From World Health Advocacy... www.whadvocacy.com.
Consumers in Canada spend the same percentage of their income on prescription drugs as consumers in the United States.
Government policies surrounding the pricing and reimbursement of prescription drugs in Canada do not produce lower costs for Canadians compared to Americans. Despite major differences between the Canadian and American healthcare systems, the results of a recent study show that consumers in both countries are spending the same percentage of their incomes on prescription drugs.
The price of generic drugs in Canada is more than double U.S. prices for identical drugs, while brand-name drugs are comparatively cheaper. In currency-equivalent terms, Canadian retail prices for brand-name pharmaceuticals decreased slightly between 2003 and 2007. In the same time frame, generic drug prices in Canada increased by 34% compared to U.S. prices.
The authors of the study state that Canadian government policies insulate generic drug companies and pharmacy retailers from normal market forces that would put downward pressure on prices for generic drugs. A relatively freer market in the United States produces lower prices for generic drugs to encourage consumers to substitute these generics in place of brand-name drugs.
