Generic vs. brand-name drugs: what’s the difference?

Did you know that prescription drug prices in the U.S. are an average of 2.5 times higher than other Western countries?¹ With this in mind, you might be wondering if switching to a generic drug is right for you. Let’s take a look at the differences between the generic and brand-name versions of prescription drugs.

A generic drug is a medication with the exact same active ingredient as the brand-name drug, is taken the same way and offers the same effect. They do not need to contain the same inactive ingredients as the name-brand product and they can only be sold after the brand-name drug’s patent expires.²

There are only two main differences between generic and brand-name drugs:

1. The inactive ingredients, such as flavoring or preservatives, may change
2. Generics generally cost less than brand-name versions³

The U.S. Food and Drug Administration sets standards for generic drugs to ensure they work the same way and have the same benefits and risks as their brand-name counterparts.⁴

Generic drugs must match the brand-name versions in the following ways :

• They must have the same active ingredients
• The dosage and strength must be identical
• The overall quality, stability and safety must be the same

A generic drug must be “bioequivalent” to the brand-name product, meaning they have to be chemically similar.⁵ A recent study that compared generics to brand-name drugs found on average only a 3.5% difference in absorption into the body.⁶

Yes. The FDA requires a generic drug manufacturer to follow the same standards as the brand-name manufacturing process. They are often made in the same facilities. The agency conducts on-site inspections each year to make sure the manufacturers are following the rules.⁷

Generic medications on average are 80–85% less expensive than brand-name medications.⁸ Humana members can see how much they may save by signing in to MyHumana and selecting "Drug Pricing Tool" at the bottom of the page under "Tools & Resources."

Always talk to your doctor about the best course of your treatment. Some medicines don't have a generic version but your doctor or pharmacist can see if there are alternatives you can try. You may find the savings are well worth the change.

Besides switching to a generic, here are a few ways you may be able to cut costs on your prescription:

• Ask for a 90-day supply at your pharmacy: This may help lower your copay, which may add up to significant savings.
• Try mail-order: Check with your insurance policy to see if you have a lower copayment if you get your prescription through the mail.
• Pick a pharmacy in your plan’s preferred network: Make sure the pharmacy you visit is in your plan’s network before getting a refill.
• Sign up for a prescription discount program: These programs work directly with drug manufacturers to help keep costs down for patients.
• Search for non-profit organizations to help lower costs: These organizations may help you find assistance programs to lower the cost of your prescription.
• Pharmaceutical companies can help: Some companies sponsor assistance programs to help cover prescription costs for low-income individuals or people with disabilities.

Navigating the price of prescription drugs can be challenging, but remember:

• Never cut pills
• Never skip a dose
• Never stop taking your medication without speaking with your prescriber first

Below is a list of common brand-name medications and the generic version.