Canadian Drug Prices vs. U.S. Drug Prices

Understanding U.S. Prescription Drug Prices

The average cost of prescription drugs in the U.S. in 2020 is $1,376 per person annually, the highest per capita globally [2]. Why are U.S. prescription drug costs so high? Unlike every other developed country, the U.S. does not have a government agency to monitor the cost of medications. Instead, America allows market competition to control medication pricing.

There is no universal medical coverage for Americans, and the U.S. healthcare system is made up of multiple entities. U.S. prescription drug prices are often negotiated behind closed doors, leaving patients and physicians out of the loop, despite the major impact drug pricing can have on the health and treatment of patients.

Three major market players influence high U.S. drug prices:

• Pharmaceutical Companies: Drug companies create and sell drugs and often blame high pricing on research and development expenses. However, a pharmaceutical company sometimes will buy an existing drug and raise the price [3].

• Pharmacy Benefit Manager (PBMs): PBMs negotiate the upfront costs of prescription drugs with pharmaceutical companies and often offer them rebates to ensure expensive brand-name drugs are more likely to be included in insurance plans. As the rebates and negotiations are confidential it’s impossible to know if these savings benefit the patient. [4].

• Private Health Insurance Companies: Americans get insurance through private companies, and each individual company can regulate U.S. prescription drug prices. They often offer coverage options based on what will maximize company profits [5].

Note:While prices for patented brand-name drugs remain high, popular generic drugs are often discounted in the U.S.

Why Do Drugs Cost Less In Canada?

The average cost of prescription drugs in Canada is $1,086 per person, far more affordable than U.S. prices [6]. In Canada, prescription drug prices are regulated by the Federal Patented Medicine Prices Review Board (PMPRB). This government agency has the power to challenge any price of a patented drug in Canada [7].

The PMPRB, which gets its power from the federal patent law, uses a variety of criteria to determine and control Canadian drug prices on patented medicines [8]. These criteria include:

• Looking at Canadian drug prices of medications already on the market that treat the same condition.

• Capping Canadian drug price increases to the Consumer Price Index.

• Preventing Canadian prescription drug prices for patented medicines from being the highest in the world.

Thanks to the PMPRB, there is no bargaining to reduce Canadian drug prices. Once they declare a price to be an illegal abuse of patient rights, the price paid by private and public plans is capped. Canada's drug prices, in comparison to other countries, are at the median among France, Germany, Italy, Sweden, Switzerland, the United Kingdom and the U.S. [9].

Because of this, many prescription and over-the-counter drugs are far more affordable when purchased through online Canadian prescription referral services like Drugmart.com.

How Online Canadian Prescription Referral Services Work

Ordering your medications from an online Canadian prescription referral service is safe, simple and affordable. Beware, however, since there are plenty of fraudulent online pharmacies on the internet, so you have to know what to look for. A legitimate service will:

• Require a valid and legitimate prescription from a physician licensed to practice in your area of residence.

• Have a licensed pharmacist accessible for medication consultation.

• Have procedures to ensure patient confidentiality and privacy of personal records and contact information.

• Be certified by CIPA (Canadian International Pharmacy Association).

Canadian prescription referral services like Drugmart.com can provide brand-name and generic medications at Canadian prescription drug prices. These services provide customers direct access to affordable prescription and non-prescription medicine through contracted Canadian pharmacies and international providers located in Tier 1 jurisdictions. These Tier 1 countries are designated favored trading partners by congress and have the highest pharmaceutical standards and strictest regulations for drug dispensing, manufacturing and procurement. With this global network of reputable pharmacies, these services can sell medications at Canadian drug prices to addresses in the U.S. and beyond.