CS>Cost-cutting drug plan struck down

[BILL D]

               Cost-cutting drug plan struck down
               Law that would import cheaper drugs won’t be implemented
                                                             ASSOCIATED PRESS

               WASHINGTON, Dec. 27 — A new law aimed at
               cutting prescription drug prices by allowing them
               to be reimported from Canada won’t be
               implemented by Health and Human Services
               Secretary Donna Shalala




IN A LETTER Tuesday to President Clinton, Shalala said the law had “serious 
flaws and loopholes.” Those concerns “make it impossible for me to 
demonstrate that it is safe and cost effective,” she wrote.
“As such, I cannot sanction the allocation of taxpayer dollars to implement 
such a system.” Signed by President Clinton before Election Day, the law 
was an attempt to address the clamor for cheaper prescription drugs — 
particularly among the elderly.
Lawmakers were unable to agree on a more sweeping plan to add prescription 
drug coverage to Medicare.
Drugs manufactured in the United States can be purchased for much less in 
Canada, principally because the government regulates prices, a solution 
fiercely resisted here.
For example, the allergy-sinus medication Flonase Nasal costs $46 in the 
United States, but just $23 in Canada.  Likewise, 45 pills of the 
anti-depressant Prozac can cost about $106 in the United States and $43 in 
Canada.
The law was vigorously opposed by the pharmaceutical industry and 
Democratic critics called it a Band-Aid fix for the country’s troubles with 
prescription drug prices, manufactured to give political cover to those who 
opposed broader solutions.
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Time by Doris Kearns Goodwin Other books by Doris Kearns Goodwin Shalala 
was directed by the legislation to review the law and determine whether it 
was cost effective and safe.
Shalala said she would not request $23 million available to establish a 
system for overseeing the importation of drugs from Canada.
She argued that the law raises safety issues because there’s no guarantee 
that imported drugs will carry labels approved by the Food and Drug 
Administration.  And she complained that the law did nothing to keep drug 
manufacturers from strong-arming distributors into raising prices on 
imported drugs.
But Sen.  Byron Dorgan, D-N.D., a co-author of the legislation, said the 
administration simply “chickened out.” “The best approach would have been 
to say, we’ll pass a law that does something and then we will wait and see 
how the drug companies react,” Dorgan said.  “If they start playing games 
then at least we’ll all know who the villain is.
But this makes no sense at all.  Now we know the drug companies will do 
nothing because we’re doing nothing.” Chris Jennings, Clinton’s top health 
policy aide, said Shalala’s stinging assessment was on target.
“We have an obligation not to raise hopes with false promises,” he 
said.  “There are loopholes that allow the intent of the legislation to be 
completely thwarted.