Generic Medications
As you may be aware, the cost of
prescription medications is rising at an
alarming rate. As a member of your
employer’s health benefit plan, you enjoy
a prescription program that enables you
to pay for only a portion of the total cost
of your prescription medication, known as
the “copay”. Your employer pays for the
rest of the medication not covered by the
copay.
As prescription costs continue to soar,
your plan sponsor is faced with the
ongoing challenge of how to best
manage these high drug costs while
providing you with a high level of care.
One important way that you can help
reduce
overall
drug
costs
is
understanding about the value of generic
medications.
This Member Education Piece discusses
the availability of generic medications
within commonly prescribed classes of
drugs. Generic medications may provide
you with a safe, effective and less costly
alternative to your current prescription
medications.
What are generic medications?
Generic medications are made from the
same active ingredients as their brandname
counterparts.
They
are
manufactured according to the same
standards as brand-name medications
and have the Food and Drug
Administration’s (FDA) approval for
safety and effectiveness. Yet, generic
prescription medications cost much less
than their brand-name counterparts.
Why are generic medications less
expensive
than
brand
name
medications?
The cost of brand name medications is
often high because the manufacturer
must recover the costs of the research
and development to produce the
medication. Billions of dollars are spent
in research and development to bring a
new medication to market for consumer
use.
Since the pharmaceutical
manufacturer invests heavily in the
research and development of the
medication, it is granted a 20-year
patent on the medication, during which
time no other company can sell it.
During this time, the price of the
medication is very high because there is
no competition from other companies.
This exclusive 20-year period enables
the manufacturer to recover the costs of
bringing the medication to the market.
Once the 20-year period expires, other
pharmaceutical companies can legally
sell the medication. These companies
did not invest in research and
development of the medication, so they
can offer it at a substantially reduced
price.
Furthermore, because many
companies are able to manufacture the
medication after the patent expires,
competition further drives down the
price of the medication.
Once the
patent on the medication expires and it
is available from many companies, it is
commonly referred to as being available
in its “generic” form. The generic form is
still the same, identical medication that
was developed by the original
manufacturer with the 20-year patent.
Therefore, the generic has the same
safety and effectiveness as the brand
name medication but is much less
expensive.
Generics have been around for a long
time. In fact, some generic medications
have been prescribed so routinely that
they have become household names,
such as prednisone, amoxicillin and
ibuprofen.
Recently, the FDA has
granted approval for generic equivalents
of some very popular brand name
medications, including Prilosec and
Zocor. In the coming years, expect to
hear about the availability of many other
generic versions of popular prescription
drugs. Generics are safe, effective, and
in general cost 30-80% less than their
brand name counterparts.
What about medications that do not
have generic equivalents?
There are brand-name medications that
are covered by patents described above
that do not yet have generic equivalents
available.
These medications are
typically very expensive.
In some
instances however, there may be
generic medications available that are
very similar in how they work in the body
as brand name medications.
One way you can help reduce
prescription drug costs is to ask your
doctor if there is an alternative generic
medication that is equivalent or similar
to the brand name drug that may be
right for you. Some examples of brand
name medications that do not have
generic equivalents are listed below.
The table also provides generic
alternatives that are similar to each
brand name drug.
Brand Name Drugs with Generic Alternatives
Drug Class
Cholesterolreducing drugs
Anti-ulcer drugs
Allergy drugs
Antidepressants
Brand name
drug (no
generic
equivalent
available)
Crestor
Lipitor
Prevacid
Protonix
Monthly
cost*
Generic
alternative Monthly
similar to brand name cost*
drug
$104
$91-$130
$164
$131
Aciphex
$164
lovastatin, pravastatin, $27-$50
simvastatin
omeprazole 20mg $20
available over the
counter as
PrilosecOTC**
Nexium
$164
Zyrtec

$77
Zyrtec-D
$77
Allegra-D
$114
Clarinex
$104
Clarinex-D
$120
Lexapro
$95
loratadine – available $17 Claritin
over the counter as
Claritin, Alavert, and
store brands
fexofenadine
(prescription only)
fluoxetine, paroxetine
citalopram, sertraline
$49
fexofenadine
$8-$57
*Monthly cost is approximate and based on most common daily dose for each medication
**Also available as a generic prescription product
If one of these brand name medications is prescribed for you, ask your doctor if a
generic alternative may be appropriate. This way you will be doing your part to help
control soaring prescription costs while taking a quality medication.
If you would like more information about your medication visit our website at
www.pharmacare.com or call the toll-free number on the back of your card.