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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Do Americans pay more for prescription drugs than other developed nations?

By Lisa Freedland
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YES

Americans pay significantly more for prescription drugs than similar nations around the world. Advair, for example, is more than twice as expensive in the U.S. compared to Canada and more than three times as expensive compared to the U.K., according to a 2015 Bloomberg analysis.

In 2018, average prescription drug prices were roughly 2.5 times higher in the U.S than in 32 other OECD countries, according to U.S. News and World Report. The gap was especially pronounced for brand-name drugs, which cost 3.4 times more in the U.S. than its OECD counterparts.

The RAND Corporation made similar findings but noted that generic drugs, which make up 12% of drug spending, are slightly cheaper in the U.S.

Consumer advocate Drugwatch cites the ban on price negotiation, the lack of price increase caps, and patents that crowd out generics as some factors influencing the U.S.'s high drug prices.

This fact brief is responsive to conversations such as this one.
Sources
Bloomberg The U.S. Pays a Lot More for Top Drugs Than Other Countries
US News & World Report Compared to Other Countries, Americans Pay Much More for Prescription Drugs
RAND Prescription Drug Prices in the United States Are 2.56 Times Those in Other Countries
Commonwealth Fund Prescription Drug Spending: Why Is the U.S. an Outlier?
Drugwatch U.S. Drug Prices vs The World
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.