Revisiting medication importation

Kaiser Health News reports that congressmen have introduced legislation to allow US citizens to import medications from other countries (starting with Canada). A bill like this will certainly find resonance among many who are already importing medications and also among some of those who struggle with the high prices of medications. PhRMA, a trade group representing the pharmaceutical industry, objected to the legislation, claiming insufficient safety measures. As described, the bill seems to take a sensible approach towards safety, with foreign pharmacies paying for licenses and inspections from the FDA.

Pharmaceutical companies have long charged Americans higher prices, in large part because the regulatory environment allows it. Pharmaceutical companies have less leverage in other countries, which may cap the prices that can be charged. The bulk of the companies' revenues may be from the US, and the companies can charge what they can get in other countries. This arrangement essentially means that US subsidizes drug development (and operations) for the rest of the world. Understandably, pharmaceutical companies are hesitant to see the current arrangement change.