Democratic Policy Committee

Dorgan Amendment Improves Access to Lower-Priced Drugs from Canada

The Dorgan amendment would improve access to lower-priced drugs by allowing wholesalers and pharmacists to import prescription drugs from Canada, which has a similar drug approval and distribution system as the United States. The amendment also would enable individuals to import prescription drugs from Canada as long as the drugs are for their personal use and they do not exceed a 90-day supply. The Dorgan amendment:

Provides substantial savings to consumers. All Americans who need prescription drugs could benefit from improved access to lower-priced drugs from Canada. Brand-name drugs cost an average of 38 percent less in Canada than in the United States. A Boston University study found that the United States would have saved $38 billion in 2001 if Americans were able to buy medications at Canadian prices.
Takes steps to ensure the safety of imported drugs. First, the amendment only allows the importation of drugs that have been approved by the Food and Drug Administration (FDA). Second, it limits importation only from Canada, which has a similar system as the U.S. for approving and distributing drugs. Third, it requires Canadian pharmacies and wholesalers to register with the Health and Human Services Department (HHS). Fourth, the amendment gives the HHS Secretary the authority to immediately suspend the importation of prescription drugs that appear to be counterfeit or otherwise violate the law.
Won't impede innovation in the pharmaceutical industry. Policymakers need to strike a balance between encouraging innovation and ensuring the affordability of prescription drugs. Enhancing access to lower-priced drugs from Canada will not jeopardize research and development of new medications. Since 1995, the pharmaceutical industry has been the most profitable in the U.S. - five times more profitable than the average Fortune 500 company. Even with passage of the Dorgan amendment, the pharmaceutical industry will continue to have sufficient resources to invest in research and development as well as maintain healthy profits.