GPhA: Generic drugs represented cost savings of $239 billion in 2013
WASHINGTON — The Generic Pharmaceutical Association on Wednesday released a report showing that generic drugs saved the United States health system $239 billion in 2013, a 14% increase over cost savings achieved in 2012, and the largest annual savings to date. The report also calculates that generic medications saved a record of nearly $1.5 trillion over the most recent decade (2004-2013).
According to the report, nervous system and cardiovascular treatments in the last 10 years accounted for 58%, or $851 billion, of cost savings.
“Just last month, we have seen how smart health choices like opting for generic drugs hold the power to move our nation’s budget trajectory in a positive direction," stated Ralph Neas, GPhA president and CEO. "In fact, recent Congressional Budget Office estimates now predict that Medicare and Medicaid spending is expected to drop by billions over the next decade,” he said. “With more than $239 billion in savings in 2013 alone from generic drugs, it is clear that generics have played a critical part in lowering health cost projections. This track record of savings is unparalleled, and the savings will grow substantially as we enter the era of biosimilars, the next frontier of generic industry innovation.”
In recent years, spending on federal health care programs has slowed sharply. In August 2014 the CBO changed its estimates for Medicare spending, projecting a drop of $49 billion (less than 1%) from 2015 and 2024, while Medicaid spending is expected to drop by $40 billion (approximately 1%) over the next decade. Generic drugs, which provide the same medicine and same outcomes for patients at a lower price, played a key role in the downturn of rising health costs.
All data were compiled by IMS Health on behalf of GPhA.