Have you ever compared the price difference between generic and name brand medicines? Sure, the difference between Walmart brand pain killers and regular Advil is big, but the price difference really comes into play with prescription medicines.
If you’re concerned about how your insurance handles generic medications, you probably don’t have to be worried! Most insurance companies want you to go with the generic medication because it is cheaper all around.
Let’s dispel some myths about generic prescription medication, and get you to a place where you can save money and live better.
Why Generics are Cheaper
Company A puts $20 million into research for a product. Another $20 million goes into marketing and development, and a further $5 million goes into production and perfecting. Before their drug even hits markets, they have spent $45 million on this single drug.
This is the name brand manufacturer, and these numbers are very conservative. It costs a lot of money to create, test, and produce a new prescription drug!
Company A files for a patent for this drug, and it lasts X number of months or years. Once that patent goes to expire, company B can ask the FDA for permission to obtain that information and produce the drug themselves.
Company B spent zero money on research and development, and needs to spend almost nothing on marketing because all the work has been done by company A. Company B can push their product as an alternative to pharmacies around the country and rake in the cash immediately.
This is the reason that generic medication is cheaper than name-brand medication. It is significantly cheaper to produce and distribute, and there are almost no upfront costs for the companies.
Generics Are Just as Safe
A strange rumor that has gone around for years is that the reason that generics are so cheap is that they are made in unclear or unsafe facilities, and quality assurance is questionable at best.
Do you think your insurance company would want you to take medication like this? Because, honestly, their goal is to keep you healthy so you don’t cost them a ton of money. Extended sickness and hospital bills all cost your insurance company more.
Generic medications are legally obligated to follow the same rules and regulations as all other medications. The FDA regularly tests for quality, and facilities are inspected for cleanliness.
Overall? There Is No Difference
When you purchase a generic medication, it is the same as buying the name brand medication, except that it is a lot cheaper for you overall.
The FDA ensures that the same performance, strength, route of administration and even dosage form is all identical to the original. What you’re not paying for when you switch to generic prescription medications?
Marketing. Advertising. Development.
Put more money back into your pocket, save on your insurance costs, and switch to generics. It just makes sense.