the Health Value Exchange and recipient of numerous awards for innovation and consulting.  

Reid Rasmussen – founder of Freshbenies, an engagement platform to help people control their healthcare by combining telehealth, advocacy, consumer tools, savings networks and more. Prior to founding Freshbenies, Rasmussen appeared four times on Inc5000’s fastest growing companies list. His experience includes positions at health insurance carriers and general agencies. 

Saju Joseph, General and Oncological Surgeon, Co-founder, Summit Specialty Physicians. Dr. Joseph completed his medical education at Tufts University School of Medicine and his residency at Harvard University’s Beth Israel Deaconess Medical Center where he received the prestigious Harvard Housestaff and Fellows Teaching Award. A leading researcher, he is on the editorial board of six journals and regularly presents research and lectures in the US and abroad. 

Steven Lupien – Director, Center for Blockchain & Digital Innovation, University of Wyoming.  Lupien leadership roles at the Univ. of Wyoming and as Founder & Advisor of the Digital Asset Trade Association places him at the forefront of how business adopt and operationalize cutting edge digital technologies. Lupien’s experience spans several industries and senior corporate roles in business development, global marketing, sales, and engineering. 

“The Excel Health Plans Advisory Board will provide both deep and broad expertise as we grow and improve in almost every aspect of our business,” said company CEO, Michael Patton. “I am grateful for their support and guidance as we embark on an exciting period of growth.”

About Excel Health Plans

Excel provides employers, unions, and other organizations with turnkey level funded self-insured health plans that offer high-quality, affordable care. Excel’s solutions for employer health benefits include zero-dollar point-of-care options, flexible PPO provider networks, and cost controls that enable employers to maintain affordable coverage for their employees. With members across 47 states, Excel supports employers and unions by enabling thousands of employees and families to access better care with zero co-pay telehealth and personalized care navigators. Excel Health Plans — Quality Healthcare. At Fair Prices. For a Change.

The post Excel Health Plans Announces Advisory Board, Plans for Growth appeared first on Excel Health Plans.

Promote Work-Life Balance

Encourage employees to maintain a healthy balance between their professional and personal lives. This can be achieved by:
• Flexible Work Hours: Allow employees to adjust their schedules to better fit their personal needs.
• Remote Work Options: Provide the option to work from home when possible, reducing commute stress and increasing productivity.
• Encourage Breaks: Foster a culture where taking breaks is normalized and encouraged to prevent burnout.

Launch a Comprehensive Wellness Program

A well-rounded wellness program can address various aspects of health, from physical fitness to mental well-being. Consider implementing initiatives such as:
• Fitness Challenges: Organize step-count contests or virtual workout sessions. Encourage friendly competition with rewards for top performers.
• Nutrition Workshops: Offer seminars on healthy eating habits and provide access to nutritious snacks in the office.
• Mental Health Resources: Ensure employees have access to counseling services, stress management workshops, and mindfulness training.

Organize Health Screenings and Workshops

Preventive care is a critical component of employee wellness. During June, consider organizing health screenings and workshops:
• On-site Health Screenings: Partner with healthcare providers to offer blood pressure checks, cholesterol tests, and other basic health assessments.
• Educational Workshops: Provide sessions on topics like heart health, diabetes prevention, and ergonomics.

Create a Supportive Environment for Mental Health

Mental health is as important as physical health. Create a supportive environment by:
• Normalizing Conversations: Encourage open discussions about mental health to reduce stigma.
• Providing Resources: Ensure employees know how to access mental health resources, such as Employee Assistance Programs (EAPs).
• Training Managers: Equip managers with the skills to recognize and address signs of mental health issues in their teams.

Celebrate Successes

Acknowledge and celebrate the efforts and achievements of employees who actively participate in wellness initiatives. This could be done through:
• Recognition Programs: Publicly recognize individuals or teams who have made significant strides in their wellness journeys.
• Wellness Events: Host events such as wellness fairs, luncheons, or team-building activities to celebrate National Employee Wellness Month.

