What is a brand-name drug?
A brand-name drug is a medication marketed under a trademarked brand name and protected by a patent. When patents run out, other companies market generic versions of many popular drugs at a lower cost. The generic versions have the same active ingredients and work the same way as the brand-name version. Both generic and brand-name drugs are covered by health insurance, but brand-name drugs tend to have higher out-of-pocket costs. This is particularly true if a generic version of the drug is available.
Lipitor is an example of a brand-name drug. Its generic version is atorvastatin.
