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There is a common misconception that American prices
for prescription medications are excessive because they are often
higher than prices in Canada. This leads some people to suggest
that the overall cost burden of prescription drug spending in the
United States is unfair. However, the fact is that the relative
burden of prescription drug spending is roughly equivalent in
both countries. This is partly explained by the fact that many
drugs, generics in particular, are significantly more expensive
in Canada than they are in the United States. On balance, between
the higher prices paid for brand-name drugs and the much lower
prices paid for generic drugs in the US, Americans spend about
the same percentage of their incomes on prescription drugs as
Canadians.
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