By implementing these recommendations, business owners and executives can create a healthier, more productive workplace. Excel Health Plans is committed to supporting you in these efforts, providing the tools and resources necessary to foster a culture of wellness. This June, let’s honor National Employee Wellness Month by prioritizing the health and well-being of our most valuable asset – our employees.

The post How to Honor National Employee Wellness Month This June appeared first on Excel Health Plans.

In the dynamic landscape of employee benefits, creating an Employee Assistance Program (EAP) stands out for its potential to transform workplace well-being. Let’s delve into the definition, benefits, and implementation strategies of EAPs, empowering you to better serve your clients by enhancing employee satisfaction.

Defining the Basics

An Employee Assistance Program (EAP) is a workplace benefit designed to support employees facing personal or work-related challenges. It provides services such as confidential, short-term counseling services aimed at addressing a wide range of issues, including stress, mental health concerns, substance abuse, and family problems. EAPs typically offer a range of resources and support mechanisms to help employees navigate difficult situations and improve their overall well-being.

Benefits for Business Owners (Supporting Employee Well-being)

EAPs offer a wealth of benefits for business owners and HR Teams, fundamentally transforming the workplace environment and driving long-term success. One of the most significant advantages is the improvement in employee morale and productivity. By providing confidential support for personal and work-related issues, EAPs help employees manage stress, mental health concerns, and other challenges that could otherwise hinder their performance. When employees feel supported and valued, their motivation and engagement naturally increase, leading to higher productivity levels and a more positive workplace atmosphere.

Additionally, EAPs play a crucial role in reducing absenteeism and turnover rates. Employees dealing with personal problems or workplace stress are more likely to take time off or leave their jobs altogether. EAPs offer early intervention and continuous support, helping employees address and resolve their issues before they escalate. This proactive approach not only keeps employees at work but also fosters loyalty and reduces the costs associated with hiring and training new staff. Ultimately, investing in employee well-being through EAPs leads to a healthier, more engaged workforce, driving long-term business success and creating a resilient organizational culture.

Key Components of EAPs (Understanding the Offerings)

Several core components make for an effective EAP. Central to any EAP are counseling services, which provide confidential, short-term assistance for a wide range of personal and work-related issues such as stress, anxiety, depression, and relationship problems. These services often include in-person, telephone, or online counseling sessions, making support accessible to all employees regardless of their location or work schedule. Additionally, EAPs typically offer legal and financial consultations, helping employees navigate complex situations like debt management, divorce, or estate planning, thus alleviating stress and enabling them to focus more effectively on their work.

Brokers can choose to play an essential role in helping clients customize their EAP offerings to align with the unique needs and culture of their organization. By conducting thorough assessments and engaging in open dialogue with employers, brokers can identify specific areas where support is needed most. They can then recommend tailored solutions, such as targeted counseling services or specialized wellness programs, ensuring that the EAP addresses the distinct challenges and goals of the organization. This personalized approach not only maximizes the effectiveness of the EAP but also demonstrates a genuine commitment to employee well-being, ultimately leading to a more engaged and productive workforce.

Implementing EAPs Successfully (Best Practices for Brokers)

Implementing an Employee Assistance Program (EAP) effectively begins with selecting the right EAP provider. Brokers should assist clients in evaluating potential providers by considering factors such as the range and quality of services offered, the provider’s experience and reputation, and the accessibility of their support channels. It’s essential to choose a provider that aligns with the specific needs and culture of the organization, ensuring that the services offered will genuinely benefit the employees. Additionally, reviewing client testimonials and seeking references can provide valuable insights into the provider’s reliability and effectiveness.

Once the right EAP provider is selected, promoting awareness and engagement within the organization is crucial. Brokers can help clients facilitate communication and training sessions to ensure that employees are well-informed about the available EAP services. This includes creating informative materials, such as brochures, posters, and email campaigns, that highlight the benefits and confidentiality of the program. Training managers and HR personnel on how to encourage EAP utilization can also be beneficial, as they are often the first point of contact for employees seeking assistance. Furthermore, establishing clear policies and procedures for accessing EAP services is vital. This involves outlining the steps employees need to take to seek help, ensuring that the process is straightforward and confidential. By providing practical guidance and ongoing support, brokers can help clients implement EAPs effectively, fostering a supportive work environment that prioritizes employee well-being.

