Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
Health Care Committee | |
HB 1194
Brief Description: Regarding reimportation of prescription drugs.
Sponsors: Representatives Simpson, Campbell, Appleton, Clements, Cody, Sommers, P. Sullivan, Morrell, Schual-Berke, Chase, Dickerson, Kenney, O'Brien, Clibborn, Conway, Green, Sells, Kagi, Ormsby, Wallace, Upthegrove, Hasegawa and Kilmer.
Brief Summary of Bill |
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Hearing Date: 1/25/05
Staff: Dave Knutson (786-7146).
Background:
The combination of Canadian price controls and a favorable exchange rate between Canadian
and United States currencies has created prescription drug prices in Canada that are less
expensive than in the United States. Americans without prescription drug coverage have been
purchasing prescription drugs through Canadian pharmacies or over the Internet in order to take
advantage of Canadian drug prices. Several states and political subdivisions in the United States
are exploring ways to take advantage of the price differential between prescription drugs sold in
Canada and the United States.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, (H.R. 1)
authorized the importation of prescription drugs from Canada if several conditions are met. The
Secretary of the Department of Health and Human Services was required to promulgate
regulations permitting pharmacists and wholesalers to import prescription drugs from Canada
into the United States, if the Secretary determined importation was cost-effective and safe. The
Secretary established a Drug Importation Task Force to review the issues around drug
importation. In December 2004, the Task Force reported that the importation of prescription
drugs from Canada could not be accomplished in a safe and cost-effective manner. The
Secretary is authorized to waive the ban on importation of prescription drugs in cases where the
importation is clearly for personal use, and the prescription drug or device imported does not
appear to present an unreasonable risk to the individual.
Also in December 2004, Governor Locke directed the Health Care Authority to link an existing
prescription drug website to a website maintained by the State of Wisconsin that facilitates the
individual purchase of prescription drugs from Canadian pharmacies. The pharmaceutical
industry recently launched prescription drug discount programs to provide Americans without
health insurance or prescription drug coverage with discounts equivalent to prescription drug
prices available through Canadian pharmacies.
Summary of Bill:
State agencies administering a state purchased health care program are authorized to purchase
drugs from approved Canadian pharmacies or wholesalers, if approved by the federal Food and
Drug Administration. The Health Care Authority is authorized to purchase, or facilitate the
purchase, of drugs from Canadian pharmacies or wholesalers. The Health Care Authority will
also develop a website to facilitate the purchase of prescription drugs from Canada by
Washington residents. The Attorney General must certify that the website and the information
contained on it do not violate applicable state or federal laws.
Appropriation: None.
Fiscal Note: Requested on 1/20/05.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is
passed.