Currently viewing the tag: "reimportation"

I received the following message the other day from one of our blog’s readers, Susanna Brooks:

I cannot believe that I cannot buy drugs in Canada (with a prescription). It’s been the only way that I can get some of the medications that I need that are ungodly expensive in the United States. I will work to vote against any Senator/Congressman that votes against the Canadian medications being sold/deliver in the U.S.A.!!

Sharing Susanna’s Sentiments

I know for a fact that tens of millions of people share Susanna’s sentiments. Surveys show that up to 80 percent of Americans agree that we should be able to buy prescription drugs from licensed Canadian pharmacies. So why aren’t the American people (officially, at least) allowed to do so?

As readers of this blog know, we’ve been covering the progress of proposed legislation on drug reimportation — allowing Americans to buy drugs from Canada — for some time now. The issue first bubbled to the surface in the late 90s, as the Internet made it easy for Americans to access Canadian pharmacies, enabling them to buy drugs for up to 80 percent less than at domestic drugstores.

Drug companies have tried everything to prevent this kind of free trade from happening. They’ve threatened to cut off supplies to Canadian drugstores that sold to Americans. They’ve tried to link Canadian drugstores to terrorism. And currently, they’re spending a lot of money with the National Association of Boards of Pharmacy and other “independent” groups to spread lies about the safety of licensed Canadian pharmacies.

But ultimately, Big Pharma’s most effective weapons against American consumers have been our own representatives in Congress and the White House. Thanks to the more than $1 billion that Big Pharma has paid out in Washington in the past decade, these politicians are really not our representatives at all. They’re Big Pharma’s representatives.

Surely, it’s been a tricky proposition for the politicians — opposing something that the American people overwhelmingly support. And how they’ve handled it over the past decade has been a dishonest, double-dealing mess.

How It All Started

Let’s take a look back:

It all started with “Slick Willie” — Bill Clinton. Both Clinton and his Republican Congress knew that Americans wanted legal reimportation. But they worked together (thanks to bags of money from Big Pharma) to give us a classic bait and switch.

Clinton, who publicly stated his support for reimportation, signed the Medicine Equity and Drug Safety Act into law on October 28, 2000, which supposedly made it legal. But the law contained huge loopholes that rendered it meaningless. One of these was to require Health and Human Services Secretary Donna Shalala to certify that the law would “pose no additional risk to public health and safety” and “significantly lower the cost of prescription drugs.” Shalala refused to do this, and the law became moot.

Then Bush won the 2000 election. Bush, like Clinton, was an avowed supporter of reimportation — at least during the campaign. He said reimportation “makes sense” as a way to provide a “helping hand” to the elderly.

After the election, Bush withdrew that helping hand, going silent on the issue. Members of Congress, spurred on by angry constituents, re-introduced reimportation legislation and, once again, it passed both houses of Congress. But again, it died.

In 2008, both Obama and McCain were vocal supporters of reimportation. Obama presented it as a main plank in his healthcare plan.

In anticipation of the new president’s support, bills to allow Americans to buy prescription drugs from Canada were introduced in both the House and the Senate this spring. But now it looks like this proposed legislation will not even be brought to a vote.

Obama’s Backroom Deal

Why? Because Obama cut a backroom deal with Big Pharma, agreeing not to support reimportation if the pharmaceutical industry agreed not to fight Obama’s other planned health reforms.

And that’s the sad, sordid history of how a public policy that in the past 10 years has been supported (during campaigns) by:

  • Bill Clinton;
  • Al Gore;
  • George W. Bush;
  • John Kerry;
  • John McCain; and
  • Barack Obama

has still not become law in the United States.

Can you think of a single other policy that every president or party candidate for an entire decade has supported — and yet, somehow, has never become law?

I can’t.

As a reader of this blog, I’m guessing you may agree with the sentiments of our frustrated reader, Susanna Brooks. But my question is, how many of you care enough about this issue to do something about it?

Are you willing to write the FDA? Call your Congressman? Send a letter to the White House?

If so, now is the time to do it. Because once healthcare legislation is passed (in all likelihood) in the fall, drug reimportation could be a forgotten issue for years to come.

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prescription drugs free market

I recently saw yet another op-ed in another newspaper by another Big Pharma shill — you know, someone handed his talking points and told to go at it.

You can tell they’re a shill when they make exactly the same argument, point by point, as all the other shills make. You also know they’re a shill when they claim to be a conservative — and yet support blatant protectionism and all sorts of other anti-free market principles when it comes to Big Pharma.

