In a bid to help federal and state governments save money, a bipartisan trio of US Senators has introduced a bill to promote the use of generics in the Medicaid program. The move comes as brand-name drugmakers are also fighting on Capitol Hill to fend off a proposal that would restore rebates for drugs taken by seniors who are eligible for both Medicaid and Medicare (see this).

Called the Affordable Medicines Utilization Act of 2011, the bill would give states incentives to increase generic drug use by letting them keep part of the difference that the federal government receives between the cost of a generic and its brand-name counterpart (here is the bill). In making their case, the pols cite a recent study by the American Enterprise Institute that maintained Medicaid needlessly spent approximately $329 million on brand-name drugs last year (read here).

“Increasing choice and competition in the healthcare system is one of the best ways to drive down costs. This saves money for patients, the state, and injects more competition into the drug market which will help to lower costs overall,” says Ron Wyden, a Democrat from Oregon, in a statement. The co-sponsors include Scott Brown, the Massachusetts Republican, and John McCain, the Republican from Arizona.