Drug pricing has only gotten worse. What's wrong, and how to fix it. - Business Insider

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Ten years ago, I testified before Congress about drug pricing — and it's only gotten worse. Here's what's wrong, and how we may be able to fix it.

Skyrocketing pharmaceutical prices are a result of overlapping market failures and monopolies. When you visit the pharmacy to fill a prescription, there are three or four distinct entities taking a cut from your purchase. Among the worst actors is big Pharma, which benefits from

that gives corporations way too much power over the production and distribution of prescription drugs, choking off competitors and allowing them to set prices astronomically high. , Nick Hanauer and I talked with two people who are taking very different approaches to solving America's out-of-control drug pricing problem.

Billionaire John Arnold founded an organization called Arnold Ventures that has distributed more than $175 million in grants to nonprofits and universities in the hopes of lowering health care costs, largely by advocating for lower drug prices. founded last year with the bold strategy of charging one single market price, no matter who's buying. Every small rural hospital that buys from Civica Rx, regardless of size, will enjoy the same prices and contract terms as large-volume hospitals.

But remember — these high prices are the result of multiple intersecting bad systems. Simply hoping for market pressures to stabilize drug costs isn't enough. That's where Priti Krishtel, co-founder and co-executive director ofKrishtel is fighting to pass health-friendly patent laws that encourage the breaking up of drug monopolies and increase access to medicines worldwide.

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