Maple Leafs

OK, so the Winter Games this year weren’t the best run. The torch support failed to rise at the opening ceremonies, the downhill courses didn’t have enough snow, and the bobsled run was downright deadly. Our neighbors to the North really didn’t put their best foot forward.

But there are areas where Canada still shines.

No, this is not going to be a diatribe on the superiority of the Canadian Health Care system. Like the 2010 Olympics, there are many things about their system that are, shall we say, less than impressive? However, there are some things that Canada does better than us, so let’s give credit where it’s due. One thing that Canada does deserve credit for is the way that it controls the costs of prescription drugs.

Take Lipitor for example. Here in New Jersey, and average cost per 40mg pill is $5.23, according to the New Jersey State Attorney General’s office. Shop the same pill and dose on line, and you can buy it from a Canadian Pharmacy for as low as $1.40 per pill. Still no bargain, but certainly much more reasonable and affordable.

I’ve done a lot of reading on this subject lately, and the reasons why Canadian prescription drugs are less expensive are varied. One main reason is that the Canadian Government itself sets price caps on what the pharmaceutical companies can charge for their products. I know that allowing the government to control pricing in any industry is a hot button issue in this country, and not one that I generally am in favor of, but desperate times call for severe measures.

Another reason is that Canada limits the percentage of newer (and more expensive) drugs that are dispensed, favoring generics and older formulations whenever possible. While the newer medications are sometimes more effective than the older ones, this is not always the case, and the Canadians seem to encourage using generics whenever they will do the job at hand. If you have a minor or even moderate case of a particular disease, is having the latest drug, which is ten percent more effective then the generic, really necessary? Of course not.

A lot of this price control happens in Canada because the government is footing the bill for healthcare, and therefore there is a single entity responsible for controlling costs. In the US, where individuals are often shielded from the true costs of our medicines by our prescription plans, there is little concerted effort to pressure the pharmaceutical companies to lower the cost of their products.

A third reason is that pharmaceutical companies have less product liability in the Great White North, and this also has a direct effect in lowering the costs of medications. Canadians are less suit happy than Americans, and when they do sue (and win), awards tend to be significantly lower than similar awards in the U.S. So, to be fair, a portion of that price difference goes towards the purchase price of your ticket in the lawsuit lottery.

While all these things play a part in keeping the costs of Canadian pharmaceuticals low, there is one other factor that has an even greater effect in the price differential – and that is a dirty little secret that no one – especially the pharmaceutical companies - wants you to know about.



Want to know what it is? Stay tuned of my next installment. Same Bat Time. Same Bat Station.





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