JAMA Internal Medicine study highlights potential generics savings

CHICAGO — A new study published online Monday in JAMA Internal Medicine  is highlighting the potential cost savings that result when clinicians prescribe generic versions of branded drugs. The study estimates that between 2010 and 2012, the U.S. could have saved some $73 billion in health care costs if generics had been more widely used. It also highlights the value generics bring to the health system beyond simply saving money. 

 

“The general acceptance of generic substitution has increased the efficiency of the prescription drug market,” the study said. “Use of generic drugs leads to higher levels of adherence and has decreased health care costs while improving outcomes. Critical to the growth of the generic drug market was the idea of therapeutic equivalence and hence substitution of generic for branded drugs.”

 

The study notes that a lot of excess spending was concentrated among such drug classes as statins and atypical antipsychotics, among others making up a small portion of total prescriptions. It also notes that a solid portion of the excess cost was paid by consumers. 

 

“In contrast to payers, patients do not get rebates on their purchases and were responsible for a considerable portion of the excess by expending 33% of the total excess, or $24.6 billion in out-of-pocket expenses,” the study said.