Are You Paying Too Much For Your Prescriptions?

When you pay more for something you expect to get a higher quality product, right? That reasoning might work when comparing fine wines, but it doesn’t for your blood pressure medication. A lot of Americans are taking their grocery-store logic to the pharmacy, and it’s costing them.

Consumers frequently choose pricey brand-name prescription drugs over their generic counterparts. Yet the only significant difference between the two is the cost: generics offer the exact same quality and effectiveness as brand-names for less money.

And check out that price tag. On average, a generic drug costs approximately $60 less than a brand name drug. Consumers can also expect a lower co-payment, too – saving $10 or more on average for each generic prescription.

Potential savings are nationwide

A new study published by Express Scripts reveals brand-name buying consumers across the country are missing out on $20 billion in savings each year.

The greatest savings for consumers, employers and state governments lie in gastrointestinal drugs. More than $5 billion could be saved each year, just by purchasing the generic versions of these drugs alone.

And as more generic drugs become available in 2006, the potential savings will continue to climb.

"We have only scratched the surface in taking advantage of the money- saving potential of clinically sound generic drugs," said Steve Miller of Express Scripts.

What makes it generic?

Brand-name manufacturers research and develop new drugs and hold exclusive patents on them for many years. But when the patent expires, the drug is up for grabs for other companies to copy and manufacture. These new companies don’t have to build the huge development costs into their pricing, and together they create competition which further drives drug prices down.

Top 3 generics myths busted

So many Americans neglecting to purchase wallet-friendly generic drugs points to a consumer education problem. Here are the top 3 mistakes people are making about generics.

Myth #1 Generic drugs aren’t as safe as brand-names. The Food and Drug Administration requires that all drugs available to consumers meet the same standards of safety. Generic drugs contain the exact same active ingredients, the same risks and the same benefits as the brand-name versions.

Myth #2 Generic drugs aren’t as strong as brand-names. Generic drugs work just the same in your body as the brand-names. The FDA holds generics and brand-names to the exact same standards of quality, strength and purity.

Myth # 3 Only brand-name drugs are manufactured in modern facilities. All drug manufacturers have to meet the FDA’s strict production facility standards. Your generics were made in facilities that have passed FDA testing.