A study estimates that the United States could reduce its annual spending on outpatient prescription drugs by $184 billion, which equates to a 51% decrease, if domestic prices matched those in other high-income nations. This comes as Congress considers cost-lowering strategies for prescription drugs, including the Prescription Drug Price Relief Act of 2025, which would cap U.S. drug prices at the median price of Canada, France, Germany, Japan, and the U.K.
The study, conducted by the Yale Center for Infectious Disease Modeling and Analysis (CIDMA) and published in the Proceedings of the National Academy of Sciences, reviewed prices and usage of over 8,000 prescription medications. Dr. Alison Galvani, PhD, Burnett and Stender Families Professor of Epidemiology (Microbial Diseases) and CIDMA director, said Americans overpay significantly for medicines compared to other high-income countries. The research found that more than 70% of popular branded medications cost at least four times more in the U.S., with some chronic disease treatments priced five times higher.
Projected savings include $82.2 billion for private insurers, $70.5 billion for Medicare, and $12.9 billion for Medicaid annually. Patients’ out-of-pocket expenses would decrease by nearly 40%. Lower drug costs would improve public health by increasing treatment access, care continuity, and reducing medical debt.
Yale study: U.S. could save $184 billion by aligning drug prices with peer nations