Rx Reimportation Battle Looms

January 3, 2004
In its broad overhaul of Medicare, Congress chose to look the other way on the red-hot issue of importing lower-priced drugs from Canada, Mexico and elsewhere, bowing to heavy lobbying pressure from the drug companies and the Food and Drug Administration.

Congress gave Health and Human Services Secretary Tommy Thompson the authority to grant exceptions but he's not eager to do so and lost little time denying the first formal request.

On Dec. 22, the State of Illinois formally asked for authority to buy Canadian drugs for its 230,000 state employees and retirees. But Illinois Gov. Rod Blagojevich had barely filed the request when it was denied.

An HHS spokesman said Thompson would only waive federal regulations if he could guarantee the safety of drugs coming from Canada. Lacking such evidence, Thompson denied the request.

But states and cities aren't likely to let the matter drop. Facing budget crises and rising health care costs, many state and local officials are looking for a way around the law.

New Hampshire has said it will defy the federal government and help its residents find safe and affordable drugs from Canada. There are other signs of rebellion around the country, including:

• In North Adams, MA, entrepreneur Kurt Bricault plans to open the doors of his Discount Drugs of Canada affiliate at 85 Main St. on Monday, Jan. 5. He said he will open without a city-approved special permit allowing an "Internet pharmaceutical business" because he feels there is no need for one.
• In Kanawha County, WV, a court ruled in favor of the Discount Prescription Center, a storefront business that helps West Virginians order drugs over the Internet. No cash is involved in the transactions.
• An Iowa official calls the FDA's drug safety claims "bogus." "This is going to be an unenforceable law," said Kevin Concannon, Iowa's director of human services. "There's more protection of pharmaceutical manufacturers than there is of patients." Iowa

Amidst all the commotion, some federal agencies may already be quietly importing drugs.

"A friend of mine who receives his prescriptions from the Veterans Administration in October received one that had on the bottle 'This medication has been reimported from Mexico,'" a ConsumerAffairs.com reader from Minnesota said.

"As a person who regularly gets her prescriptions from Canada, I get so frustrated with the Feds," said Lois, who asked that her lsst name not be used. "I have helped many seniors get on the variety of programs they are eligible for as well as connecting them to Canada. Also Blue/Cross Blue/Shield of MN will honor the Canadian receipts and refund their Medicare supplement people the 50% -- then both the Blues and clients win!"

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