Parallel Import bill introduced in US Congress

[James Love <love@cptech.org>]

HR 1885 was just introduced in the US Congress.  It would authorize
parallel imports of pharmacuetical drugs in the United States.

This is the "Dear Colleague" letter sent to members of Congress by 
Representatives Berry, Sanders and Emerson.  A version of this 
bill will be introduced in the Senate at a later date.  More 
information about the bills are available from:

Tate Heuer <tate.heuer@mail.house.gov>,
LeClair, Danielle <Danielle.LeClair@mail.house.gov>


<-------------Dear Colleague Letter-------------->

HELP AMERICANS ENJOY THE SAME LOW PRESCRIPTION DRUG PRICES AS OTHER
COUNTRIES 
 
COSPONSOR H.R. 1885, THE INTERNATIONAL PRESCRIPTION DRUG PARITY ACT

Dear Colleague:  
 
	Many of you, especially those whose congressional districts border
Canada or Mexico, may have heard from your constituents that they go north
or south over the border to purchase their prescription drugs.  This is
because they cannot afford to pay the outrageously high prices charged by
the drug companies and because Medicare does not cover outpatient drugs.
About 35% of seniors lack prescription drug coverage.  Going to Mexico and
Canada is particularly popular with senior citizens, 80% of whom use at
least one prescription drug every day.

 	American consumers pay significantly higher prices for
American-made prescription drugs than consumers in other countries.  For
example, GAO reported in 1991 that out of 121 prescription drugs surveyed,
99 had higher prices in the United States than in Canada (in 21 cases, the
price differentials exceeded 100%).  In a similar study conducted in 1994
looking at the price differentials in prescription drugs between the
United States and the United Kingdom, GAO determined that 66 of the 77
drugs surveyed were priced higher in the United States.  In fact, four of
the five most commonly dispensed drugs in the United States cost anywhere
from 58-278% more in the United States than the United Kingdom, and 47 of
the drugs evaluated had a mark-up of over 100%!
 
 	This is because drug companies are the only ones allowed to
reimport drugs made in the United States back into this country under
current federal law.  The drugs are made in our country, shipped to Canada
or England or other countries, and sold by pharmacists and distributors in
those countries.  But if an American pharmacist or distributor wants to
purchase these American-made drugs at the much-lower price and pass the
savings along to their customers, they are prohibited by law from doing
so.

	H.R. 1885 will amend the Food, Drug, and Cosmetic Act to allow
American distributors and pharmacists to reimport prescription drugs into
the U.S. as long as the drugs meet strict safety standards.  Thus,
American pharmacies and distributors benefit by purchasing their drugs at
lower prices, which they can then pass along to American consumers.

	Under federal law, it is technically illegal for individuals to go
to Mexico, Canada or any other country with lower prices and bring
prescription drugs back into the United States.  Our bill will give
Americans the same purchasing opportunities as citizens of other countries
and will result in substantially lower prescription drug prices for
American pharmacists and consumers.

 	H.R. 1885 is a fair, common-sense, free-market approach to
lowering drug prices for our constituents while benefitting small
businesses.  To cosponsor the International Drug Pricing Fairness Act,
please contact Tate Heuer with Rep. Berry at tate.heuer@mail.house.gov or
5-4076, Danielle LeClair with Rep. Sanders at
danielle.leclair@mail.house.gov or 5-4115; or Serena Lowe with Rep.
Emerson at serena.lowe@mail.house.gov or 5-4404.

			Sincerely,

MARION BERRY          BERNARD SANDERS	    JO ANN EMERSON
Member of Congress    Member of Congress    Member of Congress



-------------------------------
James Love 
Center for Study of Responsive Law | Consumer Project on Technology 
P.O. Box 19367, Washington, DC 20036 | http://www.cptech.org
Voice 202/387-8030 | Fax 202/234-5176 | love@cptech.org