Prescription drug prices in the United States

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Editor-In-Chief: C. Michael Gibson, M.S., M.D. [1]

Overview

Prescription drug prices for single-source brand name drugs in the United States are significantly higher than in Canada and other countries, many of which have price controls. Prices for generically available drugs tend to be higher in Canada. Many older Americans travel to Canada, or order their medicine online from Canadian pharmacies, in order to save 50% or more on necessary drugs.

Pharmaceutical companies argue that the prices they set are necessary in order to continue to fund research. Only 11% of drug candidates that enter clinical trials are successful and receive approval for sale. The large cost of conducting clinicals trials for unsuccessful candidates must be recovered from the sales of successful drugs, otherwise the discovery and development of new pharmaceutical drugs would be unsustainable.

Prescription drug prices, in particular as part of Medicare, have become a political issue in the United States. Critics argue that there is no reason for American consumers to subsidize the low drug prices in other first-world nations.Template:Who

It is claimed by the drug companies and Food and Drug Administration regulators that there is danger to consumers in using drugs from Canada. There is scepticism, based on how much actual risk is involved.

Both houses of Congress have passed legislation to permit imports; but the Bush Administration and the FDA are opposed. The anticipated Medicare reforms, expected to pass, include prescription drug coverage under Medicare, and there is some interest in Congress in permitting imports under FDA regulation.

The large pharmaceutical companies maintain a website at helpingpatients.org in order to provide drugs at a reduced rate to needy consumers.

See also

• Medicare Part D
• Medicare Prescription Drug, Improvement, and Modernization Act
• National pharmaceuticals policy
• Pharmaceutical company
• Chilean pharmaceutical policy
• Sri Lanka National Pharmaceuticals Policy

External links

• Read Congressional Research Service (CRS) Reports regarding Prescription drugs