Minnesota Governor Announces Plan To Purchase Prescription Medications from Canada
Minnesota Gov. Tim Pawlenty (R) on Thursday announced a five-step program to help state residents purchase lower-cost prescription drugs from approved Canadian pharmacies, the St. Paul Pioneer Press reports. Minnesota is "believed to be the first state" to allow such a program, the Pioneer Press reports. Under the program, the Minnesota will:
- Establish a Web site through which state residents can purchase prescription drugs from approved Canadian pharmacies at prices negotiated by the state; residents without Internet access can purchase medications over the phone;
- Negotiate agreements to purchase and import foreign-manufactured, FDA-approved prescription drugs;
- Establish financial incentives, such as copayment waivers, to encourage state and private-sector employees to purchase prescription drugs online;
- Encourage federal health officials to end legal barriers to prescription drug importation; and
- Hold a meeting of governors by the end of the year to discuss a federal lobbying effort in support of reforms to the U.S. prescription drug market (Majeski, St. Paul Pioneer Press, 10/17).
State officials said that they will take measures to ensure that only Minnesota residents would use the Web site to purchase prescription drugs from Canada (AP/Minneapolis Star Tribune, 10/17). The Minnesota Department of Human Services will manage the Web site, find approved Canadian pharmacies and negotiate agreements on prescription drug prices. The Web site should become operational within the next few months, but negotiations on prescription drug prices may take longer, Brian Osberg, assistant commissioner of health care for the state human services department, said (St. Paul Pioneer Press, 10/17). Pawlenty in late September announced plans to consider the program. Iowa Gov. Tom Vilsack (D) and Illinois Gov. Rod Blagojevich (D) last month also announced that they would consider similar programs (Kaiser Daily Health Policy Report, 9/25).
Reaction
"We're here because nobody's taken effective action. Collectively the system has been unresponsive to an obvious need that has now reached a crisis point," Pawlenty said (AP/Minneapolis Star Tribune, 10/17). Minnesota Attorney General Mike Hatch (D) called the program a "viable approach" to reduce prescription drug costs. However, some Minnesota Republican lawmakers and the Minnesota Pharmacists Association oppose the program. David Strom, legislative director and vice president of the Taxpayers League of Minnesota, said that the program "ignores the dangers posed by prescription drug reimportation -- or simply wishes them away" (St. Paul Pioneer Press, 10/17). The FDA also opposes importation of prescription drugs from Canada and other nations because of safety concerns. Pharmaceutical Research and Manufacturers of America officials said in statement that the Minnesota program violates federal law and could expose the state to lawsuits if residents experience adverse reactions to prescription drugs purchased from Canada (AP/Minneapolis Star Tribune, 10/17). Hatch said that he would address legal challenges from the FDA or federal government (Napolitano, New York Times, 10/17).
North Carolina Pharmacy Board Files Lawsuit
In related news, the North Carolina Board of Pharmacy on Wednesday in Durham County Superior Court filed a lawsuit against five stores in the state that help residents purchase prescription drugs from Canada, the AP/Greensboro News & Record reports. The lawsuit seeks injunctions against Discount Drugs of Canada of Gastonia, Canada Drug Outlet of Concord, Canada Drugs of Asheboro, Prescription Care of North Carolina of Banner Elk and Canadian Meds of Asheville (AP/Greensboro News & Record, 10/16). The state pharmacy board in June ordered the stores to close because federal and local law prohibits prescription drug reimportation (AP/Raleigh News & Observer, 8/19). The stores send prescriptions from customers to Canadian pharmacies, which often have lower prices because of government cost controls. David Work, executive director of the state pharmacy board, said, "The No. 1 issue is safety. We don't know what they are sending into the United States" (Fisher, Raleigh News & Observer, 10/17). Store owners maintain that their businesses help low-income and uninsured state residents who cannot afford to purchase prescription drugs from U.S. pharmacies (AP/Raleigh News & Observer, 8/19).
Massachusetts Considers Bulk Purchasing Bill
The Massachusetts Joint Committee on Health Care on Wednesday considered a bill that would encourage the state to purchase more prescription drugs in bulk, the Springfield Republican reports. The legislation would establish a not-for-profit pharmacy benefits agency to oversee Massachusetts prescription drug purchases, encourage the state to partner with other states in bulk purchasing pools, restrict prescription drugs purchased for Medicaid and establish a Medicaid preferred medication list. Springfield, Mass., Mayor Michael Albano, who has implemented a program in which city employees purchase lower-cost prescription drugs from Canada, testified, "It's time to send a message to the rest of the country that we are serious about lowering the costs of high-price prescription medications." According to the Republican, state lawmakers said that "there could be more impetus" to approve legislation to reduce prescription drug costs because of "a lack of action in Washington." In a separate news conference Wednesday, Massachusetts Attorney General Thomas Reilly (D) and state Sen. Jarrett Barrios (D) announced that a survey conducted by Springfield, the Marlboro Council on Aging and other state entities found no evidence of safety problems with prescription drugs purchased from Canada (Ring, Springfield Republican, 10/16).
