Healthy Skepticism Library item: 13311

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Wagner JL, McCarthy E.
International differences in drug prices.
Annu Rev Public Health 2004 Apr; 25:475-95
http://arjournals.annualreviews.org/doi/abs/10.1146/annurev.publhealth.25.101802.123042

Abstract:

This paper addresses how and why drug prices differ across countries. Studies of international variation in drug prices reach varied conclusions owing to methodological and data disparities. Price differences do exist across countries, with the United States footing the highest bill, but the differences are not nearly as large as they appear at first glance. The higher prices in the United States are concentrated among a subset of brand-name drugs and among those without insurance covering drugs. Some U.S. health plans obtain price concessions from manufacturers similar to those obtained by national governments. Price concessions occur whenever purchasers are willing to let price be a consideration in decisions about access and utilization. In low-income countries the vast majority are unwilling to pay for effective drugs simply because they are unable to pay. Low-income nations need more price discrimination—and vastly lower prices—if they are ever to afford the world’s most effective medicines.

jwagner@nas.edu, emccarthy@nas.edu

Keywords:
Publication Types: Review MeSH Terms: Drug Costs* Drug Industry/economics* Economics, Pharmaceutical* Humans International Cooperation United States