hroughout the years, the United States has experienced a disparity in the prices paid for pharmaceuticals when compared to the rest of the world. In a study conducted in 2011, the United States comprised 45% of pharmaceutical profits while the remaining countries made up the a total of 55% (True cost). The increasing cost of medication in the United States is a burden not only for the patients, but also to insurance providers. Our goal is to have an in-depth analysis of the reasons behind this price increase in order to formulate alternatives that can lead to positive clinical implications and lessened financial burden for all parties involved.

In order to understand the reasoning behind the heightened costs of medication in the United States, an investigation of the laws and procedures around manufacturing medication is imperative. Unlike many other developed nations, the United States is prohibited from having delegated sectors to negotiate drug prices.  Pharmaceutical companies are able to set their own prices with minimal interference from government and private insurance programs. Laws have been established preventing programs such as Medicare and Medicaid from bargaining prescription drug prices despite catering to millions of individuals (JAMA). The inability to negotiate costs of medications has led to the steady increase of the money spent on prescription drugs in the United States. In fact, figure 1 below shows that the per capita spent on prescription medication in the United States was more than double when compared to nineteen other developed nations (JAMA).