Congress actually granted HHS the power to bring in medication from outside the country back in 2003, but HHS has never bought into the notion—although several states have. (Image: Shutterstock)
Although it could take years for it to become a reality, Alex Azar, Health and Human Services secretary, has announced a plan that would allow importation of certain drugs from Canada to the U.S.—if the proposal survives regulatory review, that is.
Stat News reports that many Republicans, as well as the pharmaceutical industry, are likely to put up stiff opposition to the proposal, which would really rely on the states for execution. Wholesalers and pharmacies would also be allowed to put forth their potential plans to bring in medications. Any plan proposals would have to outline safety measures as well as gain federal approval before being put into action.
The HHS secretary has previously been a staunch opponent of the idea of importing drugs to drive down costs, but the White House has been pushing a number of ideas to do just that and importation is among them. Congress actually granted the agency the power to bring in medication from outside the country back in 2003, but HHS has never bought into the notion—although several states, including Florida, Colorado and Vermont, have already been working on ways to make it possible.
Azar, who previously termed the idea a “gimmick,” according to Stat, is under pressure from President Trump to consider it. According to Azar, “HHS and the Food and Drug Administration have consistently said there were simply no circumstances where importation could be done safely, effectively, and at lower costs to American consumers—just, the door was closed. What we are saying today is, we are open. There is a pathway. We can be convinced.”
He touted more modern and better technology that improves safety as one reason the idea is now under consideration.
Any pilot programs that make it through review would be of limited duration. In addition, HHS could kill any program it deemed unsafe.
Those state-based plans would also only apply to certain medications, not including insulin—which, although in the headlines lately as groups of consumers take buses over the border into Canada to buy supplies at roughly a tenth of the price here in the U.S., is a biologic. As such, according to Azar, it can't be imported under current law.
Ironically, in addition to drugmakers themselves, Canada isn't all that happy about the idea, with Canadian health groups lobbying their own government to oppose it lest Canada run into supply problems down the road. Azar said in the report that he has already been in touch with the Canadian health minister, Ginette Petitpas Taylor, about the plan.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
