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generic drug

What is a generic drug?

Once a company’s patent on a brand-name prescription drug has expired, other drug companies are allowed to sell the same drug under a generic label. Generic drugs are less expensive, despite containing the same active ingredients as their brand-name counterparts, and most prescription and health plans reward clients for choosing generic drugs, as out-of-pocket costs tend to be lowest for generic drugs, and higher for brand-name drugs.

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