The German Pharmaceutical Model: Could it Work in the U.S.?

As drug prices continue to rise, policymakers debate drug pricing reform. The United States spends more on prescription drugs per capita than any other developed country. For example, Germany spends an average of $685 on retail prescription drugs per capita, while the United States spends over $1,000. Yet, Germany has a similar health care system to the United States. The government has a limited role in the delivery of care and workers usually receive insurance through statutory health insurance paid for by both the worker and the employer. Further, patients are responsible for copayments and deductibles. The German model affirms that drug prices can be lowered in a privatized health care system. Read the full primer here.