Save Your Money and Switch to Generic

Budgeting Generic Prescriptions

by Michael Reubelt

Generic drugs are bio-equivalent to brand name drugs in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. Although generic drugs are chemically identical to their branded counterparts, they are usually sold at a much lower price. According to the Congressional Budget Office, generic drugs save consumers an estimated $8 to $10 billion a year at retail pharmacies. So how can you cash in on some of the savings?

Finding a Generic Equivalent

To help you find out if there is a generic equivalent for your brand-name drug, the Food and Drug Administration has created an easy-to-use searchable database. By going to Drugs@FDA, you can enter your brand drug to match to its generic counterpart, if it exists.

Keep in mind that not every brand-name drug has a generic equivalent. When new drugs are made, they have patents that are usually protected for 20 years. It is not until a patent expires and the FDA approves that other drug companies can start selling a generic version of the drug.

Creating a drug costs a lot of money. Since generic drug makers do not develop a drug, their costs are considerably lower and they can pass on the savings to consumers.

Resting Easy About Switching to Generic

You may be concerned that because generic drugs are often substantially cheaper than the brand-name versions, that the quality and effectiveness have been compromised to make the less expensive products. In reality, however, generic drugs are the same as brand-name drugs in dosage, safety, strength, and quality. The FDA requires generic drugs to have the same high quality, strength, purity and stability as brand-name drugs.

Another common misbelief is that generic drugs take longer to work. By law, all generics must have the same active ingredients as the brands they copy. The FDA requires that generic drugs work as fast and as effectively as the original brand-name products. There may be a few differences between brand-name and generic drugs but these are inconsequential to their effect and can include characteristics such as color, shape, size, or taste.

Today, there are generics for about half of all prescription drugs and each year, more become available. When your doctor prescribes a new drug, ask for the generic version. If you have concerns about generics, discuss them with your doctor. Even if your doctor has already prescribed a drug, in most cases, you can still ask your pharmacist to give you the generic equivalent instead of the brand-name drug.

Finding the Best Price for Generic Drugs

Consumer Reports Best Buy Drugs can help you find lower-cost generic drugs. By switching to generic and finding a good price, you can pay a mere third of what you would for a brand -name drug.