Q: One thing that I don`t understand about the high cost of prescription drugs is the fact that the same drugs that are overpriced in the United States seem to be available both north and south of the border at much cheaper rates. Are we subsidizing the citizens of these countries? 
M.B., Shelton, WA

A: There are several reasons why drugs are less expensive from Canada and Mexico. One is the rate of exchange. The U.S. dollar will buy more in those two countries. Some countries such as Mexico do not have as rigid dating and quality standards for their drugs. U.S. pharmaceutical companies often `unload` drugs that are near expiration, because they can`t sell outdated medications under U.S. regulations.

Many researchers and Members of Congress, however, suggest that the United States is being played for a sucker in the world market. Every industrialized country except the United States imposes some form of price controls on prescription drugs. As the lone holdout, U.S. consumers pay the price, literally.

American taxpayers foot a substantial chunk of the bill for research and development. U.S. consumers also make the industry one of the most profitable. When other countries negotiate lower prices for their citizens, drug makers raise prices for American consumers to maintain profits.

Representative Bernie Sanders (I-VT) made two bus trips to Canada last year to help constituents purchase prescription drugs. Women on those trips were able to purchase the widely prescribed breast cancer drug, Tamoxifen, for one-tenth of the price it is sold for in the United States.

According to Sanders, `For every dollar Americans shell out on prescription medications, Switzerland spends just 65 cents, France spends 51 cents and Italy spends 49 cents for the same exact drug.` Sanders has introduced H.R. 1512 the `Medicare Extension of Drugs to Seniors (MEDS) Plan.`

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June 2001