Here’s a taste of the op-ed on Canadian drug reimportation, by a Dr. Gilbert Ross of the American Council on Science and Health in the Washington Examiner:

While many think of them as a cheap alternative to domestic drug purchases, the so-called “Canadian” drugs allowed under the Vitter Amendment can come from almost anywhere on the globe. It’s an easy path for substandard and toxic drugs to enter our supply…

Imposing price controls here — which is what importation, in effect, does — will lead to stagnation in our own drug research and development process. Our children and grandchildren will have to accept 2009-quality drugs far into the future.

Yes, the American Council on Science and Health is a corporate front group, of course. And Ross’ “conservative” arguments are as tired as can be.

But I was pleasantly surprised to see comments on Ross’ post by people who understand what conservative principles actually are — and who saw the post for what it was.

A “Lanier Y Chapman” wrote –

Shouldn’t good conservatives be against the FDA, which is a government regulator? Let drugs (medicinal and narcotic) come in, and let anyone buy anything from anywhere.

And by the way, free importation is not price control. It’s just free trade. How can you be against free trade? Dr. Ross sounds like a shill, and drug companies are sounding like car manufacturers, teachers’ unions, NEA perverts, steel producers, sugar growers, etc–lobbies that try to use government intervention to steal money from Americans.

And then there’s this comment from “Steve,” who introduces Ross’ pharma doubletalk to reality:

Yes, I want to see the U.S. pharmaceutical industry continue to be innovative; but at the same time, for example I’m getting a drug from India (thru Canada) that costs me $225 for a 90 day supply. The U.S. version (discovered by a U.S. company) would cost me over $1000 for a 90 day supply. And to make it worse, my insurance company will not pay for any of it, even though it is necessary.

Don’t buy any of Big Pharma’s ridiculous arguments about reimportation. And please, don’t buy that they’re “conservative” arguments.

They’re anything but.

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obama sells out to big pharma

I’ve guess I’ve finally come back to my senses.

After years of being cynical about our political system’s capability of doing anything but accumulating debt, I somehow thought Obama could make a difference. I thought, among other things, that meaningful healthcare reform was finally on its way.

But the system itself is more powerful than Obama … far more powerful.

I didn’t think it was possible that Congress could create a healthcare reform bill that I would oppose. I figured that any change would be a step in the right direction.

But then the White House caved in to Big Pharma on issues like Medicare price negotiations and Canadian drug reimportation. Big Pharma was basically assured that it could continue to charge monopoly prices for brand-name drugs without restraint.

That completely knocks out the promise of controlling skyrocketing prescription drug costs — which should have been a key pillar of healthcare reform.

Obama did this, clearly, as a political calculation. He did not think he could get a bill passed if he had both Big Pharma and Big Insurance against him. So he picked his poison — and Big Pharma agreed to support reform.

As a result, “healthcare reform” has become “health insurance reform.” The health insurance industry, like Big Pharma, is not a sterling example of the free market economy at work. That’s why you don’t see real price competition, and why health insurance companies focus instead on increasing their margins by not paying off claims. It’s also why a public option is necessary for there to be any chance of real insurance reform.

I don’t think Obama’s going to get the public option, either.

I think we’re going to get a bill passed that encourages/forces Americans to sign up for private insurance, and that continues to subsidize drug company profits. It will end up enriching both Big Pharma and Big Insurance. And it will cost us billions or trillions of dollars that we don’t have and must borrow from China.

Borrow and spend. That’s been the core “problem-solving” approach of both Democrats and Republicans over the past 30 years (with the exception of Bill Clinton, the only president to have balanced the budget during this period.) In fact, Obama’s “problem-solving” approach on healthcare is eerily similar to George Bush’s approach on Medicare Part D.

As former Secretary of Labor Robert Reich explains:

The White House confirmed it has promised Big Pharma that any healthcare legislation will bar the government from using its huge purchasing power to negotiate lower drug prices. That’s basically the same deal George W. Bush struck in getting the Medicare drug benefit, and it’s proven a bonanza for the drug industry. A continuation will be an even larger bonanza, given all the Boomers who will be enrolling in Medicare over the next decade. And it will be a gold mine if the deal extends to Medicaid, which will be expanded under most versions of the healthcare bills now emerging from Congress, and to any public option that might be included. (We don’t know how far the deal extends beyond Medicare because its details haven’t been made public.)

