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Pharmaceutical costs remain one of the pressing issues that continue to generate economic challenges to modern economies. Whether it is the United States or other countries like France or Britain, the question of rising pharmaceutical costs cannot be overestimated. Because of this issue, rich democracies like Canada have been in the forefront fighting increased costs of healthcare through the use cost reduction programs. Canada has put in place various programs, and the Canadian Medicare is an example. This program provides pharmaceutical funding through the use of public budgets. The success of Canada in stemming increased healthcare costs has been possible through the allocation of funds from public auspices and budgets under this program (Ashby, 2008). This strategy provides policy makers to reduce healthcare costs, because increasing taxes or reducing budget on other sections is not an option for them. In Canada public budget covers about 70% while private funds cover the rest. This strategy has made Canada operate at low healthcare costs.

The impact of cost cutting programs has made Canada contend with lower healthcare costs as compared to the United States. This huge difference between Canada and United States per capita spending on health is not a surprise. In 2006, Canada’s per capita spending was US$3,678 while the United States spent US$6,714 in financing its healthcare programs (Kurisko & Racer, 2009).

The United States government has done much to check on healthcare costs. Nonetheless, much can be done to reduce the ever increasing pharmaceutical costs. For instance, the United States can reduce the percentage of privatization of healthcare costs. With privatization of healthcare, Americans have spent more funds on healthcare (Monk, n.d). In addition, Canada’s success has been possible because they stick to their budget and use fund available. The United States can also adopt this approach and use funds only when they are available. In so doing, it would be possible to reduce the amount of costs in healthcare. With the use of the above approaches, the United States can considerably lower the amount the costs of healthcare.

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