Where Are the Billions We Saved by Using Generic Drugs?

In 2003, the US Department of Health and Human services streamlined its process for making generic drugs available to patients. They stated that the shift in its regulations would save consumers $35 billion over ten years.

In recent years, we've seen ads and commercials broadcast on radio and TV, online and in print, touting the use of generics -- paid for by the health insurance companies that stand to save the most money when patients switch to generics.

Now, this time of year, and now that election ads are behind us, much of the advertising we see is focused on health insurance choices for 2009. A quick review of premium increases across the country finds a range of increase in cost from 3.1% to 16%.... so it begs the question....

Where is all that money we've supposedly saved? That estimate was made in 2003. This being 2008, we should have saved half the estimate by now -- some $17.5 billion perhaps?

Where is it? Who's got it? My premiums haven't gone down, nor have anyone else's.

Please don't tell me premiums would have gone even higher had they not been subsidized by the purchase of generic drugs. I realize that's part of the answer, but it can't be all of it. Big pharma doesn't seem to be taking any hits from non-purchase of branded drugs... so....?

Yes, I realize this is a rhetorical question. But I'm curious -- anyone want to take a stab at an answer?

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