Generics

Study: Generics saved $1 trillion for the United States

According to a study released Thursday by the generic-drug industry, generics saved more than $1 trillion for the healthcare system over the past decade. Industry representatives advocate expanded use of generics in Medicare and Medicaid, and the latest study shows that generics have made it possible to control government spending on prescription drugs.

The study says: “The analysis clearly demonstrates that any effort to contain healthcare costs — whether in the U.S. Congress or in state legislatures — must recognize that generic-drug use can save billions of dollars.”

The analysis was performed by researchers at IMS Health using government data and was published by the Generic Pharmaceutical Association (GPhA). According to IMS, generics saved the healthcare system $1.7 trillion from 2002 through 2012, and the savings continue to grow. In 2011 alone, savings from generics amounted to $193 billion, 20% more than the prior year.

GPhA argues that savings will grow further thanks to President Obama’s healthcare legislation, which allows generics to compete with expensive complex-class drugs known as biologics. Generic versions — called “biosimilars” — will not exactly replicate traditional generics, but according to GPhA the savings will be significant. The study states: “Approval of biosimilars will bring the biologics market the competition needed to reduce costs and will provide substantial savings to patients in need of these life-saving treatments.”