Generic prescription medicines save patients more money with each passing year. In 2019, according to AAM’s Generic Drug & Biosimilars Access & Savings in the U.S. Report (with data provided by IQVIA), savings from generic drugs added up to $313 billion. The 50 states saved on average $6.1 billion savings in 2019, including $1.9 billion in Medicare savings and $950 million in Medicaid savings.
Now that Rich is semi-retired, he loves to go boating on the Chesapeake Bay. He takes a generic drug to control his blood pressure.
On the other side of the country, Jeni is pursuing a graduate degree and enjoying California’s hiking trails. She takes a biosimilar medication to treat her pancolitis.
In 2019, the U.S. health care system saved $313 billion in 2019 from generics and biosimilar drugs, including $96 billion in Medicare savings and $48.5 billion in savings to Medicaid. At a time when access to reliable, affordable and high-quality prescription medication is more important than ever, generics fill 90% of prescriptions in the United States for only 20% of the cost.
A Reference Guide for Lawmakers
Health care and the cost of prescription drugs are top issues for voters across the country. AAM developed a resource for effective communications around the concern for the rising cost of prescription drugs during COVID-19, “How to Talk About High Drug Costs in a Time of Economic Insecurity." This primer outlines how anticompetitive tactics limit patient access to FDA-approved generics and biosimilars, and how competition helps reduce drug prices.
Even though generics and biosimilars provide consistent savings for taxpayers and consumers, today’s Medicare patients too often face obstacles to using these lower-cost options. This is a result of outdated policies that can unintentionally encourage plans to prioritize formulary placement of high-cost brand drugs and that fail to reflect the emergence of new competitive therapies.
In the debate over how to lower the cost of prescription drugs, one thing is certain: Generic competition drives savings for America’s patients and our health care system. The introduction of generic medicines offers patients the same high-quality medicine as the brand-name drug, but at an average price that is 39% lower according to the U.S.
WASHINGTON, DC (February 20, 2020) — “America looks to new generic drugs for significant savings on medicine, but our newest data show Medicare and commercial health plans delay their coverage. Delayed competition from generics increases costs for patients, taxpayers and employers and rewards the makers of high-priced brand-name drugs.
WASHINGTON DC (January 23, 2020) –“Today’s report highlights the need to refine the Medicare program to support savings through generic drug substitution. The continued use of high-cost brand drugs instead of generics causes higher spending for patients and taxpayers.”
ATTRIBUTE TO: Chip Davis, President and CEO
Generic medicines are an integral component of America’s pharmaceutical care system, driving substantial savings to patients and public programs. Even as spending on prescription drugs continues to rise in public programs, the use of generic medicines has blunted increasing brand drug prices, generating savings of $293 billion in 2018 alone. In fact, the average price of generic drugs covered under Medicare Part D in 2017 was only 26% of their average price in 2006.
Congress created Inter Partes Review (IPR) to improve patent quality and expedite access to safe and affordable generic and biosimilar medicines. IPR is a process that allows patent experts to take a second look at patents and ensure that every granted patent represents true innovation. This graphic demonstrates how IPR improves patent quality, accelerates competition and makes lower-cost generics and biosimilars accessible to U.S. patients. Learn more in this infographic: