The United States is the only developed country in which the government doesn't control the prices of prescription drugs. The country has the developed world's lowest drug prices, by many measures. The government limits reimbursement to the lowest price of any similar drug. National policy encourages doctors to prescribe the cheapest drug in a therapeutic group. After that, prices can rise at the same rate as inflation.
Provincial governments negotiate further discounts on drugs.
The French health-care system, which covers the entire population, decides which drugs are eligible for reimbursement and sets reimbursement prices. The government contracts with the pharmaceutical industry to set an annual ceiling on total drug spending. If this is exceeded, drug companies make payments to cover the shortfall. Drug companies set their prices freely. Reimbursement in the national health-care system, however, is controlled based on an evaluation of a drug's therapeutic value.