Senate Hearing: Why U.S. Prescription Drug Prices Are the Highest in the World

Original title: WHY DOES THE U.S. PAY THE HIGHEST PRICES IN THE WORLD FOR PRESCRIPTION DRUGS?

Record date · January 1, 2022

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What This Bill Does

This document is a transcript of a 2021 U.S. Senate subcommittee hearing examining why the United States pays significantly higher prices for prescription medications compared to other nations. The hearing features testimony from medical experts, researchers, and patient advocates regarding the pharmaceutical industry's pricing practices.

Why it matters

The hearing explores the factors driving high drug costs for American consumers and the federal government, which directly impacts household healthcare affordability and federal spending on programs like Medicare.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

American consumers

They pay the final retail prices for prescription drugs at pharmacies.

Directly affected

Pharmaceutical industry

They set the pricing structures and profit margins for prescription medications.

Directly affected

Medicare

The program is a major purchaser of prescription drugs and is subject to the pricing models discussed.

Key Facts

The hearing took place on March 23, 2021, in the Dirksen Senate Office Building.
The U.S. pays the highest prices in the world for prescription drugs.
U.S. healthcare spending is nearly double that of other countries.
The pharmaceutical industry utilizes an opaque pricing system where different government branches may pay different prices for the same medication.

Show all 6 facts

The hearing included testimony from four primary witnesses: Aaron Kesselheim, Nav Persaud, Elia Spates, and Alex Brill.
The National Council on Disability submitted a statement regarding Quality-Adjusted Life Years (QALYs).

Frequently Asked Questions

What was the purpose of this hearing?

To investigate why the United States pays significantly higher prices for prescription drugs than other countries.

Who participated in the hearing?

The hearing was led by the Subcommittee on Primary Health and Retirement Security, with testimony from medical experts, researchers, and a patient advocate.

What else do you want to know?