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<classification authority="sudocs">GA 1.13:HEHS-94-30</classification>
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 <subject>Pharmaceutical industry</subject>
 <subject>Price regulation</subject>
 <subject>Foreign governments</subject>
 <subject>Pharmacological research</subject>
 <subject>Comparative analysis</subject>
 <subject>Drugs</subject>
 <subject>Research and development costs</subject>
 <subject>Price indexes</subject>
 <subject>Health care cost control</subject>
 <subject>Price fixing</subject>
 <identifier>France</identifier>
 <identifier>Germany</identifier>
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 <title>Prescription Drugs: Spending Controls in Four European Countries</title>
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<abstract>Although the United States has traditionally allowed drug prices to be
determined by the free market, other countries use a variety of policies
to control prescription drug costs. This report analyzes the effects of
pharmaceutical policies in the following four European countries:
France, Germany, Sweden, and the United Kingdom. GAO (1) describes the
strategies these countries use to control prescription drug prices and
limit pharmaceutical spending, (2) reviews the effects of the policies
on drug prices and spending, and (3) analyzes the effects of these
policies on pharmaceutical research and development. GAO found that
controls on pharmaceuticals have succeeded in restraining prices in the
four countries but have not prevented increases in drug spending, owing
to higher consumption and newer, more expensive drugs.</abstract>
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 <topic>Price regulation</topic>
 <topic>Foreign governments</topic>
 <topic>Pharmacological research</topic>
 <topic>Comparative analysis</topic>
 <topic>Drugs</topic>
 <topic>Research and development costs</topic>
 <topic>Price indexes</topic>
 <topic>Health care cost control</topic>
 <topic>Price fixing</topic>
 <topic>France</topic>
 <topic>Germany</topic>
 <topic>Sweden</topic>
 <topic>United Kingdom</topic>
 <topic>Medicaid Program</topic>
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