Congressional Corner from Representative Gil Gutknecht: Let's Tear Down The Wall of High Pharmaceutical Prices

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Congressional Corner from Representative Gil Gutknecht: Let's Tear Down The Wall of High Pharmaceutical Prices

By Representative Gil Gutknecht (R-MN)

Washington, D.C.—How long could a shop stay in business if it charged its best customers the highest prices? Not just slightly higher prices, A LOT higher. (See chart at http://www.tscl.org/NewContent/101889.asp.)

My 85-year-old Dad, like most seniors, also has some health problems. Fortunately he has prescription drug coverage. But, I have asked myself why Dad’s Coumadin costs $45 more than it does overseas.

For too long, the government has stood between Americans and affordable prescription drugs. Congress must act this year to direct its own agency, the Federal Food and Drug Administration (FDA), to allow the safe importation of FDA-approved pharmaceuticals.

Large pharmaceutical manufacturers like GlaxoSmithKline (Glaxo) have long been charging American consumers substantially more. Americans are fed up. Millions of Americans have begun to import their prescribed drugs as a viable alternative to paying the outrageous mark-up costs.

Patricia Reinartz of Austin, Minnesota, is a classic example. She is a senior who takes Protenix and Premarin. Patricia was spending $360 to fill her prescription. She now imports these same FDA-approved drugs at a cost of $210. In Patricia's own words, "Please keep working for prescription drug importation. I order from abroad—it works great!"

Ms. Reinartz has decided to risk FDA prosecution in order to sustain her health. She shouldn't be branded a common criminal because Congress stands between her and pharmaceuticals at world market prices. Ms. Reinartz should never have to choose between groceries and prescription drugs.

Ms. Reinartz is not alone. Dr. Elizabeth Wennar of the United Health Alliance testified that more than 1,000,000 Americans are currently importing their prescription drugs. These Americans are saving 30 to 300%. 30-300%!! But they are treated as criminals because Congress has done nothing to clarify the legality of importation.

Two years ago, Congress passed the MEDS Act allowing Americans to import wholesale quantities of lower-cost prescription drugs. The promise of this enacted legislation has gone unfulfilled.

The result? Americans still pay the highest prices in the world.

Indeed, preventing importation of FDA-approved drugs threatens American's safety. By prohibiting market forces to work, we force Americans to pay exorbitantly high prices. Consumers are thus obliged to choose between food and medicine. Every member of Congress must recognize that an unaffordable pharmaceutical is neither safe nor effective.

The FDA's concerns for safety apparently do not extend to seniors who cannot afford their prescribed drugs. Americans like Ms. Reinartz are crossing the border for cheaper drugs in order to sustain her health. But the FDA does not see it that way. The FDA sees only that she is improperly importing pharmaceuticals.

For their part, Glaxo has threatened to stop shipping its products to Canadian wholesalers and pharmacies that sell to American patients as of January 2003. They cited “safety concerns.” Even though Glaxo has been unable to cite a single incident of damage caused by imported prescription medications.

The Congressional Budget Office estimates seniors will spend $1.8 trillion on prescription drugs over the next ten years. With drug prices increasing at least 17% per year, many seniors are worried about the future. The Social Security COLA effective January 1, 2003, was 1.4%. Seniors can do the math. Open markets could save seniors at least 35% off the CBO's estimated $1.8 trillion—that’s $630 billion. Many people do not believe Americans deserve such free market savings. I do.

I will lead my colleagues to refocus the FDA on its fundamental mission of protecting public health. We must open the United States to industrialized markets for FDA-approved prescription drugs from FDA-approved facilities. All Americans depend on the competitive commodity prices provided by our free market system. Americans deserve world-class prescription drugs at world market prices.

July 2003