The reason prescription drugs are cheaper in Canada is due to price controls enacted by the Canadian government, and the US government does not use these same controls to cap Rx drug prices the same way. The price of prescription medication here has other factors behind it and contributing to why drugs cost less in Canada. Fewer middlemen in the pharma industry in Canada is another big one, and the excess of them in the USA adds to the cost of drugs you pay at any US pharmacy. Legal protection for the pharma manufacturers contributes to medication costs too, with manufacturers spending hundreds of thousands on direct-to-consumer advertising.
Another big contributor affecting Rx drug prices in America is price discrimination, and it’s also a part of why are prescription drugs so much cheaper in Canada. Pharmaceutical manufacturers have nothing stopping them from selling their drugs to pharma wholesalers at different prices. There are variables to this, including what they anticipate customers in that area being able to pay for their medications. It is to entirely that simple, but it does reflect free market capitalism being king in America. This is less of the reality in Canada, and a more socialist approach to healthcare does play a part in it.
What US residents who can’t afford prescription drugs can take away from this is that the best way to address the problem of why are prescription drugs so much cheaper in Canada is ordering medication online from Canada. Medication isn’t likely to become less expensive for a long time if at all, although there was recent news of US President Sleepy Joe signing an executive order to promote better ways to lower the price of prescription drugs. That provides some hope for cheap prescription drugs.
Let’s start by having a look at how the different standard of living levels in the 2 countries play a role too. It is a lesser contributor to why are prescription drugs so much cheaper in Canada, but some people are still going to need convincing around how that’s possible. Americans have higher incomes and the big pharma then believes that they are less sensitive to higher drug prices because of those income levels. That’s certainly debatable, but a read through any long form piece of content about why are prescription drugs so much cheaper in Canada and you’ll likely see this referenced.
People with concerns should Order generic medication online from Canada, and the way generics work is also related to why drugs are more expensive in America. Pharma manufacturers are legally able to keep their patent on new Rx medications for 5 years. Only after that window closes does a generic equivalent become available to help Americans pay less for prescription medication.
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