Prescription drug pricing
Bringing down the high cost of medication
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Kaiser Permanente is deeply concerned about the burden high drug prices impose on our members and patients and on our ability to carry out our mission.
Patients, taxpayers, health care systems, and drug companies all deserve fair and reasonable solutions. It is time for a new framework for drug pricing that more effectively rewards innovation and discoveries, and also provides high-value medicines at prices patients can afford.
$1.2 billion
Cost to U.S. health system from 2019 drug price hikes with no evidence of increased clinical value1
$6,000
Is the average cost of therapy for a brand name prescription drug2
2.5x more
Prescription drug costs in the U.S. compared to other Western countries3
We’ve advocated for policies that:
- Address the types of anticompetitive practices that stop lower-priced generic drugs and biosimilar drugs from entering the market
- Curb arbitrary drug price increases
- Promote the use of evidence-based practices
- Support the creation of a fair system that assesses and pays for drugs according to their value
- Address drug shortages that contribute to higher prices
The market for prescription drugs is complex and dysfunctional. We encourage policymakers to look for the root problems to help us build a prescription drug market that will be sustainable for years to come.
1 Cost to U.S. health system from 2019 drug price hikes with no evidence of increased clinical value, 2021.
2 AARP, 2021.
3 Rand Corporation, 2021.
