Brand-name drugs have been having a rough patch in terms of public relations.

Hospitals have restricted interaction between doctors and pharmaceutical sales reps, pharma moguls are being hauled before congressional committees to be chastised for price-gouging, and at least one major medical association has advised its members to prescribe generic drugs whenever possible because patients are more likely to actually buy them and take them as ordered.

A new study shows just how much more brand-name drugs are costing consumers as well as the federal government. The study, published in Health Affairs, examined the price differences between generics and brand names for those getting drugs through Medicare Part D.

One of the most alarming examples was Crestor, a cholesterol medication. A Medicare beneficiary will pay an average co-pay of $42 for that drug, compared to $4 for the generic version.

While three-quarters of the drugs purchased through Medicare Part D in 2013 were generics, the persistent preference for brand-names for some conditions means that cash-strapped seniors as well as the cash-strapped federal government are shelling out billions for drugs that are no more effective than much-cheaper alternatives.

In fact, the top 10 drugs that Medicare spent the most money on were all name-brand medications. They accounted for $4.1 billion in spending.

If physicians in 2013 had only prescribed the generic atorvastatin, rather than Crestor, seniors, insurers and the feds would have saved $1.2 billion, the study found.

If doctors had always prescribed generic omeprazole, which treats ulcers and heartburn, instead of brand-name Nexium, $870 million would have been saved.

In addition to cracking down on the wide practice of drug companies wining and dining doctors, medical groups and consumer advocates have called for bans on advertising for pharmaceutical products, as is the case in most other industrialized countries.

Instant Insights /

Medicare could save billions through generics, study says

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