WASHINGTON, Oct. 19, 2016 /PRNewswire-USNewswire/ -- Annual savings from generic prescription drugs increased 328 percent from 2005-2016, according to the new 2016 Generic Drug Savings and Access in the United States report, compiled by the QuintilesIMS Institute on behalf of the Generic Pharmaceutical Association (GPhA). This report confirms again that generic drugs are essential to reducing health costs and play a critical role in growing patient access.
"Generic drugs are the foundation of any successful effort to lower health spending and increase patient access to affordable medicine," said Chip Davis, President and CEO, GPhA. "A diverse group of experts — the federal government, pharmacy benefit managers, consumer groups and others — agree that generic drugs drive system savings, not costs. GPhA will continue working with policymakers, regulators and others to bring greater health savings to our country. This report underscores the importance of policies that build on the generic drug industry's record of significant savings and promote generic and biosimilar competition."
Key findings from this year's report include:
- Generic drugs are 89% of prescriptions dispensed in the U.S. but only 27% of drug costs
- $227 billion in 2015 savings
- $1.46 trillion 10-year savings (2006-2015)
- Medicare savings: $67.6 billion in 2015 which translates to savings of $1,737 per enrollee
- Medicaid savings: $32.7 billion which translates to savings of $450 per enrollee.
Nearly 3.9 billion of the total 4.4 billion prescriptions dispensed in the United States are for generics. Generics make up 89% of prescriptions dispensed but only 27% of total medicine spending. Put another way, brand drugs are 11% of prescriptions and responsible for 73% of drug costs.
The report also looks at state-by state savings and generic savings by therapy area. Notably, the most savings from generic drugs were found in mental health ($34.4 billion), hypertension ($25.8 billion) and cholesterol ($24.5 billion) treatments.
View the full report on the GPhA website at www.rxsolutions.us.
GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals fill 89 percent of the prescriptions dispensed in the U.S. but consume just 27 percent of the total drug spending. Additional information is available at www.gphaonline.org. Follow us on twitter: @gpha.
Contact: Steve Arnoff 202.249.7113
SOURCE Generic Pharmaceutical Association