Why does the U.S. pay more for drugs?

Drug prices are higher in the U.S. than in many other countries.

We can help your practice stay on top of the latest health care news, rules, regulations and trends.  Subscribe to stay current and up to date on important matters that will impact your practice.  (To subscribe to our blog ).

In Norway, an expensive place to live with many costs that are higher than in the United States, drug prices are 93% lower than in the U.S.

This is the same country where a gallon of gasoline costs $6.00 and a Big Mac is $5.65.

So why the difference in drug prices?

The reasons are many.

One of the reasons is that the U.S. funds a lot of the global drug industry earnings and efforts to find new medications and improve existing drugs.

Also, the U.S. has an aversion to rationing. Other countries set price caps and demand proof of the value of new drugs, sometimes refusing to cover medicines that they don’t think are worth the cost.

Medicare is the largest payer for prescription drugs in the United States and is unable to negotiate pricing.

Further driving the cost in the U.S. is that Americans prioritize patient autonomy and want to allow for individual choices, unlike in other countries where the government systems are the only large drug buyers.

It appears that the main reason for the cost is that the U.S. bears the burden of subsidizing global drug research.

If drug prices in the U.S. were to fall to European levels, the industry would almost certainly cut its research and development spending.

In our next blog post, we will keep you informed of related issues.  To get this important information delivered directly to your mail box, 

Do you need help staying current and compliant with the latest laws, rules and regulations?  We can help. To contact us about your practice’s contracts, hospital relations, or about your other legal needs:  CLICK HERE.

P.S. If you or your patients are interested in consumer healthcare issues, check out myhealthspin.com.

Related Posts


Recent Posts

Breaking: New Self-Disclosure Policy
March 21, 2023
What is a Power of Attorney?
March 16, 2023
Can Your EHR Template Land You in Prison?
March 14, 2023
What Happens When You Don’t Fund Your Trust?
March 9, 2023
What is the Cost of a Data Breach?
March 7, 2023


Enter your email to subscribe now and receive your FREE HIPAA Risk Assessment book!

An essential tool for all healthcare providers, Easy Guide to HIPAA Risk Assessments breaks down the requirements of HIPAA so you can successfully complete your required risk assessment.


Get it now for FREE (an $8.99 value!)

One more step! Please check your email to confirm your subscription and receive your FREE book!