How to Ask About Generics and Authorized Generics to Save Money on Medications

Every year, Americans spend over $400 billion on prescription drugs. But here’s the thing: generics are responsible for 90% of all prescriptions filled, yet they cost just 17.5% of that total. That’s not a typo. You’re paying way more than you need to - and it’s often because you don’t know how to ask the right questions at the pharmacy.

What’s the Difference Between a Generic and an Authorized Generic?

Let’s start simple. A generic drug is a copy of a brand-name medication. It has the same active ingredient, same dose, same way it works in your body. The FDA requires it to be bioequivalent - meaning it delivers the same effect as the brand. But here’s what most people don’t know: authorized generics are actually made by the same company that makes the brand-name drug.

Think of it like this: Brand-name drug makers don’t just sit back after their patent expires. Some launch their own generic version - same pill, same factory, same packaging, just without the brand name on it. That’s an authorized generic. It’s not a copy. It’s the original, sold under a different label.

Why does this matter? Because price isn’t always what it seems. An authorized generic might have a lower list price than the brand, but your insurance might treat it differently than a traditional generic. And that affects your copay.

Why Generics Save So Much Money

When a brand-name drug’s patent runs out, other companies can make it. That competition drives prices down. Within a year, the cost of a generic can drop by more than 75%. Some drugs, like the HIV medication Truvada, went from $50 per pill to just $3 after generics entered the market.

The FDA says generics saved the U.S. healthcare system $408 billion in 2022 alone. Over the past decade, that’s over $2.9 trillion. That’s not theoretical. That’s real money taken out of your pocket - if you know how to use it.

But here’s the catch: savings don’t always reach you. Insurance companies, pharmacy benefit managers (PBMs), and rebate deals can keep your copay high even when the list price is low. That’s why asking the right questions matters more than ever.

How to Ask for Generics at the Pharmacy

You don’t need to be a pharmacist to save hundreds a year. Just ask these four questions every time you fill a prescription:

1. “Is there a generic version available?” - Always start here. If the answer is yes, move to the next question.
2. “Is this an authorized generic?” - If the pharmacist says yes, ask: “Is it made by the same company as the brand?” If so, you’re holding an authorized generic.
3. “How does my insurance treat authorized generics versus traditional generics?” - This is the key. Some plans put authorized generics on the same tier as brand-name drugs. Others treat them like traditional generics. Your copay could be $45 for one and $15 for the other - even if the pills are identical.
4. “Can I switch between generic types to save money?” - Sometimes, a traditional generic costs less than the authorized one. Or vice versa. Ask for a price comparison between all available versions.

Don’t be shy. Pharmacists are trained to help you with this. But a 2022 survey found only 43% of independent pharmacists could clearly explain the difference between authorized and traditional generics. If they seem unsure, ask to speak with the pharmacist in charge or call your insurance plan directly.

Why Authorized Generics Can Trick You

Authorized generics sound like a win - and often they are. But sometimes, they’re not.

Here’s why: When a brand-name company launches its own generic, it can delay other companies from entering the market. That means less competition. Less competition means prices don’t drop as much. That’s not a conspiracy - it’s business. And it’s been documented by the FDA and the Congressional Budget Office.

One real example: A patient switching from brand-name insulin to an authorized generic saw their list price drop from $350 to $90. But their copay stayed at $45 because their plan classified the authorized generic as a “brand-equivalent.” Meanwhile, another patient on the same plan switched to a traditional generic and paid just $25.

Same medication. Same manufacturer. Different label. Different cost to you.

How to Compare Prices Like a Pro

Don’t trust the price on the receipt. Always check the cash price - especially if you have a high deductible or no insurance.

Use tools like GoodRx, SingleCare, or RxSaver. These apps show you the cash price for every version of a drug - brand, traditional generic, and authorized generic - at pharmacies near you. You can often pay less out of pocket than your insurance copay.

For example, a 30-day supply of lisinopril (a blood pressure drug) might have a $10 copay with insurance. But the cash price for the traditional generic on GoodRx is $4. The authorized generic? $6. The brand? $45. You don’t need insurance to save here.

Pro tip: Always ask the pharmacist to check the cash price before you pay. Many won’t offer it unless you ask.

What to Do If Your Insurance Won’t Cover the Cheaper Generic

Some plans have formularies that favor certain generics over others - even if they’re identical. If your copay is high on a generic, here’s what to do:

• Ask your doctor for a medical necessity letter. Sometimes, if your doctor explains that a specific generic works better for you, your insurer will cover it.
• File an appeal with your insurance company. Use the FDA’s statement that generics are “therapeutically equivalent” as your evidence.
• Switch pharmacies. Some chains (like Walmart or Costco) have their own low-price generic programs - no insurance needed.
• Call your plan’s formulary specialist. Ask: “Why is this authorized generic on Tier 3 when the traditional generic is on Tier 1?” Often, they’ll adjust it if you push.

Patients for Affordable Drugs found that 28% of people paid over $20 for a generic prescription - even though the average generic copay is $6.16. That gap exists because of hidden rules. You have to fight for your savings.

What’s Changing in 2025

The FDA’s Generic Drug User Fee Amendments (GDUFA) III, running through 2027, is speeding up approvals for complex generics - like inhalers, creams, and injectables - that used to take years to copy. That means more competition, more savings.

Biosimilars - the generic version of biologic drugs like Humira and Enbrel - are now saving over $7 billion a year. And their prices are about 50% lower than the brand.

Meanwhile, the FTC is cracking down on “pay-for-delay” deals where brand companies pay generic makers to stay off the market. These deals cost consumers $3.5 billion a year. They’re declining - but still happening.

And if Senator Bernie Sanders’ 2023 bill passes, U.S. drug prices could be tied to what other countries pay. That would make generics even more powerful.

Final Advice: Don’t Assume, Ask

Generic drugs aren’t a gamble. They’re science-backed, FDA-approved, and proven to work. Authorized generics are just the original drug with a different label. But your out-of-pocket cost? That’s up to your insurance, your pharmacist, and how well you ask.

Next time you get a prescription, don’t just say, “Do you have a generic?” Say: “Do you have a traditional generic? An authorized generic? And what’s the cash price for each?”

One extra question can save you $20, $50, or even $300 a month. That’s not just smart. It’s necessary.