Government

Drug importation on lawmakers' agenda

New legislation would save an estimated $50 billion over the next 10 years, according to bill sponsors.

By David Glendinning — Posted March 20, 2009

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A bipartisan group of senators has put the issue of prescription drug importation back in play by introducing new legislation that would end the prohibition on importing medications from certain foreign countries.

The Pharmaceutical Market Access and Drug Safety Act would allow U.S. pharmacies and drug wholesalers to import FDA-approved drugs from Canada, Australia, New Zealand, Japan and certain countries in Europe. Consumers would also be able to buy drugs on their own from approved Canadian pharmacies.

The changes would save American consumers an estimated $40 billion over a decade due to the lower drug prices in those countries and the effect that they would have on U.S. prices, according to a Congressional Budget Office cost report for the legislation. The federal government would also save $10 billion over that time period.

Similar legislation in recent years has proved popular among lawmakers, but the measures stalled when President Bush indicated he would not approve the policy changes because of patient safety concerns. President Obama said he would support allowing imported medicines from other developed countries if the drugs are deemed safe and are less expensive than in the U.S. The bill sponsors, Sens. Byron Dorgan (D, N.D.), Olympia Snowe (R, Maine), John McCain (R, Ariz.) and Debbie Stabenow (D, Mich.), said strong safeguards in the legislation would ensure that consumers only receive legitimate FDA-approved drugs from FDA-approved manufacturing plants in countries with comparable safety standards.

"The U.S. consumers are paying the highest prices in the world for prescription drugs, and that's unfair," Dorgan said in a statement. "By allowing access to identical, less-expensive FDA-approved prescription drugs, we will be providing some relief to the American consumers and force pharmaceutical companies to reprice their prescription drugs here in the U.S."

American Medical Association policy supports drug importation, but only if all drugs are FDA-approved, drugs can be tracked electronically and traced back to their original source, and the FDA receives additional funding to monitor drug imports.

But the Pharmaceutical Research and Manufacturers of America noted that recent incidents of tainted foreign products should be enough to convince lawmakers that importation is a dangerous proposition. The manufacturers are urging Congress instead to increase funding for the Food and Drug Administration to protect the nation's medication supplies.

"The worldwide counterfeit threat is knocking at America's door and will soon be greeted if prescription drug importation moves forward," said Ken Johnson, a PhRMA senior vice president.

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