How An ‘International Price Index’ Might Help Reduce Drug Prices

A pharmacist collects packets of boxed medication from the shelves of a pharmacy in London, U.K. A proposal announced by House Speaker Nancy Pelosi Thursday would allow the government to directly negotiate the price of 250 U.S. drugs, using what the drugs cost in Australia, Canada, France, Germany, Japan, and the United Kingdom as a baseline.

Drugmakers hate the idea. But Nancy Pelosi and Donald Trump both say pegging the prices of U.S. medicine to what people elsewhere pay could save U.S. patients a bundle. Here’s how an “IPI” might work.

(Image credit: Bloomberg via Getty Images)

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