Trump administration proposes allowing drug imports for cheaper prescriptions

The Trump administration said Wednesday that it was taking steps to make it easier for less expensive prescription drugs to be imported from other countries, particularly Canada, a move that has long been supported by progressives but has encountered fierce opposition from the pharmaceutical industry.

Under the plan, the administration said it would propose a rule to permit pilot programs developed by states, pharmacies or drug distributors that sought to safely import prescription medications from Canada. The Food and Drug Administration also planned to advise manufacturers for how they could import high-priced drugs like insulin that are sold more cheaply in other countries.

“President Trump has been clear: For too long American patients have been paying exorbitantly high prices for prescription drugs that are made available to other countries at lower prices,” Alex Azar, the secretary of health and human services, said in a statement released Wednesday.

Although the announcement signalled a major policy shift because Democratic and Republican administrations have generally opposed importing drugs from overseas, the proposal was also limited in nature. The proposed rule would not apply to high-priced drugs like insulin or biologic drugs like Humira, because of exceptions included in earlier legislation. And the FDA guidance would only permit importation of drugs, including insulin, if the drugmakers agreed to take part in the plan.

The rising price of prescription drugs has been a popular topic at the Democratic presidential debates, and the timing of the administration’s announcement fell in the middle of the Tuesday-Wednesday schedule of the July debates for the Democratic candidates.

Many other countries are able to negotiate lower prices because their health care systems are run by the government, giving them more leverage. In the United States, private insurers typically negotiate with drug companies on prices. The drug industry has said that the prices overseas are artificially low and that people in those countries often do not get access to as many new drugs as Americans do.

Canadian officials have warned the US government that importation programs could jeopardise their own supply of drugs, leading to potential shortages, according to a Reuters report in July. Others have said drug companies could limit their supplies to those countries or raise their prices in response to any new US policy.

c.2019 New York Times News Service