Definition
What Is a Generic Medication?
Last updated
A generic medication is a drug that the FDA has approved as containing the same active ingredient, strength, dosage form, and route of administration as its brand-name equivalent, and that must perform the same way in the body. Generics are typically sold under their chemical name rather than a marketed brand, and they usually cost less than the brand-name version once they become available.
How it affects what you pay
Generic medications are one of the most reliable ways to lower a prescription bill, because they are usually priced well below the brand-name original, often after multiple manufacturers begin competing to produce the same drug. Your insurance formulary will typically place generics on a lower cost-sharing tier than brand-name drugs, which usually means a smaller copay. If you're paying cash, a pharmacy's cash price for a common generic is also typically far below the cash price of the equivalent brand-name drug. Prices still vary by pharmacy, location, quantity, and eligibility, so it's worth comparing a few options for the same generic before filling.
Example
Consider a hypothetical: a brand-name blood pressure medication and its generic equivalent, once available, both treat the same condition using the same active ingredient at the same strength. A patient switching from the brand to the generic, with their doctor's or pharmacist's input, may see their monthly cost for that medication drop noticeably. This is a general illustration, not a real quoted price for any specific drug.
Why generics are considered equivalent
The FDA's generic drug approval process requires a generic to demonstrate bioequivalence, meaning it delivers the same amount of active ingredient into the bloodstream in the same way as the brand-name drug (FDA, Generic Drugs: Overview & Basics). The FDA states plainly that a generic medicine is required to be the same as a brand-name medicine in dosage, safety, effectiveness, strength, stability, and quality, and that generics carry the same risks and benefits as their brand-name counterparts (FDA, Generic Drug Facts). Inactive ingredients, like fillers or dyes, can differ between a generic and its brand-name original, which is why appearance sometimes varies even though the medicine works the same way.
Checking whether a generic exists for your prescription
Not every brand-name drug has a generic version yet; a drug's patents and exclusivity periods must expire first. Search your medication on BetterBuyRx to see if a generic version is listed and how pricing compares at nearby pharmacies. Our guide on generic vs brand-name medications walks through cost differences in more detail, and our guide on how to find cheaper generic medication options covers the switching process.
Talking to your doctor or pharmacist
If your prescription is brand-name only, ask your doctor or pharmacist whether a generic or a therapeutic alternative is appropriate for your situation. This decision should always involve a licensed provider, since not every medication has an interchangeable option, and switching medications is a medical decision, not just a cost decision. Compare prescription prices on BetterBuyRx once you know which version you and your provider have agreed on.
Frequently asked questions
Are generic medications as effective as brand-name drugs?
The FDA requires a generic to have the same active ingredient, strength, dosage form, and route of administration as the brand-name drug, and to perform the same way in the body. The FDA states generics carry the same risks and benefits as their brand-name counterparts.
Why do generic drugs usually cost less?
Generic manufacturers don't have to repeat the costly clinical trials the original brand-name manufacturer already completed, and they often compete with several other generic makers of the same drug, which tends to push prices down.
Do all brand-name drugs eventually have a generic version?
No. A generic can only be made once the brand-name drug's patents and any regulatory exclusivity periods expire, and some drugs, particularly newer biologics, do not have a traditional generic at all; they may eventually have a biosimilar instead.
Sources
Compare prices & find savings
This page is for cost and savings education only. It is not medical advice. Talk to your doctor or pharmacist about your specific medications and coverage. Prices vary by pharmacy, location, quantity, and eligibility.
Related terms & guides
- Generic vs Brand-Name Medications: Cost Differences Explained
How generic and brand-name medications differ in cost and FDA approval, with data on typical savings and what to ask your pharmacist.
- What Is a Brand-Name Drug?
Brand-name drug definition: how it differs from a generic, why it usually costs more, and how patents affect availability of lower-cost versions.
- What Is an Authorized Generic?
Authorized generic definition: how it differs from a regular generic, why a brand-name maker sells one, and how it can affect pricing.