Annual Savings from FDA Generic Drug Approvals: Year-by-Year Breakdown
FDA generic drug approvals save billions annually by lowering drug prices. See year-by-year savings from 2018 to 2022 and how generics cut $445 billion in 2023 alone.
When you hear generic drug savings, the money you can save by choosing FDA-approved generic versions of brand-name medications. Also known as generic medications, they work the same way as the originals but cost far less—often 80% to 85% less. Many people think generics are weaker or made with lower-quality ingredients. That’s not true. The FDA requires them to have the same active ingredient, strength, dosage form, and route of administration as the brand-name version. They just don’t carry the marketing costs, fancy packaging, or celebrity ads.
So why do brand-name drugs cost so much? It’s because the company that invented the drug had to pay for years of research, clinical trials, and FDA approval. Once the patent runs out, other companies can make the same drug without repeating all that work. That’s when generic drugs, medications that are chemically identical to brand-name drugs but sold under their chemical name. Also known as non-branded drugs, they flood the market and prices drop fast. You’ll see this with common drugs like lisinopril for high blood pressure, metformin for diabetes, or atorvastatin for cholesterol. These aren’t cheap knockoffs—they’re the exact same pills your doctor prescribed, just without the brand name.
But not all savings are created equal. Some pharmacies charge more for generics than others. Mail-order services, warehouse clubs like Costco, and online pharmacies often have the lowest prices. And don’t forget about authorized generics, the same drug as the brand-name version, made by the original company and sold under a different label. Also known as brand generics, they can be even cheaper than regular generics because they’re produced on the same line with the same quality controls. You’re getting the exact same product, just without the brand mark.
Some people avoid generics because they’re confused by the packaging or worried about side effects. But if your body reacts differently to a generic, it’s usually because of inactive ingredients—like fillers or dyes—not the medicine itself. Talk to your pharmacist. They can help you find the right version and even switch you to a different generic if one doesn’t sit well with you.
And here’s the thing: saving money on meds isn’t just about cutting costs. It’s about staying on your treatment. People who can’t afford their prescriptions skip doses, split pills, or stop entirely. That’s when health problems get worse—and more expensive to fix. Choosing a generic isn’t a compromise. It’s a smart move that keeps you healthy and your wallet full.
Below, you’ll find real guides that show you how to verify your pharmacy, spot counterfeit drugs, understand how authorized generics work, and even how to talk to your doctor about switching to a lower-cost option. No fluff. No hype. Just straight-up ways to save on the meds you actually need.
FDA generic drug approvals save billions annually by lowering drug prices. See year-by-year savings from 2018 to 2022 and how generics cut $445 billion in 2023 alone.
FDA approval costs for generic drugs can exceed $375,000 per application, with complex versions costing millions more due to vague feedback and repeated rejections. These delays keep prices high and limit access - even as generics save the U.S. $467 billion annually.