The Canadian government puts price controls in place, and this is why Canadian drugs are cheaper while in the US these same controls to cap Rx drug prices don’t exist. There is more to the lower costs for prescription medication up North and adding to why are Canadian drugs cheaper. We can start with the fact that there are fewer middlemen in the pharma industry here, and the thousands in the USA add to why drugs are so expensive at US pharmacies. The next factor is legal protection for the pharma manufacturers, plus most manufacturers spending six figures+ on direct-to-consumer advertising every year.
Consider as well, the role price discrimination plays in Rx drug prices in America, and this absolutely also contributes to Canadian drugs being cheaper in comparison. Pharmaceutical manufacturers are free to set different prices when they sell their Rx products to pharma wholesalers. When those wholesale prices are higher it’s because they anticipate customers in an area being able to pay more for medications. That’s only the most basic look at it, but in the bigger picture it’s a part of free market capitalism in America. That’s the basis of the economic structure in Canada too, but there’s a more socialist approach to healthcare here.
US residents that can’t afford prescription drugs can take this away from our discussion; the best way to address the problem of why are Canadian drugs cheaper is ordering medication from a Canadian pharmacy online. Waiting for medication to become less expensive isn’t advisable because it’s unlikely to happen, although the recent news of President Biden signing an executive order to expedite lower prices on prescription drugs may provide some hope. Will this mean better access to cheap Canadian drugs online? It’s possible.
There is a different – and higher – income level in the US than Canada, although it’s only slightly higher if at all. This is not as much of a factor for why are Canadian drugs cheaper, but some folks will be wondering what’s the relevance of it at all. The higher median incomes Americans have prompt big pharma to believe they’re more insensitive to higher drug prices because of their higher average income levels. Who’s to say if there’s any truth to that, but you can dig up all sorts of stuff online about why are prescription drugs so much cheaper in Canada and you’ll likely find living standards / income referenced in it.
A smart choice if you struggle to afford drugs is to order generic medication online from Canada, and the law around generics is also a part of why drugs are more expensive in America. For 5 years after drugs are introduced to the market pharma manufacturers are legally able to retain patents on them. A generic equivalent goes onto the market only when that patent expires, and while it is a long while it does help Americans pay less for prescription medication.
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