Medical Expenditure Panel Survey Agency for Healthcare 

Research and Quality

STATISTICAL BRIEF #144 

October 2006

Trends in Brand Name and Generic 

Prescribed Medicine Utilization and 

Expenditures, 1999 and 2003 

Highlights 

 The proportion of the civilian

noninstitutionalized population purchasing a brand 

name prescribed medicine 

increased from 47.5 percent 

to 53.4 percent when comparing the years 1999 and 

2003; the proportion of the 

population purchasing a generic prescribed medicine did 

not change significantly when 

comparing the two years. 

 From 1999 to 2003, the 

number of total purchases 

of brand name and generic 

prescribed medicines by the 

community population increased from 1.3 billion to 

1.7 billion purchases for 

brand name drugs and from 

0.8 billion to 1.1 billion purchases for generic drugs. 

 Among the community population, total expenditures for 

brand name prescribed medicines and generic prescribed 

medicines nearly doubled in 

the five-year span from 1999 

to 2003, going from $75.5 

billion to $141.0 billion for 

brand name drugs and from 

$18.8 billion to $36.6 billion 

for generics. 

 In the five years from 1999 to 

2003, the average expense 

per purchase for brand name 

and generic prescribed medicines increased, with the 

average expense for a brand 

name rising from $59.49 to 

$82.53, and the average expense for a generic rising 

from $23.48 to $33.53.

Marie N. Stagnitti, MPA 

Introduction 

This Statistical Brief presents data from the Household Component 

of the Medical Expenditure Panel Survey (MEPS-HC) on brand 

name and generic prescribed medicine utilization and expenditures 

in the U.S. civilian noninstitutionalized (community) population in 

1999 and 2003. Estimates were derived from the 1999 and 2003 

MEPS prescribed medicines (PMED) files. 

Only prescribed drugs obtained in an outpatient setting are included

in the estimates provided in this brief. Insulin and diabetic supplies 

and equipment are included in MEPS prescribed medicines 

estimates. Over-the-counter medicines are excluded from these 

estimates as are prescription medicines administered in an inpatient 

setting or in a clinic or physician’s office. Expenditures are in 

nominal dollars. All differences discussed in the text are statistically

significant at the 0.05 level.

Findings 

In 1999, 47.5 percent of the 276.4 million persons in the U.S. civilian 

noninstitutionalized (community) population purchased at least one

brand name prescribed medicine during the year, and 46.9 percent

purchased at least one generic prescribed medicine during the year. 

By 2003, the U.S. community population had grown to 290.6 million

persons, and the proportion of persons purchasing at least one 

brand name drug increased to 53.4 percent. However, the 

proportion purchasing at least one generic drug did not change 

significantly when comparing the years 1999 and 2003. (figure 1) 

Utilization of brand name prescribed drugs rose from 1.3 billion 

purchases to 1.7 billion purchases in the five-year span from 1999 

to 2003. Generic drugs also increased in utilization, rising from 0.8 

billion purchases to 1.1 billion purchases from 1999 to 2003. (figure

2) 

When comparing the years 1999 and 2003, total expenditures 

increased significantly for both brand name and generic prescribed

medicines. Brand name drugs total expenditures increased from 
$75.5 billion to $141.0 billion, and generic drugs total expenditures increased from $18.8 billion dollars to 

$36.6 billion. (figure 3) 

In 1999, the average expense per purchase for a brand name prescribed drug was $59.49, and the 

average expense for a generic drug was $23.48. Five years later, in 2003, the average expense 

increased to $82.53 for a brand name drug and $33.53 for a generic drug. (figure 4) 

Definitions 

Brand name and generic prescribed drugs 

Brand name and generic status was identified by linking the 1999 and 2003 MEPS Prescribed Medicines 

Files to the Master Drug DataBase, which is published by Medi-Span, for corresponding years. The MediSpan Master Drug DataBase includes a Multi-Source Code variable. This variable allows a prescribed 

drug to be designated as 1) single-source, no generics available; 2) single-source, co-licensed; 3) original 

product, generic available; and 4) considered generic, multiple sources. For this brief, drugs falling into 

categories 1, 2, and 3 were considered brand name drugs, and drugs falling into category 4 were 

considered generic drugs. 

Expenditures 

Expenditures are in nominal dollars. 

About MEPS-HC 

MEPS-HC is a nationally representative longitudinal survey that collects detailed information on health 

care utilization and expenditures, health insurance, and health status, as well as a wide variety of social, 

demographic, and economic characteristics for the civilian noninstitutionalized population. It is 

cosponsored by the Agency for Healthcare Research and Quality and the National Center for Health 

Statistics. 

For more information about MEPS, call the MEPS information coordinator at AHRQ (301-427-1656) or 

visit the MEPS Web site at http://www.meps.ahrq.gov/. 

References 

For a detailed description of the MEPS survey design, sample design, and methods used to minimize 

sources of nonsampling error, see the following publications: 

Cohen, J. Design and Methods of the Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 1. AHCPR Pub. No. 97-0026. Rockville, Md.: Agency for Health Care Policy and 

Research, 1997. 

Cohen, S. Sample Design of the 1996 Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 2. AHCPR Pub. No. 97-0027. Rockville, Md.: Agency for Health Care Policy and 

Research, 1997. 

Cohen, S. Design Strategies and Innovations in the Medical Expenditure Panel Survey. Medical Care,

July 2003: 41(7) Supplement: III-5–III-12. 

Suggested Citation 

Stagnitti, M. N. Trends in Brand Name and Generic Prescribed Medicine Utilization and Expenditures, 

1999 and 2003. Statistical Brief #144. October 2006. Agency for Healthcare Research and Quality, 

Rockville, MD. http://www.meps.ahrq.gov/mepsweb/data_files/ publications/st144/stat144.pdf 

∗ ∗ ∗

AHRQ welcomes questions and comments from readers of this publication who are interested in 

obtaining more information about access, cost, use, financing, and quality of health care in the United 

States. We also invite you to tell us how you are using this Statistical Brief and other MEPS data and 
tools and to share suggestions on how MEPS products might be enhanced to further meet your needs. 

Please e-mail us at mepspd@ahrq.gov or send a letter to the address below: 

Steven B. Cohen, PhD, Director 

Center for Financing, Access, and Cost Trends 

Agency for Healthcare Research and Quality 

540 Gaither Road 

Rockville, MD 20850 
Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey,

1999 and 2003.

47.5 46.9

53.4

46.0

0

25

50

75

100

Brand name Generic

1999 2003

Figure 1. Percentage of U.S. civilian noninstitutionalized

population with at least one brand name or generic

prescribed medicine purchase, 1999 and 2003

P

ercent

 

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey,

1999 and 2003.

1.3

0.8

1.1

1.7

0

1

2

Brand name Generic

1999 2003

Figure 2. Total utilization for brand name and generic prescribed 

medicines in the U.S. civilian noninstitutionalized population,

1999 and 2003

Purchases in billions
Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey,

1999 and 2003.

18.8

75.5

141.0

36.6

$0

$50

$100

$150

Brand name Generic

1999 2003

Figure 3. Total prescribed drug expenditures for brand name

and generic prescribed medicines in the U.S. civilian

noninstitutionalized population, 1999 and 2003

Dollars in billions

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey,

1999 and 2003.

$23.48

$59.49

$82.53

$33.53

$0

$20

$40

$60

$80

$100

Brand name Generic

1999 2003

Figure 4. Average prescribed medicine expense per purchase

for brand name and generic drugs, 1999 and 2003

Dollars