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Senior Citizen Politics

Effort by Senate Democrats to Allow Cheaper Drug Imports Goes No Where

Republican maneuvers keep things they way they are

May 8, 2007 – The actions in the Senate were wild and confusing but the final result was the blocking by Republicans of the attempt by Democrats to allow the reimportation of drugs from outside the U.S., where they can be purchased much more cheaply. Advocates for senior citizens, including the AARP, have fought to allow buying drugs from other countries, in particular from Canada. Many see this as another victory for the pharmaceutical industry lobby.

 

Daily Reports

KaiserNetwork.org

 

Senate Passes Prescription Drug Reimportation Amendments Allowing Practice, Requiring Safety of Reimported Drugs to be Certified

The Senate on Monday voted 49-40 to approve a second-degree amendment to a bill (S 1082) to reauthorize the Prescription Drug User Fee Act that would not allow prescription drug reimportation from other nations until the HHS secretary certifies that the practice would "pose no additional risk to the public's health and safety" and would significantly reduce costs for consumers, the New York Times reports (Pear, New York Times, 5/8).

 

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In addition, the Senate later by voice vote approved an amendment proposed by Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine) that would allow reimportation (Bridges, AP/Houston Chronicle, 5/8). The amendment attaches to the reauthorization legislation a bill (S 242) introduced in January by Dorgan and Snowe that would allow consumers, pharmacies and wholesalers to purchase FDA-approved prescription drugs that are manufactured at FDA-inspected facilities in 19 industrialized nations.

Under the legislation, which would establish a regulatory framework for reimportation, FDA would regulate shipments of prescription drugs reimported into the U.S. for commercial or personal use. The bill also would require FDA to inspect Canadian prescription drug exporters 12 times annually (Kaiser Daily Health Policy Report, 5/4).

However, the approval of the second-degree amendment, proposed by Sen. Thad Cochran (R-Miss.), effectively "neutralized" the Dorgan amendment, the AP/Chronicle reports (AP/Houston Chronicle, 5/8).

According to The Hill, in "both the current and Clinton administrations, HHS refused to guarantee that it could certify the safety of drugs imported from other countries" (Young, The Hill, 5/7). Cochran said that "serious problems exist with products from other countries" and that "hundreds, if not thousands," of consumers worldwide have experienced problems with counterfeit prescription drugs (Cox/Richmond Times-Dispatch, 5/8).

  AARP News Release  
 

AARP Welcomes Senate Passage of Rx Importation, but Promises to Fight Unnecessary Importation Roadblocks

Looks to House to clear the way for safe, legal importation of lower-priced prescription drugs

May 7, 2007 - The U.S. Senate today approved an amendment that would allow for the safe and legal importation of lower-priced prescription drugs from abroad.

The amendment would legalize the importation of FDA-approved medications from certain countries beginning with Canada, impose strict safety standards to prevent drug counterfeiting, and include important provisions to prevent potential trade obstructions. The amendment was introduced by Senators Byron Dorgan (D-ND) and Olympia Snowe (R-ME).

"Americans pay among the highest prices for brand name drugs in the world. Today the U.S. Senate told the pharmaceutical industry that we will no longer accept this unfair arrangement where Americans subsidize lower drug prices for the rest of the world," said AARP CEO Bill Novelli.

Along with the amendment passed today, the Senate also passed an unnecessary road block intended to prevent the safe and legal importation of prescription drugs. In a move designed to block the Dorgan-Snowe measure, language was added prohibiting importation of prescription drugs unless the Secretary of Health and Human Services can certify that it is safe to do so. Despite the fact that safety provisions are already built into the bill, this provision is designed to give unnecessary discretion to the Secretary to block importation.

"Pharmaceutical companies already manufacture prescription drugs all over the world and safely bring them into the U.S.," continued Novelli. "In 2004, when faced with a flu vaccine shortage, the FDA was able to arrange the importation of flu vaccine from the European Union in a matter of weeks. Further, there are no similar certification provisions in existence for other products routinely imported into this country. This poison-pill 'certification' amendment is intended to do one thing: preserve the status quo and prevent Americans from having a safe and legal process for accessing lower-priced prescription drugs.

