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Lowering the cost of prescription medicines for patients is a top priority for biopharmaceutical manufacturers. That’s why PhRMA and others are urging lawmakers to meaningfully address problems in the health care system that force Americans to pay more than they should for medicines.

While we continue to push for commonsense reforms to make medicines more affordable, some are looking to foreign countries to determine the value of medicines in the United States. This debate often overlooks important facts about how the United States is different from other countries and what those differences mean for patients.

Here are the facts:

FACT #1: Americans get access to more new medicines faster than any other country.

U.S. global leadership in biopharmaceutical innovation provides American patients better access to new cures and treatments, often years earlier than patients in other countries. Of all new medicines launched since 2012, 85% are available in the United States compared to less than 40%, on average, in Europe where governments set prices. In Europe, patients wait an average of two years longer for new cancer treatments compared to patients in the United States. That is far too long when you or a loved when is facing a devastating diagnosis.

Differences in access are stark. Patients in the United States have access to 94% of new cancer medicines and 86% of new antiviral and anti-infective treatments. In Canada, only 60% of cancer treatments and just 41% of new antiviral and anti-infective treatments are available. And, many Canadians have even worse access through their public health plans, where only 21% of new cancer medicines and 23% of new antiviral and anti-infective treatments are covered across several provinces.

FACT #2: Spending on medicines is not what’s driving the difference in health care spending between the United States and other countries.

Despite the rhetoric from some politicians, the United States spends roughly the same share of health care spending on medicines (14%) as other countries. Additionally, nine out of 10 prescriptions in the United States are filled with biosimilars and generics that are often cheaper here than they are abroad.

All health care is more expensive in the United States compared to other countries, including hospital stays, physician office visits, medical devices and other health care services. Faster access to more new medicines in the United States helps prevent disease progression and lets patients avoid these more expensive health care costs.

FACT #3: The United States is the only country that allows middlemen, like PBMs, to profiteer on medicines unchecked.

Pharmacy benefit managers (PBMs) demand rebates and fees tied to the list price of a medicine, creating perverse incentives experts say can lead PBMs to prefer medicines with higher prices. The largest PBMs routinely deny access to lower-cost medicines that lower what patients pay because they can make more money on higher cost alternatives. At the same time, PBMs negotiate big rebates with manufacturers that can lower what health plans pay for medicines by 50% or more, but still force patients to pay based on the original price.  

FACT #4: Allowing foreign governments to influence U.S. prices won’t fix America’s health care system.

In the United States, we lead the world in the development of new cures and treatments, patients enjoy robust access to lifesaving medicines and fierce competition keeps costs down. And the biopharmaceutical industry is committed to ensuring patients have access to the medicines they need. However, allowing foreign bureaucrats to influence how we value medicines in the United States won’t address the real reasons why some people can’t afford their treatments. We need smart changes that will improve our health care system, make medicines more accessible and affordable and preserve our global leadership in biopharmaceutical innovation.  

Nicole Longo

Nicole Longo is Deputy Vice President of public affairs at PhRMA focusing on Medicare, 340B, importation and more. She previously worked for a D.C.-based public affairs firm where she assisted a wide range of clients with communications efforts on everything from trade policy to agriculture policy to health care policy. Outside the office, Nicole can be found trying new restaurants (usually Italian), taking an occasional barre class and cheering on the Cincinnati Bengals.

Nicole Longo

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January 22, 2021

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April 20, 2020

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March 3, 2020

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February 21, 2020

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