Medicare Part D generic drug prices fall nearly 60% since 2010, GAO finds

A new US Government Accountability Office (GAO) report finds that prices for generic drugs in Medicare Part D fell 59% from the first quarter of 2010 to the second quarter of 2015. This report comes at a time when an increasing number of public policy experts, supply chain stakeholders, economists and others recognize that over time, generic drugs drive savings, not costs.

Commenting on the report’s findings, Chip Davis, president and chief executive of the Generic Pharmaceutical Association (GPhA), said: “At a time when everyone is looking for cost saving solutions, it is important note that the GAO findings are consistent with the prevailing market trend - generic drug prices overall continue to decline year over year. Generic drugs are 88% of prescriptions dispensed but only 28% of costs. This means that generic drugs are overwhelmingly responsible for making medicines accessible and affordable in the United States. For example, spending on medicine in public programs such as Medicare would nearly double without the availability of generic drugs, according to the Generic Drug Savings in the US report.

The GAO report also notes: