US President Joe Biden caused waves in his State of the Union speech Thursday night when he name-dropped Toronto (among other cities) as a place where Americans are getting cheaper prescription drugs. And, he even pronounced it Toronno like an OG.
“Folks I’m going to get in trouble for saying it, but anyone who would get in Air Force One with me and fly to Toronto, Berlin, Moscow—excuse me, well even Moscow, probably,” the President said, garnering laughs.
“And bring your prescription with you, and I promise you, I’ll get it for you for 40% [of] the cost you’re paying now. Same company, same drug, same place.”
Toronto cited in State of the Union address
byu/m2knet intoronto
Data from the U.S. Government Accountability Office shows that prices for some brand-name-only drugs are on average nearly three times more expensive in the U.S. compared to Canada, Australia, and France.
For example, in 2020, Cosentyx (used to treat active psoriatic arthritis) cost about $5066 in the US compared to $1353 in Ontario. That same year, Revlimid (a cancer drug) cost about $8193 in Ontario compared to $21,375 in the US. Americans spend more on prescription drugs per capita, as well as high out-of-pocket costs (as the U.S. has a large uninsured population); but in Ontario, the provincial drug benefit program (ODB) covers most of the cost of approximately 5,000 medications for eligible patients.
One 2020 study reveals that more than 2 million Americans buy prescription drugs from countries outside the U.S., such as Canada, to save money.
The FDA allows Americans to purchase drugs from Canadian online pharmacies and have them shipped to the U.S., as long as they have a valid prescription from a licensed healthcare provider in Canada (or by a U.S. doctor, with the prescription co-signed by a Canadian physician) and the drugs are approved for use in the U.S.
Prescriptions are less expensive in Canada due to legislation erected by federal, provincial, and regional governments over the past three decades to control drug prices, where maximum prices can be negotiated with drug companies (something the U.S. hasn’t done).
This, in turn has caused serious concern over the potential shortage of prescription drugs in Canada due to demand in the United States, something the federal government is working to address.
“Bulk importation will not provide an effective solution to the problem of high drug prices in the U.S.,” Health Canada said, in a statement on Jan. 8.
“Health Canada has listened to Canadians and has consulted with industry stakeholders, pharmacists, provinces and territories, patient groups, and medical associations. All agree that the Canadian government must remain focused on ensuring a stable and adequate supply of prescription drugs for Canadians.”
In August 2022, Biden sought to rectify the issue by signing the Inflation Reduction Act into law, which—along with other provisions—would lower prescription drug prices for millions of elderly people and people with disabilities who rely on Medicare (by allowing Medicare to negotiate drug prices).
Although some drug manufacturers have filed lawsuits to block the act from taking effect, arguing that drug-pricing measures would reduce the supply of lifesaving medicines, last Friday, a US judge rejected a challenge filed by AstraZeneca to the Medicare price-negotiation program.
