The development of new drugs in the United States is generally seen as more advanced compared to other countries due to its strong financial incentives and legal protections. Uniquely in the US pharmaceutical companies are able to secure patents which grant them a temporary monopoly on their products thus allowing them to charge prices much higher than those found elsewhere (Baker 2020). For example, although generic versions of certain medications can be purchased for much cheaper abroad it’s still often more expensive for Americans to buy these same drugs domestically due this “patent premium”.(Baker 2020)

Furthermore, there has been increasing concern about how high cost of prescription medications impacts accessibility – especially among low-income populations – leading many people unable afford life-saving treatments even if they have health insurance (Kesselheim et al., 2017). This issue highlights one of the major pharmacoeconomic issues that lead rising costs in America: lack of price competition from generics or biosimilars.(Kesselheim et al., 2017) In other countries patent protection laws are not as stringent so generics or biosimilars can be brought into market faster which helps keep overall prices lower( DrugPatentWatch 2019). Additionally, many other nations also employ government programmes such as negotiated pricing agreements with manufacturers and/or discounts given by pharmacies that help reduce medication costs further (DrugPatentWatch 2019).

In conclusion then, while it is true that America does have an advantage when it comes innovation and drug development this benefit may come at expense affordability for patients whose ability purchase medications already hampered by limited resources.