Glossary · Drug coverage
What is a generic drug?
A generic drug has the same active-ingredient formula as a brand-name drug and usually costs less. FDA rates generics as safe and effective as the brand-name drugs.
Definition and figures from HealthCare.gov glossary, checked October 23, 2026. This page explains the term; it does not recommend a plan.
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Generic drug: the facts
| Item | Fact | Source |
|---|---|---|
| FDA rating | As safe and effective as the brand-name drug | HealthCare.gov glossary: Generic drugs |
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What does generic drug mean in health insurance?
A generic drug has the same active-ingredient formula as a brand-name drug and usually costs less. FDA rates generics as safe and effective as the brand-name drugs.