It is a well known fact that prescription drugs are often expensive in the U.S.; however, it is also known that in Canada many prescription drugs are less expensive than in the U.S. Sometimes the difference in cost is quite substantial. An example would be a 30 day supply of Lipitor—20mg—a medication used to lower cholesterol. The cost in Canada would be around $67, while in the U.S. the cost would be about $135. (For a 30 day supply.)
The reasons for differences in cost are several. For example, the Canadian government puts a ceiling on the amount drug companies and other distributors of drugs can charge. When a ceiling is put on the cost, this reduces the wholesale cost of medications in Canada by about five percent. The cost of drugs in Canada is made by Canada’s Patented Medicine Prices Review Board. Because their drugstores pay less for the medications, they can in turn, sell them for less. Also, Quebec and Ontario has a drug formulary that puts restrictions on the use of new and expensive medications. In addition, Canadian pharmaceutical companies have liability costs that are lower than the U.S. drug companies. It is known, too, that Canadians do not often sue healthcare providers or drug companies and when they do, damages and awards are much lower than here in the U.S.
Another reason why drugs in Canada are cheaper is that the standard of living there is much different. The average standard of living in Canada is about 20 to 30 percent lower than the average American and his or her standard of living. Such a difference affects the costs of drugs at a Canadian pharmacy. To conclude, yes some drugs overseas are cheaper but it is advisable to check out the sources of the drugs before buying. And, keep in mind many generic drugs are also available in the U.S. at substantial lower costs.
