Why Prescription Drug Prices in the US Are So High: QuickTake

Americans spend more on prescription drugs than anyone else in the world. It’s true that they take a lot of pills. But what really has set the US apart is how much drugs cost. Unlike in most other countries, their prices are set without direct government intervention. A new law aims to change that for certain drugs for elderly and disabled patients who rely on the government’s Medicare health program. The pharmaceutical industry opposes the change, and the law faces a raft of lawsuits seeking to stop it from taking effect.

Merck & Co.'s Januvia, a diabetes medication, is on a list of drugs slated for US government price negotiations.

Photographer: Daniel Acker/Bloomberg

How US Prices Compare Internationally

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