n order to formulate viable alternatives to the United States current system, we conducted an in-depth research of the different policies of other countries was conducted. Currently, the United States allows for pharmaceutical companies to control costs while many other governments around the world have chosen to do otherwise. Many countries have established single-payer systems or have chosen universal healthcare coverage. By definition, universal healthcare is a system that ensures that everyone has “coverage for basic health care services and no one is denied care as long as he or she remains legal residents in the given territory” (Torrey). On the other hand, single-payer systems refers to one designated body to be in charge of paying health care claims. Although universal health care coverage can be achieved through single-payer systems, it is not a requirement. Countries that currently have universal coverage include France, Denmark, Australia, Ireland, and Israel. Some countries that have single-payer systems include Norway, Japan, the United Kingdom, Sweden, Canada, Finland, and Spain (Montgomery). Table 1 below depicts several examples of the price differences of drugs in several of the countries mentioned.
Table 1. Average drug prices of drugs in USA, Canada, France, and Germany (2015).
For example, Actimmune is a drug used to prevent skin infections in patients with malignant osteoporosis and chronic granulomatous disease. The cost of this injectable medication is $52,321 for 12 vials in the United States while it is priced at $6,897 in the United Kingdom for the same amount (Nawrat). The United Kingdom utilized the single-payer system to implement universal coverage for drugs; therefore, costs are negotiated down to what is deemed appropriate and feasible. Similar to the FDA, the European Commision approves drugs but what makes their system different is that they have a separate body called the National Institute for Health and Social Care Excellence (NICE) who is responsible for determining a drug’s cost effectiveness and clinical benefits(Nawrat).
Canada also utilizes a single-payer system for healthcare is therefore in control of the country’s drug prices (Amadeo). Canada established a Patented Medicine Prices Review Board that encourages pharmaceutical companies to suggest a price proposal for their manufactured drugs. This review board then compares the suggested price to various other countries with similar drugs. Approval is made depending on the cost of the drugs in other countries. Despite Canada’s single payer system, the country lacks universal drug coverage but due to their current system, the costs of prescription drugs in Canada remain cheaper than the cost in the United States (Morgan et al).
In addition, Spain is another country that continuously aims to lower drug prices by utilizing reference pricing. Reference pricing is a system in which similar of identical drugs are categorized into a class. This allows for the insurer to pay one price for any of the drugs included within the given class. However, a pharmaceutical companies in Spain have the option of increasing drug costs thus requiring individuals to pay the difference between insurer costs and pharmaceutical company demands. Despite this, Spain has found that reference pricing often forces pharmaceutical companies to lower prices in order to maintain consumer business. Reference pricing has greatly assisted with cost-effectiveness by selling normally high-priced drugs at a reduced price (Frakt).
Constructing alternatives
It is apparent that the United States has a problem, but what are some solutions to to this crisis? Unfortunately, there is no simple solution to this complex problem, but in order to mov
