Shabab AlGhamdi, Ibrahim Abdulrahman Aljuffali, Ahmed Hamdan Aljedai, Razan Aljaser, Mohammed Aljumah, Christiane Maskineh, Omar Aldibasi, Ghassan Sleilaty, Nada Ahmed Alagil
{"title":"Current Generics Utilization and Associated Savings in Saudi Arabia: Insights From a Private Claims Database.","authors":"Shabab AlGhamdi, Ibrahim Abdulrahman Aljuffali, Ahmed Hamdan Aljedai, Razan Aljaser, Mohammed Aljumah, Christiane Maskineh, Omar Aldibasi, Ghassan Sleilaty, Nada Ahmed Alagil","doi":"10.1016/j.vhri.2025.101138","DOIUrl":null,"url":null,"abstract":"<p><strong>Objectives: </strong>Generic substituting is a recognized policy fostering access to innovation while reducing healthcare expenditure. In the Kingdom of Saudi Arabia, the Council of Health Insurance (CHI) introduced a new policy, CHI circular N°289 (28 September 2022), incentivizing generic utilization. To date, there is no documentation on the uptake and outcome of this policy. This study aims to analyze the policy's impact on medication utilization and financial outcomes. The objectives are to assess the generic utilization trends and related cost savings, local versus imported brand usage, and the evolving landscape of pharmaceutical utilization.</p><p><strong>Methods: </strong>This is a 10-month retrospective observational study (September 2022-June 2023) using monthly aggregate data from the National Public Health Information Exchange System platform. Generic utilization rates, spending, and current and potential savings were estimated, and local generic uptake was assessed. Indirect comparisons were made with the Kingdom of Saudi Arabia's historical 2019 data.</p><p><strong>Results: </strong>Generic utilization rates increased from 70% to 76%, whereas generic spending rates increased from 38% to 44%. Local generics drove medication utilization rates (45%), outpacing imported generics (30%) and brand medications (25%). The observed trend, aligning with European and North American countries, exceeds 2019 figures. Over 10 months, current savings approximated 330 million Saudi Riyal, with potential savings of 228 million Saudi Riyal.</p><p><strong>Conclusions: </strong>CHI circular N°289 (28/09/2022) promoting generic medication use was widely adopted, a trend expected to continue.</p>","PeriodicalId":23497,"journal":{"name":"Value in health regional issues","volume":" ","pages":"101138"},"PeriodicalIF":1.4000,"publicationDate":"2025-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Value in health regional issues","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1016/j.vhri.2025.101138","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"HEALTH CARE SCIENCES & SERVICES","Score":null,"Total":0}
引用次数: 0
Abstract
Objectives: Generic substituting is a recognized policy fostering access to innovation while reducing healthcare expenditure. In the Kingdom of Saudi Arabia, the Council of Health Insurance (CHI) introduced a new policy, CHI circular N°289 (28 September 2022), incentivizing generic utilization. To date, there is no documentation on the uptake and outcome of this policy. This study aims to analyze the policy's impact on medication utilization and financial outcomes. The objectives are to assess the generic utilization trends and related cost savings, local versus imported brand usage, and the evolving landscape of pharmaceutical utilization.
Methods: This is a 10-month retrospective observational study (September 2022-June 2023) using monthly aggregate data from the National Public Health Information Exchange System platform. Generic utilization rates, spending, and current and potential savings were estimated, and local generic uptake was assessed. Indirect comparisons were made with the Kingdom of Saudi Arabia's historical 2019 data.
Results: Generic utilization rates increased from 70% to 76%, whereas generic spending rates increased from 38% to 44%. Local generics drove medication utilization rates (45%), outpacing imported generics (30%) and brand medications (25%). The observed trend, aligning with European and North American countries, exceeds 2019 figures. Over 10 months, current savings approximated 330 million Saudi Riyal, with potential savings of 228 million Saudi Riyal.
Conclusions: CHI circular N°289 (28/09/2022) promoting generic medication use was widely adopted, a trend expected to continue.