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

Why Your Prescription Costs More Than It Should

You fill your prescription, hand over your card, and pay $50 for a pill that’s been on the market for years. But here’s the truth: that same pill could cost $6 if you knew how to ask. The problem isn’t the medicine-it’s the system. Most people don’t realize there are two kinds of generic drugs, and one of them can slash your bill even further. You’re not being overcharged because you’re careless. You’re being overcharged because no one told you how to ask the right questions.

What’s the Difference Between Generic and Authorized Generic?

Let’s cut through the jargon. A generic drug is a copy of a brand-name medicine made by a different company after the patent expires. It has the same active ingredient, same dose, same effect. The FDA requires it to work just as well. That’s it.

An authorized generic is different. It’s made by the same company that makes the brand-name drug-but sold under a generic label. Think of it like a car manufacturer selling the exact same vehicle under a cheaper brand name. No changes. Same factory. Same pills. Just no brand name on the bottle.

Here’s why that matters: authorized generics often start at a lower price than traditional generics because the brand company doesn’t have to compete with itself. They’re already making the product. They just slap a new label on it and sell it cheaper. In 2022, the FDA found that 77 out of 100 generic drugs had price drops of 10% to 20% within a year. But authorized generics? Some dropped over 90%.

How Much Can You Actually Save?

Let’s get real. In 2022, Americans saved $408 billion using generic and biosimilar drugs. That’s not a guess. That’s from the Association for Accessible Medicines. And 93% of generic prescriptions cost less than $20 at the pharmacy counter. Compare that to brand-name drugs, where the average copay is $56.

Take insulin. In 2020, one brand-name version cost $50 per vial. By 2022, after generics entered the market, the same insulin dropped to $3. That’s not a typo. $3. But here’s the catch: your insurance might still charge you $45 copay because they treat authorized generics differently than traditional ones. That’s not a mistake. That’s how the system works.

One patient on Reddit shared: “My insulin went from $350 brand to $90 authorized generic-but my copay stayed at $45.” Another said: “I switched from an authorized generic to a traditional generic for my blood pressure pill and saved $20 a month. Same medicine. Different price.”

So savings aren’t automatic. They depend on what your insurance plan allows, what your pharmacy stocks, and whether you ask for the right version.

Three Questions to Ask Your Pharmacist

You don’t need to be a doctor. You just need to know what to say. Here’s exactly what to ask next time you pick up a prescription:

1. “Is there a generic version of this drug?” This is step one. If the answer is no, ask why. Some drugs still have patents. Others are complex, like inhalers or skin creams, where generics are harder to make.
2. “Is this an authorized generic?” If they say yes, ask: “Is there a traditional generic available too?” Sometimes the authorized version is cheaper. Sometimes it’s not. You need to compare.
3. “How does my insurance treat authorized generics versus traditional generics?” This is the big one. Many plans put authorized generics on higher tiers because they’re still tied to the brand company’s rebate system. Traditional generics often get better deals from pharmacy benefit managers. Ask for a printout of your plan’s formulary if they’re unsure.

A 2023 study in the Journal of the American Pharmacists Association found that patients who asked these three questions saved 15% to 25% more than those who just asked, “Do you have a generic?”

Why Your Pharmacy Might Not Know the Answer

Here’s the uncomfortable truth: not all pharmacists know the difference between authorized and traditional generics when it comes to pricing. A 2022 survey by the National Community Pharmacists Association found only 43% of independent pharmacists could explain how rebates affect your out-of-pocket cost.

That doesn’t mean they’re bad at their job. It means the system is messy. Insurance contracts change. Rebates shift. Prices fluctuate daily. Your pharmacist might be holding the bottle and genuinely not know which version will cost you less.

So don’t rely on them alone. Use tools like GoodRx or SingleCare. They show you cash prices for every version of a drug-brand, authorized generic, traditional generic-side by side. Sometimes the cash price for a traditional generic is lower than your copay. That’s not a glitch. That’s your opportunity.

When Authorized Generics Don’t Help (And Why)

Authorized generics aren’t always the answer. Sometimes, they’re a tactic to delay real competition.

Here’s how it works: when a brand-name drug’s patent expires, the company can launch its own generic version. That means no other company can enter the market for months-sometimes a year-because the authorized generic is already there. It’s legal. It’s common. And it keeps prices higher than they should be.

The FDA and FTC have called this out. In 2021, the FTC estimated that these tactics cost consumers $3.5 billion a year. Some companies use authorized generics to “lock in” market share before real generics arrive. That’s why you might see one authorized generic on the shelf… but no traditional ones. That’s not luck. That’s strategy.

But here’s the good news: this practice is declining. More companies are choosing to let real generics in faster. And with biosimilars (the biologic version of generics) now saving over $7 billion annually, the pressure is on.

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

If your plan won’t cover the generic version you want, here’s what to do:

• Ask your doctor for a prior authorization. Sometimes, if they explain that the generic is medically equivalent and you’re struggling to pay, they can push for coverage.
• Request a formulary exception. Every insurance plan has a process to appeal coverage decisions. You can do it online or over the phone.
• Try a 30-day trial. Some pharmacies let you buy a small supply of the cheaper generic to test it out. If it works, your doctor can write a new prescription.
• Use a patient assistance program. Many drugmakers have programs for low-income patients-even for brand-name drugs. Check the manufacturer’s website.

Don’t accept “no” as the final answer. The system is built to make you give up. But you’re not alone. In 2023, Patients for Affordable Drugs surveyed over 1,000 people. 28% said they paid over $20 for a generic prescription-even though the list price was under $10. That’s not normal. That’s fixable.

What’s Next for Generic Drugs?

The FDA’s new plan, called the Drug Competition Action Plan, is targeting hard-to-copy drugs like inhalers, injectables, and topical creams. These used to be the last holdouts where brand-name drugs held onto high prices. Now, they’re being pushed into generic competition.

And with the Generic Drug User Fee Amendments (GDUFA III) running through 2027, approval times are shrinking. More generics = more competition = lower prices.

But the biggest change might come from policy. Senator Bernie Sanders’ 2023 bill proposes tying U.S. drug prices to what other countries pay. If it passes, it could force brand companies to lower prices across the board-including their authorized generics.

For now, the power is in your hands. You don’t need to wait for Congress. You just need to ask.

Final Tip: Always Compare Cash Prices

Even if your insurance says a generic is covered, always check the cash price. Sometimes, paying out of pocket with a coupon from GoodRx is cheaper than using your insurance. Why? Because your insurance negotiates rebates behind the scenes-but you never see that money. The pharmacy gets paid by the PBM, not you. So if the cash price is lower, pay cash. Keep the difference.

It’s not sneaky. It’s smart.

What to Do Next

Next time you get a prescription, don’t just take it. Ask. Compare. Switch if needed. Save $20, $50, $200 a month. That’s not a small amount. That’s groceries. That’s gas. That’s a month’s worth of rent for someone on a fixed income.

Generics aren’t a second choice. They’re the smart choice. And authorized generics? They’re the hidden key to deeper savings. You don’t need a degree in pharmacy to use them. You just need to know how to ask.