ARE CANADIAN DRUGS LEGAL?States Rights vs. Federal Government

By Andy Steinberg and Scott Schwartz

Period 5

THE ISSUE“What’s the real problem?”

IT’S ALL ABOUT THE MONEY

America does not have price controls so prescription drugs are much more expensive than those in Canada

The Medicare Prescription Drug Improvement and Modernization Act (MMA) prevents the government fromnegotiating with pharmaceuticalcompanies

MONEY, MONEY, MONEY

An elderly couple’s $800 monthly drug bill would be around $550 if the drugs were purchased from Canada

Forty-one out of forty-four common drugs researched by Annals.org were cheaper when purchased from Canada

An average of 24% can be saved by purchasing drugs from Canada

CANADA VS AMERICAN DRUG PRICES FOR POPULAR DRUGS (COST PER YEAR)

HEALTH AND HUMAN SERVICES SECRETARY

The MMA gives the Secretary the power to approve imports of cheaper drugs from Canada

However he has refused to use this power, most likely due to pressure from the pharmaceutical companies

IT’S WORTH THE TROUBLE

Purchasing drugs from Canada is illegal even if only difference is a matter of packaging

Only a drug’s manufacturer can import prescription drugs into U.S.

$216 billion total spent onlegal drugs

Yet, $2 billion spent on illegal imports, half from Canada

ILLINOIS FIGHTS BACK“We want cheap drugs!”

TAKE A STAND

The governor of Illinois has petitioned the FDA to allow imported drugs from Canada in Illinois

The state and its citizens will save millions in prescription drug costs

It will discourage citizensfrom illegally receiving prescription drugs

ILLINOIS LAWSUIT DEFENSE

Fifth amendment infringement - citizens are allowed to make personal medical decisions

Selective enforcement - Mail-order sales are shut down, yet residents can cross border on foot without much threat of punishment

VOCALIZING

The State of Illinois is doing a lot better job of advocating the rights of its citizens

They have set up a petition to import drugs from Canada

The federal government is trying to downplay these

actions though

OTHER ACTS OF BRAVERY

Minnesota and New Hampshire both run websites with information on purchasing Canadian prescription drugs

Many websites sell Canadian drugs and ship to American households

ILLEGAL DRUGS ARE BAD?“Who woulda thunk it?”

NO DANGER…YET

FDA has not yet received any reports of harm from the illegally imported drugs, but it is also unlikely that anyone would report the harm anyways

ILLEGAL DRUGS COULD COST MILLIONS

The potential for litigation is real because illegal drugs could produce catastrophic side effects

These injuries would also be a state liability, and even one judgment could wipe out a lot of money from a state

ARE THERE SOLUTIONS?“We want alternatives!”

WHY PROTECT THEM?

Some say the federal government is cracking down on Canadian drug imports to protect US drug manufacturers

They say the pharmaceutical companies want the money for research

However, only 11% of their revenues are spent on research

Other62%

Research11%

Marketing/Advertising27%

WILL GENERICS SOLVE THE PROBLEM?

One group says generics are the solution to high U.S. drug prices

However, many people cannot use generics or experience complications when using them

WHAT DO WE THINK?

The best solution to this problem would be to allow Canadian drugs to be legally imported

However, the drugs would have to be tested by American authorities

A tariff placed on these drugs would cover the testing costs