Few aspects of U.S. health care arouse passions more than out-of-pocket prices for prescription drugs. Americans pay more for the same drugs than do patients in other countries, and we pay a higher share of GDP on prescription drugs. As the federal government moves forward with reforms set in motion in recent years, the new Congress should refocus on a more specific problem: too few incentives to sell generic or other lower-cost drugs and the role of pharmacy benefit managers. While a few drugs are very expensive, the truth is that through a combination of effective policies, rules and more reliance on insurance, Americans’ average out-of-pocket expenditure for drugs has been falling.
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