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Senate Will Develop Drug Import Plan

McClellan Approved to Run Medicare & Medicaid

March 12, 2004
The Senate has approved Mark McClellan to run Medicare and Medicaid -- but only after the Senate majority leader reluctantly agreed to help develop legislation that will legalize imports of lower-cost drugs from Canada.

During his 16 months as head of the Food and Drug Administration (FDA), McClellan has aggressively opposed importation of Canadian drugs on the grounds that their safety can't be guaranteed.

Congress and the Bush Administration have been feeling the heat from consumers and state and local officials who say the new Medicare law does too little to reduce the costs of prescription medication.

Bush badly wanted McClellan, a physician and economist, to take over as head of the Centers for Medicare and Medicaid Services to help ensure that the new Medicare law is implemented smoothly.

Sen. Byron L. Dorgan (D-N.D.) had blocked a vote on McClellan's nomination, releasing his hold only after Senate Majority Leader Bill Frist (R-Tenn.) agreed to "begin a process for developing proposals that would allow for the safe reimportation of FDA-approved prescription drugs."

Mr. Dorgan said he expected a Senate vote before the elections. But an aide to Dr. Frist said the majority leader had not promised "a vote on a date certain." The House voted in July to allow Americans to import prescription drugs from Canada and Europe.

Tommy G. Thompson, Secretary of Health and Human Services, welcomed McClellan's confirmation.

"Dr. McClellan will bring a breadth of experience, intelligence and energy that will serve all of us well," Thompson said. "We are determined to bring about rapid and effective implementation of the benefits of the Medicare improvement act passed last year, including a new prescription drug benefit and more choices for Medicare beneficiaries."

McClellan replaces Thomas Scully, who quit to become a lobbyist.

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