Canadian drugs often more expensive
Here’s another article, this one from the LA Times, that shows that Canadian drugs are not always cheaper than those bought in the United States. In fact, generic medications from US pharmacies are often significantly less expensive than if bought from Canadian pharmacies, by an average of 78%.
Like Stoltz, many U.S. consumers have been buying generic drugs from Canada, not realizing that generics — unlike brand-name medications — are usually quite a bit cheaper at home.
U.S. consumers may be wasting more than $100 million a year on Canadian generics, according to one Canadian analyst, although no firm figures exist on how much Americans are overpaying.
Generic drugs are the therapeutic equivalent of brand-name medications, at about a quarter of the cost. Generic versions can be marketed after the patent protection on a brand-name drug expires.
Americans know that brand-name drugs are cheaper in Canada because the government controls prices there. But many don’t realize that Canadian policies have the opposite effect on prices for generic drugs.
“We have a system of government favoritism toward generic companies,” said Brett J. Skinner, director of pharmaceutical and health policy research for the Fraser Institute in Toronto. The public policy organization advocates free-market policies, including the repeal of price controls on brand-name drugs.
Earlier this year, the institute released a study by Skinner of the 100 top-selling generic drugs. It found that Canadian prices were, on average, 78% higher than in the U.S. The study estimated that Canadians could save $2 billion to $5 billion annually if their generic market was as competitive as it is here. (The study accounted for exchange rate differences, and the potential savings are in Canadian dollars.)
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Canadian drug-approval regulations make it difficult for foreign generic competitors to enter the market, Skinner said, and the reimbursement policies of Canada’s provincial governments act to keep prices artificially high.
“We have very few companies competing for sales — two companies take up nearly 70% of the market for the top 100 drugs,” he said. “Canadian taxpayers are helping to support a monopoly situation on the drugstore shelf.”
American consumers have a hard enough time following the quirks of healthcare at home, let alone in Canada. Most apparently assume that if brand-name drugs are a bargain up north, generics are as well.
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