Pharmaceutical Policy Reform — Balancing Affordability with Incentives for Innovation

Abstract

The high prices of prescription drugs have become an issue of paramount concern to Americans. This concern has now found its way into policy proposals from presidential candidates and is preoccupying state and federal lawmakers (see table). Congressional investigations are examining the way in which drug companies set prices, and proposals for making drug pricing more transparent are pending in seven state legislatures. Lawmakers and others have identified multiple possible reforms to address the affordability of prescription drugs. The policy proposals that have emerged in recent months include some that have already become law; some that would have a major . . .