Generic Drugs Save $130 Million

Substituting generic drugs for their name-brand competitors saved Americans at least $130 million in 1984, and there is potential for much more consumer saving, a Federal Trade Commission study said today.

Although generics were substituted for name brands on only about 15% of prescriptions in 1984, consumer savings ranged from $130 million to $236 million, said FTC economist Alison Masson. Increased use of generic drugs is likely to continue as consumers and physicians become more familiar with their availability, she said at a news conference.