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August 9, 2010

Generic Drugs

Savings & Safety

Generic drugs are medications with the same active ingredients as their brand-name counterparts. The FDA requires generics to be "identical... to a brand name drug 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 typically sold at substantial discounts from the branded price. According to the Congressional Budget Office, generic drugs save consumers an estimated $8 to $10 billion a year at retail pharmacies."

Despite this regulatory requirement, some seniors still wonder if generics are as effective and safe as their corresponding brand-name medications. In some cases, the same manufacturer makes both a brand-name and generic version of the same medication and half of all generic drugs are manufactured by the same facilities that make the equivalent branded products.

The major advantage of generics is price. A FDA study has demonstrated that a person's drug costs per day can be reduced by 14% to 16% if generic drugs are used instead of equivalent branded drugs, depending on their medical needs. Since senior citizens are among the largest consumers of medication in the U.S., the savings can be substantial.

In most cases, generic medications are produced after the expiration of a patent on a brand-name medication. Discuss your current prescriptions with your physician to determine if generic alternatives would save you money. Medicare Prescription Drug plans offer great coverage for generics.

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Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are offered by private companies approved by Medicare and provide Medicare Part A and Part B coverage. Medicare prescription drug coverage is insurance run by an insurance company or other private company approved by Medicare. A Medicare Supplement plan is a health insurance plan provided by a private company that fills in the "gaps" in original Medicare coverage.