RAND study finds prescription drug costs much higher in U.S. than in other nations

U.S. drug prices average 2.78 times the prices charged in 33 other countries studied, according to the most recent nonprofit RAND study sponsored by the Office of the Assistant Secretary for Planning and Evaluation in the U.S. Department of Health and Human Services.

The RAND study found that prices for unbranded generic drugs, which account for 90% of prescription volume in the U.S., are about 67% of the average cost in the comparison nations. Recent estimates are that prescription drug spending in the U.S. accounts for more than 10% of all health care spending.

Across all 33 comparison countries, U.S. drug prices ranged from 1.72 times the prices in Mexico to 10.28 times the prices in Turkey.

For brand name drugs, the disparity is even more marked as U.S. prices are 4.22 times higher than prices in other countries.

The U.S accounts for 62% of the total drug spending of the nations covered by the RAND study but it accounts for just 24% of the drug volume sold.

Medicare last week sent initial pricing offers to U.S. drug manufacturers aiming to lower medicine costs for families.

Sources:

Cunningham, Doug. (2024, February 1). UPI. Prescription drug costs much higher in U.S. than in other nations, report says. https://www.upi.com/Health_News/2024/02/01/prescription-drug-prices-RAND-report-Medicare/4301706817961/

(2024, February 1). RAND. Prescription Drug Prices in the U.S. Are 2.78 Times Those in Other Countries. https://www.rand.org/news/press/2024/02/01.html