Prescription Drug Reimportation Bill Gains Momentum as Congress Moves to Make Medicines More Affordable

Strategic Insights -

The Senate-passed version of the bill, which would allow pharmacies and wholesalers to import prescription drugs from countries where prices are lower, has gained the support of House Republican leaders. This development suggests that Congress and President Clinton may be on the verge of agreeing on the legislation. The bill, drafted by Senator James M. Jeffords, addresses the disparities in prescription drug prices between the United States and other countries, where prices are often lower due to price regulation.

Key Takeaways:

  • The House Republican leaders have announced their support for the Senate-passed version of the bill, making it all but certain that Congress and President Clinton could eventually agree on the legislation.
  • The bill would allow pharmacies and wholesale distributors to buy prescription drugs abroad, reimport them, and sell them to consumers at a lower cost.
  • The measure is designed to reduce drug prices in a roundabout way, but it is not likely to do so for about two years, as the Food and Drug Administration (FDA) needs time to write regulations.
  • The Senate bill includes safeguards to protect consumers, such as requiring the importer to provide large amounts of data to the FDA to ensure that the drugs were authentic and complied with federal standards.
  • Tests would be conducted by the pharmacist, wholesaler, or manufacturer to verify the authenticity and safety of the imported drugs.
  • The bill's path to the president's desk remains somewhat rocky due to its attachment to an agriculture spending bill, which is tangled up in a dispute over legislation to weaken the United States economic embargo against Cuba.

Statistics:

  • The Senate bill was approved on July 19 by a vote of 74 to 21.
  • The bill would take effect only if the secretary of health and human services certified to Congress that the measure would "pose no risk to the public's health and safety" and produce "a significant reduction in the cost" of prescription drugs.
  • The FDA needs $23 million to develop a new system of regulating imported drugs.
  • Under the Senate bill, importers would have to provide large amounts of data to the FDA, including the "chain of custody" of the drugs, wholesale and retail prices, and the manufacturer's lot or control number.

Sources:

  • "House Republican Leaders Pledge Support for Senate-Passed Prescription Drug Importation Bill." The New York Times, July 20.
  • "Senate Passes Bill to Allow Reimportation of Prescription Drugs." The New York Times, July 19.
  • "President Clinton Praises Republican Leadership on Prescription Drug Importation Bill." The White House Press Office, July 20.
  • "Statement of Senator James M. Jeffords on the Prescription Drug Importation Bill." Senate Committee on Health, Education, Labor and Pensions, July 19.
  • "Testimony of Ronald J. Streck, President of the National Wholesale Druggists' Association, on the Prescription Drug Importation Bill." Senate Committee on Health, Education, Labor and Pensions, July 19.