Prescription-Drug Open Borders

There are precious few policy positions that both Edward Kennedy and Trent Lott can unite behind. But the senators agree that Congress simply must contain the exploding prices of prescription drugs that can now cost ailing consumers an arm and a leg, maybe even literally. A bipartisan coalition of senators led by Democrat Byron Dorgan of North Dakota and Republican Olympia Snowe of Maine, and including the unlikely Kennedy-Lott duo, are working to pass legislation allowing the retail or wholesale importation of prescription drugs from Canada and Europe, where government controls keep prices down. Drug-company lobbyists are already propping their feet on White House desks and shaking their heads nuh-uh to the Senate initiative, although in an election year George W. Bush will defy voter anger over drug costs at his peril.

In the past, opponents of low-cost pharmaceutical imports have raised the specter of unsafe drugs, but this argument is bogus. Many of the drugs that even now cross United States borders sub rosa originated in the U.S., where they are subject to strict testing and controls. And those manufactured elsewhere in the world are carefully screened by Canada itself or by European countries that sell the drugs domestically or export them. While safety is a critical concern, it is a problem to be solved and not a reason to do nothing and abandon the American elderly and others to the extortionate embrace of the drug companies.

A number of drug-import bills are currently making the rounds on Capitol Hill, but it’s the Dorgan-Snowe bill that’s gaining momentum, and with good reason. Within three months of its passage, imports could begin. A year later, imports would be allowed from European Union members, as well as Japan, Australia and New Zealand.

With the bill, a reasonable import fee of up to 1 percent would fund inspections and testing of drugs entering the U.S. Chain-of-custody documentation would be required, and new technology would be used to keep out counterfeiters. The Food and Drug Administration would check out and list Canadian Internet pharmacies it considered safe. And U.S. buyers could import 90 days worth of drug supplies for personal use – legalizing a trade that’s common even now.

Perhaps most importantly, the Dorgan-Snowe bill would punish drug companies that thwarted the intent of the law by jacking up prices in Canada or elsewhere for drugs destined for reimportation into the U.S. These deterrents should be severe, and not cost-of-doing-business pass-ons to consumers.

In more ways than one, the new law, if passed, would simply catch up with free-market competitive realities. Many U.S. entities, including the Massachusetts city of Springfield, already purchase prescription drugs from Canada at discounts of 20 to 80 percent. Illinois is considering buying low-cost drugs from Europe. Most U.S. buyers, however, are still being gouged by a cartel-like group of companies that is coddled by elected officials who have been bought off with campaign contributions. It will be touch and go as to whether greed or reason prevails in the legislative struggle about to begin. Legislators need to let consumers know which side they’re on.