Image of the Day: Drug Prices Are CHEAPER in the U.S. Than Other Developed Nations
In our latest Liberty Update, CFIF highlights the debut of the “Most Favored Patient” initiative, which offers the optimal blueprint going forward for lower drug costs, greater access and better healthcare.
Well, the policy heavyweights behind Most Favored Patient come from the group at Unleash Prosperity, including Steve Forbes, Stephen Moore, Phil Kerpen, and Thomas Philipson. And in addition to their new work at Most Favored Patient, they’ve unveiled a new commentary explaining how drug prices in the U.S. are actually cheaper than in other developed nations with which we’re often unfairly compared:
It IS true that Americans pay more for new drugs under patent. That, of course, is because American pharmaceutical companies spend billions of dollars inventing the major breakthrough drugs and the rest of the world free-rides on those R&D costs.
But most drugs consumed in the U.S. are generics. Those prices are cheap. And generics last forever, whereas a patent lasts 10 to 20 years before generics take over.
A new blockbuster study by UP senior fellow Tomas Philipson has two amazing findings:
First: “The U.S. has the highest generic market share (93 percent).”
Second: “The U.S. has some of the LOWEST generic prices among developed countries.” Medicare and Medicaid pay almost 20% less for prescription drugs than in Europe, Canada, and the U.K. It is true Americans pay more for the patented drugs, but many residents of countries with socialized medicine don’t have access to these drugs at virtually any price because of socialist price controls and government-run health care.”
Along the way, they offer this helpful illustration:
https://cfif.org/v/freedom_line_blog/26532/image-of-the-day-drug-prices-are-cheaper-in-the-u-s-than-other-developed-nations/
