December 19, 2019

Today, the Food and Drug Administration (FDA) issued a notice of proposed rulemaking to allow the importation of Canadian drugs by states. This is an ill-guided attempt to lower drug prices for consumers and will instead expose American patients to significant health risks.

This proposal from the Department of Health and Human Services (HHS), through the FDA, will introduce American patients to drugs from across the globe that have not been properly tested for authenticity and safety. Because the Canadian system must control costs, it sources nearly eight-five percent of its drugs from other countries and lacks the ability to control its entire drug supply. The U.S. has limited the sourcing of drugs to domestic manufacturers, ensuring we have access to safe and reliable medicines. Until now.

Not only will this proposal jeopardize drug safety, data from the Canadian Health Policy Institute (CHPI) shows that exporting to the U.S. would deplete the Canadian drug supply in a matter of months. U.S. importation policies are therefore likely to receive significant resistance from Canadian health officials, which would in turn lead to inevitably higher prices to compensate any projected decrease in domestic supply for Canadians. In addition, Canada’s “market for pharmaceuticals is too small to have any real impact on U.S. drug prices,” according to Canada’s acting ambassador to the U.S., Kirsten Hillman.

This is a lose-lose for consumers. Risky or counterfeit drugs. Higher costs over time. More taxpayer dollars spent by the FDA in expanded oversight. In 2004, the CBO projected minimal cost savings—one percent—from importation. Lawmakers and bureaucrats have jumped at this insignificant promise of savings, putting the world’s safest healthcare system in jeopardy and ensuring higher prices for consumers over time. Congress must act to stop this rule immediately.