Europeans Paying Almost 70% less on Drugs than Americans

If you can see this Wall Street Journal article then please read it. There is an incredible scam going on. To understand it, however, you need some salient points found in a recent White House study:

  • The study compared the prices of 200 top-selling branded drugs in the U.S. and 15 other developed countries. It concluded that European prices on top-selling drugs are about 32% of U.S. prices and that the difference has widened: They were 51% of U.S. equivalent prices in 2003.
  • “Stringent government underpricing in foreign countries has substantially increased foreign free-riding on the United States,” said the report from the White House Council of Economic Advisers, which was released Thursday. “The result is a slower pace of overall innovation, less competition from new entrants, and thus higher prices paid for patented drugs that lack therapeutic competition.”
  • Although foreign drug manufacturers also suffer from underpricing, the cost is borne disproportionately by the U.S. because it funds roughly half of all global medical research, invests 75% of global medical venture capital and accounts for 70% of patented pharmaceutical profits, the study said.

I do NOT want to get into the politics of this. In fact, it is has happened with the left and right in charge. The bottom line is that Europe brags about their national health systems but they are banking on us paying the hefty share for these drugs. It really isn’t fair. The next thing you are going to tell me is that they are going to cut their military by 70% (and let us protect them) and use that money for their health system. Wait…..

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Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  2 comments for “Europeans Paying Almost 70% less on Drugs than Americans

  1. R Stuart
    February 25, 2020 at 9:13 am

    “The bottom line is that Europe brags about their national health systems but they are banking on us paying the hefty share for these drugs. It really isn’t fair.”

    So why don’t we stop volunteering to pick up the tab?

  2. arf
    February 24, 2020 at 7:19 pm

    I remain confused. Is the assertion that the pharmaceutical companies are losing money in the European market? Because if that’s the case, why are the companies selling product in Europe, at all?

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