Healthcare
Feds Move To Block Drug Imports | Feds Move To Block Drug Imports |
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NOVEMBER 2003
- Springfield/Pittsfield Look To Canada - They had hoped to save their cities millions of dollars a year by
purchasing prescription drugs from Canada, but officials in Springfield
and Pittsfield may have to develop a new strategy to cut the rising
cost of prescription drugs.
According to Springfield Mayor Michael Albano, the city's plan was to encourage retirees and active employees to purchase their prescription drugs from Canadian distributors, which are "reimporting" the drugs into the US. The Mayor estimates that Springfield can save upwards of $4 million a year if retirees buy their drugs through Canadian distributors, rather than a US based pharmaceutical manager. The reimportation of prescription drugs from Canada or even Mexico has been the focus of much attention over the past year. What has caught the attention of Albano and officials in Pittsfield is that drugs purchased through Canada tend to be markedly less expensive than drugs purchased in the US. Officials point to price controls put in place by the Canadian government that keep the cost of drugs well below those purchased in the US. Most of these drugs are produced within the US and exported to Canada, where they are then distributed by Canadian companies. American consumers have openly complained about the fairness of US made drugs being available to the citizens of a foreign country at a cheaper price than is offered within this country. Political leaders, such as Albano, have also taken note and have begun to look to Canada as a means of saving money. "We have been receiving more and more calls from members who are interested in this issue. Retirees are justifiably upset that they are paying a high premium for prescription drugs, while at the same time they are being sold at a discount in Canada," said Association Legislative Liaison Shawn Duhamel. "Unfortunately, there is more to this issue than just price alone." Supplies Reduced As the US Congress and various state legislatures tackle the issue of drug pricing, availability and reimportation, many pharmaceutical companies have begun to address the situation on their own. In a move aimed at cutting off the flow of prescription drugs back into the US, both Pfizer and GlaxoSmithKline have begun limiting the supply of drugs sold to Canada. Canadian officials have now grown concerned that the new supply limits put in place by the pharmaceutical companies may negatively affect the ability of Canadians to access the drugs themselves. This may cause the Canadian government to take action on their own to stop the exports. In addition, federal officials from the US Food and Drug Administration have issued warnings to the City of Springfield along with individuals that it is illegal under federal law to import prescription drugs into the US. Federal officials have threatened possible criminal action if a municipality went forward with such a plan. "We want to send a very strong message, which is that safety is absolutely crucial, and they need to be aware that these activities are inherently risky," explained the FDA's Peter Pitts. The FDA points to examples of improper shipment and storage of medications, which could harm retirees. Officials in Pittsfield have heeded the federal warnings and backed off initial plans to create a reimportation program. However, in Springfield where the program got underway in July, Albano has no plans to change course. With some 500 retirees and active employees signed up in the plan, Albano remains defiant of federal officials. The mayor disagrees with claims of the dangers of reimportation, citing his own family's use of the plan. He also claims that the plan does not violate federal law, because it is individual retirees and employees who are reimporting the drugs, not the city itself. "Members need to decide on their own if this type of plan is right for them or not. Some believe there are real dangers here, while others believe it is simply rhetoric from the pharmaceutical industry," continued Duhamel. "There is also the issue that buying drugs from a foreign country is illegal under federal law. "Regardless of what each member decides to do, one thing is certain...something must be done to control the cost of prescription drugs. We have a national crisis at hand that must be addressed. Otherwise, everyone is going to be priced out of the market." |
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