Generic drugs deliver a record $254 billion in savings to US health care system in 2014, new report shows

The US health care system saved a record $254 billion in 2014 from generic drugs, which amounts to $1.68 trillion over the most recent decade (2005-2014), according to the seventh annual Generic Drug Savings in the United States report compiled by the IMS Institute for Healthcare Informatics on behalf of the Generic Pharmaceutical Association (GPhA).

"The facts are irrefutable, generic drugs drive enormous health care savings. This new report reinforces that generic drugs are a critical part of any solution to rising costs for patients, payers and for the entire healthcare system. Safe, effective and more affordable generic medicines mean increased access for the millions who rely on these life-saving therapies," said Chip Davis, president and chief executive of the GPhA.

For the first time, this year's report includes state-by-state savings from generics. It also details the key role generic drugs play in Medicare and Medicaid savings, resulting in billions of dollars of savings to federal and state budgets, beneficiaries and taxpayers.