Lower drug prices in the U.S.

Bernie Sanders and Ro Khanna have introduced a bill to change the way drugs are priced in the U.S. The bill would dramatically affect the patent monopoly that now dominates the pricing of drugs. The bill would effectively end the patent monopoly for any drug where the price in the United States is above the median of the prices charged in the next seven largest wealthy countries. This is likely to mean a reduction in the price of most brand drugs by around 50 percent.

The reason is that, while other countries also grant patent monopolies and related protections to drugs, they don’t allow the manufacturers to exploit these monopolies to the same extent as in the United States. They have some sort of price negotiation with drug companies, which is intended to place a limit on the price that can be charged when people’s health or life is at stake.