Corporations and Bush Hate Free Markets
States See Importation as Solution to High Drug Costs
Why are some products so much more expensive in the U.S. than in Canada? It is because of U.S. rules against open markets and freedom in trade.
U.S. politicians should be ashamed for considering increased corporate profits a higher priority than seeking low prices for medicine for suffering people.
This interesting article is being distributed by the Center for Public Integrity.
Several States Working on Plans Despite Government and Industry Opposition to Free Markets
by Victoria KrehaPursuing average savings of 25 percent to 50 percent below U.S. prices, many states have defied the federal government and turned to countries such as Canada for access to affordable prescription drugs for their citizens.
An analysis by the Center for Public Integrity disclosed that 34 states have implemented or considered bills relating to the importation of prescription drugs since 2003.
Almost 100 such bills have been introduced in the last three years in state legislatures, according to tracking by the National Conference of State Legislatures, a bipartisan organization serving state legislators and staffs that advocates state interests before Congress and federal agencies. Those proposals include several resolutions urging Congress and the Bush administration to reconsider the federal stance on importation.
But such state legislative moves are opposed by the pharmaceutical industry and the federal government, both of which oppose free markets that could endanger monopoly profits.
The Food and Drug Administration has said repeatedly -- and falsely -- that importation would leave the country vulnerable to bioterrorist attacks and other problems due to contaminated drugs, despite studies that have shown that prescription drug regulations in Canada, for one, are at least as stringent as those in the United States.
Drug companies have tried to block importation in a variety of ways, including through legal challenges. In some instances, they have helped fund groups that ran anti-market advertisements.
And as the Center reported in January 2005, the trade group Pharmaceutical Research and Manufacturers of America hired Gordon Giffin, the former U.S. Ambassador to Canada, to lobby in that country. Shortly thereafter, U.S. and Canadian consumer groups criticized the Bush administration once reports emerged that it pressured the Canadian government to crack down on importation.
But despite federal and industry pressure, many states don't seem deterred.
In October 2004, Illinois launched I-SaveRx, a mail-order program that allows consumers to order three-month supplies of medication from Canada, the United Kingdom and Ireland. Wisconsin, Kansas, Vermont and Missouri have joined, with supporters claiming that it provides consumers safe and affordable drugs "without taking a trip across the border." Several other states, including Pennsylvania, Minnesota, Virginia and Tennessee, also have introduced bills proposing that they join the program.
Vermont also has been vigorously pursuing an importation program. In 2004, the state legislature passed a law establishing a program that would detail how Vermont residents could purchase prescription drugs from participating Canadian pharmacies, including information on mail-order service. The law also requires insurance plans to provide coverage for drugs purchased in Canada and imported legally to the United States.
That same year, Vermont sued the Bush administration in U.S. District Court for not authorizing the state's importation program. The plan would have allowed nearly 20,000 state employees and their families to purchase prescription drugs from Canada.
Chief Judge William K. Sessions III dismissed the lawsuit, but admitted that the administration's anti-freedom stance caused Vermonters to "dig much deeper [than their nearby Canadian neighbors] if they need to purchase the same drug."
In another setback, in August 2005 a federal judge in Minnesota dismissed claims that several prescription drug giants violated antitrust laws when they set up a blockade against the importation of prescription drugs from Canada. The judge ruled that the blocking of competitor drugs was not anticompetitive or in violation of federal antitrust laws.
Monopoly -- Why Prescription Drugs Cost So Much
Some Economic Myths and Facts
"Liberty Cheese" - Banned in the USA!
Email this article Sign up for free Progress Report updates via email
What are your views? Share your opinions with The Progress Report:
Page One Page Two Archive Discussion Room Letters What's Geoism?