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Prescription Drugs: Spending Controls in Four European Countries

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Report Type Reports and Testimonies
Report Date May 17, 1994
Report No. HEHS-94-30
Subject
Summary:

Although the United States has traditionally allowed drug prices to be determined by the free market, other countries use a variety of policies to control prescription drug costs. This report analyzes the effects of pharmaceutical policies in the following four European countries: France, Germany, Sweden, and the United Kingdom. GAO (1) describes the strategies these countries use to control prescription drug prices and limit pharmaceutical spending, (2) reviews the effects of the policies on drug prices and spending, and (3) analyzes the effects of these policies on pharmaceutical research and development. GAO found that controls on pharmaceuticals have succeeded in restraining prices in the four countries but have not prevented increases in drug spending, owing to higher consumption and newer, more expensive drugs.

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