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Health Insurance Facts for Generic Drugs
- When a new drug is developed, it is normally identified by two names. One is the chemical or generic name, and the other is the brand name. A generic medication is often a medicine that is known by its chemical name.
- The difference between a generic and a brand name is the price. A generic medication is much less expensive than a brand name drug. However, it contains the exact same active ingredients, in exactly the same amounts, as does the brand name counterpart. It meets the same government standards for potency.
- Generic drugs are as safe and effective as their branded corresponding item because they are identical in terms of their quality. All generic drugs on the market have met all Food and Drug Administration (FDA) standards.
- Stuart Nightingale, MD FDA, January 28, 1998 stated in a presentation Products evaluated as therapeutically equivalent can be expected to have equivalent clinical effect whether the product is brand or generic.
- Approximately 80% of generic drugs are produced by companies that produce branded drugs. The FDA regulates all manufacturing firms.
- The copayments for generic medications are much less expensive than on the brand name products.