Saving Capitalism, by Robert Reich: on Health Care

Robert Reich: High drug prices result from patents' temporary monopolies

Drug prices are high in America partly because, while other governments set wholesale drug prices in their countries, the law bars the US government from using its considerable bargaining power to negotiate lower costs. But the bigger reason drug prices are so high in America is that drugs are patented--and those temporary monopolies often last beyond when the patents are supposed to run out (now 20 years); the Patent Office often renews patents on the basis of small changes to the original drugs that technically make them new and therefore patentable.

Many drugs that are available over the counter in other countries can be bought only by prescription in the US. It is illegal for Americans to shop at foreign pharmacies for cheaper versions of the same drugs sold in the US, either branded or generic.