Skyrocketing generic drug prices cost US taxpayers $1.4 billion, new report finds

Skyrocketing generic drug prices in the USA cost taxpayers an additional $1.4 billion over the last decade, according to a new report from the Department of Health and Human Services’ Inspector General, undertaken at the request of Senator Bernie Sanders (Independent, Vermont) and Representative Elijah Cummings (Democrat, Maryland), ranking member of the House Committee on Oversight and Government Reform.

Prices of top-selling generic drugs rose faster than inflation 22% of the time over the 10-year study. If a rebate had been applied on generic drugs rising faster than inflation Medicaid would have saved more than $700 million in 2013 and 2014 alone.

“It is unacceptable that Americans pay, by far, the highest prices in the world for prescription drugs. The United States is the only major country on earth that does not in one form or another regulate prescription drug prices and the results have been an unmitigated disaster. This report further demonstrates that we need a new approach to stop skyrocketing drug prices in this country,” said Sen Sanders.