The Benefits of Generic Versus Brand-Named Prescription Drugs

Harman Nagler, MD
Executive Medical Director, Sparrow Physicians Health Network

The cost of drugs is rising dramatically. At first it looks like employers or insurance companies are the ones that pay for the increases in drug costs, but eventually the costs are passed on to the employees (for example in higher copays, increased payroll deductions, and lower pay increases) who are actually using the prescription drugs. Since brand-name drugs cost so much more than generic drugs – on average, they cost over four times more – using generic drugs is very much in the interest of all employees.

Some people worry that the generic drugs are not as good as brand-name drugs. Actually, nothing could be further from the truth. It has been proven over and over again that the Federal Drug Administration (FDA) – approved generic drugs are nearly identical to their brand-name counterparts. The slight differences that sometimes occur have more to do with the way the medicine is “packaged,” and nothing to do with the drug’s effects on the person taking it. The FDA uses very strict standards when checking to see whether a generic drug is, in fact, equal to a brand-name drug.

These are facts, but attitudes are at least as important as facts. Physician’s attitudes tend to be fairly neutral – that is, it does not make much difference to them whether their patient uses brand-name or generic drugs. The patients, on the other hand, usually support the use of generic drug when there is a difference in out-of-pocket costs. If their physicians support the use of generic drugs, the patients are even more likely to be supportive.

The only people who truly benefit from brand-name drug use are the manufacturers of the brand-name drugs. Since they are no better than generic drugs and they cost much more, and since the cost is eventually paid for by the patient using the prescription drug, it is clearly in the best interest of everyone getting a prescription drug to use a generic drug if at all possible.