U.S. pharmaceutical innovation has been disproportionately funded by U.S. consumers of patented drugs.
Yet another patient appears on Global TV News unable to get an expensive prescription drug reimbursed by the Ontario provincial government, and the Minister of Health and Long-Term Care responds that the provinces and territories are working together to negotiate with manufacturers to get the best possible prices for drugs. What no one gets to know is precisely how thats happening or how quickly, leaving us all in the dark about access to a vital component of modern medical care.
Once again the Ontario government is meddling with generic drug prices in a vain attempt to save a few bucks. Having dug itself into an enormous fiscal hole, the province just announced it will further lower the prices it pays for the 10 best-selling generic prescription medicines to 20 per cent of their brand-name equivalents, down from the current 25 per cent.
Canada's Drug Price Paradox: The Unexpected Losses Caused by Government Interference in Pharmaceutical Markets
Worried about rising expenditures for prescription drugs, many states are employing preferred lists to encourage doctors to prescribe older, lower-priced drugs and forego the latest, more expensive medicines.
If Congress succeeds in passing a Medicare prescription drug benefit this year, the debate over preferred drug lists - now raging in numerous states - is likely to explode onto the national stage.
The lists - also known as formularies - are, whether we like it or not, a form of rationing. Ask any Canadian.