The conventional wisdom is that Americans pay far more for prescription drugs than patients in other developed countries. This belief has fueled bipartisan calls for heavy-handed measures such as price controls, punitive taxes, and even nationalization of drug manufacturers.
Lawmakers feel pressure from two directions. Patients experience drug prices more directly than other medical bills because of how insurance is structured. At the same time, healthcare costs are the single largest category of spending at the federal and state levels, which puts enormous strain on budgets.
But what if this conventional wisdom is wrong? A new study challenges what we thought we knew about drug prices in America and flips the narrative on its head.
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