Benefits Plans - Prescription Drug Plan: Drug Plan Updates and New Drug Releases

This section provides links to important announcements about the Prescription Drug Plan. Plan updates, new drug releases, and other changes are listed here in chronological order.

Check this page frequently for the latest information.

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March 2013

Generics part of why U-M’s drug plan outperforms most others, March 1, 2013
U-M's prescription drug plan continues to better U.S. averages, according to the 2012 Prescription Drug Plan Annual Report. Total drug costs for the U-M plan rose from $91.1 million in 2011 to $93.6 million in 2012, a growth rate of 3.5 percent. That’s a win over the 3.75 percent average reported by the Pharmacy Benefit Management Institute’s survey of plan sponsors and a performance victory alongside the 6.5 percent projection of cost growth by the Segal Health Plan Cost Trend Survey. U-M’s self-insured prescription drug plan has been beating the averages for the last ten years, but how? Click here to read more.

December 2012

U-M Diabetes Medication Cost-Reduction Program ending on December 31, 2012.
The university will discontinue the diabetes medication cost-deduction program as of January 1, 2013 based on pilot study findings. Click here to read more.

October 2012

MedImpact HealtCare Systems, Inc. is new administrator of U-M Prescription Drug Plan effective October 1, 2012. MedImpact mailed new drug plan ID cards to members in late September.

July 2012

MedImpact HealthCare Systems, Inc. Selected as New PBM
New prescription drug plan ID cards will be issued in September as the university teams with MedImpact HealthCare Systems Inc. to administer its prescription drug benefit plan.

Prescription drug plan members will see little or no changes when MedImpact replaces informedRx/SXC on Oct. 1. Plan features, drug coverage and member co-pay amounts will remain the same, and mail order pharmacy service will continue under NoviXus Pharmacy Services. Click here to read the article.

Frequently Asked Questions

December 2011

U-M Prescription Drug Plan’s Transition to NoviXus for Mail Order a Success
The transition to NoviXus Pharmacy Services for the U-M Prescription Drug Plan’s mail order service was completed on September 1, 2011.  Teams from the University of Michigan Benefits Administration Office, Human Resources Communications, and NoviXus worked together to ensure a high-level of customer service for U-M drug plan members and a smooth transition for their mail order prescriptions.  To date, nearly 6,000 U-M drug plan members have registered with NoviXus in its first few months of service. Click here to read the article.

July 2011

U-M Prescription Drug Plan selects new mail service pharmacy
Beginning Sept. 1, 2011, the U-M Prescription Drug Plan will provide prescription drug mail order service through NoviXus Pharmacy Services, replacing Walgreens mail service. The change of mail order pharmacy service vendors will impact only mail order prescriptions and will not alter other U-M prescription drug plan features, coverage, or member co-pay amounts. Click here for more information.

March 2011

Allegra (fexofenadine) now available OTC; no longer covered by the U-M Prescription Drug Plan
Allegra (fexofenadine) products are available over-the-counter (OTC) effective March 4, 2011. OTC products are not covered under the U-M Prescription Drug Plan, and the plan will no longer cover Allegra (fexofenadine) products with or without a prescription. For those currently taking Allegra (fexofenadine) products, the Prescription Drug Plan will cover refills of until April 30, 2011.  After that, Allegra products may be purchased OTC as a non-covered expense. The plan administrator, informedRx/SXC, has mailed notification of this change in coverage to U-M Prescription Drug Plan members who are currently taking Allegra (fexofenadine). Click here for more information.

January 2011

Alcohol Prep Pads, Swab and Swabsticks Recall
As a precautionary measure Triad Group has voluntarily recalled ALL lots of its Alcohol Prep Pad, Swab and Swabstick products. These products are used to disinfect a site prior to injection. If you have any of these products, do not use the product. Please return it to the place of purchase for a full refund. Click here for more information.

November 2010

Copays for Tier-3 Non-preferred drugs will increase from $30 to $35, effective January 1, 2011.  The change applies to all faculty, staff and retirees, except for union agreements for AFSCME, Trades, MNA, IUOE, and members of the GradCare health plan.

September 2010

New Coverage for Generic Over-the-Counter (OTC) Tobacco Treatment
Beginning September 1, 2010, the University of Michigan’s Prescription Drug Plan and MHealthy Tobacco Independence Program (MTIP) will offer coverage to eligible U-M employees and their dependents for select generic over-the-counter (OTC) tobacco treatment products with a $5 per month co-pay. Products include generic nicotine patch, generic nicotine gum, and generic nicotine lozenge. Brand name OTC nicotine replacement products will not be covered. Patients will need either a written prescription from a licensed prescriber or an authorization letter from an MTIP tobacco treatment specialist. Further detail is available in the letter from MedImpact.

