Generic drugs are on average 78 percent more expensive in Canada than in the United States, according to a new study by Brett Skinner (Fraser Institute).
Moreover, Canadians could save between $2 billion and $5 billion annually if governments allowed the pharmaceutical market in Canada to be as competitive as the U.S. market, says Skinner.
Governments claim that price regulations reduce drug costs for Canadians, yet the data show that Canadians actually pay more than they should for non-patented drugs generics because government policies that were supposed to make drugs cheaper instead reduce competition and drive up prices.
According to Skinner:
Skinner also finds:
Skinner suggests that price controls and other policies distort the pharmaceutical market, reduce competition and harm Canadian consumers by causing inflated prices for non-patented drugs, and suggests that Canadians would be better off if governments repealed such policies.
Source: Brett J. Skinner, Government Interference in Pharmaceutical Markets Costs Canadians $2 billion to $5 billion Annually, Fraser Institute, February 23, 2005.
For text: http://www.fraserinstitute.ca/shared/readmore.asp?sNav=nr&id=644
For more on Drug Price Controls: http://www.ncpa.org/iss/hea/
FMF Policy Bulletin/ 08 March 2005
