A new analysis by Petersen-KFF raises a critical question:

Are countries like Germany, the U.K., and Australia paying less because they’ve negotiated better deals, or is it the presence of generics and biosimilars driving prices down through competition?

What’s happening?

• Medicare’s newly negotiated drug prices are a step toward affordability.
• Still, many medications remain significantly more expensive in the U.S. compared to peer nations.

What could be driving the difference?

The drugs that Centers for Medicare & Medicaid Services selected for negotiation were single-source brand drugs, but other countries benefit from robust competition for the same drugs—biosimilars and generics naturally force prices lower.

Does this mean negotiation alone isn’t enough?

It’s a question worth exploring. Perhaps true alignment with global norms requires not just policy interventions, but a healthier ecosystem of competitive alternatives.

What do you think? Is it negotiation, competition, or both?

Read the full analysis here: https://lnkd.in/eTQzbkDF