June 2010

Proton Pump Inhibitor (PPI) Coverage Changes, June 2010
Effective August 1, 2010 the preferred covered PPI drugs will be generic Tier 1 omeprazole (generic for Prilosec), pantoprazole (generic for Protonix) and lansoprazole (generic for Prevacid). The brand PPI drugs, Aciphex and Nexium, will be available for Tier 3 co-pay with an approved Prior Authorization (PA) for patients with severe erosive esophagitis or Zollinger-Ellison syndrome. For other conditions, Aciphex, Nexium and brand Protonix will be covered after a 60-day trial and failure of at least two generic PPIs. Brand Protonix tablets will be subject to a Product Selection Penalty. Other brand PPIs that are available over-the-counter (OTC) without a prescription will not be covered. Quantities without PA will be limited to 1 unit per day for all PPIs except omeprazole 20 mg (allowable limit 2 units per day). Patients with a current diagnosis of severe erosive esophagitis will be allowed 2 units per day of any covered PPI for 12 weeks. A maximum of 3 units per day with PA will be set for members receiving covered PPIs for Zollinger-Ellison syndrome. For more information, click here for the announcement (PDF). For further details on the change, please refer to PPI Changes for August 2010 Questions and Answers (PDF).

January 2010

2009 U-M Prescription Drug Plan Annual Report

December 2009

Azmacort® Aerosol Inhaler Discontinued as of 12/31/2009, December 4, 2009

May 2009

Drug Reviews, January - April 2009
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

January 2009

2008 U-M Prescription Drug Plan Annual Report

November 2008

Ethex drug recall notice - Morphine Sulfate IR, Dextroamphetamine ER, Isosorbide ER, Propafenone, November 7, 2008

July 2008

2009 Rx co-pays announced, July 14, 2008

April 2008

Digitek Recall Notice, April 30, 2008

January 2008

Antihistamine Coverage Changes, January 7, 2008

2008 Coverage of Newer Antimistamines Questions and Answers

Drug Reviews, December 2007 - January 2008
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

July 2007

Drug Reviews, July 2007
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

May 2007

Omeprazole 20mg Now Covered with a Generic Co-Pay.  Nexium and Protonix will be Tier 3, Non-Preferred, Effective July 1, 2007

The University of Michigan Pharmaceutical Benefits Advisory Committee (PBAC) reviewed the Proton Pump Inhibitor (PPI) drug class and made several recommendations for coverage changes. For more information, click here for the announcement (PDF). For further details on the change, see PPI Changes for July '07 Questions and Answers (PDF).

Drug Reviews, May 2007
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

April 30, 2007
Allergic Conjunctivitis Eye Drops Coverage Changes, effective June 1, 2007.

Drug Reviews, April 2007
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

April 10, 2007

Drug Reviews, March 2007
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

April 9, 2007

FDA withdraws Zelnorm & Permax due to safety
Zelnorm (tegaserod) is used for short-term treatment of women with irritable bowel syndrome with constipation and for patients younger than 65 years with chronic constipation. Zelnorm (tegasreod) has been removed from the market at the request of the U.S. Food and Drug Administration (FDA) due to a new safety analysis that found a greater chance of heart attack, stroke, and worsening heart chest pain that can develop into a heart attack in patients treated with Zelnorm. Additional information may be obtained at: http://www.fda.gov/cder/drug/advisory/tegaserod.htm

Permax (pergolide) is used to manage the signs and symptoms of Parkinson’s disease. Permax (pergolide) has been taken off the market since two new studies revealed that patients with Parkinson’s disease who were treated with pergolide had an increased chance of serious damage to their heart valves when compared to patients who did not receive the drug. Additional information may be obtained at http://www.fda.gov/cder/drug/advisory/pergolide.htm

April 1, 2007

Pill-Splitting Program expanded to include Crestor
Effective 4-1-07, members taking Crestor 5mg, 10mg, or 20mg doses, who split the higher strength tablets will save 50% on their co-pay or coinsurance. For full details on the pill-splitting program access the Pill-Splitting Instructions (PDF), Retail Pharmacy Pill-Splitter Billing Instructions (PDF), and the Pill-Splitting Executive Summary.

