Lynn Woods

Skyrocketing American Prescription Drug Prices Benefit Canadian Online Pharmacies

The AARP is calling for measures to hold down the cost of brand-name drugs after their latest Rx Price Watch Report confirmed that American drug manufacturers are continuing to raise prices far beyond the normal rate of inflation.

The AARP is calling for measures to hold down brand-name drug prices after releasing a report showing the cost of the prescription medications most commonly used by older Americans rose an average 8.3 percent in 2009 despite record-low inflation.  According to the report, drug prices have risen steadily over the last five years, with retail prices for the most popular brand-name drugs increasing 41.5 percent, while the consumer price index rose just 13.3 percent. The report notes that all but six of 217 brand-name prescription drugs had retail price increases greater than the rate of inflation in 2009, far outstripping increases for other consumer goods.

The AARP Rx Price Watch Report warns that many older Americans rely on brand-name medication to maintain their health, and that the rising costs are forcing them into the dreaded Medicaid coverage gap known as the "donut hole" sooner. “Brand-name retail prices have been accelerating year-to-year even when inflation has been non-existent in the rest of the economy,” John C. Rother, executive vice president for policy and strategy for the AARP, said in an interview with the New York Times. Rother called on Congress and the drug industry to bring more competition and transparency to the marketplace, warning, "Unless something is done to bring down their skyrocketing price increases, lifesaving medicines will be out of reach for too many."

The AARP Report noted that the price for the prostate drug Flomax nearly doubled since 2005, with a shocking 92 percent increase. The cost of both the asthma medication Advair and the Alzheimers drug Aricept rose a whopping 40 percent; the proton pump inhibitor Nexium went up 28 percent; the cholesterol drug Lipitor's price increased 24 percent, and the osteoporosis drug Fosamax now costs about 20 percent more, despite the introduction of a generic version in early 2010. One of the top-selling prescription drugs in the country, the anti-platelet Plavix medication, and the popular proton pump inhibitors Prevacid and Protonix were also on the list of increasingly expensive prescription medications often relied upon by seniors.

These increases have contributed to an already thriving Canadian online pharmacy industry, as more and more consumers become aware of how much lower drug prices are north of the border.  Canadian prescription drugs are cheaper than in the US because the Canadian government regulates prices, doesn't allow the drug companies to conduct expensive direct-to-consumer advertising, and allows manufacturers to produce cheaper (but identical) generic prescription drug versions sooner. Legitimate Canadian online pharmacies operate regular brick-and-mortar drug stores but do most of their business online, keeping their overhead costs low and passing the savings on to consumers. Competition also keeps prices down, with Canadian internet pharmacies wooing customers with online pharmacy coupons and pharmacy rewards programs for additional savings.

Article Tags: Canadian Online Pharmacies, Prescription Drug, Drug Prices, Canadian Online, Online Pharmacies, Prescription Drugs

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