[dervish]

af is correct. The US public subsidizes Canada’s (and Europe’s) drugs. Most of the R&D and new drugs come from US. US patients pay full board. Canada and Europe pay discounted prices. If everyone only paid at the discounted rate, ie getting them from Canada, the drug companies would have to raise prices to Canada and the price disparity would even out.

here is an excellent article that explains it

http://64.233.169.104/search?q=cache:nmkay6K2WAgJ:www.cato.org/pubs/pas/pa521.pdf+canada+drugs+cato+institute&hl=en&ct=clnk&cd=1&gl=us

[ThePythonicCow]

here is an excellent article that explains it: http://www.cato.org/pubs/pas/pa521.pdf.

Yes - good article.

af is correct.

af started this subthread with post Post #26, which stated:

one of the reasons why I support reimportation of drugs from canada is that it would put a heavy strain on their system. Price controls would collapse as canadians would be paying for cheaper drugs for us (and there are a lot more Americans than canadians). Combine that with a harper govt and you could see the end of socialized medicine there.

I still don't agree with that claim. I still suspect that lifting the reimportation ban would as likely drive prices, and drug company profits, and drug company R&D lower, as it would drive Canadian prices higher leading to threatening their socialized medicine.

I saw nothing in the article linked above that changes my mind on my disagreement with the specifics of af's original claim.