The use of generic drugs could cut the cost of healthcare in Bermuda, an insurance company said.

Naz Farrow, chief operating officer for health with the Colonial insurance group, said: “Overall, the generics are less expensive than the brand.

“In order to be considered a generic, the drug must be able to perform the same function of the brand and the [US] Food and Drug Administration regulates how much variability is acceptable for a drug to be approved as a generic medication to the brand medication.”

Ms Farrow added that some doctors may not want to use generics for some medications for medical reasons.

But she said: “However, for the majority of people a generic medicine, once you are stabilised on it, is very effective.”

Ms Farrow added that the cost of prescription drugs was “a significant component” of the overall spending on the healthcare system — around eight percent of claims costs in Bermuda in 2012.

Ms Farrow pointed out that the Government’s Throne Speech last month had committed to mandating the use of generic drugs unless a doctor specifically orders a brand name in a bid to cut costs.

Government said it would introduce amendments to legislation to increase the use of generics over more expensive brand names.

Ms Farrow said: “At a time when healthcare costs are escalating, this is an initiative to be welcomed. By itself, it will not bring premiums down but it will go a long way towards helping to stabilise them.”

She added: “We are very supportive of the efforts being made by Government to control spiralling healthcare costs by looking at various factors, such as a greater use of generic drugs.

“And we are committed to working with Government and providing them with support needed to tackle the challenges that are ahead of them,”

Colonial highlighted the price difference between some drugs. For example, brand-name medicine for treating high cholesterol was $77.75, while the generic equivalent cost $41.

And a platelet inhibitor medicine — which helps prevent the formation of potentially deadly blood clots — costs $112.50 for a brand name and less than half that for its generic equivalent.