We have written many times over the past year of the growing concern of rising prescription costs, from last year’s Daraprim price increase to the more recent life-saving EpiPen price hike. We have tried to explain why these things happen in the US health care industry, but there are a lot of contributing factors. A majority of Americans still consider prescription costs unreasonable and an important political issue.
One thing often pointed out is that medications are often much more expensive in the U.S. as compared to other countries. Pharmaceutical companies have denied this, saying that prices in the U.S. may appear higher because there is no reporting on discounts drug manufacturers give to insurance companies or pharmacies. While many discounts can be 50% or more, the same medications are often still less expensive in European and other countries than the out-of-pocket costs for Americans. Analyzing a number of prescription medications, Bloomberg found that some drugs cost up to 85% more in the U.S. even after discounts. The list prices for these drugs are often up to 500% higher than in other countries.