| Lower-priced generic drugs, now available at Wal-Mart and Target stores and expected soon at competitors, could lead to a greater role for generics in the health care system.
That would fulfill a longtime goal of employers, insurers and governments, which have touted generics as at least a partial remedy for soaring health care costs.
Generics are copies of brand-name drugs and considered the same as the originals. When a manufacturer develops a new drug, it enjoys a period of patent protection intended to let the pharmaceutical company recoup research and development costs. When the patent expires, other companies can make copies, called generics, which generally cost 50 percent to 80 percent less than the brand name.
Prices of generics have been much more stable than brand-name drugs, according to AARP, which tracks prescription drug prices. AARP says prices of brand-name drugs rose by nearly 4 percent during the first quarter this year. But the average list prices of 75 widely used generics dropped slightly, AARP found.
Generics have received a boost from the Medicare Part D prescription drug program because many private insurers are using generics to offer inexpensive plans. AARP recommends using generics when possible.
Mark McClellan, administrator for the Centers for Medicare and Medicaid Services, recently credited generic drugs with playing a major role in lower-than-expected monthly premiums for Medicare Part D.
Generics account for 52 percent of all prescriptions and for 60 percent of drugs purchased through Part D plans during the first half of 2006, McClellan said.
Testifying before Congress, McClellan cited a study that found people with chronic medical conditions who switch to generics or other cheaper but medically equivalent drugs can save between $2,300 and $5,300 a year.
He also said several "blockbuster" drugs recently have become available as generics, or will within a few years. Those include Zocor, to lower cholesterol; Zoloft, an anti-depressant; Norvasc, for high blood pressure; and Advair, for asthma.
Some Part D plans charge no co-payments for generics. | 