Overcoming Challenges (Addressing Common Concerns)

Implementing Employee Assistance Programs (EAPs) can present several challenges and barriers, chief among them being the stigma surrounding mental health issues. Many employees may hesitate to use EAP services due to fear of being judged or perceived as weak. To overcome this, companies can create a culture that normalizes mental health discussions and promotes the use of EAP services. This can be achieved through regular mental health awareness campaigns, testimonials from employees who have benefited from EAP services, and strong endorsements from leadership emphasizing the importance of mental well-being.

Another significant barrier is the lack of awareness among employees about the existence or benefits of EAPs. To address this, employers should ensure continuous and clear communication about the program. This can include onboarding sessions for new hires, periodic reminders via email or company intranet, and visible postings in communal areas. Training managers and HR staff to actively promote the EAP can also help increase awareness and usage.

Budget constraints are a practical challenge for many businesses considering EAP implementation. However, it’s important to highlight the long-term financial benefits of EAPs, such as reduced absenteeism, lower turnover rates, and decreased healthcare costs. Companies can start with a basic EAP package and gradually expand services as budget allows. Additionally, exploring different EAP providers and negotiating customized packages can help find a cost-effective solution that meets the company’s needs. By addressing these challenges with targeted strategies, businesses can ensure the successful adoption and sustained use of EAPs, ultimately leading to a healthier and more productive workforce.

Conclusion (Unlocking the Potential of EAPs)

As business owners navigate the complexities of employee benefits, EAPs emerge as a powerful tool for promoting employee well-being and organizational success. By understanding the definition, benefits, and implementation strategies of EAPs, health insurance brokers can play a pivotal role in guiding their clients toward a healthier, more resilient workforce.

The post Acronym Soup – EAP – Employee Assistance Programs appeared first on Excel Health Plans.

Defining CSR

The idea behind CSR is to extend a business’s goals beyond the traditional, capitalistic pursuit of profit. It involves creating policies and procedures to balance a company’s commitment to economic success and its social and environmental responsibility. This balance is reflected in ethical business practices, sustainable initiatives, and a genuine concern for the well-being of both employees and the broader community. HR serves as the driving force behind embedding CSR within the organizational fabric. It begins with the recruitment process, where HR professionals seek individuals who align with the company’s values and commitment to social responsibility. It continues with employee engagement throughout an employee’s entire tenure at the company.

Attracting Talent

In a competitive job market, CSR becomes a powerful tool for attracting and retaining top talent. Millennials and Gen Z, in particular, prioritize working for socially responsible organizations. HR leverages CSR initiatives to showcase the company’s commitment to making a positive impact, which creates a compelling employer brand.

Engaging and Retaining Employees

Many in the industry believe that CSR initiatives contribute to a sense of purpose among employees. HR teams that actively involve employees in socially responsible projects are found to be successful in fostering a sense of pride and engagement at all levels of the company. When an employee is engaged with projects that give them pride outside of their standard day-to-day job requirements, they have a stronger bond with the organization and are more likely to stick around.

Impacting the Community

As part of a comprehensive CSR plan, HR professionals spearhead initiatives that contribute to the community. Whether through volunteer programs, charitable partnerships, or sustainable practices, HR teams are looking for ways to ensure that the company’s commitment to CSR extends beyond its own walls to make a meaningful impact on society.

CSR Reporting and Accountability

HR will also be playing a pivotal role in tracking and reporting CSR initiatives. They will be working on establishing clear metrics and accountability measures to evaluate if their company’s commitment to social responsibility is working and aligns with the organization’s overall goals. Reporting should provide insight to HR and the executive team, allowing them to decide what CSR policies and practices are working within the organization.

