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Big Pharma and the real story behind drug costs

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Ralph Surette
Monday, September 20, 2010

Canadians pay 16 to 40 per cent more for drugs than the average of industrialized countries. A national Pharmacare program, as a half-dozen countries already have, would save Canada over $10 billion a year on its $25-billion drug bill. Even other reforms short of a full national program would save billions in administration costs, drug costs (through bulk buying) and eliminated tax subsidies.

This claim is the argument of a report released by the Canadian Centre for Policy Alternatives. Since rising drug prices are one of the main drivers of a health-care system said to be headed for unsustainability, shouldn't we be curious about checking this out?

Canadians pay 16 to 40 per cent more for drugs than the average of industrialized countries. A national Pharmacare program would save Canada over $10 billion a year on its $25-billion drug bill.

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