Decreasing Brand-Name Drug Use Could Significantly Reduce Health Care Costs

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The United States could save $73 billion by decrease the use of brand-name drugs.
The United States could save $73 billion by decrease the use of brand-name drugs.

(HealthDay News) — Americans could save tens of billions of dollars with more efficient drug use, replacing brand-name drugs with their generic equivalents whenever possible, according to a study published in JAMA Internal Medicine.

Michael Johansen, MD, family medicine physician with the Ohio State University Wexner Medical Center in Columbus, and colleagues reviewed self-reported prescription drug use by 107 132 Americans who were part of the 2010 to 2012 Medical Expenditure Panel Survey.

The study authors found that $760 billion was spent on prescription drugs during the study. Nearly 10% of all prescription drug expenses involved brand-name drug overuse. Out-of-pocket expenses totaled $175 billion during the study. Brand-name drug overuse accounted for 14% of these costs.

"We observed an estimated potential savings of $73 billion overall and nearly $25 billion in out-of-pocket expenses throughout the 3 years of the study," Dr Johansen said in a university news release.

Reference

  1. Johansen ME, Richardson C. Estimation of Potential Savings Through Therapeutic Substitution. JAMA Intern Med. 2016. doi:10.1001/jamainternmed.2016.1704.
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