Generics save consumers, insurers $1 billion

Apparently, the worsening economy has an upside: it drove consumer demand for generic treatments up by 5.4 percent. That, combined with the large number of generics entering the market this year and lower prices from pharmaceutical companies, created a perfect storm that drove generic spending down by 2.7 percent over the 12 months ending in September.

That decrease is the largest in the past decade, perhaps longer. And the report with these details, released by IMS Health, predicts that the trend will continue at least through 2012.

Also cited as reasons were the increased competition among manufacturers of generics, and pressure from large retailers to make treatments increasingly inexpensive. Whatever the reasons, the decrease saved consumers and insurance companies $1 billion dollars.

To learn more about the results:
- read this Kaiser Daily Health Policy Report piece [1]

Related Articles:
Insurers give doctors 'kickbacks' for prescribing generic drugs [2]
FTC: Pharmas cut 14 deals to delay generic sales in '07 [3]
Report claims generics could save system $20B [4]
Cheap generics could shift drug purchase patterns [5]