Which payment structure requires patients to pay varying amounts for generic versus brand name medications?

The payment structure requiring patients to pay varying amounts for generic versus brand name medications is known as dual co-pays. This model distinguishes between the cost-sharing responsibilities for different types of medications, typically setting a lower co-pay for generic drugs and a higher one for brand-name drugs. This approach encourages patients to opt for lower-cost generics when possible, which helps manage overall healthcare costs while still providing access to brand-name medications when necessary.

In contrast, fixed co-pays set a predetermined amount that patients pay for medications regardless of whether they are generic or brand name. Tiered pricing structures generally classify medications into different tiers with varying co-pay amounts, but they tend to offer a more complex system rather than the straightforward dual approach. Single co-pays imply a uniform co-payment for all medications, lacking the flexibility to differentiate between generic and brand names. Thus, dual co-pays effectively capture the differences in pricing between generic and brand-name medications.