You hear a lot about how generic drugs can save you money, but are they really as good as brand-name medications?

Generic drugs are copies of brand-name products whose patents have expired. That typically happens only after a drug has been on the market for 10 to 14 years. Many people worry that generics are somehow inferior, but they're not. Unlike generic cereal, soap, or canned goods, where the brand is indeed often better, FDA rules require generic drugs to have exactly the same active chemicals as the original brands. So you get the same benefit.

Today, generics are available for just over half of all prescription drugs, and some widely prescribed drugs will go generic in the next few years. If you've taken a brand-name medicine for a long time, you may be understandably reluctant to switch. But the savings could be worth it. Even if you have insurance, the co-pay for a generic drug is often less than for the branded version.

What if an exciting new medicine comes on the market? Sometimes, such a drug offers advantages that are worth paying extra for. But more often than you might think, the new drug is roughly equivalent to older ones. And while most drugs are well-studied before they go on sale, there are plenty of cases where significant problems turn up later. The arthritis drug Vioxx is just one high-profile example. In that case, a risk of heart problems appeared years after it went on the market.

Unless you and your doctor decide you need a new drug, see if there is an equivalent older generic. The savings can be substantial, especially if you have a chronic illness that requires you to take a drug regularly for years.