Ever wonder why the same Mevacor for which we pay $200 (per 100 pills) cost's a mere $8-10 (per 100 pills) in Mexico? Think that's a exception....think again. According to MarketResearch.com, it's not just Mexico. The average cost of prescription drugs in Canada is 64% lower than in the US. The cost of those same drugs is 61% lower in Europe and 67% lower in Japan.
The biggest reason according to the US GAO is price controls (or in our case, the lack of them). The US is the only major industrialized nation which does not control prescription drug prices. The result is that drug companies can charge US customers what the traffic will bear. This results in significantly higher drug prices. Drug companies point to the need to recoup research cost, without which, most drugs would never reach the market.
The point is not lost on Henry Waxman (D-CA) who sees it differently. He says "it appears that our citizens are bearing a disproportionate portion of drug research", while other countries get the benefit of the research and significantly lower prices". Attempts to rectify the disparity have meet with swift reaction from drug companies. Earlier attempts to pass a "Prescription Fairness Act" which would force drug companies to spread the cost of research internationally have been (so far) successfully blocked. Drug companies have countered with the familiar "those drugs as safe as US drugs". Although spokesmen for Glaxo and Merck admit that they manufacture and sell the same drugs sold in the US outside the US. They also sell US manufactured drugs in other countries at a fraction of their US prices.
The current Health Care Reform Act discussions will no doubt increase pressure on drug manufacturer's to move toward more proportioned cost recovery. If history is any lesson, you better take a couple of aspirin for the pain, it won't likely get better soon. At least we are doing our part to keep drug prices down in other countries.
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