Generic Drug
What Does Generic Drug Mean?
A generic drug is one that is similar or identical to a brand-name product in terms of:
- Dosage
- Strength
- Administration method
- Quality
- Performance
- Intended uses
Generic drugs are typically marketed under their chemical name rather than a brand name.
Generic drugs are usually less expensive than their brand-name counterparts, and many insurers encourage policyholders to purchase them as a way to reduce costs.
Insuranceopedia Explains Generic Drug
Generic drugs provide greater access to healthcare for consumers. They are essentially copies of branded pharmaceutical products, containing the same active ingredients, but are available at a lower cost.
While generic drugs are not tied to a specific company, they are still regulated by government authorities in the countries where they are sold. They must be labeled with the manufacturer’s name, as well as a generic, non-proprietary name.
Typically, generic drugs must undergo preliminary testing and receive approval from the FDA before becoming available to consumers.
