July 1, 2005
Prescription Required?
I'm surprised that the news that the Canadian legislature is considering regulations to limit bulk export of prescription drugs to the United States hasn't gotten any more coverage in the blogs.
According to the New York Times, two million Americans use websites such as Pharmacy Checker.com and I Save RX.com to purchase drugs at the lower prices mandated by the Candadian government. In addition, several states, such as Minnesota and Wisconsin have set up government-approved websites to facilitate the same activity for their citizens.
All of these websites work basically the same way: they search several pharmacies in Canada, the UK, and elsewhere, for the best prices on particular drugs, and allow users to purchase from any of these pharmacies through a single portal. Sort of an Add All.com for Nexium and Accupril.
All of the websites are also similar in that none of what they facilitate is legal. Every page of drug prices at Pharmacy Checker includes this carefully worded message:
U.S. Law: U.S. government officials have stated that individuals who order prescription drugs from Canada or other foreign sources (up to 90 day quantities) for their own use are not being pursued or prosecuted. However, it is technically not legal to order prescription drugs from abroad.I suppose that it's convenient that the U.S. doesn't intend to prosecute these people, since U.S. state governments are inducing their residents to join them in escewing federal regulations.
None of these websites will sell particularly dangerous drugs, such as narcotics and sleeping pills. Says Pharmacy Checker's FAQ: "Some websites will sell you prescription medication without requiring any prescription at all, a practice that is illegal in the United States, and regarded as dangerous." Sure, but everything you do is illegal, so what's the big deal?
It's also odd that Pharmacy Checker points this out, because one of the pieces of information associated with every quote is "Prescription Required?" and the answer is often "no". One reason is that some drugs are more tightly regulated in America than elsewhere; I believe Claritin had been available over the counter in Europe for several years before it was released that way here.
The potential new Canadian law is interesting because, if it were strong enough, it could force law makers to take a stand against pharmaceutical companies. If token gestures such as these websites which facilitate buying Canadian drugs were no longer an option, governors, congressmen, and senators would be under new pressure to consider regulations.
Of course, the odds aren't good. For one, Canada's proposal doesn't sound that impressive. For another, Canadian drugs aren't the only alternative to local pharmacies. ISaveRX already searches dealers in the UK, Israel, Chile, and Australia.
State governments are also taking other measures to help their residents, though not particularly inspiring measures. Florida and New York, for example, allow users to search databases which contain average prices for many prescription drugs. If you've ever wondered what a fair price for Vicoden in Albany county was, the answer appears to be about ten bucks.
My job at the moment, by the way, is to collect this information. I'm writing software to record all of the drug prices for both the international mail-order websites and the state websites which report average prices for bricks-and-mortar pharmacies. The intention is to use this data to track the way prices respond to events such as this new Canadian legislation. The economist for whom I'm working is interested in applications of economics which can be used to meaningfully influence health policy decisions. Which makes for a pretty cool temporary summer job.
Posted by todd at 3:06 PM | Comments (2)