Monday, December 13, 2004
Costs and benefits of reimportation
[Donald R. May, "We should not covet Canada’s prescription drugs," Townhall.com, 11 December 2004.]
The search for low-cost prescription drugs from abroad is often couched in terms of consumer freedom. What is really at issue is whether or not it makes sense to exploit another country's socialist price settings. The outcome will likely either be the collapse of those settings or the industry that provides the goods. Which will come first is difficult to say, but pursuing a course of action that leads to those outcomes is high-stakes public policy when less drastic measures exist:
What seems to be too good to be true often is. Is a savings of even $40 or $50 worth the risk? For some drugs, prudent shopping will often result in lower costs right here in the United States. The new Medicare discount cards can save patients as much as 25 percent on their prescription drug purchases, which can make the drugs less expensive than those purchased on the internet or in Canada or Mexico.
For the poor, Medicaid provides prescription drugs. For those not covered by Medicaid, the pharmaceutical companies provide discounted and free medications, with more than 18 million prescriptions being filled last year at no charge by PhRMA member drug companies.
Other developed countries are getting a free ride courtesy of U.S. patients and are not paying their share for pharmaceutical research and development. If prices were more equitable in other countries, many of these countries would have their own drug research programs. This would increase the number of new medications developed worldwide and provide many new jobs.
Our best solution is to reduce the costs of our drug development. To achieve this, we must eliminate unnecessary bureaucratic rules and regulations, stop the persistent attempts to fully socialize our health care economics, and prevent the unwarranted attacks of legal predators from destroying our health care system. This will decrease the cost of drugs for everyone and increase the resources necessary to develop more new drugs.
[Matthew Hisrich, "Sebelius is practicing black-market politics," The Wichita Eagle, 10 December 2004.]
[Donald R. May, "We should not covet Canada’s prescription drugs," Townhall.com, 11 December 2004.]
The search for low-cost prescription drugs from abroad is often couched in terms of consumer freedom. What is really at issue is whether or not it makes sense to exploit another country's socialist price settings. The outcome will likely either be the collapse of those settings or the industry that provides the goods. Which will come first is difficult to say, but pursuing a course of action that leads to those outcomes is high-stakes public policy when less drastic measures exist:
What seems to be too good to be true often is. Is a savings of even $40 or $50 worth the risk? For some drugs, prudent shopping will often result in lower costs right here in the United States. The new Medicare discount cards can save patients as much as 25 percent on their prescription drug purchases, which can make the drugs less expensive than those purchased on the internet or in Canada or Mexico.
For the poor, Medicaid provides prescription drugs. For those not covered by Medicaid, the pharmaceutical companies provide discounted and free medications, with more than 18 million prescriptions being filled last year at no charge by PhRMA member drug companies.
Other developed countries are getting a free ride courtesy of U.S. patients and are not paying their share for pharmaceutical research and development. If prices were more equitable in other countries, many of these countries would have their own drug research programs. This would increase the number of new medications developed worldwide and provide many new jobs.
Our best solution is to reduce the costs of our drug development. To achieve this, we must eliminate unnecessary bureaucratic rules and regulations, stop the persistent attempts to fully socialize our health care economics, and prevent the unwarranted attacks of legal predators from destroying our health care system. This will decrease the cost of drugs for everyone and increase the resources necessary to develop more new drugs.
[Matthew Hisrich, "Sebelius is practicing black-market politics," The Wichita Eagle, 10 December 2004.]
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