Brand-name or generic drugs? 5 answers to common questions

If you currently take a brand-name medication, have you ever considered switching to a generic version? It could be an option that saves you money.

In this article, we answer 5 common questions about brand-name and generic drugs to help you figure out if switching to a generic is right for you.

Are brand-name drugs more effective than generics?

If the word “generic” concerns you, you can rest assured that generic drugs use the same active ingredients to provide the same dosage and effectiveness as their brand-name counterparts.¹ They’re also the same in terms of:

Quality
How much you take
Strength
How you take them

Are generic drugs safe?

Yes. Generic drugs are just as safe and work as well as the similar brand-name medications they’re based on. In fact, generics are mostly copies of brand-name drugs that are made once the patent starts to run out. And about 50% of generic medications are made by brand-name companies.² The Food and Drug Administration (FDA) monitors generics closely and puts them through a strict review process before they’re approved for the market — helping ensure they’re effective, safe, and of high quality.

Drug companies also need to prove to the FDA that the generic form works when substituted for the brand-name drug, with the same benefit.³ The FDA also tests the drug’s overall shelf life, as well as its packaging and container to make sure they’re sturdy and safe. And each year, they inspect the manufacturing plants that make the drugs to ensure all federal regulations are met.

Why do generic drugs cost less?

Generic drugs tend to be cheaper because the companies making them don’t need to spend as much money on marketing. Several companies will market one approved generic drug, resulting in prices that are roughly 85% cheaper.⁴

Other factors contribute to the lower price as well. Since generic drugs are usually copies of brand-name drugs, there’s no need to repeat the many rounds of testing and research required to develop the brand-name versions. So, while generic drugs have the same effect as their brand-name counterparts, the lower research costs mean they’re sold at a lower price.

Will my health plan pay for brand-name drugs?

More often, health plans will cover a generic version of a drug, not the brand-name drug. However, each health plan is different, so it’s best to check your plan’s formulary — a detailed list of covered drugs — to see if your medication is covered.

Some health care providers offer cost-estimate tools to help you figure out how much you may have to pay out-of-pocket for drugs based on your health plan. Remember — even generic drugs might require a copay.

Should I keep taking a brand-name drug?

If you’re not sure whether you should switch to generic, ask your doctor. They may recommend that you continue taking the brand-name drug if there isn’t a generic version of your prescription available.

In very rare cases, some people may absorb a medication differently because of the type of tablet used, resulting in a negative reaction. If that happens, it may be best to stick to the brand-name drug.

Which medication is best for me?

Before you decide to switch medications, be sure to talk to your doctor about the best option for your needs.

¹“Generic Drug Facts,” U.S. Food and Drug Administration, June 1, 2018, fda.gov/drugs/generic-drugs/generic-drug-facts.

²Karen Berger, PharmD, “The FDA, Generics and Differentiating Authorized from Branded Types,” Pharmacy Times, May 17, 2018, pharmacytimes.com/view/the-fda-generics-and-differentiating-authorized-from-branded-types-.

³See note 1.

⁴See note 1.