Conclusion

As companies recognize the importance of CSR in the modern business landscape, the HR team emerges as the guardian of social responsibility within the organization. By integrating CSR into recruitment, employee engagement, and community outreach, HR professionals play a vital role in shaping a workplace culture that goes beyond profit, contributing to a more sustainable and socially conscious future. As a result, health benefits advisors will need to be more versed in CSR and other prominent HR focuses growing across industries.

This post is the first in our “Acronym Soup” series. Throughout the year, we will explore more HR-adjacent acronyms that health benefit advisers may come across when talking with their clients and the HR teams that administer health plans. Stay connected with us here on our insights feed and on social media to see similar content that will keep you up to date with the industry.

The post Acronym Soup – CSR – Corporate Social Responsibility in HR appeared first on Excel Health Plans.

Prepare Your Clients For The Dynamics Of Open Enrollment

The first step to having a smooth enrollment season is to make sure your clients are prepared. As professionals in the industry, we know what to expect, but that isn’t always the case on the client side. Well before it’s time for open enrollment to start, take some time with your clients to define open enrollment, its duration, specific timeline milestones, and its significance in the healthcare calendar. Discuss the importance of this period for both employers and individuals, setting the stage for the guide.

Create A Written Reference Guide

It’s excellent to have conversations that allow for questions and immediate feedback. However, it’s equally important to provide a reference that the clients can return to when they inevitably forget a specific date or can’t remember who to contact about a particular question. Instead of acting as the customer support hotline, you can head off tedious calls and emails by providing a simple open enrollment document with FAQs, a calendar, and a contact list. If clients are trained to check the document first, they can often get a more specific answer quicker than by calling you. One other thing that would be helpful to include in this document would be something that highlights the policy changes and new regulations. If companies and their employees understand their existing plan, they will often just want to know what changed instead of having to “re-learn” the whole plan over again.

Leverage Effective Communication Strategies

Explore communication strategies to effectively engage with your clients during open enrollment. It’s clear that many people get distracted easily, especially when the topic is as complicated as health benefits. Keeping at the top of people’s minds throughout the enrollment process will ensure there isn’t a mad rush to understand the plans and make changes right at the end of the period. Experienced brokers and HR Team leaders use tools like email blasts, newsletters, webinars, and events to communicate with their teams. Using these various communication channels, you can ensure clients and their employees are well-informed and ready to make confident decisions early in the open enrollment periods.

Simplifying Benefit Packages (Without Sacrificing Care)

The modern process of tailoring comprehensive plans to meet clients’ unique needs is a significant step forward in health benefits. That being said, putting together a full suite of plans from scratch that addresses all possible outside needs can be overwhelming for a broker to create and keep straight. There are several solutions out there that can simplify plan design while still using modern, customized plan creation processes (see Excel Health Plans *wink*). Choosing one of these solutions also has the benefit of making your job of providing guidance easier.  Helping clients navigate a multitude of plan options available during open enrollment can be daunting. However, having a few clearly defined plan options with clear benefits to specific types of members makes qualifying plans easier, translating to a smoother open enrollment process.

Leveraging Technology

The last point we’ll make today is to give yourself some time to explore the role of technology in streamlining your open enrollment processes. Discuss the benefits of digital platforms, online tools, and mobile apps with your partners, and choose solutions that offer these tools. Enhance the efficiency of the enrollment experience for both you and your clients by digitizing as much of it as possible.

Open Enrollment Fully Optimized

Think about this year’s open enrollment. How did it go? Where did you get hung up? Where did the client? Look for opportunities to make next year easier using the items we’ve just discussed. As a health benefits broker, you have a unique opportunity to empower clients and ensure they make decisions aligned with their health and financial goals. You can navigate open enrollment successfully by being prepared, preparing them, utilizing effective communication strategies, and customizing benefit packages. A successful open enrollment contributes to the overall well-being of your client’s company and fosters stronger broker-client relationships.

Stay tuned for more insights, tips, and resources for health benefits brokers and advisors.

The post Optimizing Open Enrollment: A Preparation Guide for Brokers appeared first on Excel Health Plans.

