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Pharmaceuticals don't cost much to make, on a per-pill basis. Sort of like books or software. The research and development is what costs a lot. Once you figure it out, churning out an extra pill doesn't really cost a lot. Just like printing a hardback book costs about $3.00.

In Canada, drug companies are told they can't charge more than X. But the drug companies still sell there because of the marginal profit on each pill.

Suppose you've got ABC Pharmaceuticals, and they spend $50 million to develop a new drug. Each prescription costs $5 in chemicals to make. Suppose that they believe that demand is 50,000 prescriptions per year. To get their $50 million back over 10 years, assuming no time value of money, would require $5 million in revenue per year, or $105 per prescription (since $5 per prescription would go to the actual chemicals). Now they do this, and then in Canada, with an extra 5,000 prescriptions per year, they can sell the drug too. There, the government says they can only charge $30. Well, they go for this reduced rate, because $30 is higher than $5, and they still make $25 on each prescription. Now suppose the US comes in and also imposes a cap of $30. Well, then the drug company throws in the towel. Same thing happens if so many Americans go to Canada that they cannot recoop their investment.

Price caps are horrible. They distort the market, and cause people to stop R&D and production. It's a great deal if the drug has been developed already, and you can mooch of their labors. It's a horrible deal if you have a disease for which the cure hasn't been developed yet!

I think shopping for prescription drugs in Canada is great. Just as Canadians "mooch" off of our security (our might) we can mooch off of their health care. (Granted, our military is great and their health care is so-so.)

This situation reminds me of European countries which ridicule the US for spending so much on defense when they [europeans] barely spend anything. Heck, that's cause WE are there as a proxy military for them and we pick up most of the cost.

Candians make fun of our medical system. Well, if we had a very strong neighbor with a defense we could depend upon, then we wouldn't have to pay very much for our own defense forces. We could take what we spend in defense now and implement universal health [s]care.

Don't get me wrong, if you are not a Canadian citizen, YOU WILL PAY $$$$ for health care. I know, I got sick in Canada and had to go to the emergency room. Thank God there is a good exchange rate.

Health care in Canada is only "free" for citizens. I once had a Candian tell me their system of health care was better because it was free. Well, that's odd, because it isn't free -- someone [taxpayers] pay for it. And, while we go to Canada for prescriptions, they come here for major operations/etc instead of waiting forever and possibly dying up there. It isn't better, just prepaid (through taxation).

As far as the drug companies go, well, they make enough here in the States. They won't hurt too much by those who have no insurance buying drugs originating across the border.

As for me, I'm placing my order soon. $149 for Advair in the US vs $89 + $15 shipping in Canada. Over a year, that's a few hundred dollars savings. Worth it to me! (It was a Candian doc who put me on advair when I was sick with Asthma. He told me it was very expensive at $75 and he gave me a free sample. Imagine my surprise when I get back here and try to fill a prescription at $149!!!)