Let me remind you: Any bonanza for the drug industry means higher health-care costs for the rest of us, which is one reason why critics of the emerging healthcare plans, including the Congressional Budget Office, are so worried about their failure to adequately stem future healthcare costs. To be sure, as part of its deal with the White House, Big Pharma apparently has promised to cut future drug costs by $80 billion. But neither the industry nor the White House nor any congressional committee has announced exactly where the $80 billion in savings will show up nor how this portion of the deal will be enforced. In any event, you can bet that the bonanza Big Pharma will reap far exceeds $80 billion. Otherwise, why would it have agreed?

Exactly.

Isn’t it odd, in a day when the political parties are supposedly so different, and people are shouting about non-existent “death panels” at town hall meetings, that the underlying reality is that the political parties are actually so similar? That the Democrats’ “solution” for healthcare may simply be an expanded version of the Republicans’ “solution” for seniors who can’t afford their prescription drugs — Medicare Part D?

Democrats and Republicans enjoy the perks of power. But they ultimately don’t run Washington. They both must answer to the same “paymasters,” as consumer advocate Ralph Nader calls them. Corporate interests.

Show me a grassroots movement that takes on corporate power, and I’ll show you a third political party. You won’t find it within the current two-party system. When we next “water the tree of liberty with the blood of tyrants,” as Jefferson put it, those tyrants will be giant multinational corporations, not their trembling lackeys who hold political office.

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We would still like healthcare reform legislation to succeed this year — but we are not nearly as enthusiastic about it as we were just a few short months ago.

For starters, the Obama Administration isn’t calling it “healthcare reform” anymore. Now it’s “health insurance reform.”

Reformers have lowered their sights. They aren’t trying to fix Big Pharma’s stranglehold on the American consumer anymore. All they are trying to do now is to offer a public alternative to Big Insurance. And even this small measure of reform may not become law.

If it doesn’t, and so-called “universal health care” passes, it will simply be another handout to corporations, paid for by taxpayers, just as Medicare Part D was. The government will simply pay to have everyone “covered,” but won’t fix the underlying problems that make America’s healthcare system so overpriced and inefficient.

What a shame.

I haven’t given up hope that the public option will succeed. But I have given up all hope that the bill will include meaningful improvements in prescription drug prices.

As Ralph Nader explains:

Obama invites (drug companies) to the White House, where they presumably pledged to give up nearly $300 billion dollars over ten years without any specifics about how this complex assurance can be policed.

No matter, in return Obama and his aides agreed not to press Congress to authorize the federal government to negotiate drug prices with the drug industry. Don’t worry: the taxpayers will pay the bill.

At a meeting on July 7 at the White House between drug company executives, Obama’s chief of staff, Rahm Emanuel, and Senate Finance Chairman Max Baucus (D-MT), the industry, according to The New York Times, was promised that the final legislative package would not allow the reimportation of cheaper medicines from Canada or other countries even if they meet our drug safety standards.

Do you see anything odd about the pharmaceutical industry promising “X dollars over X years” in lower prices to consumers? Does that sound like a free market process to you?

In other words, if I had a business selling apples, and I sold them for 25 cents each, you would assume that this price would be based on what the market would bear. That is, if I sold them for 30 cents, I would not sell them all and some of them would rot. But if I sold them for 20 cents, I would sell them all too fast and not make as much money as I could have. That’s the market setting the price.

Big Pharma doesn’t operate by such rules. It has a friend — the U.S. government — that decides how much money it can make on the drugs it develops.

The government decides this by giving drug companies patents, and then extending these patents again and again, so that they can have a monopoly on the drugs they sell.

If I’m the only one in the world who’s allowed to sell apples, I can probably get a lot more than 25 cents an apple, can’t I?

In fact, I can start marketing apples as a sweet, juicy alternative to Russian caviar if I want to. I can sell them for $100 each if I want, right?

And what would be even better is if your doctor informed you that, for your health, you had to have an apple every day. Then you would have to find a way to get one, whether you could afford it or not, wouldn’t you?

Gee, it’s great to be in the apple-selling business, isn’t it?

So here I am, selling my apples at an outrageous profit, buying G4s to fly me around, spending billions of dollars on TV ads to ensure that consumers “ask their doctors” whether they need to eat more apples, when all of a sudden President Obama calls.

“Hey,” he says, “what would you say about selling your apples for $95 instead of $100 for a few years? And maybe selling them for $50 to seniors in the Medicare Part D doughnut hole? That way we could say that you have contributed $X billion in cost savings to our healthcare reform bill.”

