December 11, 2009 2:03 PM

Health Care Bill Brings Debate Over Importing Drugs

By
Stephanie Condon
Topics
Health Care
(AP)
As a presidential candidate, Barack Obama said that the United States should be able to import prescription drugs (PDF) from other countries, where they are sold at significantly cheaper prices. He even co-sponsored a Senate bill proposing such an idea.

Now, however, his administration is warning against this idea. And a divide among Democrats on the issue is holding up the health care debate in the Senate.

Sen. Byron Dorgan (D-N.D., at left) on Tuesday introduced an amendment to the Senate health care bill that would enable the importation of cheaper prescription drugs into the U.S. The plan, Dorgan says, would save the federal government $19 billion over 10 years and save the American people about four times that much.

Nineteen other senators, including four Republicans, immediately offered their support to the plan.

Dorgan expected a vote on the amendment as early as Wednesday afternoon, but by Thursday Sen. Majority Leader Harry Reid (D-Nev.) temporarily halted the entire health care debate, having not made progress on the amendment.

On Wednesday, Food and Drug Administration commissioner Margaret Hamburg sent a letter arguing that the importation of FDA-approved drugs from countries like Canada could endanger the U.S. medicine supply. She also said it would be difficult to implement.

"I was surprised by the letter by the FDA because the day before I had talked to the administrator of the FDA, and she was unaware of any letter," Dorgan said in a conference call with reporters Wednesday morning. "We've become accustomed over the years to this sort of thing, in the 12th hour receiving a letter from the FDA."

(In fact, the Hill newspaper reports, FDA commissioners during both the George W. Bush and Clinton administrations issued similar warnings about drug re-importation proposals.)

Dorgan insisted to reporters that there is nothing dangerous about his plan. He said it actually contains a number of safety provisions, including establishing batch lots and tracers, that do not yet exist for our domestic supply of pharmaceuticals. David Kessler, who served as FDA commissioner from 1990 through 1997, has endorsed Dorgan's amendment, the senator told reporters.

"There's no safety issue here at all," Dorgan said. "This is the pharmaceutical industry trying in every way that it knows how to keep its ability to charge the highest prices in the world for prescription drugs to the American people."

(AP)
Drug wholesalers purchase pharmaceuticals from drug manufacturers at higher prices in the United States because, unlike in many other countries, the government does not negotiate a set rate for drug prices.

Under Dorgan's plan, U.S. wholesalers would buy drugs from wholesalers in countries like Canada. The drugs would in all likelihood still be more expensive than if the United States were to directly negotiate with the pharmaceutical industry, but it would at least result in cheaper prices than Americans currently pay.

"How about giving the American people the freedom that others have to access those prescription drugs -- FDA approved drugs -- that are sold at a fraction of the price in other countries," Dorgan said. "And it'll force the pharmaceutical industry to re-price those drugs in this country."

The savings the federal government and American consumers would potentially achieve, however, would come at the drug industry's expense. And "industry support is considered a key to passage" of the overall health care bill, the Los Angeles Times reports.

The White House negotiated a deal with the drug industry earlier this year that limited the industry's contribution to reform to $80 billion. "The drug-import amendment was not part of that negotiation, but it was widely believed that the industry would oppose the bill if such an amendment were included," the Times reports.

The White House said in a statement that Mr. Obama still supports drug importation but is concerned about safety issues.

"The president supports reimportation of safe and effective drugs," White House spokeswoman Linda Douglass said in a statement. "The Food and Drug Administration has raised safety concerns about the current proposal and will continue exploring policy options to create a pathway to importing safe and effective drugs."

Meanwhile, Democrats from states with major drug companies have come out strongly against the amendment.

Add a Comment See all 25 Comments
by cayuse9 February 8, 2010 8:35 AM EST
OK, What am I missing? Fuel is wasted both ways and America buys them back while Europe makeS money for nothing for Drugs made in America (DUMB & DUMBER IS NOT RIGHT)

"Allow consumers to import safe drugs from other countries. The second-fastest growing type of health expenses is prescription drugs. Pharmaceutical companies should profit when their research and
development results in a groundbreaking new drug. But some companies are exploiting Americans by dramatically overcharging U.S. consumers. These companies are selling the exact same drugs in Europe and Canada but charging Americans a 67 percent premium. Barack Obama and Joe Biden will allow Americans to buy their medicines from other developed countries if the drugs are safe and prices are lower outside the U.S."
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by MOSKI388 December 17, 2009 6:58 PM EST
Jack Wiseheimer Hate to disagree with you but my son gets BRAND name drugs from overseas as they do not even have a generic equivalent of his drug yet!! In this foreign country where they have good medicine equivalent to that in the USA.We keep thinking we are the only ones that have 20th century medicine and that is not true.While we may have more hospitals and more surgeons that specialize in some things other countries have specialists in things we do not have.Ask any doctor.I am an RN I know.I work along doctors who travel to other countries to LEARN from other docs and to teach. We must stop this ignorant ,the USA is the Best,if we are to survive globally . Most countries have something to offer .
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by cayuse9 February 8, 2010 9:54 AM EST
But we are the only country where our GREAT LEADERS, they like to call themselve PUBLIC SERVANTS, want us to buy back out own Perscription Drugs after we pay to ship them to Europe and then pay to ship them back to US for a discount. PRICE FIXING is the fix of all this FIXING
by MOSKI388 December 17, 2009 6:46 PM EST
This is upsetting on so many levels .It is like saying that all countries other than the good old USA have terrible and suspicious drugs including our neighbors to the NORTH!! How insulting!!! And should we as free Americans not be able to DECIDE if we are willing to take that chance or NOT? Especially since some of us including my son have conditions that are treated with drugs that are SO expensive they cannot afford the US equivalent and unless you agree not to work or have a spouse that does you no longer can receive ANY aide from our government in any form. Trust me we have been there!! These are Life altering drugs.Without them he has no life.With them he is a productive member of his family ,community and country.Here they cost thousands a month,75$ a pill to be precise!! Overseas we can buy them for 200$ a month brand name!! You tell me what YOU would DO????
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by fedupwithlies2 December 12, 2009 8:30 PM EST
There is only one answer. The people must rise up all together and impeach Obama.
Reply to this comment
by fedupwithlies2 December 12, 2009 8:28 PM EST
Agree they want to kill the old people. Don't trust these people. Obama is a Communist.This is not about health reform. These 2,000 pages are about destroying our constitution which is every American's GUARANTEE to freedom and rights. These 2000 pages is the blue print to Communism. To see what will take place if this reform passes watch the movie, "The Pianist" (2002) and read the book,"1984"(can get at library and amazon). How did this Communist get nominated by the Democratic party????
Reply to this comment
by cayuse9 February 8, 2010 8:40 AM EST
How do you think the Patriot Act, Sniffing you phone and computer messages, Cart Blanc War Costs, Hanging Sadam our Constitutional?

Speak out of both sides of your mounth with a solid toungue, I might agree with you. THE CONSTITUTION IS BEING CHANGED without RATIFICATION, that is true
by kikamybutt December 12, 2009 7:34 PM EST
Democrats clogging the system again. Promises broken again and again,I would never vote for Obama again.
Reply to this comment
by ianlou December 12, 2009 5:47 PM EST
Americans are tired of supplimenting the cost of Drugs for the rest of the world.

Americans are told we are now part of a world market, Imported cars, electronics and plastic cr@p have taken over our domestic economy putting millions of Americans out of work.

We are told world compitition is good, as long as its good for companies not average Americans. Drug companies want to be able to continue to gouge Americans with the excuse "We know what's good for you".

ENOUGH!!!
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by cayuse9 February 8, 2010 8:42 AM EST
Like dealing with the Banksters, lock them up instead of giving them CASH that we cannot even buy a loan back for prime+ (27% is what I had to give)
by Jack Wiseheimer December 12, 2009 1:28 PM EST
This proposal is a double-edged sword. In countries, take for example Canada, where universal health care is heavily subsidized by the state, patients are forced to use generics in order to reduce costs, or they limit the use of state of art prescription drugs by setting caps for doctors and hospitals. If the U.S. allowed buying prescription drugs in those countries the higher demand for special generics and higher priced drugs would drive prices up, and the country that would initially allow the export would restrict the measure in the end, because their on system would fall out of balance.
The same effect would occur if the U.S. imported prescription drugs from countries that have a lower standard of living. The higher demand would also drive prices up with respective ordered restrictions on exports.
Would the FDA eventually accept imported drugs from China?
The proposal is a crazy idea that would severely damage R&D in U.S. located pharmaceutical companies. They'd counter the attack by shipping their high-skilled jobs abroad in order to stay in business.
Reply to this comment
by stormerF2 December 12, 2009 12:21 PM EST
No,No,No the Obama administration has already made a deal with the drug companies,they would support health care if the Administration would not seek lower prices for drugs than the current trend. How would it look if the drug companies supported a health care bill that allowed cheaper drugs from other countries? The White House will not go for cheaper foreign drugs,that is not the deal they made.
Reply to this comment
by gboyd41 December 13, 2009 6:52 PM EST
Nope, can't go back on those sweetheart deals the WH made with PHARMA. I don't know about anyone else, but I am getting sick and tired of seeing all these drug ads. Spend that money on R&D, instead of getting the gullible public to hound their doctor for a way overpriced drug they probably don't even need.
by Nikos_Retsos December 12, 2009 9:07 AM EST
Thank you senator Dorgan. What happens in the U.S. oligopolistic pharmaceutical industry is legalized collusion with the U.S. Congress to assure high demand -by banning imports, and limited supply to charge obscene prices for drugs that can be bought for pennies outside the U.S. And, from the billions the U.S. pharmaceutical companies make with those exorbitant prices, they pass hundreds of thousands of dollars to senators and congressmen as political contributions to keep the import ban in place. That is why the late Wisconsin senator William Proxmire, who had never accepted a political contribution in his career, told NBC's Tom Brokaw during an interview: "People come to Washington with money (political contributions) and buy legislation."

Former Illinois governor Rod Blagojevich was indicted and wait for trial for "putting a sign 'For Sale' over his office," as U.S. Attorney Peter Fitzgerald told reporters. But the U.S. congress has drafted the political contributions law is such a foolproof wording that they can sell legislation under pretexts that cannot legally classified as a sale- such as protecting drug research and development, etc,. But we saw how $103.000 political contribution to senator Chris Dodd (D-Con) allowed AIG executives to pocket millions of bonuses of taxpayers hard-earned money. No doubt drug companies executives share millions in bonuses annually with the import ban that bring them billions of windfall profits. Why should Americans go half-way around the globe, to Thailand or India, to find affordable medication? And to add insult to injury, we hear a lot of hypocritical talk about protecting the American consumer in Washington. Where is the protection?

There is a precedent that sets the standards how an incorruptible government can deal with the rapacious drug industry. Brazil got sick and tired of paying astronomical prices for U.S. drugs, and decided to produce HIV drugs itself by partnering with the Indian pharmaceutical company CIPRA. The U.S. filed a complaint against Brazil with the World Trade Organization, but Brazil didn't back down. On June 24, 2005, Brazil issued an ultimatum to the Abbot Laboratories drug company to accept the price Brazil wanted to
pay WITHIN 10 DAYS -which was similar to what would have cost Brazil to produce the drug - or Brazil would start producing the drug on its own. Abbot Laboratories backed down, and accepted to sell the drug for the price set by Brazil! And Abbot Laboratories didn't go bankrupt - as our congressmen might have told us, when we ask for legislation to reduce drug cost. But if they pass such a law, and the company still make billions, but a little less, the companies will hit them back, guess what? With a reduced share of their windfall, a.k.a. their "political contribution!"

But the U.S. congress cannot have both ways, getting hefty political contributions from the drug industry in lieu to keep the ban in place, and provide relief for the American patients. Either they protect their pocketbook accounts with the pharmaceutical industry, or they protect the American consumers. And reading the news today, we can finally say: God Bless America, and senator Byron Dorgan (D-N.D.) - as well as any other congressman who is willing to support his amendment. Nikos Retsos, retired professor
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