The cost benefits associated with generic drugs are plentiful and impressive. Generic drugs, also referred to by some consumers as discount drugs, account for approximately 50% of all drugs sold in the United States. Their appearance often differs slightly from that of name brand drugs, but their strength and quality mirrors that of brand name drugs. The active ingredients are also the same.
The most widely recognized cost benefit of a generic drug is the personal savings that a consumer is afforded. Through participation in generic drug plans, a consumer can enjoy cost savings of 30% to 80%. Some retail stores, such as Wal-Mart and Costco, offer specific discount drugs as a part of their generic drug plans. For instance, Wal-Mart is now offering $4 generic prescription drugs. Most generic drug plans involve a co-pay of $10. Due to the affordability of these drugs, people across the globe are increasingly able to purchase required medications.
Consumers are not the only group of individuals that saves money because of generic drugs. Drug manufacturing companies also benefit from the production of these discount drugs. Because it is less expensive to create a generic drug, profit margins become more easily attainable. Generic drug manufacturers do not have to generate the drug from scratch and do not have to engage in years of rigorous testing and quality control procedures required to obtain FDA approval for a brand new name brand drug.
In sum, generic drugs are associated with a host of cost savings for consumers and drug manufacturers. Through participation in generic drug plans, consumers can buy discount drugs that possess the same active ingredients and quality as name brand drugs. The total savings enjoyed by consumers and companies that manufacture generic drugs will continue to rise as availability of generic drugs increases.