Featuring data from IQVIA, the 2022 U.S. Generic and Biosimilar Medicines Savings Report reveals generic and biosimilar drugs generated a record $373 billion for America’s patients and healthcare system in 2021. Despite the tremendous savings from generic drugs, many patients continue to pay more than necessary.
The report breaks savings down by state, age, payer and common medical conditions and provides in-depth data at a moment when Voters continue to be alarmed over the cost of prescription drugs. These findings only reinforce the critical importance of the generic and biosimilar industry to America’s patients.
Here are the topline findings:
$373 billion: U.S. health care system savings
Up from 2020, which found $338 billion in generic and biosimilar savings, this figure indicates continued savings for the U.S. health care system, including patients, employers, and taxpayers.
91%: Portion of U.S. prescriptions filled by generic drugs
However, those prescriptions accounted for only 18.2% of the country’s spending on prescription drugs. In other words, costly brand-name products account for the bulk of pharmaceutical spending. The generics and biosimilars industry brings costs down.
$6.16: The average generic copay
The amount paid at the pharmacy counter is what concerns patients. The average out-of-pocket cost for brand-name drugs is more than nine times higher at $56.12. Fortunately, 93% of the time, the copay for a generic prescription is under $20 (as compared to 59% of brand-name drugs).
Over $7 billion: Biosimilars savings
The market for biosimilar drugs continues to expand, and as they approach nearly 30% of the overall biologics market. The report finds the average sales price for biosimilars is on average 50% less than the reference brand biologic price. Further, competition from biosimilars has reduced the average sales price of their corresponding reference biologic by an average of 25%.
$119 billion: Medicare savings
Medicare savings on generics and biosimilars is good news for seniors and taxpayers.
$178 billion: Commercial plan savings
Generics and biosimilars provide critical savings throughout the health care system and are particularly valuable to Medicare and employer-sponsored health insurance and the patients they serve. Despite these savings, many seniors are paying too much for their generics as a result of increasing copays, even when the price of their generic has declined.
3%: Healthcare Spending
Even at nearly 6.4 billion generic and biosimilar prescriptions dispensed, generics represent only 3% of all health care spending
AAM publishes these findings annually to ensure policymakers, health care professionals, advocates and the public know the vital role that safe, effective, FDA-approved generics and biosimilars play in health of our nation.
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