The Canadian Connection: Re-importation is a Prescription for Lower Drug Prices

June 2, 2004

  Prescription drug prices are too high in this country, and I have made it one of my top priorities to lower them.  In fact, the first bill I introduced in the U.S. Senate was to allow for the safe re-importation of lower priced prescription drugs from Canada.  
As I travel around Michigan I hear many disheartening stories from people who cannot afford needed medicine because the U.S. has the world’s highest prices for prescription drugs.  The average retail price for brand-name prescriptions rose 3.5 times faster than inflation last year.  Many popular drugs rose even faster! 
A constituent in Romulus recently endured heart bypass surgery, the cleaning of both arteries in her heart, and an operation for cancer; however, due to the skyrocketing costs of prescription drugs, she can only afford three of the nine drugs she needs. 
In a recent email, she said, “I guess my story is no different from the many Americans, when it comes to deciding if I can afford food to live, or medications.  It boils down to a choice these days:  what can I afford to keep myself alive, once I pay my bills?”  This situation is morally wrong!  We can --and must -- do better for our citizens in the greatest country in the world.
Recently, I sponsored a new bipartisan breakthrough agreement in the Senate to allow the re-importation of FDA-approved prescription drugs, most of which are American-made.  This agreement will reduce prescription drug prices by up to 70% by allowing pharmacists and wholesalers to re-import prescription drugs from several industrialized countries including Canada if they comply with strict safety regulations under FDA oversight.  Individuals will also be allowed to import 90 day supplies for themselves or family members under strict safety regulations.
This new legislation will make lower-priced prescription drugs available to every American.  For example, Tamoxifen, a vital drug for breast cancer patients, costs $340 in the U.S., $39 in Canada.  Americans who need Zocor to reduce their cholesterol must pay $130 here, but our Canadian neighbors buy it for $67.
As more and more people understand that re-importation can save them money, support is growing quickly, even from policymakers once firmly opposed to it.  Recently, Former Majority Leader Trent Lott (R-MS) announced, “I cannot explain to my mother any longer why she should pay twice or two-thirds as much more than what they pay in Canada or Mexico for the same drugs. I can‘t do it anymore.” 
The pharmaceutical industry benefits handsomely from tax break, patent protections and taxpayer funded research by the National Institute of Health.  The ironic result of this government assistance is that we pay the highest prices in the world for medicine. 
Now more than ever, we need this bill because the recently passed Medicare law fails to lower prices.  The discount drug cards provided under that law probably will not even cover the cost of inflation of most drugs, nor will it prevent drug companies from raising prices. 
Another effective way to lower prices is to use the “unadvertised brands,” generic drugs.  Generic drugs are safe and effective and can also save consumers up to 70%.
I have listened to small-business owners, Big Three auto executives, workers, hospital administrators, parents of children with chronic disorders, and seniors -- all affectd by exploding prescription drug prices, and consequently, rising health insurance costs. 
Drugs that are unaffordable are drugs that are unavailable.  That is simply unacceptable.  I have never understood why we can import Canada’s trash, but not their medicine, and it is time to reverse that situation.  Stop the trash and give us lower priced medicine!  Stories from Michigan families strengthen my resolve to stand up to the powerful pharmaceutical lobby every day.  Life should never be a daily struggle between food and medicine, not for any American.