Yesterday, the U.S. Department of Health and Human Services released a proposal, outlining two pathways to allow for the importation of prescription drugs into the United States.
We applaud the Trump administration’s determination to lower healthcare costs, however this policy is the opposite of progress.
The drug supply-chain in the United States is safe. It’s reliable. This is proven fact and a highly regulated process.Importing drugs puts that safety at risk, as ineffective and counterfeit drugs have the potential to flood the U.S. market.
The policy echoes ideas Democrats have been putting forth for years. Much of the policy focuses on imports from Canada, but it’s important to note that this does not mean the prescriptions originate in Canada.
As recently as 2005, the FDA found that “Of the drugs being promoted as “Canadian…85 percent actually came from 27 countries around the globe. A number of these products also were found to be counterfeit.” Similarly, a World Health Organization report from 2017 found that as many as one in ten medicines in the developing world was counterfeit.
This means that Americans could easily be buying drugs from nations such as India, where up to 25 percent of drugs are counterfeit, and there is no way of knowing their origin – or their safety.
What’s more, Canada has made it clear that they will not be responsible for the safety and regulation of any imports. One former Canadian Health Minister went so far as to say that “allowing Americans to purchase prescription drugs from Canada could have terrible consequences for the citizens of both countries,” in an op-ed in the Washington Post. It’s why former FBI Director Louis Freeh and the National Sheriff’s Association oppose the policy. It’s not safe.
When it comes to the health and safety of our nation, we hope that the Trump Administration listens to these seasoned voices and reconsiders this plan. The risks associated with importation are far too high and will affect us all.
The Trump Administration should instead build on its successes. Under President Trump, the FDA has approved a record number of generics, bringing greater competition to the market. In fact, the White House Council of Economic Advisers (CEA) estimates that this will save consumers as much as $26 billion. We’re already seeing this: the Consumer Price Index (CPI) for prescription drugs decreased by two percent from June 2018 to June 2019. That’s right. Prices went down.
The administration can build on this success by further removing regulatory burdens that stop competition in the market and allow for greater innovation and transparency. Policies such as the recently abandoned proposal to guarantee rebates go to patients not insurers and pharmacy benefit managers would similarly be a good place to start. As we’ve seen time and time again across industries, when markets are freer, prices go down, choice goes up and consumers benefit.
We’re ready to see the Trump Administration double down on these policies, not import bad ideas from Democrats.