A Better Way To Lower Prescription Drug Costs

A flag flies atop the White House on November 15, 2000 in Washington, DC. I(Photo by Alex Wong/Newsmakers) Getty Images

Competition to create new brand-name drugs is a key driver of innovation in the United States. Unfortunately, it also drives the relentless growth of healthcare spending. That’s because development of healthcare products in the U.S.—unlike other industries—is largely insulated from concerns about cost. So companies understandably focus on developing drugs, biologics, and medical devices that generate hefty profits rather than products that improve or protect health and lower Americans’ healthcare costs. If the White House and Congress changed the rules to incentivize companies to focus their time and talent on creating high-value, cost-lowering drugs and other health t