Healthy Skepticism Library item: 1472

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Rutkowski C.
More Generic Drugs Could Cut Costs, Save Milions Each Year: Study finds that Manitoba could save significantly if generic drugs were used more often
Public Affairs Department 2003 Nov 6

Full text:

Manitobans could have saved almost $7 million in 2000/01 if policies had been in place to increase the use of generic versions of older drugs.

That’s the finding of a new study by researchers at the University of Manitoba’s Manitoba Centre for Health Policy (MCHP).

“Many of us buy generic products rather than brand names, so why shouldn’t consumers take advantage of generic drugs?” asks principal MCHP researcher Steve Morgan. “Unlike generic, non-pharmaceutical products, such as peanut butter and coffee, generic drugs must measure up to high standards to ensure they are ‘just as good’ as the name brands.”

At the request of Manitoba Health, the MCHP examined the cost of prescribing patterns within a class of drugs used to treat high blood pressure. The researchers used a five-step formula for controlling the cost of drugs and tested it to determine how much could be saved in Manitoba. With each subsequent step, the overall savings increased.

Morgan says the goals are to promote the use of generics instead of brand names, lower the price of generics, and encourage the prescribing of older, tried-and-true drugs before newer more expensive ones. Depending on the combination of policies, the savings to Manitobans – both in taxes and in out-of- pocket spending – could be huge.

MCHP is quick to point out that the problem is not necessarily the physicians who write the Rx.

“Many doctors don’t prescribe a brand name, just a drug,” explains Morgan. “It may be the pharmacist choosing the brand, maybe because it’s in stock, maybe there’s a local preference. Furthermore, many patients ask specifically for a brand they saw advertized on TV, so it’s not appropriate to point fingers and blame anyone in particular for not having more generics prescribed in Manitoba.”

The researchers also issued a cautionary note: the potential saving generated by switching to more generic versions of older drugs may cause a backlash from manufacturers and doctors. In BC, a shift towards generic versions of older drugs was countered by a drug industry threat to reduce investment in that province.

“Similar pricing policies can work for Manitoba,” advises Dr. Anita Kozyrskyj, co-researcher with the MCHP. “The financial burden on our health care system – and consumers’ wallets – can be reduced, with patients, physicians, manufacturers and government all having parts to play in the development of a new way to prescribe and pay for our medications.”