Cost Effectiveness of the use of generic vs. brand-name medications
Medications may be very costly to some patients, especially when the expenses were unexpected. Many patients are aware that generic prescription medications are significantly lower in cost. Generic drugs can cover a variety of conditions, which include diabetes, hypertension, high cholesterol, depression, anxiety, thyroid conditions, asthma, among others. Specially for those with more than one condition, the cost can certainly add up very quickly.
One of the benefits of generic medications is that they can increase compliance. Patient are more willing to pay a smaller amount of money for their first fills and consequent refills. The high cost of a medication can easily discourage a patient from taking their medication.
There are two different types of drug substitutions: generic drugs and therapeutic equivalents.
Generic drugs are expected to work in the same exact manner as a brand name drug, they have the same effectiveness and quality, as well as side effect profile.
A therapeutic equivalent drug, on the other hand, is not the same on the molecular level, but is considered to be related. With therapeutic equivalents, the drug may or may not work with the same effectiveness. This is because it depends on which drug it is, how it works and the patient taking the medication. However, the drug is most likely to be as effective as the substituted one.
The question remains: Why are generic drugs less expensive? The answer lies in the process of getting a drug approved by the FDA. Once a drug is in the research process, it undergoes a series of steps to be able to be approved and finally sold to patients. This process can be very costly and allows the manufacturing company to keep their drug formula as a secret. A manufacturing company, therefore, will hold a patient or “recipe” of the drug for 20 years. After 20 years, other manufacturing companies can begin to make the generic version of the drug and sell it for a cheaper price.
According to the 11th annual edition of the Association for Accessible Medicine (AAM) 2019 Access & Savings Report the health system in the United States has saved $2 trillion in the last 10 years due to low-cost generics. In 2018, cost savings were $293 billion thanks to generic drugs.
Patients should be aware, that even if a physician or other prescriber does not offer the choice of receiving a generic medication, they can proactively ask for a substitution. Some physicians may receive payments from the pharmaceutical industry as an incentive to prescribe their brand name to patients. Therefore, it is important for a patient to educate themselves on their options. Fortunately, in many states, pharmacies can switch patients to generic drugs if a doctor has not indicated “dispense as written” on the prescription.
In conclusion, generic drugs are a cheaper and equally effective for patients. Prescribers and patients should be aware of the benefits of switching to generic drugs, since substitution does not affect effectiveness in most patients.
References:
Harvard Health Publishing. The cost of generic and name-brand drugs. Harvard Health. https://www.health.harvard.edu/drugs-and-medications/the-cost-of-generic-and-name-brand-drugs. Published August 2016. Accessed April 8, 2020.
AAM Report: Generic savings totaled $293 billion in 2018. APhA. https://www.pharmacist.com/article/aam-report-generic-savings-totaled-293-billion-2018?is_sso_called=1. Published May 21, 2019. Accessed April 8, 2020.
