For many people in the United States and other countries, the high cost of prescription medications can be a major concern. In contrast, many Canadians pay significantly less for their prescription drugs. This price disparity has led many to question learn why medication is cheaper in Canada. This comprehensive guide explores the factors contributing to this phenomenon.
1. Price Regulation and Government Intervention
One of the most significant reasons prescription medications are cheaper in Canada is the government’s role in regulating drug prices. Canada has established a system that controls the prices pharmaceutical companies can charge for their medications. The Patented Medicine Prices Review Board (PMPRB) is responsible for ensuring that prices are not excessive, providing oversight on new drug pricing based on international price comparisons.
This regulatory framework helps keep drug prices in check and prevents pharmaceutical companies from setting exorbitant prices. In the U.S., prices are not regulated in the same way, leading to much higher costs for consumers.
