Economists and Policy Experts Discuss Six Strategies to Address High Drug Costs

September 3, 2021

Paul Ginsberg and Steven Lieberman of the USC-Brookings Schaeffer Initiative for Health Policy discuss six policies that could address the high prescription drug costs in America. These include broadening the role of the Department of Health and Human Services (HHS), allowing payers to negotiate prices, and implementing value assessments.

“Having the federal government lower drug prices directly—whether by negotiating with manufacturers or unilaterally setting prices—would save money for governments, employers, and consumers, but constitute a major policy initiative that turns away from reliance on market forces. Because of high U.S. prices, drug companies generate an estimated three-quarters of worldwide drug company profits in the United States.  That means not only that U.S. consumers pay a lot, but also that reducing U.S. drug prices would lower manufacturer revenue and return on investment, likely cutting funding for development of new drugs, with a slowing of innovation.” Read more here.

(Source: USC-Brookings Schaeffer Initiative for Health Policy, 8/30/21)

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