Monday, January 25, 2010

The Price of Pills

Is there anything more dispiriting and perplexing than the cost of prescription medications in the United States? Especially if you have no prescription insurance coverage? And we know, of course, that the same presciption drugs can be purchased at much lower prices in Canada--and many travel there to take advantage of the relative bargains. We've also heard it said or reported that many countries offer even lower prices than Canada for the same medications. Some folks take the risk of buying from these places on-line. We also know that the Veterans Administration and many states have negotiated much better rates than those available to average Americans.

This article in The Economist offers a simple example of the range of prices paid for a common prescription antibiotic--ciproflaxin--in various countries around the globe. These are the sober facts:

THE price of a course of ciprofloxacin, an antibiotic used the world over to treat a range of bacterial infections, varies enormously. The cost depends on where the pills are bought, and whether they are sold under a brand name (such as Ciloxan or Cipro) or as a generic version. According to data collected by Health Action International, an NGO, branded pills sell for an average of $101 a course in America, while the generic variant is available for $9.25. In Britain, branded versions cost only about half as much as in America, perhaps reflecting the bargaining power of the country's National Health Service. In India, large drug companies compete to cater to poor consumers, ensuring that even branded ciprofloxacin costs less than $2.50 per course. And Brazilians pay about the same for branded and more for generic ciprofloxacin than even much wealthier Americans. Differences in national health-care systems mean that consumers typically shell out different proportions of the full cost of pills, because many countries subsidise medicine.

--"Drug Money: Who pays the most for branded and generic drugs?" The Economist (1.18.10)

Click on the link to see the schedule of costs for "cipro" in 18 countries. No surprise: the most expensive in the world is the United States at $101, with Britain at $57, Germany $51, Canada $45, France $37, Pakistan $8, India and Nepal at $2. There remain only the questions of why, and why not? But don't hold your breath waiting for satisfying, principled answers.

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