I live in Deep South Texas, the Rio Grande Valley, just 4 miles from the Mexican border. We chose the location 12 years ago because of cheap medicine and cheap cigarettes.
Things have changed! Prices for medicine in Mexico have increased, year by year, so that now I am almost as well off buying from the AARP Pharmacy. Metformin from AARP is $40/month - it's $32 across the border. By the time we pay tolls coming and going, have lunch, burn some expensive gas, etc.. we're better off staying home and ordering our meds.
Same for tobacco. Not that the product price has increased, but state taxes (under Gov. George W) went up, then federal taxes (under Pres. George W) went up. There's only about $1 difference now in generic brands.
We don't typically buy liquor, but those taxes have gone way up, too.
What is interesting, tho, is that our population quadruples in the winter. The RV parks, motels, apartments, are full of folks from "up north" and Canada ... and they all buy meds in Mexico. Warm temps (never below freezing) are reason enough to come, going to Mexico for fun is reason enough, but I don't see the economy in making numerous trips across the border to pick up medicine, liquor and tobacco.
Thanks for the sites mentioned in previous posts. We'll check them out. Husband has Medicare Part D, but I don't have insurance that covers prescriptions.