"A vote for 'certification' is a vote against safe and legal importation. As part of our ongoing accountability campaign, AARP will be recording Senators' votes on both the Dorgan-Snowe and the certification amendments. We will inform our members about these votes, and how their Senators voted, Novelli concluded."

The importation of prescription drugs is not the sole solution to soaring drug prices in the U.S. However, AARP believes that a system providing for the safe and legal importation of prescription drugs can serve to put downward pressure on drug prices and will permit consumers to realize savings on the cost of their prescription drugs.

The amendments were made to the Prescription Drug User Fee Act of 2007 (S. 1082). That bill is still being debated in the Senate and is expected to be voted on in the days to come.

 

Implications, Reaction

Thirty-three Republicans, 15 Democrats and one independent voted in favor of the Cochran amendment, and 28 Democrats, 11 Republicans and one independent voted against the amendment (Armstrong, CQ Today, 5/7).

According to The Hill, the passage of the Cochran amendment also might allow President Bush to approve the reauthorization bill, which he has threatened to veto in the event that the legislation includes the Dorgan amendment (The Hill, 5/7).

Senate Health, Education, Labor and Pensions Committee Chair Edward Kennedy (D-Mass.) said that he voted in favor of the Cochran amendment to prevent a veto of the reauthorization bill (Edney, CongressDaily, 5/8). Senate HELP Committee ranking member Mike Enzi (R-Wyo.), who also voted in favor of the Cochran amendment, said that the Senate should not consider reimportation "in the midst of our work on the biggest drug safety reform in a decade "(New York Times, 5/8).

However, Dorgan said, "Today is a day of lost opportunity" (Alonso-Zaldivar, Los Angeles Times, 5/8). He called the passage of the Cochran amendment a "setback" but "not the end of our effort," adding, "We're going to keep fighting" (Wilde Mathews, Wall Street Journal, 5/8).

Sen. Bernie Sanders (I-Vt.), who voted against the Cochran amendment, called the amendment a "poison pill" for legislation that would allow reimportation (AP/Houston Chronicle, 5/8).

Sen. David Vitter (R-La.), who also voted against the Cochran amendment, said, "Well, once again the big drug companies have proved that they are the most powerful and best-financed lobby in Washington" (Cohen, Newark Star-Ledger, 5/8).

Cloture Invoked on Reauthorization Bill

The Senate on Monday also voted 82-8 to invoke cloture, or limit debate, on the reauthorization bill, "clearing the way for its passage," according to CongressDaily (CongressDaily, 5/8). The legislation, which the Senate HELP Committee approved in April, would reauthorize PDUFA, which will expire on Sept. 30, through 2012.

The bill, sponsored by Kennedy, in large part follows a proposal that FDA submitted to Congress earlier this year under which pharmaceutical companies would pay the agency about $393 million in user fees in fiscal year 2008, compared with $305 million in FY 2007.

The legislation increased the amount in the proposal by $50 million. According to the Congressional Budget Office, the bill, which also includes a number of prescription drug safety provisions, would cost $547 million over five years (Kaiser Daily Health Policy Report, 5/4).

House Prospects

The House has not considered the reauthorization bill, but "drug importation language is expected to get a more sympathetic hearing in that chamber," CQ Today reports.

Rep. Rahm Emanuel (D-Ill.) in January introduced a companion bill (HR 380) to legislation introduced by Dorgan and Snowe that might become an amendment to the reauthorization legislation, according to a House Democratic aide (CQ Today, 5/7).

House Speaker Nancy Pelosi (D-Calif.) also has said that the reauthorization bill might include a reimportation amendment, according to a congressional source (CongressDaily, 5/8).

  ● NPR's "Morning Edition" on Tuesday reported on the Senate debate of the reauthorization bill. The segment includes comments from Dorgan; Snowe; Cochran; health care analyst Bob Lashefsky; and Gerard Anderson, a professor at the Johns Hopkins Bloomberg School of Public Health (Rovner, "Morning Edition," NPR, 5/8). Audio of the segment is available online.

 

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

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