Spring on Prescription Drugs has been increasing exponentially in the past few decades according to research by Peter G. Peterson Foundation. It can argued that though other developed countries are able to procure prescription drugs at cheaper prices, the US case is different in the sense that many factors that apply in other countries are not applicable in the county. The foundation’s research identified the following reasons for the high cost of prescription drugs in the US:

That growth in spending can be attributed to many factors, including the number and type of drugs prescribed. Some common reasons include:

High and rising prices for brand-name drugs;

a lack of competition due to the U.S patent system;

the use and cost of specialty drugs; and

a lack of transparency in drug prices.

The infographic below shows some additional facts on prescription drug spending:

Click to enlarge

Source: SPENDING ON PRESCRIPTION DRUGS HAS BEEN GROWING EXPONENTIALLY OVER THE PAST FEW DECADES, Peter G. Peterson Foundation