Generics – cheaper than original medicines

Retention fee for medication

The Federal Council increased the “higher retention fee” for certain medicines from 20% to 40% as of 1 January 2024. This increase is intended to encourage the use of generics and biosimilars, and to contain healthcare spending.

A higher retention fee is charged if you buy a more expensive original medicine even though a cheaper generic or biosimilar that acts in the same way is available – and the Federal Office of Public Health (FOPH) deems the price difference to be too high.

Generics explained in brief

New medicines are initially protected by a patent. During this period, only the original manufacturer is permitted to sell the medicine, thus allowing it to recover the costs invested in research and development. Once the patent protection expires, other manufacturers can start using the active ingredient to produce a generic version.

Generics are copies of synthetic medicines made from a chemical process. They contain the same active ingredient, in the same amount and same form (e.g. tablet or syrup). Generic medicines are tested by Swissmedic for quality and safety and are subject to the same strict requirements as original medicines.

The great advantage is that generics are usually much cheaper than the originator product, while being equally safe and effective. Any differences that may occur are confined to the manner of processing and the excipients used.

What are biosimilars?

Biosimilars are also cheaper. These are products which are modelled on medicines manufactured from biological sources. They are produced with the help of genetically modified living organisms, such as yeast, bacteria or animal cells. Biosimilars are highly similar to the original medicine, but never identical.

How to save on healthcare costs

Check which medication CSS pays for and ask your doctor's practice or pharmacy for cheaper alternatives. This is also worth doing for medication whose costs are covered by CSS. That way, you keep your retention fee lower.

• Compare the price of medicines with mymedi.
• Find and order generics easily in the Well-App.

Reasons in favour of the original medicine

It is sometimes necessary for medical reasons to take the brand-name original. If you need the original medicine on health grounds, your doctor can send us confirmation to this effect. We’ll enter this information in our system to ensure you won’t have to pay any increased retention fee in future.

When generics are mandatory

If you have the Telmed, Multimed or Family Doctor model of insurance with CSS, you must ask for a generic, biosimilar or low-cost originator product when obtaining medication – unless your doctor confirms that the original medicine is necessary for medical reasons. If you choose a more expensive brand-name product without medical reasons for doing so, CSS will assume only 50% of the costs.