As a presidential candidate, Barack Obama said that the United States should be able to import prescription drugs (PDF) from other countries, where they are sold at significantly cheaper prices. He even co-sponsored a Senate bill proposing such an idea.
Now, however, his administration is warning against this idea. And a divide among Democrats on the issue is holding up the health care debate in the Senate.
Sen. Byron Dorgan (D-N.D., at left) on Tuesday introduced an amendment to the Senate health care bill that would enable the importation of cheaper prescription drugs into the U.S. The plan, Dorgan says, would save the federal government $19 billion over 10 years and save the American people about four times that much.
Nineteen other senators, including four Republicans, immediately offered their support to the plan.
"There's no safety issue here at all," Dorgan said. "This is the pharmaceutical industry trying in every way that it knows how to keep its ability to charge the highest prices in the world for prescription drugs to the American people."
(AP)Drug wholesalers purchase pharmaceuticals from drug manufacturers at higher prices in the United States because, unlike in many other countries, the government does not negotiate a set rate for drug prices.
Under Dorgan's plan, U.S. wholesalers would buy drugs from wholesalers in countries like Canada. The drugs would in all likelihood still be more expensive than if the United States were to directly negotiate with the pharmaceutical industry, but it would at least result in cheaper prices than Americans currently pay.
"How about giving the American people the freedom that others have to access those prescription drugs -- FDA approved drugs -- that are sold at a fraction of the price in other countries," Dorgan said. "And it'll force the pharmaceutical industry to re-price those drugs in this country."
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