Plan to import drugs unveiled
Rule would allow cheaper drugs from Canada into country.
TALLAHASSEE — Federal officials came to Florida’s capital city Wednesday to unveil a proposal that would allow cheaper prescription drugs to be imported from Canada, but any cost savings for American consumers could be months or years away.
The plan comes after Gov. Ron DeSantis and other governors urged Washington to approve importation plans as a way to reduce drug costs. DeSantis signed a bill in May that paved the way for the state to seek approval of its own drug importation plan, but he acknowledged that the news announced Wednesday wouldn’t lead to drug price cuts overnight.
“This is only one step — and I’ve always said there’s no silver bullet with this — but this is a step that no one’s been willing to take,” DeSantis said at a Capitol news conference, where he was flanked by Health and Human Services Secretary Alex Azar.
Florida’s governor has been a key ally of President Trump, who endorsed DeSantis in the Republican primary last year. The announcement came on the same day the U.S. House was considering Trump’s impeachment, but DeSantis said the timing was coincidental.
“If they had had this ready last month, we’d have done it last month,” the governor said.
Azar touted the change as “historic” and stressed the new rule would ensure imported drugs are safe, something pharmaceutical companies warned about as they lobbied against importation bills.
Drugs imported from Canada would need to be relabeled, tested for authenticity and be available at reduced costs under the new rule.
“President [Trump] has recognized the opportunity to lower costs for American patients through safe importation, and we at HHS and FDA are delivering on that possibility through a safe, commonsense approach,” Azar said.
There will be 60 to 75 days for public comment before the new rules are made final.
But even after the rules are approved it will be unclear just how much, or even if, American consumers will benefit. Canadian officials have expressed skepticism of the plan and worry that it might lead to drug shortages or higher prices in their country.
In Canada’s universal health care system, the prices of most patented drugs are set by the government and are much cheaper than in the U.S., where market forces drive prices higher. Critics have contended that means American consumers are subsidizing cheaper drugs in other countries since companies can rely on high prices in the U.S. to drive profits.
“[Canadians are] obviously concerned about their own system, but as long as they’re getting lower prices, as long as they are free-riding off of American investment and innovation, the president and I are committed to ending foreign freeriding,” Azar said. “If the drug companies are willing to give discounts to other countries that are similarly positioned economically to the United States, then the United States … ought to be getting deals like that.”
Pharmaceutical companies last spring ran an ad campaign against the Florida bill, warning it could allow dangerous knock-off drugs from China into the state market.
“It is disappointing the administration once again put politics over patients,” said Stephen Ubl, CEO of the Pharmaceutical Research and Manufacturers of America, in a statement. “The administration chose to proceed with an importation scheme that could endanger American lives, could worsen the opioid crisis and has been called unworkable by Canadian officials.”
Despite the criticisms and questions over logistics and Canadian approval, DeSantis said it’s worth the effort to address rising drug costs.
“I’d much rather be here moving forward than just being on the sidelines chirping and saying, ‘oh, why doesn’t somebody do something about it?’” he said.