The U.S. Pays a Lot More for Top Drugs Than Other Countries

via Bloomberg Business

Prices for brand-name drugs are typically higher in the U.S. than other developed countries. The drug industry has argued it’s misleading to focus on U.S. list prices that exclude discounts struck behind closed doors with insurers.

A Bloomberg News analysis finds that even after these discounts, prices are higher in the U.S. than abroad. Seven of eight top-selling drugs examined still cost more in the U.S. than most other countries.

Bloomberg estimated the actual amounts that drug manufacturers are paid on a sample of top-selling drugs. SSR Health, an investment research firm, used prescription data and U.S. list prices to determine the drugs’ sales in the country before discounts. To approximate the discounts, SSR Health subtracted the actual U.S. sales reported by the companies. Bloomberg compared the discounted monthly prices with list prices from 14 countries, using local data from IHS Inc., a data analysis and consulting firm, and other sources.

 

Read the full article here

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Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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