Generic drugs saved the US health system $254 billion

Generic drugs saved the US health system $254 billion
November 04 01:00 2015

Generic drugs saved the US health system $254 billion

The U.S. health care system saved a record $254 billion dollars in 2014 from generic drugs, which amounts to $1.68 trillion over the most recent decade (2005-2014), according to the seventh annual Generic Drug Savings in the United States report compiled by the IMS Institute for Healthcare Informatics on behalf of the Generic Pharmaceutical Association (GPhA).

“The facts are irrefutable, generic drugs drive enormous health care savings. This new report reinforces that generic drugs are a critical part of any solution to rising costs for patients, payers and for the entire healthcare system. Safe, effective and more affordable generic medicines mean increased access for the millions who rely on these life-saving therapies,” said Chip Davis, President and CEO of the Generic Pharmaceutical Association (GPhA).

For the first time, this year’s report includes state-by-state savings from generics. It also details the key role generic drugs play in Medicare and Medicaid savings, resulting in billions of dollars of savings to federal and state budgets, beneficiaries and taxpayers.

Key findings from this year’s report include:

· Generic drugs saved the U.S. health system $254 billion in 2014.
· 10-year savings from generics reached $1.68 trillion (2005-2014).
· The 3.8 billion generic prescriptions are 88% of drugs dispensed in the U.S. but only 28% of the drug costs.
· Medicare saved $76.1 billion in 2014 by using generics. That means the program saved an average of $1,923 per enrollee.
· Medicaid saved $33.5 billion in 2014 with per enrollee savings of $479…

Read full story at Fox 28
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