Henry Vilas wrote:
Huckleby wrote: There may be ways that Canada system is superior that are not on these particular charts.
One way is the cost of prescription medicine.
One way is via thuggery too.
There are two costs that any business has to reckon with in setting a price for their product. One is the fixed cost, the other is variable cost.
The fixed cost of a new drug is enormous. R&D, trials, scale up, often new facilities and so on. These costs have to be included in the selling price of each tablet.
The variable cost is the cost of materials, components, direct labor testing and so on. These are often pennies on the dollar compared to the fixed costs.
The marginal cost is how much it takes to make 1 additional tablet. Usually it is peanuts.
Canada threatened the US manufacturers that if they did not get a break on the price they payed, they would ignore the patents and let Canadian companies make the drugs.
Seem like thuggery to me.
For the US companies, as long as they cover the variable costs of manufacture, it doesn't cost them very much. In fact, by increasing total manufacturing volume, it drives the overall average cost slightly.
So Canada can get away with it but it is still thuggery.
Re VA: I am currently taking 4 meds provided by the VA. I think I pay $8/month for each. Fairly reasonable. They are not the newest drugs. They are not drugs that are under patent and they are made by generic houses rather then name brands.
I can actually get them $2/month cheaper in Sam's Club except VA won't give me a prescription that I can use.