Drug Imports May Become Legal in U.S. Under Obama, McCain Plans

Americans may soon be able to buy cheap drugs imported from other countries without fear of breaking the law, now that a five-year push in Congress for new rules has gained support in President Barack Obama’s budget.

A proposal to allow drug imports was introduced today by Senator John McCain, an Arizona Republican defeated by Obama for the presidency, along with Democratic Senator Byron Dorgan, of North Dakota, and Republican Senator Olympia Snowe, of Maine. Obama called for the changes in his budget last week, and views the measure as one way to reduce health-care costs so that medical coverage for the uninsured can be expanded.

Brand-name drugs in other countries cost as much as 70 percent less than in the U.S. Allowing imports would save Americans $50 billion over the next decade, including $10 billion for the U.S. government, the lawmakers said. Dorgan and Snowe previously introduced similar legislation opposed by the pharmaceutical industry and former President George W. Bush.

“We do expect this to pass,” said Julia Wanzco, a spokeswoman for Snowe, in an interview today. “Part of the reason why this is such a big deal right now is because Obama announced in his budget a strong interest in implementing this policy.”

If it becomes law, the legislation “will bring consumers immediate relief and will ultimately force the pharmaceutical industry to lower drug prices in the U.S.,” according to the senators’ statement.

The Pharmaceutical Research and Manufacturers of America, or PhRMA, a Washington-based trade organization of drugmakers including Pfizer Inc., opposes the legislation. The group has argued that allowing imports would open the door to unsafe, counterfeit medicines.

Counterfeiting, Adulteration

“The worldwide counterfeit threat is knocking at America’s door and will soon be greeted if prescription drug importation moves forward,” said Ken Johnson, senior vice president at PhRMA, in an e-mailed statement. “Interest in prescription drug importation is waning in part due to the millions of seniors accessing medicines and saving money through the Medicare prescription drug program and consumer weariness in the aftermath of recalled tainted foreign products.”

AARP, the largest advocacy group for older Americans, supported Dorgan’s original measure to permit imported drugs.

Pfizer’s cholesterol drug Lipitor, the world’s best-selling medicine with $12.4 billion in sales last year, costs twice as much in the U.S. as in Canada, according to Internet pharmacies drugstore.com and canadadrugs.com. A 30-pill prescription of 20- milligram doses costs $124.99 at the U.S. site, compared with $60.78 from Canada.

‘Down Payment’

“Why would people want to put themselves at risk?” said Jay Bonitt, vice president of federal affairs for Eli Lilly & Co., in a telephone interview today. “They don’t have to go to Canada or Mexico. There are already avenues for U.S. citizens to get safe and low-cost medicines. The issue is when people get on the Internet and they’re not necessarily getting a drug that is approved by the Canadian authorities.”

Obama’s budget calls for lower drug costs and improved medical product safety. He proposes spending $634 billion to expand U.S. health care, financing the “down payment” with increased taxes on wealthier Americans and reduced government payments to drugmakers and health insurers.

“The budget supports the Food and Drug Administration’s new efforts to allow Americans to buy safe and effective drugs from other countries,” said the document, released by Obama Feb. 26.

Price Controls

“We’re generally in favor of the concept, but the real solution is price controls,” as used in Europe, said Peter Lurie, deputy director of health research at Washington-based Public Citizen consumer group, today in a telephone interview. Imported drugs should be monitored for safety and counterfeiting, he said.

“The ability to track the drug, beginning with the raw materials used to make it through all of the wholesalers, should be a part of any bill,” Lurie said. “Within Canada, they already have that requirement, and in that respect, imports from Canada might actually be better” than drugs from U.S. suppliers, he said.

McCain and Obama campaigned for the presidency last year with opposing health plans. Both agreed on the benefits of allowing imported drugs.