States and Local Governments Defy Federal Ban: Announce Plans to Import Drugs From Canada

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States and Local Governments Defy Federal Ban: Announce Plans to Import Drugs From Canada

In defiance of federal law, at least 14 states and numerous local governments have announced plans to import cheaper prescription drugs from Canada. A recent report by the Congressional Budget Office concluded that legalizing importation of drugs from Canada and Europe could cut drug spending $40 billion over the next decade. In Springfield, Massachusetts, where the mayor has become a national figure for his open revolt against the Food and Drug Administration (FDA), the city saved $400,000 over the first four months of such a program.

The FDA has said the practice is unsafe and illegal, because the drugs may not meet U.S. standards. Drug “re-importation” advocates, including TSCL, say that re-importation introduces much needed price competition into the marketplace and makes drugs more affordable to U.S. seniors. Numerous advocates point out that Canada’s regulatory system is strong and effective, and have raised the question of whether the FDA is more worried about protecting the profits of the drug industry than helping American seniors and consumers.

In July of last year, the FDA mounted an extraordinary lobbying campaign to kill re-importation legislation. With the help of the pharmaceutical industry, the FDA circulated a letter among lawmakers charging that the legislation would make it more difficult for the FDA to ensure the “safety and efficacy of prescription drugs in the United States.” Despite the FDA’s action, the re-importation measure passed the House by a surprisingly large margin, but the final legislation, contained in the new Medicare drug bill, was so watered down that it essentially keeps the ban in place.

TSCL is continuing to lobby hard in support of re-importation legislation. One of its most recent efforts was the testimony given by former Member of Congress and TSCL legislative consultant David Funderburk before the Senate Commerce Committee in November 2003.

In recent months, the FDA has intensified efforts to shut down the flow of drug imports into this country. The FDA has contacted several major credit card companies and a trade association representing package carriers hoping to get their voluntary help in cracking down on operations that import large amounts of prescription drugs. The action raised concerns that the U.S. government is seeking access to consumers’ private medical records.

The issue remains a bone of contention in Congress. TSCL continues to push for passage of legislation that would make it easier for seniors to buy safe, cheaper imported drugs from Canada and other countries. To read how, see the Legislative Update “Congress Should Hold Vote on Drug Re-importation in 2004” at http://www.tscl.org/NewContent/102114.asp.

Sources: “Illinois Says Import Drugs Could Save State Millions,” Ceci Connolly, The Washington Post, October 27, 2003. “FDA’s Lobbying Questioned,” Brody Mullins, Roll Call, July 24, 2003. “FDA Seeks Help From Middlemen to Control Prescription Imports,” Anna Wilde Matthews, The Wall Street Journal, December 16, 2003.

March 2004