Generic vs. brand-name drugs:
What’s the difference?

Generics are a fraction of the cost of brand-name drugs

You might have been there: A provider writes a prescription, you fill it at the pharmacy, and then notice the medication name on the bottle is different from what your provider wrote. What happened?

Chances are, your pharmacist saved you money. Unless your provider specifies otherwise, pharmacists often fill brand-name prescriptions with generic equivalents.

Don’t worry—this won’t change your treatment. Generic drugs are proven to work just as well as brand-name drugs, only at a much lower cost. They’re available for most conditions, including high cholesterol, anxiety, high blood pressure and diabetes.

Here are three key things to know about generics:

#1: Generics work the same as brand-name drugs

A generic drug must follow the same recipe as its brand-name version. It has the same active ingredient and works the same in your body. Both are regulated by the FDA, making them equally safe and effective.

Generics may look different, they might have another shape or color, but those differences don’t affect how the drug works. If you can look past the packaging, you can save big.

#2: Generics can cost as little as 0.1% of the brand-name price

Generic drugs usually cost much less than brand-name drugs. Sometimes dramatically less. For example, a brand-name drug might cost $2,000 while the generic costs just $2. That’s a 1,000x difference.

Even if you don’t pay the full price, you’ll almost always spend more out of pocket for a brand-name drug. Depending on your plan, your copay or coinsurance for a generic is often only a fraction of the brand-name cost. That can mean paying just a few dollars for a generic instead of hundreds, or even thousands, for a brand-name version.

You may wonder: doesn’t a higher price mean higher value? Not in this case. Read on to see why.

#3: Generics can only be made after a patent expires

When a pharmaceutical company develops a new drug, it receives a patent that prevents others from making it for several years. Once the patent expires, other companies can produce the generic version, as long as it uses the same active ingredient, strength and dosage.

With more manufacturers producing the drug, competition drives down the price. That means lower costs for you. Having multiple suppliers also reduces the risk of shortages if one manufacturer faces delays or disruptions.

Brand-name makers often keep their price high, and some consumers stick with the brand they know. But it’s important to know there’s no difference in how generics and brand-name drugs work in your body.

See how much you can save

Choosing generics lowers your costs at the pharmacy counter and can also reduce your overall healthcare expenses. Filling a generic instead of a brand-name drug could mean keeping an extra $50, $100 or more in your wallet each time you pick up a prescription.

Curious about potential savings? Try our Prescription Price Check tool. Log in to your Member Dashboard, select “Pharmacy benefits” from the “Benefits” drop-down, and explore:

• Your pharmacy benefits
• Drug pricing information
• Pharmacy locations
• And more

Log in to your Member Dashboard