January 17, 2007
Canadian Pharmacists Want Rx Meds to Stay Put
Last year, consumers in the U.S. spent millions buying prescription medicines from Canadian pharmacies (much of it online) because the prices of drugs in that country were less expensive than here.
The current Democrat-controlled Congress plans to push a number of initiatives to reduce the cost of prescription drugs during this session, including legislation that would allow for the importation of medicines from Canada.
North of the U.S. border, however, there are groups that are asking the Canadian government to “just say no” to exports.
Earlier this week, groups representing Canadian pharmacists called for a ban that would end exports of prescription medicines to the U.S. The group, which includes the Canadian Pharmacists Association, the Ontario Pharmacists Association, the Best Medicines Coalition and the Canadian Association for Pharmacy Distribution, is concerned that exports to the U.S. will leave Canadian pharmacies without sufficient supplies for consumers there.
“Rather than deal with it from a domestic point of view, (U.S. lawmakers) are looking to our drug supply to provide the answers,” Louise Crandall, a spokesperson at the Canadian Pharmacists Association, told Reuters. “That obviously will have a negative impact on our drug supply.”
A spokesperson for Canadian Health Minister Tony Clement said the concern expressed by the groups is not warranted.
“At present there is no threat to the Canadian drug supply. In fact, there has been a downward trend in overall sales of pharmaceuticals to the U.S.,” said press secretary, Erik Waddell.
“We’ll continue to monitor the situation and take action if necessary.”
Discussion Questions: How harmful have imports of medicines from Canada or elsewhere been on retail pharmacies in the U.S.? What action is required of the government, business and/or on the individual level to give American pharmacies the chance to be price competitive with those in Canada?
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This may be a huge problem in Detroit, Buffalo and other border cities but, in the south, Walgreens and CVS are opening new stores every day. Don’t think these sophisticated retailers would be expanding their footprint if they feared competition form Canada.
Frankly, the Canadian pharmacies provide a service for those Americans who don’t have insurance or whose insurance doesn’t adequately cover the cost of drugs.
The stated $850 million in prescription drugs purchased by Americans from Canadian pharmacies back in 2003,(now probably less), is but a drop in the bucket when compared to the total expenditure for drugs by consumers annually in the U.S. Therefore, the degree to which individual pharmacists have been hurt is minimal–although those in border cities may have been impacted to a greater degree. To me the real issue is the U.S. health care system. Its totally broken–costs are spiraling ever higher (my health care provider wanted a 26% increase for 2007), and close to 50 million Americans are not covered by health insurance. Until congress, forced by business and voters, develops the political will to say no to “Big Pharma” money and overhaul the current system, pharmacists will not be price competitive with their Canadian counterparts. The Canadian health care system is a universal coverage program whereby government, doctors, hospitals and other providers negotiate prices and allocate resources.
I doubt there have been any harmful effects from the importing of prescription drugs from Canada. American pharmacies are very price competitive with Canadian pharmacies now that many retailers have $3 and $4 generics and insurance subsidizes the costs that many consumers must pay. After my insurance kicks in, I see no meaningful savings in buying medications from Canada. I doubt any Canadians are going without because their medications were sold to someone in the US. Even if that was so, we should be thankful that U.S. citizens have the financial clout to get access to the drugs before those of other countries.
Canadian imports to the U.S. are declining because (1) the biggest drug consumers are the elderly and (2) Medicare Part D reduced the need for the elderly to buy drugs in Canada. Even if Congress removes the obstacles to buying Canadian drugs, sales to individuals aren’t likely to rise beyond the previous peak. There’d be greater excitement if the legislation allows Americans to buy drugs globally, without undue interference. Drugs from India and China would be much cheaper than Canada. And there’d be greater excitement if domestic pharmacists, including the big mail order pharmacies, could buy prescription drugs globally. Then Wal-Mart and Target could enlarge the $4 prescription drug list considerably.
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This may be a huge problem in Detroit, Buffalo and other border cities but, in the south, Walgreens and CVS are opening new stores every day. Don’t think these sophisticated retailers would be expanding their footprint if they feared competition form Canada.
Frankly, the Canadian pharmacies provide a service for those Americans who don’t have insurance or whose insurance doesn’t adequately cover the cost of drugs.
The stated $850 million in prescription drugs purchased by Americans from Canadian pharmacies back in 2003,(now probably less), is but a drop in the bucket when compared to the total expenditure for drugs by consumers annually in the U.S. Therefore, the degree to which individual pharmacists have been hurt is minimal–although those in border cities may have been impacted to a greater degree. To me the real issue is the U.S. health care system. Its totally broken–costs are spiraling ever higher (my health care provider wanted a 26% increase for 2007), and close to 50 million Americans are not covered by health insurance. Until congress, forced by business and voters, develops the political will to say no to “Big Pharma” money and overhaul the current system, pharmacists will not be price competitive with their Canadian counterparts. The Canadian health care system is a universal coverage program whereby government, doctors, hospitals and other providers negotiate prices and allocate resources.
I doubt there have been any harmful effects from the importing of prescription drugs from Canada. American pharmacies are very price competitive with Canadian pharmacies now that many retailers have $3 and $4 generics and insurance subsidizes the costs that many consumers must pay. After my insurance kicks in, I see no meaningful savings in buying medications from Canada. I doubt any Canadians are going without because their medications were sold to someone in the US. Even if that was so, we should be thankful that U.S. citizens have the financial clout to get access to the drugs before those of other countries.
Canadian imports to the U.S. are declining because (1) the biggest drug consumers are the elderly and (2) Medicare Part D reduced the need for the elderly to buy drugs in Canada. Even if Congress removes the obstacles to buying Canadian drugs, sales to individuals aren’t likely to rise beyond the previous peak. There’d be greater excitement if the legislation allows Americans to buy drugs globally, without undue interference. Drugs from India and China would be much cheaper than Canada. And there’d be greater excitement if domestic pharmacists, including the big mail order pharmacies, could buy prescription drugs globally. Then Wal-Mart and Target could enlarge the $4 prescription drug list considerably.