Low cost generic medicines and its socio-economic impact –an empirical study in India

Abstract

Rising healthcare costs, particularly on medicines, are a big worry for low and middle-income economies like India. The research paper based on an empirical study highlights the extent of savings due to purchasing low cost generic medicines and its socio-economic impact at the household level. The research used the Quasi-experimental design and mixed methods approach for a comparative analysis. Households purchasing generic medicines saved around 40% on medication cost. In fact, on chronic illnesses, such as diabetes, blood pressure, ‘control’ group households pay four times more than households, which buy generic medicines (treatment group). On the socio economic impact, the treatment group households mainly spent savings on nutritious food (51%), better health facilities/treatment (25%), and education of children (14%). Households across social groups are benefitting from low-cost generic medicines. However, policy level corrective measures needed, one, to address perception deficit mainly among medical practitioners about generic medicines and two, the need to improve the availability and accessibility of generic medicines, by improving supply guidelines and criteria.