Title: A Closer Look at Generic Prescription Drugs
As all of us continue to look for ways to save money on products that we use
everyday, generic prescription drugs offer cost savings that many of us often
overlook. To take advantage of these savings, ask your physician about generic
alternatives for any drugs you are currently taking. Generic drugs are almost
always lower in cost than their brand-name drug equivalents. And when you
take prescription drugs on a daily or routine basis (such as diabetes or high-blood
pressure medications) your cost savings can quickly add up.
What are generic drugs?
A generic drug is a chemically identical version of a brand-name drug in the
following ways: dosage form, safety, strength, route of administration (e.g., by
mouth or inhalation), quality, effectiveness and intended use. Generic drugs are
required by the Food and Drug Administration (FDA) to have the same quality,
strength, purity, potency and stability as their brand-name counterparts.
In short, generic drugs are required to have the same active ingredients as
brand-name drugs. Generic drugs may look different from brand-name drugs
due to the inactive ingredient(s) used to manufacture the generic drug. This may
make the drug different in color, shape, size or even taste compared to its
brand-name equivalent. These inactive ingredients do not affect the
effectiveness of generic drugs.
The following chart lists some commonly prescribed drugs and their generic
equivalent:
Brand Name
Ambien®
Cozaar®
Valtrex®
Effexor XR®
Prozac®
Zocor®
Protonix®
Wellbutrin XL®
Generic name
Zolpidem
Losartan
Valacyclovir
Venlafaxine
Fluoxetine
Simvastatin
Pantoprazole
Buproprion
Treatment condition
Insomnia
high blood pressure
Herpes
Depression
Depression
high cholesterol
heartburn/GERD
Depression
When a pharmaceutical company receives approval for its brand-name drug by
the FDA, the company is given a patent for up to 20 years. This patent allows the
company to manufacture, market, price and sell their patented product
exclusively during this time period. Once the patent expires on the brand-name
drug, other pharmaceutical companies can manufacture and sell generic
versions of the brand-name drug.
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Brand-name drugs are expensive because of the high initial investment costs
associated with the research, development, clinical trials, marketing, advertising
and promotion required to develop and market a new product. For example, in
2009, Astra Zeneca spent $132 million to advertise Crestor®, a brand-name drug
used to treat high cholesterol. Pharmaceutical companies that manufacture
generic drugs can sell them at lower prices, not because the products are of
lesser quality, but because they don’t have the same upfront investment costs.
In the next four years, six of the 10 top-selling brand-name drugs in the U.S. will no
longer be under patent. These include Plavix® (a blood thinner), and Lunesta® (a
drug commonly used to treat insomnia). Greater numbers of generic drugs
means greater saving opportunities.
The following chart lists drugs that will be losing their patent in the next few years
Estimated date of
generic
availability
July 2012
November 2013
May 2014
July 2016
Brand Name
Generic Name
Treatment condition
Lunesta®
Aciphex®
Nexium®
Crestor®
Eszopiclone
Rabeprazole
Esomeprazole
Rosuvastatin
Insomnia
Heartburn/GERD
Heartburn/GERD
High cholesterol
How to save by using generics?
Most health plans offer generic drugs at the lowest copayment tier which will
help you reduce your healthcare costs. The chart below shows how you can
save money on your copayments by using generics.
Formulary tier
Copayment (30-day supply)
Total copayment savings for a
30-day supply
Total annual savings*
Brand-name Drug X
Tier 2-Preferred brand
$40.00
$30
Generic version of Drug X
Tier 1-Generic brand
$10.00
$360
*Total annual savings based on 12 monthly fills
You can begin saving money on generic drugs quickly and easily. The next time
you have a prescription, ask your physician or pharmacist if a generic alternative
is available.
Conclusion:
Generic drugs are just as effective as brand-name drugs. Using generic drugs,
when appropriate, is one of many cost-saving solutions that can reduce your
prescription drug costs.
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