It costs $30 for a tube of Voltaren gel, an arthritis pain reliever, at any pharmacy in the United States. If we walk across the border to Mexico, the same tube of Voltaren gel costs $8. It’s the same product from the same manufacturer, in the same packaging. Why can we walk a few blocks south and buy it for less than 1/3 the U.S. price?
If we were talking about gasoline for our car, we could attribute the difference to state and federal taxes. We know taxes are a significant part of the price of fuel, and presumably they are used to maintain roads, bridges, and tunnels. If we were talking about cigarettes it would be the same thing. The price of ingredients is a small part of the total price. Cigarettes are taxed up to $5 a pack.
So where does this price difference for drugs go? Does it go to the government or the drug company?
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