I’m not sure if this is a question or a debate. But if a brand name prescription treatment for hypertension or high cholesterol costs $300 a month but a generic version of a similar drug only costs $4 to $30 a month, do those generics drive down the cost of the brand name drugs (to ensure people stay on the brand name drug and do not switch to a cheaper alternative), or is the benefit negligible?
Looking at the highest grossing medications.
Most have equivalents that are fairly similar which are either OTC or generic. Do those OTC and generic proton pump inhibitors, statins, COX inhibitors, antipsychotics, etc. drive down the cost of the blockbuster drugs so people stay on the brand name drugs rather than switching to an alternative?
Antipsychotic is one of the most fun words on earth. Do not taunt happy fun ball.
Do store brand cereals drive down the price of brand names? No. People think the brand names are better.
It’s the same with generics, coupled with the fact that the person responsible for the “buying” is the doctor. If the doctor wants you to have a brand name, that’s what the prescription is for, and the doctor usually has no idea about the price, and often has no idea that the generics exist.*
*A few months ago, I told a doctor my prescriptions. He had no idea what one was, until I told him the non-generic equivalent.
Yes. Prices will be higher for brand name drugs that have no generic equivalent. If your only choice to treat a condition is a brand name drug under patent, you will pay more than if your choice is a brand name drug or various generics that may be slightly more likely to cause minor side effects or whatever.
The factors RealityChuck mentions (doctors making decisions, doctors not knowing prices) lessen the effect of generics on price, but don’t eliminate it. Plenty of insurance companies charge higher copays if you choose a brand name when generics are available to treat the same condition (not just generics of the same drug). This allows consumers to react to price signals. Plus, of course, there are those with no insurance or no prescription coverage who also react to price signals.
Also, while the doctor may only know the brand name, the pharmacist will know the generics and will often (depending on your insurance or lack thereof) fill with the generic unless the doctor specifically indicates brand name only.
Finally, in return for a longer patent term for drugs, the federal government here negotiated substantially lower prices than the USA. Our MP’s didn’t get as big donations as your congresscritters I guess, and the cost of health care overrode their gratefulness for any campaign donations. The drug companies reacted with a massive PR campaign to convince Americans that any pills from Canada were actually PCB, melamine, and lead, not medication; and bought new laws to prevent the import of prescription drugs.
YMMV. Right now I’m taking five prescriptions from three doctors. All of them started out as brand names, and once it was established they worked, all my doctors switched me to generics. The only brand name I’m taking right now is one in an odd strength for which there’s no generic alternative right now. If there were a generic available in that strength, my doctor would switch me to it without hesitation.
Maybe I just have generic problems, but none of my doctors has any problem prescribing generic drugs.
I think most people in the US know that is a lie (the concept that we oppose reimportation due to safety concerns), and the true goal is to protect the drug industry from competition. I don’t think I’ve met anyone who seriously believes the real reason we ban reimportation is because of safety concerns. We’re a dumb nation at times, but I don’t think people fall for ‘that’.
That’s why many states have generic substitution laws, so you’re not necessarily tied to the drug from the exact company that invited your doc to a ‘health conference’ in Bimini last February.
Prescription forms, at least most of the ones I’ve seen, come with a box that must be checked by the doctor if the brand name drug is required. Otherwise the pharmacist is free to substitute a generic, if one exists. Not a single one of my doctors has ever checked that box, so I always get the generic.
Its not just generics though, it is other versions of the same drug. Lipitor is the highest grossing drug on the market. However there are about 8 other statins on the market, many of which are far cheaper. So does the presence of lovastatin or pravastatin (both of which are $2-4 a month) on the market drive down the cost of brand name lipitor?