The Power of Data Analytics

Analytics provides a treasure trove of insights that can guide decision-making. Brokers and advisors can harness data to identify trends, assess the effectiveness of existing benefit plans, and predict future needs. From healthcare utilization patterns to employee preferences, analytics offers a comprehensive view of the benefits landscape.

Customizing Benefit Plans

The benefits landscape constantly evolves, and the traditional one-size-fits-all approach is no longer sufficient to service the whole market. Brokers and advisors need to understand the changing needs of both employers and employees to tailor benefit plans effectively. Armed with analytics, advisors can move beyond generic benefit packages. By analyzing employee demographics, lifestyle data, and utilization patterns, they can craft customized solutions that meet the unique needs of each client. This level of personalization not only enhances employee satisfaction but also maximizes the value of benefits for employers.

Cost Management And Optimization

Analytics plays a crucial role in cost management. Brokers can use data to identify cost drivers, assess the efficiency of benefit programs, and recommend adjustments for optimal ROI. This strategic approach ensures that clients not only offer competitive benefits but also manage costs effectively.

Other Benefits To Getting Analytical

Analytics can illuminate the effectiveness of communication and engagement strategies. By analyzing employee participation in benefit programs, brokers and advisors can fine-tune communication methods, ensuring that employees are well-informed and engaged in their benefits. Analytics can also be leveraged to evaluate compliance. Tracking regulatory changes, ensuring clients remain compliant, and proactively recognizing and addressing a potential risks can all be achieved through consistent evaluation of KPIs and analytics.

In a world driven by data, brokers and advisors have the opportunity to revolutionize benefits decision-making. By harnessing the power of analytics, they can provide clients with not just insurance but a strategic approach to employee well-being. The insights gained from analytics empower brokers and advisors to navigate the intricate benefits landscape, delivering personalized, cost-effective solutions that stand the test of time.

Not sure where to start in your analytical journey? Contact Excel Health Plans today to find out what information you need to gather and we can handle the first evaluation.

The post The Power of Data: Leveraging Analytics for Informed Benefits Decisions appeared first on Excel Health Plans.

Understanding the Landscape

Several key regulations shape the landscape of the Health Benefits maze. The Affordable Care Act (ACA), Health Insurance Portability and Accountability Act (HIPAA), and Employee Retirement Income Security Act (ERISA) are among the critical statutes impacting benefits design and administration. Unraveling their intricacies is the first step to ensuring compliance. Each regulation deserves its own deep dive, but knowing what you are up against and hearing some of the terms is a great place to get started.

Changes and Updates

In an era where regulatory changes are as certain as the sunrise, staying informed is non-negotiable. Business owners, health benefits advisors, and anyone else in the industry must adopt a proactive approach to monitoring and communicating regulatory updates. The goal here should be to create a specific set of strategies to stay current. Build processes into your weekly or monthly routine to review the news, subscribe to updates, attend webinars, or seek out experts to explain the nuances of evolving compliance requirements.

Common Compliance Challenges

Navigating the compliance maze is fraught with challenges, and there are certain pitfalls that you will want to avoid. Many compliance issues boil down to the more tedious parts of managing health benefits. For example, you may be doing everything correctly with the actions you are taking, but you are not reporting or documenting them properly. Awareness is the first line of defense against these challenges, so do an internal audit of your existing processes regularly. If there are significant questions that haven’t been answered, looking for outside consultation or even legal advice may be advisable from time to time to develop procedures and processes that are repeatable.

Communication and Education

Effective communication and education are powerful tools in the compliance arsenal. Once strategies to track compliance regulation changes and repeatable procedures to avoid specific pitfalls are in place, the advisor and business owner take on the role of educators to their clients and employees. The leadership team must ensure that the end users are well-informed about their benefits and how compliance fits into them. Running onboarding training, doing periodic check-ins, and providing access to documentation are all proven ways to communicate information successfully. Transparent communication builds trust and compliance hand-in-hand.

