Content

Common questions and answers about Canadian Pharmacies.

Canada’s Drug Prices kept Under Tight Fisted Price Controls

Sunday 29 January 2012 - Filed under Canada Drug Prices + Canadian Drugs

High drug prices in the US and the vast number of people who do not have health insurance or adequate cover of a health care scheme has resulted in people looking for cheaper sources to buy their requirements of medicines. Canadian online pharmacies are the easiest and cheapest source for US citizens who are required to pay for the medicines out of their pockets. There is a misconception among some, that the drugs from Canadian pharmacies are low because they are of inferior quality. The pharmaceutical companies that have to submit their drugs for Health Canada approval are the ones who will be first to disagree. Canadian drugs come under some of the most stringent of world drug compliance requirements, yet, the prices are low. Why? The answer is that the Canada drug prices are kept under check with a tight fist of the government price regulating bodies. The government policies that seek greater social benefits also pressure pharmaceutical companies to allow for faster release of generics in Canada market. For this reason, Canada is where the generic versions of most new innovation drugs get approved first to enter the market.

Average drug prices in Canada are about 50% of the prices in USA. The prices are kept low by government price control mechanisms. Approval of medicines and the deciding the price caps for prescription drugs are responsibilities of the federal government. The Therapeutic Products Directorate is the authority for safety and quality of the prescription drugs and the Patented Medicines Prices Review Board (PMPRB) decides the price caps for prescription drugs. PMPRB has no control over the prices of generic drugs and over the counter drugs. Government policies encourage the early entry of generic drugs to the market, which gives a competition that helps keep drug prices low without any artificial short supply of the market. Provincial governments play a key role in regulating the drug prices under the directions of the central government.

According to an industry analyst, in Canada there are nineteen publicly funded health care plans. All these plans have their drug formularies and payments are limited to drugs in the formularies. About 70% of the total national health care spending is funded by the government. Therefore, the government has a strong bargaining position with the Pharmaceutical companies, when deciding the prices. Lower priced drugs get a preference over the higher priced equivalents or similar drugs when the formularies are drawn up. All these factors cause a vast disparity of drug prices in US and Canada. As more than 50 million of US citizens are not covered by any type of health care plan, they have to pay for their medical expenses out of their pockets. Canadian online pharmacies have been a godsend for Americans who find the domestic medicine costs to be beyond their reach.

A spokesperson for Big Mountain Drugs stated that the savings that can be made can be up to 80%. “As we supply our drugs at very low prices, and offer a discount coupon scheme and a reward scheme for returning customers, they make huge savings compared to what they will need to spend if they purchased the same medicines from a US pharmacy.

2012-01-29  »  admin

Share your thoughts

Re: Canada’s Drug Prices kept Under Tight Fisted Price Controls

Sign in