There is also a problem with the price of medications - obviously when you can get the same meds in Canada for a fraction of cost, there is some gouging going on somewhere. That is part of the problem with the "free enterprise" system in the health care industry. I'm sure Scott will disagree, but there is more at work than simple supply and demand when you are talking about something as necessary as medication that could save your life.
The reason that drugs are so much cheaper in Canada than in the US is that the government there distorts the market by mandating price controls that keep the price of meds artificially low. That means the drug companies have to sell them there for very close to marginal cost. These companies put lots of money into research and development (miracle drugs that treat hypertension, high cholesterol and heart disease don't just happen overnight). Investors naturally want to see a return on their investments and the drug companies have to make up the difference somewhere (read: the US healthcare consumer).
So you and I are basically subsidizing the R & D on medicines for the rest of the world. That means that if we ever get a single-payer system here in the US, prices will have to go up or the drug companies will simply cut their R & D budgets.
Just some food for thought.
Regards,
Scott
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