When it comes to health care, the price of medicine can make a big difference in how accessible treatment is to people. New research from Compare the Market has revealed a striking contrast in the cost of essential medications across different countries.
While some nations are burdened with exorbitant prices, others, like South Africa, have managed to keep medication costs low. This affordability is particularly remarkable given that the majority of South Africa’s citizens rely on the public healthcare system.
The study looked at the prices of 12 common medications across 10 countries, and the results were eye-opening, to say the least.
South Africa emerged as one of the most affordable places to buy medication, with prices for some drugs being a fraction of what they cost in other parts of the world.
For example, a prescription for Xanax (used to treat anxiety) costs just US$1.38 (about R24) in South Africa. Meanwhile, in the US, the same drug can cost as much as US$96.30 – a staggering difference.
Similarly, two other widely used medications, Zestril (for high blood pressure) and Lipitor (used to lower cholesterol) were found to cost just US$1.73 each in South Africa. In the US, however, these same drugs were priced at a jaw-dropping US$423.00 (R7 394.78 ) and US$1 761.02, (R13 300.42) respectively.
Why South Africa’s medication costs are so low
South Africa’s low drug prices are not a happy accident. They are the result of deliberate government policies that prioritise the well-being of citizens over profit.
The government actively subsidises many medications and imposes strict price caps to keep costs down.
This is crucial in a country where the majority of people depend on public healthcare services, and out-of-pocket expenses for medication could otherwise be a significant financial burden.
In contrast, the US had the highest costs for nearly all the medications analysed. For example, a prescription for Viagra in the US costs an astonishing US$2 771.36. (roughly R4 789.39). In South Africa, the same drug costs just US$12.81.
Interestingly, even though many countries – such as Australia, the UK, and Portugal – also have government-subsidised health care, they don’t always offer the cheapest prices for medications.
Nations such as Sweden and Finland, which are known for their strong public healthcare systems, still had some relatively high drug prices.
This shows that having a government subsidy doesn’t always guarantee affordability, and other factors, such as market dynamics and pharmaceutical regulations, play a significant role in determining the final price of medications.
There are also unique policies in some countries that make certain medications more accessible for specific groups. For example, in France, contraceptive medication has been free for women under the age of 26 since January 1, 2022.
This kind of targeted policy aims to remove financial barriers for younger women seeking birth control, but it’s not a universal solution.
Why do prices vary so much?
One of the main reasons is the distinction between brand-name drugs and their generic counterparts.
Prices vary due to a wide variety of factors. Some medications will cost more due to the brand. There are generic brands that are typically more affordable, and in some cases, a government pharmaceutical scheme may only apply to generic brands, rather than more premium brands.
While the US has some of the highest medication prices, many Americans have private health insurance through their employers.
However, these insurance plans can be confusing, and it’s not always clear whether a specific drug will be covered. In such cases, patients may find themselves paying a higher price than expected.
South Africa’s approach to keeping medication affordable offers a valuable lesson to the rest of the world. Despite the challenges of a healthcare system that serves a large population dependent on public services, the country has managed to strike a balance that favours its citizens’ well-being over corporate profit.
In a world where the cost of health care can be a deciding factor in whether or not people get the treatment they need, South Africa stands out as a beacon of affordability. It’s a reminder that, with the right policies in place, it is possible to ensure that life-saving medications are within reach for everyone, not just the wealthy.
So, while the research from Compare the Market highlights a stark global disparity in drug prices, it also offers hope – and a model – for how countries can better serve their people.