(Page 4 of 4)
Problems with Canada
W
ith both the need for pharmaceutical profit and the danger of pursuing profit while neglecting ethical concerns, the quest for affordable drugs remains. Unfortunately, road trips to Canada don’t seem to be the answer. Through the importation of drugs from Canada, drug companies lose a large profit because of the low pricing. These companies then lose incentive for expensive research or are forced to limit the export of drugs to Canada (as some companies have already done). Additionally, Canada does not offer a long-term solution because the country cannot supply drugs to all of the United States. Canada accounts for only 2% of the worldwide pharmaceutical sales, whereas the United States accounts for nearly 50%.These are not the only concerns that discourage cross-border purchasing. Mrs. Blanc explains she would prefer to receive her medications locally, "I would be concerned if I had any problems [buying the medications across borders]. The drug is something you have to make sure you have and that the supply is coming in regularly."
The most frequent concern that consumers have about Canadian drugs is safety. The FDA will not condone the purchase of drugs from Canadian pharmacies and claims that the use of such drugs is a potential health concern. This argument actually folds quickly, however, because of Canada’s equivalent inspection agency, Health Canada (HC). HC provides the same magnitude of scrutiny as the FDA in order to ensure that the drugs found in Canadian pharmacies are safe. But if foreign drug importation is unsustainable and government price controls cut the pharmaceutical companies’ profit motive, what can be done for those who cannot afford medicine?
The responsibility of providing cheap medication cannot rest solely on the shoulders of the drug-making companies. As Vasella points out, the current system does not encourage a financially sustainable way of distributing medications to all those in need. Other policies could offer potential solutions. Trade agreements with other countries—enforcing the removal or increase of price controls—could dissipate the cost of R&D over a larger population. This solution, however, seems unlikely as few countries would agree to increase the already high cost of healthcare. Fortunately, obtaining affordable prescription drugs can be achieved with certain serious reforms.
First, the use of generic over brand name drugs can drastically lower costs for the consumer. Physicians around the country bear the responsibility of encouraging patients to use generics or other medications that could be cheaper, especially when cost is an issue Doctors must consider all drugs on the market to figure out the most effective and affordable treatment for their patients.
Second, preferential lists of drugs, such as those found in Canadian provincial government, offer the large potential for change. By lowering prices to compete for insurance approval, drug companies can still maintain enough profit for research and development while patients would have greater access to medication. Medicaid puts this idea into practice to an extent, but further development of such lists could bring down prices.
In order to further increase discounts, Medicaid must be allowed to negotiate with Big Pharma over pricing of drugs. While Veterans Affairs (VA) is allowed to bargain with drug companies to receive affordable medications, Medicaid is not. A report conducted by Families USA found that for half of the top-50 drugs, the lowest Medicare price is at least 58.2 percent higher than the best available VA price. "The best way to make medicines affordable for seniors is to allow Medicare to negotiate for better prices directly with drug companies, the way the VA successfully does," said Ron Pollack, Executive Director of Families USA. "The continued prohibition against such bargaining will not only hurt seniors, but it will also fleece the American taxpayer."
Although many conservatives in the U.S. shudder at the mere sound of "price controls," minor restrictions on excessive drug prices could produce favorable results. Similar to anti-trust legislation, laws could be put into affect that prevent Big Pharma’s oligopoly and ensure consumers are not paying a high price only to fill CEOs’ pockets. While the counter-argument claims such restrictions would decrease funding for R&D, it would make more sense to reduce the plethora of spending on marketing and administration. Research and Development offers the future profit of the industry; cutting its budget is just bad business.
The dream of affordable drugs for all may be a little far off, but steps can be made in the right direction. While direct import from our northern neighbor may not offer the answer, lessons can be learned from Canadian policy. The excess profit margin of the drug industry must be controlled through discouragement of marketing, lobbying and research of non-beneficial drugs. To address more global issues, Stigiltz’s prize system would offer a monetary reward for research focused on epidemics and illnesses spreading around the world. New policy, public awareness, and physician responsibility will start to tear down the obstacles produced by pharmaceutical business. Continued pressure on drug companies, government legislators, and doctors could be the right prescription for change—a change that could cure the symptoms of the flawed system and allow patients, young and old, rich and poor, American and Canadian, the power to finally get better.
Justin Berk is a sophomore in Pierson College at Yale University.





