December 3, 2014
Generic Drugs- Are they Really the Same?
Generic drugs are often advertised as money-saving options, a valuable way to keep health care affordable for all interested parties – including employees, employers, insurance companies and the government. But there’s a lot of confusion about how a generic stacks up against the brand name drug.
Simply put, a generic drug is a copy of a brand name drug. By law, a generic drug must contain identical active ingredients as the brand name drug. Health Canada ensures that Canadians get medication that is therapeutically safe, effective and of high quality. The manufacturer must also prove that the drug performs the same way on the body as the brand name drug.
Often a generic drug will look different than the brand due to the non-medicinal ingredients like fillers and dyes. Studies are performed to prove that these ingredients have not changed the quality, safety or effectiveness.
The major difference between generic and brand name drugs? The cost. When a company brings a new drug onto the market, substantial money has been spent on research, development, marketing and promotion of the drug. A patent is granted, giving the company an exclusive right to sell the drug as long as the patent is in effect. As the patent nears expiration, manufacturers can apply to produce generic versions of the drug, and without the initial development costs, can afford to make and sell it at a lower cost. When multiple companies begin producing and selling a drug, the competition among them can drive the price down even further. In fact, generic drugs can cost up to 65% less than their brand name equivalent.
By using generic versions whenever possible, not only will you save at the pharmacy, but depending on your plan design, you could be reimbursed up to 30% more of your prescription purchase – giving you twice the savings.
Regardless of whether your prescriptions are covered through a public plan or by health premiums at work, everybody pays for high-priced drugs through taxes and/or increased premiums. Choosing generic drugs is safe and effective, and can result in significant savings for all stakeholders.
- The Best Benefits Plan You’ve Never Heard Of
- Want to Work with these Crazy People?
- We’re Hiring!
- Video: Stable Insurance Premiums for Small Business
- Video: The my-benefits® Mobile App
- Video: The Most Popular Employee Benefits in Canada
- Enjoy your Vacation with Peace of Mind
- S+F Giving Back at Christmas
- Brad on Joytv!
- S+F’s Annual Family Christmas Party