Safety and cents of generic drugs

The rising cost of health care continues to affect the American economy. It is estimated that 10 to 15 percent of all health care costs paid by consumers are directly related to prescription drug
spending. In fact, members use their pharmacy benefit most frequently — 15 to 18 times annually.

At a time when employers are looking for ways to reduce health care costs, promoting generic drugs is one of the most effective ways to save money. Perhaps the most important step you can take to increase generic utilization within your workforce is to increase the awareness of generics and educate employees on their benefits.

What are generic drugs?
Generic drugs are cost-effective alternatives that offer the same level of safety and quality as their brand-name equivalents. Generic drugs have the same active ingredients as brand-name medications. However,  the inactive ingredients, such as dyes used to color generic medications or powders used to shape the tablets, can vary. These differences do not affect how generic medications work in the body. Generics have the same active ingredients, but they cost significantly less — typically 60 to 90 percent less than brand-name drugs.

How are generic drugs approved?
The Food and Drug Administration (FDA) regulates generic drug manufacturers just as it regulates the makers of brand-name medications.

To gain FDA approval, the maker of a generic drug must adhere to strict criteria, including proving that the generic drug’s active ingredients, drug strength, and dosage form are the same as those of the corresponding brand-name drug and that it delivers the same amount of active ingredients in the same time frame. The manufacturer of the generic drug must also prove that its product is produced under the same strict guidelines as the brand-name drug.

After approval, the FDA continues to regularly inspect all manufacturing facilities of both brand and generic products to ensure that only high-quality medications are sold in the United States.

Why should you encourage your employees to use generics?
Every year, generic drugs save consumers billions of dollars. By choosing a generic medication, your employees:

• Often save on their prescription copayment
  
• Get the same quality and effectiveness as the brand-name drug
  
• Help keep medical care more affordable

If you want to educate your employees about generic drugs but are not sure what to do, UPMC Health Plan clinical pharmacists can provide on-site educational sessions. They can help your employees understand their pharmacy benefit, including the advantages of generic drugs, and answer employees’ questions. If you are interested in scheduling an on-site visit with one of our pharmacists, please contact your account manager.

Here are some common brand-name medications and their generic equivalents.