Prescription drug prices in the United States are 2.78 times those in other countries. And the gross price of insulin is more than nine times higher.
These findings come from two new RAND reports that draw on data from 2022 to examine U.S. prescription drug prices compared with prices in 33 other nations.
Here are some other key findings from our analyses:
The price gap between the United States and other countries is especially large for brand-name drugs, with U.S. prices averaging 4.22 times those elsewhere.
Prices for generic drugs—which account for 90 percent of prescription volume in the United States—are about 67 percent of the average cost in other countries. However, this does not fully offset higher U.S. prices for brand-name drugs.
Although the cost differences of insulin between the United States and other countries varied depending on the country and the type of insulin, U.S. prices were always higher—often five to 10 times higher—than those in other countries.
A third new RAND report finds that, while most new prescription drugs are sold in the United States before they reach other nations, ultimately, important medications reach most wealthy nations within about a year. (This has implications for ongoing debates about how addressing high drug costs could potentially hurt American patients’ access to new treatments.)
These up-to-date estimates and insights can inform policies to help address both rising drug spending and the financial impacts of prescription drugs on consumers.
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