Medication prices in the US have gone from wild to insane; from expensive to outright unaffordable. But a tripling in prices could save us all a lot of money. Here’s how that would work.
It’s a policy known as external reference pricing. The idea is simple. First, the US government would look at how much a drug company charges for a given medication in a handful of other developed countries. Next, it would tie the US price to some multiple of that international price.