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
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