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Seniors Cross Borders For Drugs: Is It Worth The Trip? More and more seniors are boarding buses and heading for Mexico or Canada these days to buy drugs. But the drugs they're after is not the illegal kind-they're after prescription drugs. Lured by reports of prescriptions filled for half of the stateside cost, seniors, especially those without prescription drug insurance, are flocking to Mexican and Canadian pharmacies. U.S. pharmaceutical manufacturers sell Mexico and Canada the same prescription drugs seniors often buy from their local pharmacies. In Mexico, the government sets price ceilings for medications. In Canada, the provincial authorities negotiate bulk discounts with pharmaceutical companies and establish allowable prices for most prescriptions. Because of the rate of exchange, the U.S. dollar is often worth more in those countries. This further acts to drive down prices for U.S. consumers. A report prepared for Representative Thomas H. Allen (D-ME) of the Committee on Government Reform and Oversight shows substantial price differences between what uninsured U.S. seniors must pay in the U.S. and what they would pay for the same drug in Canada or Mexico. The study investigated ten brand name prescription drugs and found that on average U.S. citizens pay about twice as much for drugs here as in Mexico and about 72% more than in Canada. The U.S. Food and Drug Administration (FDA), however, warns that medications purchased abroad may present health risks to the user. This is a particular problem in Mexico where pharmaceuticals do not undergo the type of rigorous testing to verify their identity, potency, purity and stability that is required in the U.S. Sources: "Some Travel Far For Cheaper Prescriptions," Doug Levy, USA Today, 1997. "Prescription Drug Pricing In The 1st Congressional District In Maine: An International Price Comparison," prepared for Representative Thomas H. Allen, Committee On Government Reform And Oversight, U.S. House of Representatives, October 24, 1998. What You Need To Know Before You Go By getting a prescription legally, you'll have no problems purchasing prescription drugs in Canada or Mexico. Here are some guidelines from U.S. Customs, CanadaRx, and Mexico's Health Ministry and Association of Tijuana Pharmacies: U.S. Customs:
Canada: Canadian law requires that U.S. prescription have to be endorsed by a Canadian doctor before they can be filled at a CanadaRx pharmacy. This is a one-time requirement. The pharmacy will arrange for your appointment with a doctor and will deduct the cost of the visit from your first prescription. To get an idea of whether you would save enough money to cover travel expenses get a prescription quotation. Check via the Internet at www.canadarx.net/presfile.html Mexico A prescription from a U.S. doctor alone is not sufficient; Mexican law requires a prescription from a Mexican physician. This is generally done at the time when you get your prescription filled. The pharmacist is required to keep the original prescription but make sure you don't leave the store without a copy-you will need it when going through Customs. U.S. Seniors Pay Significantly Higher Prices For Prescription Drugs Than Seniors In Canada or Mexico Drug manufacturers raise prices to private customers to compensate for the discounts they grant to "most favored customers." Those "most favored customers" include Canada and Mexico. This practice is known as "cost shifting." In other words, uninsured American seniors are subsidizing drug costs of customers in Canada and Mexico by the higher prices they pay.
Source:,"Prescription Drug Pricing In The 1st,Congressional District In Maine: An International Price Comparison," prepared for Representative Thomas H. Allen, Committee On Government Reform And Oversight, U.S. House of Representatives, October 24, 1998. This article first appeared in Volume 5, Issue 1 of "The Social Security and Medicare Advisor" newsletter (November/1999). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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