Allow imported prescription drugs

Political deal slows promise on purchasing imported drugs

Updated: Thursday, October 15th, 2009 | By Angie Drobnic Holan

With drug prices so high in the United States, many people have been crossing the border to buy cheaper prescription drugs in Canada. Yet, for the most part, it remains illegal for Americans to buy prescription drugs there. (The Food and Drug Administration says this is for safety reasons.) During the campaign, Barack Obama said he would work to allow imported prescription drugs. Now, however, Obama's promise is being slowed by a political deal involving his plan for health care reform.

The prescription drug industry was one of the first big players in the health industry to support President Obama's plans for health care reform. Drugmakers agreed to forgo $80 billion over 10 years as part of reform efforts to reduce costs.

As the negotiations in Congress over health care have progressed, though, it appears the White House will not push Obama's campaign promise to allow consumers to buy imported prescription drugs, nor another measure to allow Medicare to negotiate lower drug prices.

Billy Tauzin, a former congressman and now president of Pharmaceutical Research and Manufacturers of America, or PhRMA, has told several reporters that his group has an agreement that the White House would not support new rules to allow consumers to buy imported drugs. Reports from the Los Angeles Times, the New York Times and the Huffington Post have outlined the contours of the deal.

The White House has confirmed the $80 billion threshold and suggested that health reform would make the importation of drugs unnecessary.

Some members of Congress have said they do not feel bound by any deal the White House made, so this may not be the end of the story. Still, the Senate Finance Committee recently approved health legislation, and nothing in there allowed consumers to buy imported drugs. Given that committee action and the news reports on the matter, we rate this promise Stalled.

Sources:

Los Angeles Times, White House deal with drug firms draws flak, Aug. 14, 2009

Los Angeles Times, Obama gives powerful drug lobby a seat at healthcare table, Aug. 4, 2009

New York Times, White House Affirms Deal on Drug Cost, Aug. 5, 2009

Huffington Post, White House Confirms: Deal With Big Pharma Bars Price Negotiations, Aug. 7, 2009

Newsweek, Let’s Make a Deal: Obama, Big Pharma, and you. (Minus you.), Oct. 13, 2009