George Will explains it very well, but let me help in case you really don’t want to go read the article.
The reason drugs are cheap in Canada is not because the Canadians can research, create, market, and distribute drugs much cheaper than our own drug companies.
No, it’s because Canada has a socialist system of health care, that gives everybody lower-quality health care. They don’t invent drugs, they buy them from our american companies. But they tell the american companies they MUST sell drugs cheap in Canada.
By allowing the re-importation of drugs, you are essentially allowing Canada to set the price of drugs for the United States.
By allowing the re-importation of drugs, you are essentially allowing Canada to set the price of drugs for the United States.”
CharlesWayneCT, all you state is true. Additionally, the truth is that Canada/Canadians are enjoying their low cost drugs off of the backs of Americans (but what’s now there, right?) who bear the cost of research and development, take to market, and so forth. Being that the population of Canada is small, the various U.S. drug companies are apparently willing to tolerate this situation. However, if the U.S. should follow Canada with a government prescription program which set artificial prices we would very quickly see R&D dry up for sure which is the strength of American drug companies, renowned around the world. Then, where would we be - including those free-loading Canadians...
Slight correction: they tell American companies that if they want to sell drugs to Canada, they must sell them at a cheap(er) price.
Evidently, American companies find it worthwhile to do so. Else they wouldn't. Right?
Has the Canadian government somehow enslaved American pharmaceutical companies?
A lot of people seem baffled by the drug re-importation issue. It is something that will never happen.
American drug companies spend huge amounts of money on product development, and charge high rates to American consumers get back their investments. “Leftover” sales to smaller countries (e.g., Canada) go mostly to profit because American consumers are the ones who pay to recoup development costs.
If we reimport from Canada, do you think the drug companies are so stupid as to increase sales at the lower rates? As rational business thinkers, they will only sell more product for reimportation at higher rates. Thus, reimportation will not make economic sense. For the drug companies to do otherwise is to commit suicide.