[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[House]
[Pages 28659-28660]
[From the U.S. Government Publishing Office, www.gpo.gov]



                 INTRODUCTION OF PRESCRIPTION DRUG BILL

  The SPEAKER pro tempore (Mr. LaHood). Under a previous order of the 
House, the gentleman from Minnesota (Mr. Gutknecht) is recognized for 5 
minutes.
  Mr. GUTKNECHT. Mr. Speaker, I rise today to share with my colleagues 
some information that they probably already know, but they need to be 
reminded of.
  Recently there have been a number of reports, this one happens to be 
from MSNBC, about what is happening in America relative to drug prices. 
The headline was ``High Drug Prices Burden

[[Page 28660]]

Many Seniors.'' ``The cost of medicine for elderly people far outstrips 
inflation,'' according to the Associated Press.
  These stories are being repeated around the country. CNN and the New 
York Times did a story on this, and a number of publications have 
reinforced the point that Americans in general, seniors in particular, 
are paying far too much for prescription drugs.
  I would like to read, Mr. Speaker, excerpts from a letter to the 
community from George Halverson. George Halverson is the President and 
CEO of HealthPartners. It was printed in the Minneapolis Star and 
Tribune on 10/29/99.
  Let me just read from this: ``The cost of prescription drugs varies 
to an amazing degree between countries. If you have a stomach ulcer and 
your doctor says you need to be on Prilosec, you will probably pay 
about $99.95 for a 30-day supply in the Twin Cities. But, if you were 
vacationing in Canada and decided to fill your prescription there, you 
would pay only $50.88. Or even better, if you are looking for a little 
warmer weather south of the border in Mexico, the same 30-day supply 
would only cost you $17.50. That's for the same dose, made by the same 
manufacturer.
  If we could get only half the price break that Canadians get, our 
plan, referring to HealthPartners, ``our plan alone could have saved 
our members nearly $35 million last year.''
  He goes on to say, ``When the North American Free Trade Agreement, 
NAFTA, was passed by Congress to allow free trade between the United 
States and our neighboring countries, HealthPartners decided to follow 
the lead of Minnesota Senior Federation and buy our drugs in Canada at 
Canadians' prices. We were disappointed to learn of the rules and the 
practices which kept us from succeeding. There is no free trade in 
prescription drugs. We need to do something about this.''
  Mr. Halverson, we agree. It is outrageous, when our seniors have 
learned now that they can go across the border and save 30, 40, 50, and 
even 60 percent on prescription drugs, the outrageous part is they are 
stopped from doing that by our own FDA.
  Mr. Speaker, here is what happens when seniors or any American 
consumer learns that they can get prescription drugs from across the 
border. Seniors in Minnesota have tried to set up relationships with 
their local pharmacists, and we need the local pharmacist to be 
involved in this.
  They have learned that they can, using the Internet, using the web, 
using a fax machine, they can set up corrrespondent relationships. Many 
of them are going to to the local pharmacy, having a prescription 
filled there by actually getting the drugs shipped in by parcel post 
from Canada.
  What has happened? The FDA intervenes and they inspect the packages. 
Then they send a very threatening letter to our seniors and other 
consumers who are practicing this method of trying to save some money 
on prescription drugs.
  Let me just read the first paragraph of this letter: ``This letter is 
to advise you that the Minneapolis District of the United States Food 
and Drug Administration has examined the package addressed to you 
containing drugs which appear to be unapproved for use in the United 
States.'' It goes on to threaten the senior, that if they try to do 
this again, they could be in big trouble. I would be threatened by that 
letter, but my parents would be far more threatened by this letter.
  Mr. Speaker, this is outrageous. I say it is outrageous because the 
law, in my opinion, and I think the opinion of legal scholars around 
the country is fairly clear, the law is section 381, imports and 
exports. It basically says they have got to give notice to the owner or 
consignee. Then such articles shall be refused admission.
  In other words, if it really is an illegal drug, it can be stopped. 
But if it is a drug that is otherwise approved in the United States, 
the FDA is on very thin ice.
  Mr. Speaker, there is a difference in opinion in this between myself, 
between seniors, between consumers groups, and the FDA. Today I am 
going to introduce legislation which will remove all doubt. It will 
make it clear that the burden now will be on the FDA that this is an 
illegal practice, because I am committed and a growing number of 
Members of Congress are committed to making a very clear statement to 
the people at the FDA: We will not allow a Federal bureaucracy to stand 
between American consumers and lower prices. It is wrong, and if there 
is anything we can do to stop it, we will.
  I am introducing the legislation today. I am calling on my colleagues 
from both sides of the political aisles to join me in this debate. 
Prescription drugs are too expensive for American consumers in general, 
and seniors in particular. We can do something about it. We should do 
it now.

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