Walczak Associates
A Few Facts on Canadian Drug Options

American companies are struggling with increasing health care costs. Some are thinking about the cost of prescription drugs which are more expensive in the United States than anywhere else in the world. In many cases, around 20% of health care benefit dollars can go to the prescription benefit. Some wonder why they have to purchase from a U.S. pharmacy when the same drugs are often less than half the cost via Canadian mail-order pharmacies. There is a promise of relief with the re-importation of Canadian drugs - but only if there are changes to the law.

Facts:

1. It is illegal to re-import American drugs that are sold at much lower prices through Canadian pharmacies. Importing Canadian drugs is against U.S. policy.

2. The drugs purchased from Canada, in person, may or may not be approved by the FDA. Canadian pharmacies sell drugs approved by Health Canada. Purchasing Canadian prescription drugs on-line may not be approved by Health Canada and you may receive a generic substitute. Common complaints include customers who thought they were getting Canadian drugs but received drugs from Asia.

3. Lower Canadian prices are strongly influenced by the fact that the Canadian government regulates the prices of drugs. By comparison, there is drug advertising in the U.S. and also strict FDA regulations.

4. The high cost of prescription drugs in the U.S. is forcing local governments to get involved with citizens in ways that are far beyond usual government roles. For example, the State of Vermont has petitioned the Federal Drug Administration (FDA) to approve a pilot program that would allow importation of Canadian prescription drugs.

5. Canadian Health Minister Ujjal Dosanjh, in February 2005, stated, "we cannot be the drugstore for the United States." Canadian pharmacists are reporting more and more shortages which may force them to be more dependent on medicines from nations outside their regulatory purview, drugs that may be subpotent, superpotent, expired, or counterfeit.

6. There is no way to know for sure how soon the laws on Canadian drug re-importation might change.



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