Consumer Alert: Bill could halve prescription drug prices, allow imports from Canada
ROCHESTER, N.Y. — A bill under consideration in the New York State Assembly could cut drug prices in half. The bill would make it legal for New York to import prescription drugs from Canada, but implementing the plan is harder than it sounds.
Americans pay the highest prices in the world for prescription drugs. A Government Accountability Office study compared the prices of 20 brand-name drugs sold in the U.S. with the prices paid in Australia, France and Canada. The study found that Americans are paying two to four times as much, but they say that’s a conservative estimate.
Our medicines are expensive because in Canada and other countries, the government runs the health care system and negotiates prices with pharmaceutical companies. A study of drug price increases from 2022 to 2023 by the U.S. Department of Health and Human Services revealed that 46% of drug price increases will exceed the rate of inflation, with the average drug price increase over the course of a year being 15.2%.
Pharmaceutical companies defend the prices charged in the U.S. for drugs, citing high research and development costs, but supporters of the bill say the companies are making huge profits at the expense of Americans, with older adults bearing the greatest burden.
“85 percent of people over 65 take at least one medication, but more than 40 percent take five or more prescription drugs. So when you multiply that, the inflation rate, that increase, you’re more likely to be taking not just one medication, but five,” said Beth Finkel, AARP New York state director.
But actually importing prescription drugs from Canada is a lot harder than it looks, as Florida’s attempt proves. Florida passed a drug import bill in 2019, but it only got FDA approval this year. So, will Florida finally start importing? It doesn’t seem like it.
Canadian drug suppliers and health care providers are strongly opposed to any import policy with the U.S. They fear it would cause drug shortages in Canada, and for good reason. Canada has a population of 40 million. Florida has more than half that number, at 22 million. New York has a population of nearly 20 million. And seven other states have passed laws allowing drug imports from Canada.
Even without laws or supply restrictions, Florida would still be required to submit pre-import applications to the FDA for all drugs. Here are the pros and cons of this bill. Now, Albany will make a decision with seven days left in the legislative session. News10NBC has their eye on it.
That’s a consumer alert.
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