A generic drug is a medication that contains the same active ingredient, in the same strength, dosage form, and route of administration as a brand-name drug — and is FDA-approved as therapeutically equivalent. Generic drugs become available after the patent on the original brand-name drug expires, typically 20 years after the initial patent filing.
Generics are significantly cheaper than brand-name equivalents because manufacturers don’t bear the original research and development costs and compete with multiple other manufacturers once the patent expires. On most insurance formularies, generics are placed on the lowest-cost tier (Tier 1 or 2), resulting in the lowest copays for consumers.
Key facts about generic drugs:
When comparing plans during Open Enrollment, check the formulary to confirm your generic drugs are covered on the lowest tiers — this directly affects your monthly prescription costs.
Yes. The FDA requires generic drugs to be bioequivalent to brand-name versions, meaning they perform the same way in the body and produce the same clinical effect. Both must meet the same quality and manufacturing standards. For the vast majority of medications, generics are a safe and effective substitute. If you have concerns about a specific medication, ask your pharmacist.
Ask your doctor or pharmacist. In most states, pharmacists can substitute a generic unless the prescription says “dispense as written” (DAW) or you or your doctor specifically request the brand-name. If your insurer charges more for the brand when a generic is available, switching to the generic can substantially reduce your cost-sharing.
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