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Do lower prices make generic medications the top choice for Americans?

Exploring cost savings, perceived effectiveness, and the role of medication type in American buying habits.

prescription medication bottle with blurry provider in background

Key Takeaways

  • Nearly 2 in 3 Americans (63%) choose generic medications over brand-name options.
  • 3 in 5 Americans would prefer to buy brand-name medications but choose to buy generic ones because of the cost.
  • 62% of Americans trust brand-name medications more than generics.
  • 84% of Americans believe generic medications are just as effective as their brand-name counterparts.
  • On average, generic medications cost approximately 79% less than brand-name medications.

When choosing between generic and brand-name medications, Americans face decisions influenced by both their wallets and their health needs. With medication costs rising, many are looking for ways to save money without compromising their well-being.

To better understand the factors shaping these decisions, Tebra surveyed over 1,000 Americans and compared the costs of popular medications in five major US cities. This report explores how patient preferences, medication types, and healthcare tools like EHR systems shape the way Americans approach their healthcare choices.

What drives medication choices

When patients choose between brand-name and generic medications, cost, trust, and availability all come into play. These factors and others revealed below influence how people decide which option is best for their needs.

chart showing buyer preferences of consumers on buying generic vs brand name medication prescriptions

Although 62% of Americans trust brand-name medications more, nearly 2 in 3 (63%) said they prefer to buy generic drugs. Cost is the primary reason, with 91% citing it as the driving factor, followed by availability (34%). Additionally, 60% said they would prefer to buy brand-name medications but opt for generics because of the lower price.

Income also influences medication choices. Those earning $100,000 or more annually were 32% more likely to favor brand-name medications. Gen Z, the youngest generation surveyed, was the most likely to prefer brand-name medications. Their top reasons included:

  • Trusting them more than generics: 78%
  • Being familiar with the brand: 69%
  • Believing the brand name means higher quality: 59%
  • Following a healthcare provider's recommendation: 43%

Interestingly, 1 in 10 Gen Z and Millennial Americans said they base their preference for brand names on the packaging alone — that's some pretty effective product design at work. In comparison, Gen X was the most likely to prefer generic medications, mainly due to cost (95%), previous experience (28%), availability (26%), and higher trust (15%).

Electronic health records (EHR) and patient portals make it easier for providers to track patient preferences, allergies, and past prescriptions. With these tools, providers can offer personalized recommendations, share cost comparisons, and provide educational materials through secure messaging.

For independent clinics, EHR systems strengthen patient-provider relationships through improved communication, helping patients feel more informed and confident when deciding between generic and brand-name medications.

Does condition matter?

What patients are treating can influence whether they choose generic or brand-name medications. We next explore how different health conditions impact medication choices.

chart showing which conditions consumers prefer for generic medications vs which conditions consumers prefer for brand name medications

A large majority — 84% of Americans — said they believe that generic medications are just as effective as brand-name options. However, Gen Z was more skeptical, with 24% viewing generics as lower quality and 17% believing they're less effective than brand-name. Gen Z also showed stronger preferences for brand-name medications when treating specific conditions:

  • Cough and cold: 40%
  • Mental health: 38%
  • Pain relief: 33%
  • Fever and headaches: 28%

Nearly 1 in 10 Americans said they believe generic drugs aren't tested as rigorously as brand-name, with Gen Z being the most likely to have this view (11%). Some also questioned whether generics are FDA-approved (7% of Gen Z), and 12% of Millennials believed that generics took longer to work compared to brand-name medications.

Addressing patient concerns and misconceptions about medication quality and effectiveness starts with clear communication and easy access to resources. Patient experience software makes conversations between providers and patients easier so practices can provide timely information to clear up doubts and reinforce trust. 

How much can you save?

One of the top reasons Americans choose generic medications is the potential for savings. Here's a breakdown of the cost differences between generics and brand names for over-the-counter and prescription drugs.

chart showing savings on generic vs brand name prescription medication

On average, generic medications cost approximately 79% less than their brand-name counterparts, offering substantial savings for consumers. For more commonly used medications, such as allergy relief, patients can save up to 83% per prescription by choosing the generic alternative. These savings are a driving factor for many, particularly as medication prices continue to rise in the US.

EHR systems with e-prescribing capabilities help providers identify cost-saving opportunities, such as more affordable generic or therapeutic alternatives. They also reduce administrative burden by streamlining the medication refill process. With additional tools like coupon finders, EHR systems can locate the best local prescription prices and provide real-time data for drug-specific directions, enabling providers to offer more personalized and budget-friendly care.

Choosing the best option: Balancing cost and care

For many Americans, the decision between generic and brand-name medications often comes down to cost. Generics cost less on average and often prove just as effective, making them a practical choice for budget-conscious consumers. However, trust in brand names and appealing product packaging, especially among younger generations like Gen Z, are affecting purchasing decisions.

Healthcare providers can help patients make informed medication decisions by offering personalized care and professional insights on cost and effectiveness. With tools like EHR systems and patient portals, they can easily track preferences, share resources, set up payment plans, and discuss treatment options. Balancing affordability with individual needs helps providers deliver patient-centered care that builds trust and improves health outcomes.

Methodology

Tebra surveyed 1,006 Americans in September 2024 to explore their perceptions of generic versus brand-name medications. The generational breakdown was as follows:

  • Gen Z: 15%
  • Millennials: 52%
  • Gen X: 25%
  • Baby Boomers: 9%

Tebra also gathered pricing data for popular medications, comparing brand-name and generic versions. The percentage difference in cost was calculated using GoodRx data, reflecting the average prices from various pharmacies in 5 major US cities: New York, NY; Washington, DC; Los Angeles, CA; Chicago, IL; and Houston, TX.

About Tebra

Tebra, headquartered in Southern California, empowers independent healthcare practices with cutting-edge AI and automation to drive growth, streamline care, and boost efficiency. Our all-in-one EHR and billing platform delivers everything you need to attract and engage your patients, including online scheduling, reputation management, and digital communications. 

Inspired by "vertebrae," our name embodies our mission to be the backbone of healthcare success. With over 165,000 providers and 190 million patient records, Tebra is redefining healthcare through innovation and a commitment to customer success. We’re not just optimizing operations—we're ensuring independent practices thrive.

This is just the beginning. Tebra is constantly exploring new ways to leverage technology and partnerships to improve healthcare. Our partnership with GoodRx demonstrates this commitment, with features like automated coupon retrieval paving the way for a more patient-centric and cost-effective future.

Fair use statement

You can share this content on Americans' preferences for generic versus brand-name medications for noncommercial purposes as long as you provide a link to this source page.

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Jean Lee, managing editor at The Intake

Jean Lee is a content expert with a background in journalism and marketing, driven by a passion for storytelling that inspires and informs. As the managing editor of The Intake, she is committed to supporting independent practices with content, insights, and resources tailored to help them navigate challenges and succeed in today’s evolving healthcare landscape.

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Andrea Curry, head of editorial at The Intake

Andrea Curry is an award-winning journalist with over 15 years of storytelling under her belt. She has won multiple awards for her work and is now the head of editorial at The Intake, where she puts her passion for helping independent healthcare practices into action.

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