March 2007

U-M Prescription Drug Plan 2006 Customer Satisfaction Survey
The 2006 U-M Prescription Drug Plan Customer Satisfaction Survey provides information on drug plan member satisfaction, opinions on drug plan vendors and pharmacies, and member preferences for potential plan changes. The 2006 survey was distributed October through December 2006 to over 4,100 drug plan utilizers. Full Report and Customer Satisfaction Survey Results (PDF)

January/February 2007

Drug Reviews, January/February 2007
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

December 2006

Drug Reviews, December 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

U-M Specialty Drug Program Expands Jan. 1, 2007
The University of Michigan Hospitals and Health Centers is eligible for special reduced drug pricing, presenting an opportunity for U-M Prescription Drug Plan members and dependents to reduce their out-of-pocket cost for a select group of specialty drugs.

November 2006

Drug Reviews, November 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

Lipitor 10mg, 20mg, 40mg and All Strengths of Vytorin Will be Tier 3, Non-preferred Effective January 1, 2007

Statins are widely used prescription drugs that are highly effective at reducing cholesterol (LDL cholesterol) and decreasing the risk of major cardiovascular events. The U-M Prescription Drug Plan bases its coverage decisions on a foundation of evidence-based medicine and has consistently reinforced the merits of generic medications. In 2006, the statins pravastatin and simvastatin became available generically. These two generic market entries are in addition to the already available lovastatin, bringing the number of generics available in the class to three. The summary of clinical evidence indicates that any of the statins are effective for patients to meet most goals of cholesterol (LDL) reduction. Lipitor 80mg will continue to be a Tier 2, preferred agent for those patients who require very high reductions in cholesterol (LDL).

October 2006

Drug Reviews, October 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

September 2006

Pill-Splitting Program expanded to include lovastatin
Effective 10-1-06, members taking lovastatin 10mg or lovastatin 20mg daily doses, who split the higher strength tablets will save 50% on their co-pay or coinsurance. For full details on the pill-splitting program access the Pill-Splitting Instructions (PDF), Retail Pharmacy Pill-Splitter Billing Instructions (PDF), and the Pill-Splitting Executive Summary.

Drug Reviews, September 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

Drug Reviews, August 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

August 2006

Drug Reviews, July 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

July 2006

MHealthy: Focus on Diabetes
MHealthy: Focus on Diabetes is a program that will eliminate or reduce the cost of selected medications for U-M employees and dependents who have diabetes. The two-year pilot program begins on July 1 and will encourage the proper and sustained use of specific drugs that affect blood sugar, blood pressure, cholesterol and depression and help prevent or reduce the long-term complications of diabetes. Information is available on the MHealthy website at:
http://hr.umich.edu/mhealthy/programs/disease/diabetes.html

Drug Reviews, May and June 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

May 2006

Drug Reviews, April 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

March 2006

Drug Reviews, January - March, 2006
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

December 2005

Pill-Splitting Instructions (PDF)
Beginning January 1, 2006 the U-M Prescription Drug Plan will allow you to reduce your out-of-pocket costs on prescriptions for Lipitor, Pravachol, and Zocor by voluntarily particpating in the pill-splitting incentive program.

Retail Pharmacy Pill-Splitter Billing Instructions (PDF)
If your RETAIL pharmacy needs assistance on how to process a pill-splitter, please download these instructions and give them to your pharmacist.

Pill-Splitting Executive Summary, October 2005
The study evaluated the impact of pill splitting on economic and pharmacologic outcomes, as well as patient satisfaction.

U-M Preferred Drug List (PDF)

September 2005

Prescription Drug Plan Customer Satisfaction Survey Results Announced

Customer Satisfaction Survey 2005 Final Report (PDF)

August 2005

Benzoyl Peroxide coverage ends October 1, 2005

Drug Reviews, August 2005
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

July 2005

Drug Reviews, July 2005
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

June 2005

Drug Reviews, June 2005
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

May 2005

Drug Reviews, March, April, and May 2005
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

April 2005

Bextra® Removed From the Market Due To Safety Concerns, effective April 7, 2005

March 2005

Drug Tier Changes, effective April 1, 2005

Elidel® and Protopic® will be restricted to patients over the age of 2 due to safety concerns, effective April 1, 2005.

