Net Prescription Drug Prices And Spending In Medicare Part D Before And After Generic Entry.

Generic competition lowers retail prescription drug prices, but little is known about its effect on net prices, accounting for manufacturer rebates. Using data on rebates and discounts for Part D, we estimated net prices, prescription volume, and spending before and after generic entry. Total spending fell as generics captured market share, even as total volume rose. Brand-name prices rose in a shrinking segment.