Use of generic medicines rises to an all-time high in the private sector

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Trend highlights the continued impact of the health department’s laws encouraging the use of the cheaper alternatives

Latest Mediscor review says generic utilisation rate more than doubled from 27.7% in 2002 to 62.4% in 2018The use of cheaper generic alternatives that are no longer patent-protected rose to an all-time high in the private sector in 2018, according to the latest Mediscor review.

Mediscor, a benefit management company, publishes an annual review of medicine trends in the private sector. Its latest review, combined with data from previous reports, shows the proportion of generic medicines dispensed in the private sector has risen steadily for more than a decade. The generic utilisation rate, which measuresOver the same period, the generic uptake, which reflects the proportion of instances where a generic was used when one was available, rose from 64.4% to 80.4%. This means only a fifth of patients were not using a generic when one was available, compared to a third in 2002.

Medical schemes have added to the impact of this intervention by introducing strict rules about which drugs they will reimburse in full, incentivising patients to opt for cheaper generics by levying a co-payment on off-patent branded products. Many schemes also contain dispensing costs by incentivising patients to use pharmacy networks or courier companies with which they have contracts.Mediscor’s latest review shows medicine expenditure per beneficiary increased 2.

 

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