An international drug price index could save Medicare billions

The idea of tying Medicare payments to drug prices in other countries, endorsed by President Trump and Sen. Bernie Sanders alike, is meant to save taxpayer money. But just how much?

According to a new study, it would add up to about $73 billion a year.

The authors looked at prices in Japan, the U.K., and the Canadian province of Ontario, finding that brand-name drugs were between three and four times more expensive in the U.S. on average. Which is why tying Medicare payments to foreign prices provides such a savings.

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