In the United States prescription medication is sold either as brand name drugs or as generic drugs. Brand name drugs are those that are marketed under the specific name of a pharmaceutical company that has developed, patented, and subsequently sells the medication.

As long as the patents are in force, brand name drugs can be sold at rates determined by the pharmaceutical company. They are always more expensive than drugs on which the patent has expired. Once that occurs, the substance may be manufactured and sold by other companies as a generic drug and, although subject to the same standards of production, the medication will be less expensive. The reason for the lowered cost is that the company selling the generic did not bear the cost of the drug's original development.

Although there is a common misperception that brand name drugs are superior, that is not the case. They are simply more expensive. Unfortunately, as long as the patents are in place, customers may have no choice but to pay the higher rates.

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