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Brand Name vs. Generic Drugs

 

Generic drugs account for 53 percent of all prescriptions dispensed in the United States. In order to better c control costs the plan asks pharmacies to substitute generic drugs for their more expensive brand-name counterparts. Still, many people are confused by the difference between brand-name and generic drugs and question whether they are safe and effective. The following information will help you understand the differences -- and similarities -- between generic and brand-name drugs.

Why manufacturers make generic drugs
Generic drugs become available to consumers when their brand-name counterparts lose patent protection. A new drug patent typically lasts 20 years. During that time, no other pharmaceutical company may produce the same drug. But when the patent protection expires, other manufacturers are free to make their own versions of the drug.

In some cases, pharmaceutical companies produce generic versions of their own brand-name drugs. In fact, 50 percent of all generic drugs in the U.S. are manufactured by the company that developed the brand-name drug.

How generic and brand-name drugs are alike
The Federal Drug Administration (FDA) regulates the drug industry and makes sure generic drugs work exactly the same way as their brand-name equivalents.

• Generic and brand-name drugs have the same active ingredients. The active ingredient is the chemical substance in the medicine that works with your body to relieve your symptoms.

• Generic drugs have the same dosage, strength, potency, and use as brand-name drugs. A generic drug works the same way in the body as its brand-name counterpart.

• The generic and brand-name versions of a drug may have different trade names, but the chemical name is always the same. For example, fexofenadine is the chemical ingredient in Allegra, so the generic version of Allegra is sold under the name fexofenadine. Sometimes generic drugs have a trademarked name just as brand-name drugs do.

• Generic drugs are held to the same manufacturing standards as brand-name drugs. The FDA regulates all drug manufacturers, regardless of whether they produce generic or brand-name medications. Generic drugs must meet the same requirements for quality and purity as brand-name drugs.

• Generic drugs are less expensive than brand-name medications. Generic drugs are 30 to 80 percent less expensive than brand-name prescription medicines. In 2004, the average price of a generic prescription drug was close to $28, while the average price of a brand-name prescription drug was over $95. Drug makers typically spend millions of dollars developing new medications. They price their drugs high to make back their research and development costs.

• Generic medications must look different than their brand-name equivalents. Trademark law protects the way a brand-name drug looks, so manufacturers of generic drugs use inactive ingredients, such as dyes and fillers, to change the color or flavor of their medicines. The shape may be different, too. These differences don't interfere with the way the drugs work.

The number of generic drugs on the market is expected to increase. Currently, about half of all prescription medications have generic equivalents. However, within the next few years, the patent protection on many popular drugs is due to expire, which means there will be more competition from generics and significant cost savings for consumers.