In a recent report, “Drug Pricing: Research on Savings from Generic Drug Use,” the GAO reviewed studies on savings associated with generic drug use in the U.S. In brief, the studies had mixed conclusions regarding the effect of using generics. While some studies point to substantial savings associated with substituting generic drugs for their brand-name counterparts, others raise questions about whether substituting generic drugs for brand-name drugs was medically appropriate and could lead to other health care costs, such as increased hospitalizations.
