Trump Administration ‘Open For Business’ On Drug Imports From Canada

Use Our Content This story will be republished at no cost (details).

A yr after calling proposals permitting Americans to import cheaper medication from Canada a “gimmick,” Health and Human Services Secretary Alex Azar mentioned the federal authorities is “open for business” on such a method.

Azar introduced a preliminary plan Wednesday to permit Americans to import sure lower-cost medication from Canada. Insulin, organic medication, managed substances and intravenous medication wouldn’t be included.

The plan relies on states to give you proposals for protected importation and submit them for federal approval.

Under a second possibility, producers might import variations of any FDA-approved medication from overseas nations — together with insulin — and promote them at a decrease value than the identical U.S. variations. This seems to be a method drugmakers might keep away from a number of the contracts they’ve with drug middlemen, often known as pharmacy profit managers.

“The administration has reason to believe that manufacturers might use this pathway as an opportunity to offer Americans lower cost versions of their own drugs,” based on the plan introduced Wednesday. “In recent years, multiple manufacturers have stated (either publicly or in statements to the administration) that they wanted to offer lower cost versions but could not readily do so because they were locked into contracts with other parties in the supply chain.”

The announcement marked the newest shift by the Trump administration on the decades-old debate about formally permitting Americans to purchase medication from Canada, the place costs are considerably decrease.

Email Sign-Up

Subscribe to KHN’s free Morning Briefing.

Drugmakers have been fast to criticize the plan. Stephen J. Ubl, president and CEO of the brand-name drug commerce group, the Pharmaceutical Research and Manufacturers of America, known as the plan “far too dangerous for American patients.”

“There is no way to guarantee the safety of drugs that come into the country from outside the United States’ gold-standard supply chain,” he mentioned in a press release. “Drugs coming through Canada could have originated from anywhere in the world and may not have undergone stringent review by the FDA.”

But Sen. Lamar Alexander (R-Tenn.), chairman of the Health, Education, Labor and Pensions Committee, mentioned he welcomed the administration’s transfer to cut back prices. “The key for me is whether this plan preserves the Food and Drug Administration’s gold standard for safety and effectiveness,” he mentioned in a press release.

The similar medicines are sometimes cheaper in different nations than within the U.S. since most developed nations negotiate with drugmakers to set costs. But opponents of importation say sending medication over the border will improve the probabilities Americans get counterfeit medicines, a declare usually boosted by the drug business.

As drug costs have soared right here, Americans are extra open to buying drugs from Canada. Some have for many years been driving over the border; others use on-line pharmacies or place orders at storefronts that join consumers to pharmacies in Canada and different nations.

Although these methods are technically unlawful, the federal government doesn’t prosecute particular person offenders. Nor has it moved to cease the dozens of cities, counties and school districts throughout the United States which have packages for workers to purchase medication from Canada and elsewhere.

The administration is providing “a real plan for America to benefit from prescription drug importation, but the proof is in the follow-through,” mentioned Gabriel Levitt, the co-founder of, a non-public firm that verifies worldwide on-line pharmacies and compares prescription drug costs for shoppers. He mentioned, given Azar’s assist, he thinks the plan “has a good chance.”

In May 2018, Azar said the prospect of importing medication from Canada was only a “gimmick” as a result of that nation just isn’t massive sufficient to satisfy all of the drug wants of the United States.

But decreasing drug costs has been a key promise of President Donald Trump, and some months later, Azar mentioned he was forming a work group that may discover permitting sure medication that had seen main value hikes to be imported.

The thought obtained a lift this spring when Trump offered his support, marking the primary time drug importation has gained a presidential endorsement.

The 2003 Medicare Modernization Act permits states to import cheaper medication from Canada, however provided that the HHS secretary verifies their security. Previous makes an attempt by states to permit importation failed as a result of the secretary opposed them.

Azar, a former prime government on the drugmaker Eli Lilly, mentioned Wednesday that the federal authorities has modified its “mindset” on the problem. In the previous few years, “the landscape and opportunities for safe linkages of the drug supply chain have changed, and that is why we are open to importation,” he added.

He acknowledged that HHS and the Food and Drug Administration have constantly mentioned there was no method importing medication from Canada could possibly be executed with out placing sufferers in danger for counterfeit medication.

“Today we are saying we are open and there is a pathway and we are laying out criteria for states, wholesale drug distributors and pharmacies to convince us they have a plan that protects the integrity of the drug supply chain.”

Canadian well being officers have expressed considerations about U.S. importation, Azar mentioned, however he added that it’s as much as states that wish to begin a program to work to beat the obstacles, similar to an absence of provide, Canadians foresee.

“That is for them to work out, and there are hurdles, but we think those hurdles are surmountable and this can be done,” Azar mentioned. “We are open-minded. We are open for business.”

Three states — Colorado, Florida and Vermont — have authorised laws to import medication and are engaged on proposals.

Vermont, which handed laws to start out planning this system a yr in the past, continues to be looking for a method to make sure the security of imported medication and thus far has recognized solely 17 medicines that may save sufficient cash to be price bringing over the border. Those medication embrace remedies for situations together with diabetes, hepatitis C, most cancers and HIV/AIDS.

Florida Gov. Ron DeSantis tweeted his because of the president “for supporting my efforts to lower prescription drug costs for Floridians. You are helping Florida lead the way to make safe and affordable prescription drugs a reality.”

Azar didn’t supply any timeframe on when a system to import medication from Canada could possibly be in place in any states.

Use Our Content This story will be republished at no cost (details).

Update: This story was up to date on July 31 at 2 p.m. ET so as to add some reactions to the administration’s announcement. It additionally makes clear that some medication are handled otherwise beneath separate situations specified by the proposal. 

Phil Galewitz:”>, @philgalewitz

Related Topics Health Care Costs Health Industry Pharmaceuticals src=”” charset=”utf-Eight”>

Most Popular features the latest multimedia technologies, from live video streaming to audio packages to searchable archives of news features and background information. The site is updated continuously throughout the day.

Copyright © 2017 Breaking Express, Green Media Corporation

To Top