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Jeffords & Sanders Debating Effectiveness
of New Drug Re-Importation Law
Jeffords: Drug
U.S. Sen. Jim Jeffords, R - Vt., today released a legal analysis done at his request by lawyers at the nonpartisan American Law Division of the Congressional Research Service (CRS). The analysis shows the new Secretary of Health and Human Services (HHS) can implement Jeffords' Prescription Drug Re-importation plan that was passed into law last year.
Sanders: CRS Memo Ignores the Loop-Holes
U.S. Congressman Bernard Sanders (I-VT) said a two-page, Congressional Research Service memo released today says nothing new. The memo, issued by the CRS at the request of backers of the watered-down re-importation bill, specifically says that the new HHS Secretary has the authority to implement the re-importation law that out-going Secretary Shalala found to be unworkable just weeks ago. While Sanders does not dispute this analysis, he pointed out that the memo does not address the real question: whether the bill that passed the Congress last year is so riddled with drug industry-backed loopholes that it will do any good even if the Secretary tries to implement it?
Re-Importation
Plan implementable
By Erik Smulson
"This analysis gives new life to my goal of bringing lower prescription drug prices to all Americans," said Jeffords. "I was extremely disappointed that Secretary Shalala would play politics with such an important issue. I look forward to working with HHS Secretary designee Thompson and the new Bush administration on this important proposal. Each day we spend on partisan bickering is a day that Americans are paying too much for prescription drugs."
The analysis shows that the new head of HHS can overrule an opinion issued by current HHS Secretary Donna Shalala on December 26, 2000. In her opinion, she rejected $23 million that Congress approved last year for the Food and Drug Administration (FDA) to begin drafting regulations to implement Jeffords' prescription drug importation plan, the Medicine Equity and Drug Safety Act of 2000.
Jeffords' legislation would allow pharmacists and wholesalers to re-import FDA-approved medicines from foreign countries and pass the discounts along to American patients.
Last week, Jeffords met with Wisconsin Gov. Tommy Thompson, the nominee for HHS Secretary, and discussed implementing the drug importation plan. Jeffords is currently the top Republican on the Senate's Health, Education, Labor and Pensions (HELP) Committee and a member of the Senate Finance Committee, which must approve Gov. Thompson as the next HHS Secretary. Jeffords will resume his Chairmanship of the Committee on January 20, when Republicans resume the majority in the Senate. The Finance Committee hearing for Thompson nomination is scheduled for January 18, 2000, the HELP Committee hearing will follow.
By David J. Sirota
Sanders said, "We agree with Senator Jeffords, that the law is clear – if the new Secretary wants to implement the bill as currently written he can do so. That is not news. The real question is what will the implementation of a bill with so many loopholes accomplish. If, as the law currently allows, the pharmaceutical industry can write a contract telling an importer that it cannot sell re-imported medicines for less than the drug companies charge, then what will that do? If pharmacists can't use the required labels they need to sell prescription drugs in the U.S., what can they do? The answer is that implementing such a bill without plugging the loopholes will be a hollow gesture that might make people think that the Congress has solved the high cost of prescription drugs when it has not. The pharmaceutical industry is the most powerful, most aggressive, and best-funded lobby in the country. Unless legislation is written strongly and without loopholes, we will not be successful in lowering the cost of prescription drugs. That is what is most important."
Last year, Sanders worked with both Republicans and Democrats to craft strong, bipartisan prescription drug re-importation legislation. However, only days before the bill was to be considered as part of the FY2001 Agriculture spending bill, the Republican Congressional leadership brought Republican proponents of re-importation into a closed door meeting during which these supporters agreed to a number of drug industry-backed loopholes that seriously weakened the bill. Some of the loopholes included in the bill were: failure to require that the drug makers allow re-importers to use the FDA-approved labeling; failure to ban drug makers from imposing contract terms of foreign wholesalers that would undermine the intent of the law; and the 5-year sunset period, which would discourage the necessary private investment to fully implement the system. Sanders is urging leaders on the relevant health committees in both the House and Senate to quickly pass his legislation to close these loopholes.
Sanders said, "If those who say they are supporters of re-importation are seriously interested in lowering the price of prescription drugs, they should have no problem with legislation to close the gaping loopholes that were added to last year's bill. It is my hope that we can work in a bipartisan way with Senator Jeffords, Secretary-designate Thompson and the members of both parties to plug these loopholes quickly."
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