Drug Pricing

The U.S. has a number of policies related to drug pricing, affordability, and availability. To encourage manufacturers to innovate with new therapies, patent policy rewards the creation of new branded medicines. As those patents come to an end, generic drug manufacturers may enter a market and seek to sell their products at lower prices than the competing brand drugs.

March-in authority allows the federal government to grant licenses on privately owned patents for inventions developed with federal funding provided certain statutory requirements are met. It was designed to ensure that the benefits of the American taxpayers’ investment in research and development are reasonably accessible to the public.

In this Report, we matched a sample of Part D drugs and biological products that had price changes between January 2011 and October 2023 to FDA’s January 2023 list of drug shortages database. Then we analyzed price changes that occurred before and after the shortage, overall and by select drug characteristics of interest.

In this Report, we matched a sample of Part B drugs and biological products that had price changes between January 2011 and October 2023 with the FDA’s January 2023 list of drug shortages database. Then we analyzed price changes that occurred before and after the shortage, overall and by select drug characteristics of interest.

This issue brief examines trends related to market size measured via sales revenues and volume of prescription drug use between the U.S. and other countries between 2017 and 2023. Specifically, we compare the U.S. to the rest of the world (excluding the U.S.) and the other OECD countries (excluding the U.S.).

Prescription drug prices are a top concern for policymakers and the public, but little data is available on prescription drug prices or other costs that contribute to premiums for commercial drug coverage.

In November 2024, the Centers for Medicare & Medicaid Services (CMS) released the Medicare Program; Contract Year 2026 Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, Medicare Cost Plan Program, and Programs of All-Inclusive Care for the Elderly proposed rule.

The Inflation Reduction Act established a limit on out-of-pocket spending (“the 2024 cap”) for enrollees with very high prescription drug spending in Medicare Part D, for the first time in the history of the program.

The Inflation Reduction Act (IRA) makes improvements to Medicare to increase accessibility and affordability of prescription drugs for Medicare enrollees, reduce the rate of growth in Medicare drug spending, and improve the financial sustainability of the Medicare program.

We report findings of a case study of Civica Rx, a U.S. nonprofit pharmaceutical company whose model is based on long-term hospital membership agreements with minimum volume commitments and buffer stock requirements.Related Products: