The FAQs About Generic Medications
 By Patrick L. Wynne

Prescription drugs are a big business and they’re taking a bite out of family budgets across the U.S.

In a new study, “The Use of Medicines in the United States: Review of 2010,” the IMS Institute for Healthcare Informatics found that total dollars spent on medications in the U.S. reached $307.4 billion last year—or real per capita spending of $898.

At the same time, the study showed that spending on brand-name prescriptions declined 0.7 percent. Spending on unbranded generic medications, however, rose a staggering 21.7 percent.

The study states that generics now account for 78 percent of all retail prescriptions.

That’s no surprise to families who are trying to cut costs and save money. Every penny not spent on prescriptions can be allocated to college funds, retirement accounts and other needs.

Still, many people have questions about the safety, effectiveness and use of generic drugs. Here are some of the most frequently asked questions, along with straightforward answers.

What’s the difference between generic and branded medicines?
The short answer is: There’s not much difference.

The U.S. Food and Drug Administration answers the question by reporting that generics are:

• Equally potent and as effective as branded medications
• Safe
• As quick to act in the body as brands
• Made in factories with identical safety and manufacturing standards as branded drugs

Why do generic drugs look different than their branded counterparts?
The fact is, about half of generic medications are manufactured by the same companies that make and sell the branded versions. In addition, the manufacturing facilities for brands and generics must meet the same standards.

But even though generic and branded medications have the same active ingredients, trademark laws prevent generics from looking like their branded counterparts.

That means generic drugs will differ from their brand equivalents in flavor, color, binders and other inactive ingredients.

Are generic drugs as safe as the branded versions?
The FDA review process for generics is as stringent as it is for new, branded medications.

For example, manufacturers of generic drugs must:

• Meet all federal regulations for manufacturing practices, with proper facilities for making, testing, packaging and controlling the medicine
• Prove that generic drugs are bioequivalent, which means that the active ingredient works just as it does in the brand, and as quickly
• Provide detailed documentation of a drug’s chemistry, manufacturing process and quality-control procedures

Should people always choose generics over brands?
You should always talk to your doctor about whether a brand medication or a generic is best for you.

Find out if there are reasons your physician prefers a brand over a generic. Ask about his preferences and clinical experience with the brand and its generic equivalent.

In many states, pharmacies are required by law to substitute a generic medication unless your doctor specifies that the brand drug must be dispensed. So, you need to know which type of medication your doctor recommends before having your prescription filled.

Can AFS help me save on prescription costs?
Yes!

Use the AFS Association Rx Card Program. It gives you access to a prescription savings card that’s accepted at more than 55,000 pharmacies nationwide, including Walgreen’s, Walmart and thousands of independent pharmacies. Plus, the card is accepted for generic and branded medications.

The Program offers four tiers of savings. And you can choose from two plans:

• Individual for only $13.95 per month
• Family for just $23.95 per month

(Posted June 2011)

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