Most Consumers Have Little Incentive To Purchase Medicines Abroad

While purchasing less-expensive drugs from Canada might be an attractive option for seniors and people without drug coverage, the majority of Americans "have little reason" to do so, the Wall Street Journal reports. More than 200 million U.S. residents have prescription drug coverage through a pharmacy benefits manager that is hired by health plans, city or state agencies or corporate employers to handle prescription drug costs, the Journal reports. PBM members do not feel the effect of increasing drug prices because they generally contribute a $10 to $20 copayment for each prescription they fill, which typically is lower than the cost of purchasing drugs in Canada, the Journal reports. In addition, the ban on reimportation of U.S.-made drugs from Canada has discouraged many consumers from purchasing medicines abroad. Employers and PBMs are not likely "to take on the legal liability to import drugs en masse," the Journal reports. PBMs also are unlikely to be "willing to anger" drug manufacturers, who are responsible for a rising portion of the companies' earnings, by promoting cheaper drugs abroad. PBMs receive revenue by promoting more expensive brand-name drugs and selling data to the drug companies, the Journal reports (Martinez, Wall Street Journal, 10/23).