Generic drugs are an essential part of any solution to sustaining our health system and are central to efforts that increase patient access and generate savings for patients, taxpayers, employers, payers, providers and others.
Nearly 3.8 billion of the total 4.3 billion prescriptions dispensed in the U.S. in 2014 were filled using generic drugs. This means that generic drugs now account for nearly nine out of every 10 (88%) prescriptions dispensed in the United States. Yet generic prescriptions account for only 28% of total drug spending. Generic drugs were responsible for $254 billion in health system savings in 2014, bringing the total savings over the last 10 years to $1.68 trillion. Generic drug manufacturers can proudly point to a legacy of savings and access that brings expensive treatments within reach for millions of people. It is important to note that savings are growing and are expected to continue to grow.
• The 2014 Express Scripts Drug Trend Report shows that SINCE 2008, THE PRICE OF BRAND DRUGS HAS ALMOST DOUBLED but the PRICE OF GENERIC DRUGS HAS BEEN CUT ROUGHLY IN HALF.
• A May 2015 report from AARP notes that RETAIL PRICES FOR GENERIC DRUGS FELL AN AVERAGE OF 4% IN 2013, marking nearly a decade of consecutive years of decreasing generic drug costs. That report also notes that 73% OF GENERIC DRUGS in the study EXPERIENCED PRICE DECREASES.
• An August 2015 Drug Channels blog noted that in the SECOND QUARTER OF 2015 ALMOST HALF (44%) OF GENERIC DRUGS EXPERIENCED A DECLINE IN COST.
As an employer in the ‘self-insured’ space it is essential to adopt a comprehensive strategy with respect to the use of generic drugs. This involves providing education on this topic for employees and suggesting generic alternatives. Having access to prescribing data can be used to assess generic usage and illustrate possible cost savings. For more information on this topic please contact a team member at Obeo Health.