Generic Substitution

Generic substitution is the practice, common in retail pharmacy, of dispensing a generic equivalent of a brand-name prescription. Generics contain the same active ingredient, in the same strength and dosage form, as the brand product, and are typically 80 percent or more less expensive. State pharmacy laws govern when the pharmacist may substitute without prescriber permission and how the prescriber may signal a brand-medically-necessary exception.

In a pharmacy lien context, generic substitution materially reduces the lien balance. A muscle relaxant prescribed for sixty days might cost $300 in brand form and $40 in generic form. Across the duration of a personal injury case, generic substitution can save thousands of dollars per client without affecting clinical outcome.

CreoRx's pharmacy lien program defaults to generic substitution wherever clinically appropriate and legally permitted. The firm and the client get the same therapeutic effect at a fraction of the lien cost. Brand dispense is available when the prescriber writes a dispense-as-written instruction or when no generic equivalent exists.

Generic substitution does not affect the validity of the pharmacy lien. The lien still attaches to the settlement; it just attaches to a lower number. Case managers and attorneys generally prefer generic substitution because it preserves client net recovery at settlement.