Publications

Re-Importation Bill Stalls in Senate

With drug prices increasing at double-digit rates, more and more consumers — especially seniors — have been looking to Canada for relief. With a strong national health plan that bargains for the lowest prices, Canada has drugs that cost 40 percent less, on average, than the same drugs in the U.S.

WE PAY MORE. For example, a 90-day supply of Lipitor (20 mg) sells for $315.99, on average, in the U.S. and $187.83 in Canada — more than a 40 percent difference. Canada pays $131.85 for Vioxx (100 doses — 25 mg), while American consumers pay 58 percent more ($314.99). The drug industry — the most profitable in the world — openly admits that manufacturers shift costs to the U.S. because other industrialized countries negotiate lower prices. So, they do it because they can.

One way to deal with higher U.S. prices is to lift the federal ban on re-importing drugs from Canada and Europe. AFSCME is one of over 60 organizations that currently support S. 2328 — the Pharmaceutical Market Access and Drug Safety Act, which permits safe re-importation of prescription drugs.

GROWING SUPPORT. Other advocates of S. 2328 include Families USA, AARP, the National Committee to Preserve Social Security and Medicare, Volunteers of America, the Alliance for Retired Americans, the American Public Health Association and several other labor organizations.

The bi-partisan bill was introduced by Sens. Byron Dorgan (D-ND), Edward Kennedy (D-MA), Olympia Snowe (R-ME), John McCain (R-AZ), Trent Lott (R-MS) and Lincoln Chafee (R-RI), and has 21 co-sponsors. It sets up a safe process for re-importation, requiring that drugs be made in plants inspected by the U.S. Food and Drug Administration (FDA) in order receive FDA certification.

BUSH SAYS NO. Unfortunately, the Bush administration isn't satisfied with the process mandated by the bill. The President has refused to endorse it on the grounds of overriding safety concerns, even though no case of tampering with re-imported drugs has ever been cited. Sen. John Kerry, Bush's opponent in the Presidential race, is making this a campaign issue.

According to Kerry, "Bush may as well say, 'nope, we're not going to help people have lower drug costs in America; we're going to help the big drug companies get a big windfall."' This isn't fair competition, Kerry says, it's a drug-company monopoly.

Print Version