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Live Better—Save More |
May 2009 |
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Should you choose generic medications?
In the effort to save money on health care costs, many consumers are making smart decisions about their prescription medications: They’re choosing generics over brand-name drugs.
In fact, the U.S. Food and Drug Administration (FDA) reports that today, almost half of all prescriptions are filled with generic drugs. The FDA says that “a generic drug is a copy that is the same as a brand-name drug in dosage, safety, strength, how it is taken, quality, performance and intended use.”
That means that generic drugs are chemically identical to their branded counterparts. What’s different is the price. The Congressional Budget Office reports that generic drugs save consumers an estimated $8 to $10 billion a year at retail pharmacies.
If you’ve been reluctant to choose a generic medication instead of a brand-name drug, here are three reasons you might want to change your mind and save some money.
1. Savings
CVS Caremark®, a national mail-order pharmacy, states that generics usually cost 30 percent to 60 percent less than branded drugs.
Why the big difference in cost? Because, the manufacturers of generic drugs don’t incur the same expenses as the makers of new, brand-name drugs.
Developing new medications requires that pharmaceutical companies spend money in research, development, promotion and other investments to bring the brand-name drug to market. Patent protection gives the company the sole right to sell the drug as long as the patent is in force.
As the patent nears expiration, manufacturers apply to the FDA to sell generic versions of brand-name medications. These manufacturers can sell their drugs at substantial discounts because they don’t have to recoup all of the investment costs incurred by the original drug manufacturer.
2. Safety
Generic medications use the same active ingredients and are shown to work the same way in the body as their brand-name counterparts. Therefore, generic medications have the same risks and benefits as brand-name drugs.
Both brand-name and generic drug facilities must meet the same standards of good manufacturing practices. The FDA reports that generic manufacturers have facilities comparable to those of brand-name makers.
In fact, brand-name firms are linked to an estimated 50 percent of generic drug production. These firms frequently make copies of their own or other brand-name drugs, but sell them under the generic name.
3. Strength
The FDA requires that generic drugs have the same quality, strength, purity and stability as brand-name drugs. They must duplicate the active ingredient of the brand-name medication.
In addition, generic drugs work in the same way and in the same amount of time as brand-name drugs.
But, generic drugs don’t have the same appearance as their brand-name counterparts. That’s by design. In the U.S., trademark laws don’t allow a generic drug to look exactly like the brand-name drug. Colors, flavors and certain other inactive ingredients may be different.
Choosing Generics
The time to decide between a brand-name drug and a generic is during a visit with your doctor. Anytime your physician prescribes a medication, ask if there’s a generic equivalent available and if it’s appropriate for you.
Every state has laws that regulate when a generic drug can be substituted for its brand-name counterpart. Many times, a pharmacist is required to dispense a generic unless a doctor specifies that the patient be given the brand-name drug.
If you ever have questions about whether to substitute a generic medication for a brand-name, talk to your doctor, your pharmacist or both.
Save On Prescriptions With Your Alliance Benefits
Check out these association benefits that can help you save on money on prescriptions for you and your family:
- Association Rx Card - a pharmacy program designed to save you time and money.
- Mail Service Pharmacy - save on 90-day supplies of your maintenance prescription drugs, like those used for high blood pressure or allergies.
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