Lac-Hydrin Coverage ends April 1, 2005

February 2005

Drug Reviews, February 2005
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

December 2004

COX-2 Medications and Heart Disease, December 23, 2004

Drug Reviews, September through December, 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

Bextra® Coverage will be restricted effective 2-1-05 due to safety concerns

September 2004

Vioxx® Withdrawal from Market Announced by Merck 9-30-04

August 2004

COX-2 (Celebrex ®, Vioxx®, and Bextra®) Step Therapy to begin October 1

Drug Reviews, July and August, 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

Prescription Drug Plan 90-Day Supplies Available at Retail Pharmacies, new policy effective September 1, 2004

July 2004

Seasonale: New extended-cycle oral contraceptive, July 19, 2004

Drug Reviews, June 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

June 2004

Drug Reviews, April - May 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

May 2004

Diabetic Injectable Insulin and Supplies Clarification, May 3, 2004
Clarification on what is covered by the Prescription Drug Plan or by your Medical Insurance plan.

Drug Reviews, January - March 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

April 2004

Generic Incentive Program Update, April 26, 2004
The Generic Incentive Program has been updated, effective May 1, 2004.

Generic Incentive Program Correction, April 26, 2004
An error in the system has been found and corrected.

March 2004

AdvancePCS Merges with Caremark Rx, March 24, 2004
On March 24, U-M’s Prescription Drug Plan provider, AdvancePCS, finalized a merger with Caremark Rx, Inc., another pharmaceutical services company. U-M pharmacy benefits are not affected by the merger. Faculty and staff members can continue to use the same AdvancePCS prescription drug cards at the same network pharmacies.

While Caremark plans to integrate the two companies over time, all existing mailing addresses, including claims, remain the same. Mail order pharmacy services are unaffected. The AdvancePCS website will also remain in place during the transition. For details on the merger, please visit the AdvancePCS site at www.advancepcs.com.

Information about Medicare-Approved Drug Discount Cards, March 22, 2004

February 2004

Drug Reviews, January - February 2004
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee. For a comprehensive list of the 2003 drug reviews, see the November 2003 update.

January 2004

The ADD/Narcolepsy drug class was inadvertently omitted from the list of Drugs Requiring Prior Authorization printed on page 18 in the "2004 Prescription Drug Plan" booklet. The missing information is below.

Drug Class	Examples of Drugs in Class
ADD/Narcolepsy (age 18 and over)	Adderall, Adderall XR, Concerta, Cylert, Desoxyn, Dexedrine, Dextrostat, Focalin, Metadate CD, Metadate ER, Provigil, Ritalin, Ritalin LA

For a complete list of drugs requiring prior authorization, see Prior Authorization.

November 2003

Drug Reviews, January – November, 2003
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

September 2003

Drug Reviews, January – September, 2003
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

IRS Approves Non-Prescription Drug Expenses for Health Care Flexible Spending Accounts, September 12, 2003
The Treasury Department and the Internal Revenue Service (IRS) recently ruled that certain non-prescription drug expenses may be reimbursed from pre-tax health care dollars contributed by an employee to a Health Care Flexible Spending Account (FSA).

OTC and Other Drug Exclusions, September 3, 2003
The U-M Pharmacy Benefits Oversight Committee approved the following change on 8/31/03 to the U-M prescription drug plan exclusion listing for over-the-counter medications:

Over-the-counter (OTC) medications and any prescription medication that contains the same active ingredient(s) at the same strength as an existing over-the-counter medication.

August 2003

Drug Reviews, April–July 2003
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

May 2003

Lipitor Recall, May 27, 2003
The Food and Drug Administration (FDA) announced on May 23, 2003 that Albers Medical Distributors, Inc., has voluntarily recalled three lots of 90-count bottles of the cholesterol-lowering drug Lipitor.

April 2003

Surviving the Peak Allergy Season, April 7, 2003
To learn more about allergies and the medications used to treat them, please see the article from M-CARE's HouseCall newsletter.

March 2003

Diabetic Injectable Insulin and Supplies Clarification, March 28, 2003
Clarification on what is covered by the Prescription Drug Plan or by your Medical Insurance plan. Updated May 2004.

Drug Release, March 2003
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

February 2003

Coordination of Benefits (COB), February 2003
Coordination of Benefits added to the U-M Prescription Drug Plan.

January - February 2003

Drug Reviews, January and February 2003
Drugs reviewed and determined for formulary inclusion and tier placement by the U-M Pharmaceutical Benefits Advisory Committee.

December 2002

Claritin and Claritin-D, December 20, 2002
Claritin and Claritin-D (generic loratadine and loratadine/pseudoephedrine sulfate) approved by FDA for over-the-counter sale.