Equivalent Therapy at Lower Cost

Abstract
Contrary to a widely accepted view, generic prescribing will not lead to the lowest-cost equivalent therapy. An examination of the price structure of the oral penicillins reveals that generic prescribing may lead to lower prescription prices; however, the so-called "average generic price" is about the same as the price of the lowest-priced branded items. Often the patient will pay more than the average unbranded product price. The physician can be sure that the patient gets equivalent therapy at a potentially lower or even the lowest cost by prescribing genericallyandspecifying the manufacturer who sells the lowest-priced therapeutically equivalent product. (JAMA228:1009-1014, 1974)

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