Generic medication key factor in reducing costs in healthcare industry
14 April 2014
Graham Anderson, Profmed
Graham Anderson, Principal Officer of Profmed.
Private healthcare costs are spiralling out of control in South Africa, making it unaffordable for many poor and middle class citizens.
The sector is therefore looking at many different ways to control and reduce costs, one such being, advocating the use of generic medication as opposed to branded medication.
This is according to Graham Anderson, Principal Officer of Profmed, the medical scheme catering exclusively to graduate professionals, who says generic medications have the same active ingredients or form as the original, except they are usually cheaper than the original branded-medicines.
"This is true for both prescription medicines and those you can buy over the counter, such as paracetamol.”
Anderson says there are strict quality controls before a product licence is granted for generic versions of medicines. "This means that a generic or brand name version of the same medicine will have the same effect, and be equally safe.”
For this reason, Anderson says healthcare funding encourages doctors to prescribe generic medicines by familiarising them with their names and uses. He adds that consumers can also play a role in reducing healthcare costs by familiarising themselves with the option of generic medicines.
"Members of medical schemes can save a lot of money by not having to make co-payments as a result of their schemes not covering the full costs of expensive branded medicines. This is particularly true for the rising number of patients suffering from chronic disease conditions who require ongoing treatment.”
Anderson says your doctor or your pharmacist is your best source of information when it comes to your medicine and how to save money on prescription medication. And there’s no better time to speak with him or her about a prescription than when your doctor is writing one for you or when collecting it at the pharmacy.
"If your prescription is for a brand-name medication, ask your doctor if there is a generic version available that you can use. There is at least one generic available in most medicine classes, which will enable you to make the switch from more expensive medication for those who are on chronic medication which costs a lot every month,” says Anderson.
"To achieve the true cost savings in our healthcare system, we must look at all possible factors that are driving healthcare costs above the gross domestic product, population growth and inflation – and recognise that more can be done on a primary and secondary level to reduce these drivers,” concludes Anderson.