[Congressional Record Volume 150, Number 65 (Tuesday, May 11, 2004)]
[Extensions of Remarks]
[Pages E810-E811]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             PRESCRIPTION DRUG REIMPORTATION IS UNAVOIDABLE

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                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                         Tuesday, May 11, 2004

  Mr. BEREUTER. Mr. Speaker, this Member wishes to submit, for the 
Congressional Record, an editorial from the Omaha World-Herald edition 
of May 6, 2004, which recognizes that prescription drug reimportation 
is inevitable. Clearly, American consumers should not be forced to pay 
the world's highest prices for the medicines they need. We must open 
the drug markets so Americans can obtain the prescription drugs they 
need when they need them most and at affordable prices. This Member 
commends this editorial to his colleagues.

                      ``Yes'' to Drugs From Canada

       The Bush administration has adamantly resisted allowing 
     Americans to legally import substantially cheaper 
     prescription drugs from foreign countries. Therefore, a top 
     official's apparent capitulation on Tuesday was a surprise.
       Health and Human Services Secretary Tommy Thompson, long a 
     chief player in barring entrance to lower-cost medicines from 
     Canada and elsewhere, said Tuesday that legalizing imports 
     was inevitable. Congress will almost certainly pass 
     legislation this year, he said. What's more, he will advise 
     President Bush to sign it.
       ``Inevitable'' is a good word; a recent Associated Press 
     poll showed that two-thirds of the people surveyed wanted the 
     government to make it easier to get cheaper drugs from 
     foreign countries. Many already do: An estimated 2 million 
     American senior citizens have illegally purchased U.S.-made 
     drugs from Canadian pharmacies.
       In Canada, drugs can cost less than half what they do in 
     this country. This is because drug manufacturers load all 
     research and similar costs onto U.S. buyers. Other 
     governments, by contrast, regulate drug prices.
       Thompson, backed by President Bush, most congressional 
     Republicans and the pharmaceutical industry, has staunchly 
     resisted importation. He has maintained that the safety of 
     drugs that have been out of American hands can't be assured.
       In accepting reality, though, Thompson bristled with 
     caution. Legalizing foreign imports will be expensive, 
     Thompson said--his department will have to increase 
     inspections of foreign pharmaceutical plants and of the drugs 
     as they enter this country, negating some of the savings 
     consumers might expect.
       Then, too, the Congressional Budget Office predicted 
     minimal savings for consumers. The limited availability of 
     drugs for import, added insurance costs and similar economic 
     factors would mean savings of only about $40 billion over 10 
     years, or 1 percent, the federal agency suggested.
       In addition, several drug companies have already acted to 
     shut down supplies to Canadian pharmacies that resell to U.S. 
     customers. That kind of marketing tactic could

[[Page E811]]

     become more widespread and hence further limit imports. Our 
     companies might simply demand increased prices from other 
     governments.
       Thompson's recognition of reality was a relief for many 
     people who have spent years battering the administration's 
     stone wall on this issue. That wall has been damaged but not 
     breached. Americans will need to press their elected 
     representatives to devise, pass and ensure implementation of 
     reasonable, responsible legislation.
       The current situation, as Thompson recognized, is 
     untenable. Some kind of reimportation will almost certainly 
     become law. But, for the millions of Americans whom it could 
     benefit, whether they realize any savings will be in the 
     details.

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