What is Mandatory Generic Substitution?

Mandatory Generic Substitution is a drug plan feature that limits the ingredient cost of a drug charge to that of the lowest cost alternative.  Where there is a generic interchangeable drug (a generic equivalent) then the generic drug will be dispensed or the plan member will be reimbursed up to the cost of the generic equivalent.  This plan feature helps to limit cost within a group insurance drug program, paying a lower cost for a chemically equivalent drug.

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