AARP study reveals savings potential from generic drugs

The cost of brand name products have risen 15.5 percent while generic drugs have decreased by 4 percent. | File image

The results of a new study conducted by AARP show that pharmaceutical prices for brand name products has increased drastically.

In the last year, prices have risen by 15.5 percent with the annual cost of one specific brand name drug that was not mentioned by name surpassing $5,800.

AARP conducted a similar study on the price of generic medicines to find that the price of 280 popular types of drugs had decreased by 4 percent with the price for some generic brands declining by as much as 30 percent. Also included in the report were the savings of seniors who had three prescriptions and used the generic alternative, which was as much as $850 per year.

“America’s seniors know firsthand that generics cut their drug prices and help them keep more of their own money,” Generic Pharmaceutical Association (GPhA) President and CEO Chip Davis said. "Generics also save patients and public programs billions of dollars each week. This study shows that seniors and our entire healthcare system would greatly benefit from more generic competition. GPhA urges the new administration (of President-elect Donald Trump) and policymakers to take immediate action towards this goal."

AARP concluded that market conditions and pricing behavior are different for each.

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