Reasonable Rx: Solving the Drug Price Crisis

Appendix . Our Solution in Detail

If you’ve read Chapter 7, “How to Lower Drug Prices,” the only reason to read this appendix is to learn how our plan to lower drug prices would work in detail. We’ve written this section primarily for policymakers and others we hope will be influenced by our arguments to take action and address the prescription drug crisis before it gets any worse.

The language here is the language of economics and policy, chosen with precision to facilitate the development of legislation. Chapter 7 presents our solution in lay terms.

Our solution to the problem of high drug prices, outlined in Chapter 7, would change the financing of drug research and development and eliminate the linkage between drug prices and drug discovery—the ...