How can international reference drug pricing help address high drug prices in the US? Provide examples with your explanation.
Global comparative pricing, where the cost of a drug would be determined on the basis of the average price of the list prices of another country or group of countries. Compulsory licensing, where other companies could market their own copies of the drug, creating competition that would lower prices.
A variety of real life examples can be used in the USA. Many European countries now calculate cost for the control of medications prices, which contributes to far lower prices than the United States. For example, Germany implements a stringent assessment process when a new medicinal product enters the market. The study tests whether "an extra therapeutic advantage" of the new medicine compared with other drugs that treat the same disease. If so, the costs of current treatments are reimbursed. If no added benefit is provided, the new pharmaceuticals are paid "reference charge" which ensures that no more than equivalent drugs are refunded.
How can international reference drug pricing help address high drug prices in the US? Provide examples...
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