Generic medications are just as effective as their brand name counterparts, and they cost 80% to 85% less. Learn more about the differences.

One of your first considerations when you’re buying a prescription is likely how much it’s going to cost. You can save money by going with a generic version of the drug, which usually has the same ingredients as the branded version – but at a fraction of the price.

If you went this route, you would not be alone. Nine out of 10 prescriptions filled in the U.S. are generic, according to U.S. Food and Drug Administration (FDA) data , though brand name medications account for 74% of drug spending .

But are generic drugs different? How much could you save? Let’s walk through the key differences between brand name and generic drugs and how much you could really save going with the latter.

What’s the difference between brand name and generic?

Pharmaceutical companies spend a lot of money and resources developing new drugs. They then apply for patent protection so that only they can produce and sell their creations for a set period of time. However, once that patent (and exclusivity) expires, other generic drug manufacturers can produce and sell the same drug.

An example of an over-the-counter brand name is Advil, while the drug itself is ibuprofen. Another common example is the brand name medication Claritin, the generic name of which is loratadine.

A common misconception is that a generic drug won’t be as effective as those that are branded, so here’s what you should know:

• They use the same active ingredients.
• They thus will have the same effects as the brand name version.
• They are not knock-off drugs, but have the same level of quality, strength, dosages, and route of administration.
• Generic drugs are just as safe for you to take as brand name drugs - both go through the FDA approval process.
• The FDA tests generic drugs and any ingredients in them to ensure their safety for consumption.

The only differences you may notice between brand name and generic medications are the size, shape, color, packaging, and fillers (different inactive ingredients). That’s because U.S. trademark laws state that a generic drug can’tlook exactly like the branded drugs. But, the big benefit of generic medications is that they typically are a lot cheaper for consumers.

How much can you save with generic drugs?

Brand name medications are more expensive because the drug companies that created them had to conduct clinical trials to ensure the drug’s safety and gain FDA approval. They then pass those extensive research costs on to patients.

Once the protected patent period ends, however, more than one company can sell the generic medicines that the brand produced. This creates market competition, leading to lower costs for consumers. The FDA says that “bringing more drug competition to the market and addressing the high cost of medicines is one of FDA’s top priorities.”

So, how much can you save with a generic versus brand name medicines? The FDA estimates generic options are sold at 80% to 85% less than the same brand name medication. Those savings make significant impacts for patients, especially those who have to pay for medications to treat a chronic illness . Studies have shown that generic drugs saved the U.S. healthcare system nearly $2 trillion from 2009 to 2019.

Many people may not understand that generic drugs will have the same effect as the brand name product, though. Unfortunately, these misconceptions lead to lots of missed savings for consumers.

How else can you save on prescriptions?

Going with the generic version of a prescription drug or over-the-counter medication can save you significant amounts on your prescriptions. Those who opt for brand name instead pay 80% to 85% more, and that cost is just gone. There is rarely a reason to pay extra, and no difference in the drug you’re taking. In fact, there are only two reasons why someone might need to opt for brand name over generic:

• There is no generic version of the medication yet.
• You’re allergic to an inactive ingredient in the generic version of the medication.

If you currently use a branded drug product, speak to your healthcare provider to see if they’ll consider prescribing a cheaper generic medication. Always seek medical advice before changing your medication.

Another way to save is to find the best prices for prescriptions . ModRN Health helps you to compare drug prices at your local pharmacies and find the best deals and discounts, helping you save up to 80% on your prescriptions.

Even if you have health insurance, you may be able to save on your prescriptions with ModRN Health, as the discounted price may be cheaper than your copay! You also earn reward points that you can cash in, and it’s all free and easy to use. You’ll just create your own profile to manage all your prescriptions, medication history, and get reminders when you need refills.

Learn more about ModRN Health and how our process works by signing up for savings today.