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

When your prescription costs more than your grocery bill, it’s time to ask the right questions. You’re not alone-millions of people in the U.S. pay way too much for meds they could get for a fraction of the price. The secret? Generics and authorized generics. But knowing they exist isn’t enough. You have to know how to ask for them, and what to ask next.

What’s the Difference Between Generic and Authorized Generic Drugs?

A generic drug is a copy of a brand-name medicine. It has the same active ingredient, works the same way, and meets the same FDA safety standards. The only differences? The name, the color, and the price-often 80% to 90% lower.

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 model under a different brand name. No changes to the formula. No difference in the pill. Just a lower price tag.

The FDA requires all generics to prove they’re bioequivalent-meaning they get into your bloodstream at the same rate and amount as the brand. Authorized generics don’t even need to prove that because they’re made in the same factory, with the same ingredients, on the same machines.

Why Do Prices Vary So Much Between Generic Types?

Here’s where things get tricky. Just because two pills are chemically identical doesn’t mean your out-of-pocket cost is the same.

Traditional generics often have aggressive pricing because multiple companies make them. Competition drives prices down. But authorized generics? They’re usually the only version on the market right after the brand’s patent expires. That means the brand company controls the price-and sometimes, they don’t lower it as much as you’d expect.

Worse, insurance plans treat them differently. Some insurers put authorized generics on the same tier as brand-name drugs. That means your $45 copay stays the same, even if the drug’s list price dropped from $300 to $90.

A 2023 Reddit user shared: “My insulin went from $350 brand to $90 authorized generic-but my copay stayed at $45.” Another user switched from an authorized generic to a traditional generic for blood pressure meds and saved $20 a month-even though the pills were identical.

What to Say at the Pharmacy (And What to Ask Next)

Don’t just ask, “Do you have a generic?” That’s like asking, “Do you have a cheaper version?” and getting a vague answer. You need to be specific.

Here’s exactly what to say:

1. “Is there a generic version of this medication?”
2. “Is this an authorized generic?”
3. “How does my insurance treat authorized generics versus other generics?”
4. “Can I save money by switching between generic types?”

Pharmacists aren’t always trained on rebate structures or PBM contracts. A 2022 survey found only 43% of independent pharmacists could explain how authorized generics affect your copay. So don’t take their first answer as final.

If they say, “We don’t have a cheaper option,” ask: “Can you check the cash price on GoodRx for both the traditional generic and the authorized generic?” Often, the cash price is lower than your insurance copay.

Why Your Insurance Might Not Save You-Even With Generics

The system is built to hide savings. Insurance companies negotiate rebates with drugmakers, but those rebates rarely go to you. They go to the pharmacy benefit manager (PBM), who uses them to lower the plan’s overall cost-while you still pay the same copay.

That’s why a 2023 survey by Patients for Affordable Drugs found 28% of people paid over $20 for a generic prescription-even though the drug’s average wholesale price was under $5.

High-deductible plans make this worse. If you haven’t met your deductible, you’re paying the full list price. A $10 generic could still cost you $80 out of pocket.

The fix? Always ask for the cash price. Use GoodRx or SingleCare. Compare it to your insurance copay. Sometimes, paying cash is cheaper-even for generics.

When Authorized Generics Are Your Best Bet

Authorized generics aren’t always cheaper-but they’re often the only option when no other generic exists. That’s common with complex drugs like inhalers, injectables, or certain skin creams.

For example, when the brand-name drug Humira lost patent protection, the first version available was an authorized generic. It took over a year for traditional generics to appear. During that time, patients who asked for the authorized generic saved hundreds per month.

Also, if your doctor says, “This brand is the only one that works for me,” ask: “Is there an authorized generic? Or a traditional generic that’s been approved as AB-rated?” The FDA considers all approved generics therapeutically equivalent. If your body reacted badly to a generic before, it’s likely not the drug-it’s the filler or coating. But that’s rare.

What to Do When No Generic Is Available

Some drugs still don’t have generics-especially newer biologics like Humira, Enbrel, or insulin. But biosimilars are starting to change that. They’re not exact copies, but they’re close enough to be approved as safe and effective. In 2023, biosimilars saved patients over $7 billion.

Ask: “Is there a biosimilar for this?” If yes, compare the copay. If not, ask your doctor if you can try a different drug in the same class that has a generic.

How Much Can You Really Save?

The numbers speak for themselves. In 2022, generic drugs saved the U.S. healthcare system $408 billion. Over the past decade, that total hit $2.9 trillion.

For you? Here’s what it looks like:

• Brand-name drug: $120/month → Generic: $15/month → Saved $1,260/year
• Brand insulin: $350/month → Authorized generic: $90/month → Saved $3,120/year
• Brand blood pressure med: $80/month → Traditional generic: $6/month → Saved $888/year

The biggest savings come from drugs with multiple generic makers. For example, when generic versions of Truvada (for HIV prevention) hit the market, the price dropped from $50 per pill to $3. That’s a 94% drop.

Red Flags to Watch Out For

Not all generics are created equal-and not all pharmacies tell you the truth.

Watch for:

• Pharmacists who say, “We don’t carry generics for this,” when GoodRx shows three options.
• Insurance forms that list authorized generics under the brand tier.
• Price hikes on generics right after a new one enters the market-this can signal a rebate deal that’s not passing savings to you.

If you suspect something’s off, call your insurance plan’s pharmacy help line. Ask: “What tier is this generic on? What’s the copay? Is there a cheaper alternative?”

Final Tip: Make It a Habit

Every time you refill a prescription-ask the same four questions. Don’t wait until you’re hit with a $400 bill. Check before you fill.

Use apps like GoodRx, SingleCare, or Blink Health to compare prices across pharmacies. Print out the cash price and take it to the counter. Ask: “Can you match this?”

You’re not being difficult. You’re being smart. And with over 90% of prescriptions filled with generics, you’re not asking for a favor-you’re asking for what you’re already entitled to.