How cheap are Canada's drugs really?
OBJECTIVE
This article compares pharmaceutical prices paid by governments in the United States and Canada.


METHODS
The comparator prices are those of the Federal Supply Schedule and the Ontario Drug Benefit List, for frequently prescribed brand name medicines.


RESULTS
The price differential between Canadian and US prices is shown to be relatively small, when considering prices charged to governments.


CONCLUSIONS
Buyer power exercised by governments is very important in reducing pharmaceutical prices and comparisons between retail prices in the US and government prices in Canada are therefore inappropriate.
Hollis
Aidan
A
Department of Economics, University of Calgary, Calgary, Alberta, Canada. ahollis@ucalgary.ca
D002170:Canada; D003365:Costs and Cost Analysis; D009864:Ontario; D004364:Pharmaceutical Preparations / Q000191:economics*; D014481:United States; D037041:United States Government Agencies
D004364:Pharmaceutical Preparations