Why purchase prescription drugs in Canada?

The reason the prices are lower in Canada is simply because the government has imposed price controls on drugs.

While the co-pay for all medical care goes higher and higher.... c.i.

Price fixing of drugs?

How would that stimulate Drug Companies to research and develope new and better drugs? Who's to pay for this development and research?

c.i.:

The co-pay is determined by the Insurance companies, not the drug companies.

I know, but the drug companies sets the 'retail' price. c.i.

New Haven


Which brings me to my point why should the people of the US be saddled with the costs for research and development of drugs used throughout the world? Shared use should also mean shared costs..

Same benefit = same cost. c.i.

Well, as I said earlier I think there are several reasons. The drug R&D costs are only at the manufacturer level so why is there significant mark-up beyond that point? Distribution doens't justify all that much in the grand scheme of things. Why does a hospital charge $10 for a band aid when you can buy a whole box of them for $2 at the Walmart a block away?

A part of that lies in the hospitals inflating charges to cover uninsured patients (which the Canadians don't have to deal with because everyone is covered under Universial Health Care..) and our hospitals tend to buy the latest and greatest of gadets as soon as they come out. Someone has to pay for those MRI and CAT Scan machines popping up at every single hospital here in the US. If you're in Canada the smaller hospitals don't have them. You travel to someplace that does if you need one (or you go without in some cases I suppose..).

fishin
'Whether the hospital costs in Canada are lower than those in the states I have no idea. However, that in no way explains why the prices of prescription drugs can be controlled in Canada and are allowed to run wild in the US.

No it doesn't. But it does point out that there are a lot of moving pieces in the puzzle and the insinuation that just implement drug prices controls is going to fix the problem is simplistic.

Before anyone can nail down a workable solution you have to identify why something is the way it is and look at what the impact will be if that is changed.

You won't care much that your perscription only costs you $20 instead of $70 when the 15 minute doctor's office visit to get that perscription written ends up costing you $500 instead of $120.

fishin, What inflationary country do you live? $500 for 15 minutes with a doctor to write a prescription? Come on, now. That's a bigger tale than when my pa bought me a Rolex. c.i.

Do you really think that if the government steps in and throws a cap on every perscription that money isn't going to be made up somewhere else? You can't tell me you believe hospitals aren't going to raise the rates for everything else they offer to make up the difference with a straight face. Those doctors sure aren't going to take a pay cut to make up for the difference in revenue!

fishin, The 'doctors' have been taking a pay cut. Many are leaving the profession, because their malpractice insurance has shot through the atmosphere. c.i.

What? Malpractice insurance shot through the atmosphere? What inflationary country do you live in? (sorry! )

But.. You are dancing around the question without addressing it here. Where would the revenue difference be made up if the medical establishment can no longer pad the cost of perscriptions? Do you honestly believe that the entire industry is just going to eat that revenue loss?

I think the $150,000+ for annual malpractice insurance "going through the atmosphere" is more credible than $500 for a 15 minute with a doc to write a prescription. c.i.

You're still dodging the question!

fishin, The hospitals ARE raising the annual premiums for membership at double digit rates for this year alone - at least it's true for Kaiser. c.i.

fishin'
The impact of high cost of prescription drugs most effects the senior population. That is not to say that it effects no one else however they are by far the greatest user.
That communities medical costs by virtue of Medicaid are price controlled. In addition seniors are either on government paid for HMO's Or have supplemental insurance. However, unless they have prescription coverage seniors are being devoured by the costs.
The government as you know is proposing this addition to Medicare. After having looked at the republican proposal as it was about 6 months ago I found very little to cheer about even though the federal expenditure would be substantial. Price caps Canadian style would cost the government zero and would except in extreme cases be as good or better. These extreme cases, very heavy usage, could be addressed by Medicare coverage.
In any event that is my opinion.

au, Very good points. It's been my experience that most elderly require several to many prescription drugs. I have also seen some seniors at the Kaiser pharmacy pick up medicine, and pay upwards of $500 for their pills. I'm not sure if many seniors can afford that kind of drug costs in their old age. I take three prescription drugs daily, but have no co-pays, because I have Medicare plus my wife works at Kaiser. Even she has a co-pay for drugs. I'm one of the lucky guys in this world: knock on wood. c.i.

This is EXACTLY my point. The Government established caps on one portion of the medical system without imposing caps on the entire system and what are we getting? Those very seniors are screaming because the medical services industry is dropping existing patients and/or refusing to accept new Medicaid patients because they lose money on them!

One of the ways that industry has circumvented the loss of revenue is by raising prices on everything else they do that doesn't fall under Medicaid to cover the shortfall. That includes drugs and medical supplies as well as service costs to non-Medicaid patients.

You have a balloon. One end of it is squeezed by Medicaid. You want to sqeeze the other end with caps on perscription costs. The air in that balloon isn't going away so the only alternative is for the balloon to expand where it isn't being squeezed until it gets to the point where it pops.

I am NOT saying that soaring healthcare costs don't need to be addressed. What I AM saying is that a cap doesn't resolve the problems. It just moves them temporarily.