After Entering Market, Top Brand Name Drug Prices Surge in US While Dropping Elsewhere

Research shows that high prescription drug prices continue to challenge many Americans. A new AARP Public Policy Institute analysis, meanwhile, shows that list prices for 25 top brand name drugs have surged since they first entered the US market, even as lifetime list prices for the same products decreased in many countries.  

Efforts are underway to address this longstanding issue, starting with the Medicare program’s new authority to negotiate lower drug prices that is already providing significant savings for Medicare beneficiaries. The current Administration has also launched several related initiatives, many of which involve giving Americans access to the lowest drug prices available across a set of comparable countries. Building on prior AARP Public Policy Institute research, this Spotlight examines list price changes that occurred after 25 top brand name drugs first entered the market in the US and other high-income countries. Read the full report.

Key Takeaways

• List prices for 25 top brand name drugs have increased by an average of 81 percent since they first entered the US market—even as lifetime list prices for the same products decreased by an average of 13 percent in 19 other high-income countries. 
• The dramatically different price trajectories in the US versus certain other countries play a noteworthy role in the US’s comparatively high brand name drug prices.
• The differing price trajectories when compared to other countries reaffirm the importance of Medicare drug price negotiation and other ongoing efforts to give Americans access to lower drug prices.