U.S. Prescription Drug Prices Still Higher Despite New Medicare Negotiations

The U.S. government's newly negotiated prescription drug prices under the Biden Administration's Inflation Reduction Act remain substantially higher than prices in other high-income countries. Medicare's price reductions will save $6 billion in 2026, yet American prices still far exceed those in countries like Sweden. International price factors were not included in U.S. negotiations.

A Reuters review has found that the U.S. government's first-ever negotiated prescription drug prices are still, on average, more than double, and in some cases five times higher, than those in four other high-income countries.

Medicare, covering over 67 million people, recently revealed new maximum prices for 10 expensive drugs, resulting in $6 billion savings for 2026. However, these new prices are still significantly higher compared to nations such as Sweden, which pays much less for the same medications.

U.S. law previously prohibited Medicare from negotiating drug prices, but this is changing under the new legislation. Critics point out that the U.S. continues to pay more, which is partially due to its willingness to spend on drugs and lack of international price review during negotiations.

(With inputs from agencies.)