“Hmm,” I think. “Why not? It’s good PR — and how funny that people will think they’re actually getting a bargain by paying $95 for an apple.”

If you want to pay $95 for an apple, you can wait for the benefits of Obamacare. Otherwise, you should seek the immediate benefits of licensed Canadian pharmacies.

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drug-reimportation-2009-battle-endsWhen the winner in a Monday Night Football game became obvious in the fourth quarter, ’70s color commentator Don Meredith used to warble, “Turn out the lights, the party’s over, we know that all good things must end…”

I’m afraid it may be time to turn out the lights — perhaps forever — on legalized drug reimportation.

I hate to sound so dire, and I know that a small, bipartisan group of legislators, including Sen. David Vitter, is working hard to keep reimportation on the negotiating table as Congress prepares to pass sweeping healthcare reform legislation.

But I just don’t think the good guys are going to win this one. No matter what President Obama ends up signing into law on healthcare, I’m 95 percent sure it won’t include allowing American consumers to legally purchase prescription drugs from Canada.

It’s maddening when you think about it. Since reimportation became a public policy issue in the late 1990s, polls have consistently shown that between 70 and 80 percent of Americans want the right to buy from Canadian pharmacies.

Bill Clinton, Al Gore, George W. Bush, John Kerry, Ron Paul, John McCain and Obama (among others) have all spoken in favor of reimportation at various times (generally during their presidential campaigns). Congress has had a reimportation bill put before it virtually every session; it has even passed Congress before, only not to be implemented because of an administrative loophole in the legislation.

It’s the most blatant example of politicians willfully deflecting the desires of the American people I can think of in the past 20 years, if not longer.

I feel silly now that as recently as March, I was confident that this time would be different.

So, why is the will of the people being deferred again — and perhaps defeated once and for all?

As the Wall Street Journal put it in an article last week on proposed healthcare reform legislation:

Drug Makers Score Early Wins as Plan Takes Shape

The pharmaceuticals industry, which President Barack Obama promised to “take on” during his campaign, is winning most of what it wants in the health-care overhaul.

The final contours of the legislation are far from settled, but the industry, led by a onetime powerful congressman, has notched a string of victories. Legislation expected soon in the powerful Senate Finance Committee will leave out cost-cutting steps as part of an agreement with the industry and the White House, according to Congressional aides, industry lobbyists and others involved in the talks.

The missing items include two planks of Mr. Obama’s campaign platform: allowing cheaper drugs to be imported from Canada and giving the federal government the right to negotiate Medicare drug prices directly with pharmaceutical companies…

“This is the best year the drug industry has had in decades,” said Nancy LeaMond of AARP, the seniors’ lobby, which is seeking greater price-cutting on drugs.

Why did Obama back down? It’s simple. Big Pharma has the money to potentially take down healthcare reform with national advertising and astroturf organizing, the way it did when the Clinton Administration tried reform in the early 1990s.

Obama decided to swallow some bitter pills in order to get broader reform legislation passed.

The decision is already paying off, as PhRMA, the Big Pharma lobby, is now financing an ad campaign in support of healthcare reform legislation. Per FiercePharma:

Harry and Louise are back. The actors who starred in the infamous anti-healthcare reform commercials back in the ’90s have gone turncoat, signing up for a new campaign in support of a healthcare revamp. Sponsoring the ads? None other than PhRMA … The $4 million campaign starts this weekend and runs for three weeks…

The NYT speculates that by funding it–and so publicly supporting the reform plans–drugmakers might garner even more political goodwill to add to their $80 billion cost-cutting deal with Sen. Max Baucus. And that goodwill has paid off, at least in the Senate, where the latest versions of healthcare reform leave out drug reimportation and Medicare price negotiation (as the Wall Street Journal reports).

So Big Pharma wins again — this time, by buying the opposing team.

Here’s how I now think things will shake out over the next year:

  • Healthcare reform legislation will be passed.
  • Because of “compromises” with Big Pharma and insurance companies, along with Congress’ inability to pass new taxes during a recession, the legislation will not pay for itself — not by a longshot.
  • In the end, Obama will probably give up on the public insurance option, too — meaning that healthcare reform might look a lot like a bigger version of the Medicare Part D boondoggle passed during the Bush Administation.
  • Americans will continue to purchase medications from Canadian pharmacies in the same way they do today, because they will still cost a lot less than what we pay here.

It pains me to make this prediction. In fact, I really hope I’m wrong. But I fear I’m not.

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