The Congressional Budget Office (CBO) report last month indicated that the cost of health care programs has slowed sharply. A large part of the savings is attributed to the cost savings realized through the use of generic drugs. This year’s GPhA Cost Savings report showed that consumers (including the US Government) saved $239 million alone in 2013 an increase of 14% over the savings seen in 2012.
Generic Cost savings 2004-2013
Source: IMS Institute for Healthcare Informatics’ report
The 10 year savings from generic availability is reported at $1.5 trillion over the last 10 year period.
“The report confirms that the story of generic savings remains one of growth. In addition to the yearly growth of the savings totals, the report reveals that new generic products coming to market in 2013 saved the U.S. health system $140 billion alone. Established generic products continue to provide cost savings and, in 2013, they accounted for $98 billion in savings.”(the GPhA release says)
This report comes days before the 30th anniversary of the Hatch-Waxman Act (Drug Price Competition and Patent Term Restoration Act of 1984). The news is good and points out the importance of the legislation in terms of reducing associated health care costs in this country. This is one of (if not the most) successful piece of legislation with regards to reducing the trend of increases in health care costs that has ever been enacted.
The generic drug industry and GPhA continue to support the Office of Generic Drugs program in its efforts to bring more affordable generic drug products to market.