1.5 minute read
The U.S. Food and Drug Administration (FDA) has granted Florida permission to directly import prescription drugs from Canada. This historic policy shift has the potential to significantly lower the cost of medications for American citizens. According to estimates from Florida's Agency for Health Care Administration, importing drugs from Canada could save the state a staggering $150 million each year. The U.S. pharmaceutical industry vehemently opposes drug importation. As a result, this initiative may encounter various challenges and obstacles along the way.
The new policy allows Florida to purchase prescription drugs in bulk for state-run healthcare programs like Medicaid. Requirements must be met such as testing and relabeling the drugs to align with FDA-approved labeling. Florida must also submit quarterly reports to the FDA on the imported drugs, including cost savings and any safety concerns. The plan is authorized for two years, with the possibility of extensions. The FDA is committed to supporting other states interested in importing drugs from Canada. Vermont, Colorado, and New Hampshire have already applied for the program.
Implementation Challenges
Canada has opposed U.S. plans to purchase prescription medicines due to concerns about the impact on their drug supply and costs for citizens. Steps have already been taken by the Canadian government to block the export of prescription drugs in short supply, and agreements between drug manufacturers and Canadian wholesalers may complicate implementation of importation plans. Legal challenges from the pharmaceutical industry's lobbying organization are also expected, as they have previously sued over importation efforts.
Employer Takeaway
U.S. drug prices are higher than in countries with government-run health care systems. Reducing prescription drug costs is crucial for combating rising health care costs. Prescription drug importation offers potential access and affordability for Americans, but implementation may face obstacles. Employers should closely monitor this issue. Download the bulletin for more details.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
