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Are Prescription Drugs Cheaper in Canada?

prescription drugs cheaper in canada

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Yes, prescription drugs are cheaper in Canada and that is a big part of the reason that so many Americans look to order medication online from Canada. There are legitimate savings to be had, and for those who are having the same prescription filled again and again for the long foreseeable future it makes a lot of sense to get drugs from Canada. So, it is great that this alternative exists, but anyone who likes to know the workings of things it makes them want to ask why are prescription drugs cheaper in Canada, and why aren’t they priced similarly to the way they are in America?

The answer to why are prescription drugs cheaper in Canada is a multi-level one, but the single biggest reason for it is that the price of drugs is regulated by the Federal Government in Canada. It is Health Canada that oversees that. In the US the FDA lets the price of Rx medication be determined exclusively by free market forces and the pharmaceutical manufacturers are allowed to set prices at whatever level they please before the medications are made available to the market. Both countries are the most ruthlessly capitalist on earth, so it’s not a good combination for people that want affordable medication.

And that want is spurred by an absolute need for the medication in many cases. These people need to have it in order to maintain their health, and they may be on lifelong treatment regimen. For example, it is possible to reverse diabetes but most people are incapable of that and they’ll need to be on medication like Amaryl so they don’t have chronic low blood sugar. That means filling a LOT of prescriptions over the course of their lifetime, and often paying too much for them. So is there anything more to why are prescription drugs cheaper in Canada.

Middlemen & Price Discrimination

Digging into this deeper you’ll find that there are also fewer stops in the chain between the pharma manufacturers and the pharmacist when it’s a Canadian online pharmacy serving the US. In America there are plenty of middlemen that are involved in the process and with each of them the price of Rx drugs increases to some extent. With some medications that’s not so much of a factor, but when it’s a drug that’s expensive to begin with then this factor is also a big part of why are prescription drugs cheaper in Canada.

The next factor to consider is what’s called price discrimination. The medications that pharmacies receive are ones that are purchased by wholesalers, and then distributed to the different pharmacies based on certain pricing models. But the problem they don’t all pay the same prices. Price discrimination is charging different prices to different buyers of the same product, and it works in the drug industry because drugs are very expensive to develop, but relatively cheap to manufacture.

IMPORTANT NOTE: The above information is intended to increase awareness of health information and does not suggest treatment or diagnosis. This information is not a substitute for individual medical attention and should not be construed to indicate that use of the drug is safe, appropriate, or effective for you. See your health care professional for medical advice and treatment.

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