The best way to lower drug costs isn’t a mystery. It’s competition. And it’s not unique to prescription drugs.

If Uber could block Lyft from entering a city, rides would cost more. If Spotify could keep Apple Music off your phone, subscriptions would cost more.

Competition works because it gives consumers more choices and puts pressure on prices. Prescription drugs should work the same way.

Pillar 3: Stop drug manufacturers from using anti-competitive practices like patent thickets to block generic drug competition.

Today, generics and biosimilars save Americans approximately $467 billion every year. But that number could be much higher because while brand-name drugs are 10% of all prescriptions filled, they account for 88% of all drug spending.

Lawmakers at the federal level can support policies that reward innovation while promoting innovation. The ETHIC Act is one reform that will discourage patent abuse and limit tactics designed to unnecessarily delay generic and biosimilar competition. They can also promote faster market entry for lower-cost alternatives once legitimate exclusivity periods expire.

At the state level, policymakers can help lower-cost medicines reach patients faster. Aligning drug substitution policies to encourage lower-cost options, increasing transparency into manufacturer practices, avoiding policies that restrict competition, and increasing transparency reporting around patent and exclusivity strategies are all actions that can be taken today.

Bottom line: The most powerful prescription drug discount is competition.

Explore all six pillars of the Path to Patient Affordability HERE and download our one pagers that go deeper on each policy recommendation HERE.

Next up: If a lower-cost version exists, why can’t patients get it?