Generic medicines drive savings, not costs. Generics saved Georgia $7.2 billion in 2015, according to the 2016 Generic Drug Savings & Access in the United States report compiled by the QuintilesIMS Institute on behalf of the Generic Pharmaceutical Association.

Generic drug manufacturers are true drivers of health system value — enabling access to safe and effective generic medicines for patients, public programs, taxpayers, employers and others.  GPhA welcomes the chance to work with policymakers, regulators and stakeholders to increase generic competition and expand patient access to more affordable medicines.

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. 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.