Americans pay the highest prescription drug prices in the world, with brand-name drugs costing over three times more than in other OECD countries.
The recent presidential executive order aims to make drug prices in the U.S. compatible with the lowest prices abroad, but critics fear it may lead to global price increases.
Concerns exist that if drug prices are lowered for public payers like Medicare and Medicaid, costs may be shifted to commercial payers, affecting both employers and employees.
Health Transformation Alliance advocates for value-based pricing to tie drug prices to medical results achieved and ensure fair prices that reflect the value created by the drugs.