Why are prescription drug costs higher in the United States than in many other nations?

Question

Quizplus · Accepted Answer

Prescription drug costs are higher in the United States due to the free market capitalist system. In other countries, governments negotiate drug prices, but in the US, pharmaceutical companies dictate their own prices. Furthermore, there is limited competition in the US pharmaceutical industry due to patent laws, which allows companies to charge high prices for newer medications. The cost of research and development, as well as marketing and advertising, is also added to the price of drugs in the US, making them more expensive than in other countries.

Why Are Prescription Drug Costs Higher in the United States