Here's why many prescription drugs in the US cost so much-and it's not innovation or improvement

January 16, 2019

Americans spend about $1,200 on prescriptions drugs a year, according to the latest figures from the Organization for Economic Cooperation and Development. That's more than people pay in any other developed country in the world. In the past, pharmaceutical companies have attributed high prices to innovation, arguing that new and improved drugs are naturally more expensive. But a new study published in the journal Health Affairs complicates that idea.