Borderplex brand name medicine price differences

Abstract

Relatively high brand name pharmaceutical prices have led many US residents to cross the border into Mexico as ‘medical tourists’. To examine the savings potentially available to consumers willing to cross into Mexico, data are collected and analysed for brand name prescription medicines sold in El Paso, Texas and Ciudad Juarez, Mexico. Retail pharmacy prices are generally lower on the south side of the border and substantial savings result for some medicines. For some products, however, shelf prices are lower on the north side of the border.

Acknowledgements

Partial financial support was provided by National Science Foundation Grant SES-0332001, El Paso Electric Company, Hunt Communities, Hunt Building Corporation, El Paso Metropolitan Planning Organization and Wells Fargo Bank of El Paso. Helpful comments were provided by Tim Roth, Joe O’Connor, Salvador Licón Mendoza, Ulises Grajeda and two anonymous referees. Econometric research assistance was provided by Marcella Domínguez, Marycruz De Leon, Brian Kelley, Angel Molina and Gorge Novela.

Conflict of Interest–Disclaimer

Financial support for this research has not influenced the results reported herein, nor has the financial support for this research involved any conflicts of interest.