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Canada Threatens to Ban Prescription Drug Exports

June 30, 2005
Canadian Health Minister Ujjal Dosanjh says he will introduce legislation this fall to ban bulk export of prescription drugs to the U.S by likely requiring Canadian doctors to examine patients before writing prescriptions.

Under current practice, Canadians physicians co-sign Internet orders after reviewing a prescription that had already been written by an American doctor.

"Americans are only buying drugs from Canada because President Bush and Congress, with their cozy ties to the pharmaceutical industry, refuse to support a prescription drug bulk purchasing plan," said David Fink, consumer advocate with the Foundation for Taxpayer and Consumer Rights (FCTR). "Seniors and other patients shouldn't have to rely on other countries to get the drugs they need."

Canada, England, Ireland and the U.S. Department of Veterans Affairs save 30-80% and more off the cost of U.S.-made drugs by negotiating bulk discounts on behalf of all patients. The recent U.S. Medicare prescription drug bill banned the program from negotiating bulk discounts.

Under the bulk purchasing model, counties, states and the Federal government could dramatically increase their bargaining power with drug manufacturers by combining current drug purchases for public health care programs, individual consumers, hospitals and employers.

FTCR is working with the City of Los Angeles and Mayor Antonio Villaraigosa to develop the nation's first city- based prescription bulk purchasing program. That program, "L.A. Rx," would be available for any individual regardless of age, income, or insurance level, as well as small business owners and hospitals.

Prescription drug discounts under the program are estimated to be 20 to 40 percent. The U.S. has greater buying power -- Canada has approximately 30 million people while the U.S. has approximately 300 million -- which could lead to even larger discounts than those seen north of the border.

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