January 8, 2026
“Generic” refers to a drug product that is equivalent to a brand-name drug. Pharmaceutical manufacturers are allowed to produce and sell generic drugs after the patent on the brand-name drug has expired. Even then, Health Canada must approve the generic drug before it can go to market.
Manufacturers must prove their product equals the brand-name drug. The active ingredients must be as pure, it has to dissolve in the same manner, and it must be absorbed at the same rate as the brand-name drug. According to Health Canada, generic drugs have the same active ingredients and are identical to brand-name drugs in dose, strength and how they are taken. They are equally safe and effective.
The only difference in make-up is the inactive ingredients; the binders, fillers and dyes used to give the drugs their shape and colour. These differences have no effect on the drug’s active ingredients or how it works. Despite what you may think about some other generic products, generic drugs are not of lower quality than brand-name drugs. Of course, one of the best things about generic drugs is the price which is usually substantially lower than the brand-name drug. News and Updates from Ontario Teachers Insurance Plan | OTIP RAEO
The OSSTF ELHT benefit Plans have a cost saving feature known as mandatory generic substitution. This plan feature helps manage the costs associated with prescription drugs by reimbursing the cost of your prescription drug up to the price of the lowest-priced alternative medication which is typically a “generic drug”. If the drug you are prescribed is an eligible “brand-name drug” and there is no alternative or interchangeable drug, then the plan will continue to reimburse your prescription based on the reasonable and customary cost level of the brand-name drug. News and Updates from Ontario Teachers Insurance Plan | OTIP RAEO
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