Embracing compliance as a strategic asset will put you on the path to maintaining resilient and successful health benefit plans. Advisors and business owners who have a proactive and informed approach realize that compliance is not just a legal obligation—it’s a cornerstone for building trust and fostering long-term relationships. In the end, if you can educate yourself, build strategies to stay ahead of changes, create repeatable processes and procedures, and educate your end user you will have successfully navigated the maze and brought everyone with you.

The post The Compliance Maze: Where To Start In Health Benefits appeared first on Excel Health Plans.

Aither Health is a healthcare solutions company offering a full suite of services as a third-party administrator for self-funded employers and health plans. Aither’s focus on building collaborative healthcare service delivery models enhances Excel’s ability to streamline our operations and improve member experience overall.

VISIT AITHER TO LEARN MORE

Stealth Partner Group (an Amwins Company) is the nation’s largest independent wholesale stop loss GA.  Stealth offers stop loss and ancillary benefit solutions to Brokers, Consultants, and Third-Party Administrators. The Stealth team is committed to delivering high-quality products and services to Excel’s members and has structured their organization to adapt quickly to the diverse needs of every client.  

VISIT STEALTH TO LEARN MORE

WellRithms offers payment integrity solutions for group health payers looking to stop overpaying for healthcare. WellRithms’ Out-of-Network Repricing, In-Network Inpatient Itemized Bill Review, and In-Network Review will help Excel’s members secure the most accurate pricing for their medical claims. WellRithms will further help to protect members from unfair balance billing practices through the Shield Indemnification product. 

VISIT WELLRITHMS TO LEARN MORE

VerusPath is a part of VerusRx and provides direct advocacy assistance with specialty and brand drugs through four unique savings programs. VerusPath supports Excel members by enrolling them in available foundation support programs and assisting them each step of the way. These programs can significantly reduce the cost of their medications. 

VISIT VERUSRX TO LEARN MORE

The post New Vendor Partnerships Coming November 2023 appeared first on Excel Health Plans.

Let’s dive a little deeper into the differences between generics and name-brand medications and then talk about how they are the same.

Name-brand drugs are given a specific name by the pharmaceutical company that develops and markets them. These names are usually catchy and easy to remember. On the other hand, generic drugs are marketed under their chemical name or a simpler name, which is often derived from the active ingredient. This makes them hard to recognize initially, and oftentimes, there are multiple generics for the same name-brand medication with completely different names.

Generic drugs are generally less expensive than their name-brand counterparts. This is because generic drug manufacturers do not have to invest in the research and development, clinical trials, and marketing that name-brand drug companies do. As a result, generic drugs can be sold at a lower cost while still meeting the same safety and efficacy standards.

While the active ingredient in a generic drug is the same as that in a name-brand drug, there may be differences in color, shape, size, or packaging due to variations in the non-active ingredients used in the formulation. However, these differences do not affect the drug’s effectiveness.

When a pharmaceutical company develops a new drug, they are usually granted a patent that gives them exclusive rights to market and sell it for a certain period (typically 20 years from the filing date). Once the patent expires, other companies can produce and sell generic versions of the drug, which helps introduce competition and lower prices.

This is ultimately where the “Oaty O’s” (as we’ll call it) metaphor falls apart. For prescription medications, a generic drug cannot just be “compared to” the name-brand drug. Generic drugs must meet the same rigorous standards for quality, safety, and effectiveness as name-brand drugs. Regulatory agencies, such as the U.S. Food and Drug Administration (FDA) in the United States, require generic drugs to demonstrate “bioequivalence.” This means that the generic drug’s rate and extent of absorption do not significantly differ from those of the name-brand drug.

In the end, because generic drugs are essentially identical to name-brand drugs in terms of active ingredients, safety, and efficacy, we don’t feel the off-brand “Oaty O’s” metaphor gives people a proper understanding of what they are. Regardless of how you explain or understand what generics are, it’s good to know they offer a more affordable option for consumers and contribute to competition in the pharmaceutical market.

If you are interested in hearing about how your health plan can have access to $1 generics, then contact Excel Health Plans today.

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