| Safety | Savings | Further Resources |

An individual should never have to make the choice between putting food on the table and paying for prescription drugs. As prescription drug costs rise, more people are being forced to make this important decision when budgeting their expenses; this should not be the norm.

Since 1994, prescription drug expenditures have grown 4.5 times faster than the economy as a whole, reaching near $250 million annually nationwide. Prescription drug manufacturers state that the rise of the costs of drugs is due to their increased spending on research and development in hopes of discovering new remedies. However, the average drug manufacture only spends 1.8% of its budget on research and development, signaling that prescription drug costs do not have to be as high as they currently stand.

Many Americans, both with and without prescription insurance, have begun to look towards other means to purchase their prescriptions, including that of drug reimportation from other countries, especially Canada. Prescription drugs shipped from Canada are indeed cheaper than their domestic counterparts; however the issue of safety from international mail order medications has come into question and has prompted me to create a resource for residents who need information regarding prescription reimportation. No one should ever have to make the decision between food and their medication. If one feels the need to look towards other means of attaining both, it is within the best interest of the commonwealth to look out for the safety and wellbeing of those who would like to purchase their prescriptions from non-US based pharmacies.

Safety

When considering buying prescription drugs from abroad, a very pressing question comes to mind: Is it safe? After many studies and successful programs in other states, the answer to the question is a resounding YES. Although the issue of legality is still being mulled around in the courts, over $700 million was spent in 2003 alone by Americans purchasing through online Canadian pharmacies. According to the Medicine and Safety Act of 2000, the FDA (Food and Drug Administration) is able to proceed with prescription drug reimportation regulation; however the FDA and the US Department of Health and Human Services (HHS) have decided not to test reimported drugs, citing that they lack the funds to do so. With no action being taken up at the federal level, state governments have taken the task into their own hands by aiding their constituents in their search for cheaper, yet safe medication. The State of Minnesota has established a relationship between Canadian Pharmacies and its Department of Human Services, creating a list of approved international pharmacies that commit themselves to the following safety regulations.

Although a similar website published by Massachusetts does not currently exist, I have introduced the Prescription Drug Affordability Act (S. 394) into the General Court, which would provide funding for such a program within our commonwealth. Furthermore, Canada ensures the safety of all its prescription medication with an agency similar to that of the FDA, named the Safety of Health Protection Board of Canada. According to their website, the Safety and Health Protection Board employ the same strict methods of safety regulation as that of its American counterpart. Ordering online through approved Canadian pharmacies is indeed a safe practice and through the establishment of a website, one can easily find reliable international sources for affordable prescription drugs.
 

Savings

In 2004 alone, Americans would have saved $59.7 billion if they had bought their prescription drugs from Canada. The majority of prescriptions drugs (non-generic brands) are indeed cheaper when purchased from an international pharmacy. The following is a comparison of prices of popular drugs when purchased from the internet (all prices taken from www.pharmacychecker.com, a third-party source):

The savings from ordering from Canadian pharmacies is clear, as the average drug cost is 40% less when compared to its American counterpart. As for government prescription costs, a number of cities and states have given their employees the option to order from Canadian pharmacies to help save money for both the consumer and the government. For example, in the city of Springfield, Massachusetts, a successful reimportation program was instated in 2003. The city saved $2 to 3 million annually, even after absorbing the co-pay and shipping costs for its program’s participants. With American drug manufactures refusing to roll back the costs of prescription drugs, reimportation is an effective alternative when seeking fair prices for medication.

Further Resources

The Henry J. Kaiser Family Foundation

http://www.kff.org

• The premier website for all health care issues, including that of Prescription Drug Reimportation.

Sage, Alan. “Do Drug Makers Lose Money on Canadian Imports?” April 15, 2004

http://dcc2.bumc.bu.edu/hs/Canadian_importing_break-even_14_Apr%2004_FINAL.pdf

•  This paper helps define and dispel the myths of prescription drug companies’ reasoning behind high medication prices.

Pharmacy Checker:
http://www.pharmacychecker.com

• A helpful tool when looking for the cheapest prescription drug costs. (Note: Pharmacies listed have NOT been officially approved by FDA or any Massachusetts agency)

The State of Minnesota’s guidelines for approved international pharmacies:

http://www.state.mn.us/portal/mn/jsp/content.do?hpage=true&contentid=536902091&contenttype=EDITORIAL&subchannel=null&sc3=null&sc2=null&id=-536885275&agency=Rx

Light, D. W., and J. Lexchin. 2004. Will Lower Drug Prices Jeopardize Drug Research? A Policy Fact Sheet. The American Journal of Bioethics 4(1):W1-W4. http://bioethics.net/journal/pdf/4_1_IF_w01_Light.pdf

• An Excellent Resource that doesn’t speak to drug reimportation, however, the facts can be applied to this situation, as the lowering of drug costs will not affect drug companies’ R & D. Most relevant Facts:

1. 1.8% of all drug sales go to R & D
2. Taxpayers pay most of research costs rather than R&D accounts.
3. The so called “gap” between drug prices in America and Canada is growing not because Canada is lowering prices to lure in American consumers, rather US drug companies continue to raise prices.
4. If American prices were cut in half, R & D funding would still not be affected unless executives decided to cut them in favor of marketing.
5. Account may be skewed, as R&D gets favorable tax treatment when compared to marketing taxes.

Angell, Marcia, The Truth About Drug Companies. New York Times. July 15, 2004.

•  Another explanation as to how large pharmaceutical companies are simply masking their high costs due to R & D through creative accounting methods.

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