Why Are Drugs Cheaper in Canada?

The Food and Drug Administration (FDA) has approved a plan that would allow Florida to import certain medicines from Canada at prices far lower than those available in the United States. This is the first program in the country.

It is well known that medicines are expensive in the United States. Studies have shown that the United States spends more on prescription drugs than other developed countries. An analysis by the Government Accountability Office found that some of the most commonly prescribed brand-name drugs cost an average of 2.82 points more in the U.S. than in Canada.

Many factors are considered when determining the exact amount each patient will pay for a prescription, including their insurance plan and whether the drug they are looking for is available as a generic drug.

Generic drugs are more affordable and account for 80% of all drugs prescribed in the United States. However, prices can be higher for branded drugs that are not available as generics because the pharmaceutical company has patented the drug. This accounts for the majority of U.S. drug spending.

Prices are low in Canada partly because they negotiate the highest price with pharmaceutical companies, which the United States does not. Under the Inflation Control Act, the United States would be able to negotiate maximum prices for certain drugs for Medicare patients, but that process has not yet progressed. Early stage.

Currently, each insurance company negotiates drug plans with drug companies, creating a disjointed system that can result in vastly different amounts for each patient for a drug. This negotiation is often done through a pharmacy benefit manager (PBM), an intermediary who earns a commission as the drug’s price increases.

Even though the cost of drugs before insurance coverage is much higher than most Americans actually pay, the U.S. still has higher out-of-pocket costs than most of its peers, data show. Organization for Economic Co-operation and Development indicates. Americans spent an average of $133 out-of-pocket on prescription drugs in 2021. This compares to $11 in the UK, $58 in Germany and $132 in Canada. (People with chronic illnesses, elderly people, etc.) pay more; In the United States, people between the ages of 65 and 79 pay an average of $456 out of pocket.)

Florida’s program aims to import medicines specifically targeting chronic conditions such as HIV/AIDS, mental illness and prostate cancer. Official estimates The state could save up to $183 million annually on these drugs. However, the program is limited to Floridians who receive state or federally administered health care, such as Medicaid recipients, inmates, and county health department patients.Canadian limit Exports aimed at preventing drug shortages could impact the amount of drugs Florida can ultimately import.

Individually insured or uninsured Floridians, as well as people outside of Florida, can access prescription drugs imported from Canada only by purchasing directly from Canadian online pharmacies. Although personal importation of drugs is not legal in most cases in the United States, the FDA has established the following regulations: guidelines If approved, this includes limiting imports to a three-month supply and proving that they are for personal use only.Approximately 2 million Americans Estimation It imported medicines in 2020.

President Lucia Muller pharmacy checkerThe company, which compares drug prices at U.S. pharmacies and select overseas pharmacies, says blood pressure medications, inhalers and non-refrigerated diabetes medications are some of the most common medications people choose to import privately. Stated. Patient assistance programs can help cover the cost of more expensive medications, but applicants must meet certain income requirements to qualify.

“That’s where people get frustrated,” Moller told Berrywell. “Many of the people who visit our website are insured, which is exactly what we call underinsured.”

Public health advocates like Mueller, who also serves on the board of nonprofit organizations; prescription justiceargue that imports need to be expanded more broadly to lower the cost of medicines in the United States. Moller said different regulatory standards create barriers to commercial imports overseas, but some countries have comparable regulations.She also notes that most of the active ingredients used in the U.S. drug supply are internationally manufactured.

“I really think there could be parallel imports between the U.S. and the EU,” she said. “It makes complete and utter sense to work collaboratively with them.”