With New Congress, Reimportation Looms
By: Sally C. Pipes
1.11.2007
McKenzie River Reflections (OR), January 11, 2007
Now that Congress is back in session, members of the House and Senate are once again pushing to allow the reimportation of prescription drugs from Canada. Just days ago, Rep. Rahm Emanuel (D-IL) announced plans to introduce precisely such legislation - the Pharmaceutical Market Access and Drug Safety Act. Democrats have long supported this form of drug piracy, and now that they hold both chambers of Congress, it stands a better chance than ever before - particularly because a large number of Republicans are on board. Jo Ann Emerson (R-MO) is a House c0-sponsor. And Olympia Snowe (R-ME) is a sponsor in the Senate, along with Byron Dorgan (D-ND). "Things were headed in the right direction with reimportation to begin with, but the election will speed up that process because it's removed the leadership that was opposed," says Sen. David Viner (R-LA), a strong advocate. Unfortunately, despite their well-intentioned belief that legalizing reimportation would make drugs more affordable, these congressional leaders are likely to do far more harm than good. If reimportation were enacted, it would almost surely backfire. Critical life-enhancing drugs would become less available - and more expensive - for Canadians and Americans alike. Many drugs in Canada are cheaper than in the U.S. The Gross Domestic Product (GDP) per capita, for example, is one-fifth higher in America than in Canada. Why the price of a drug is so much higher than the simple cost of manufacturing a pill. Apparently, proponents of reimportation have overlooked the unseen cost of research and development. Politicians love to give away -free- stuff. But beyond - the tax-subsidized fantasy world of Washington, D.C. - where real companies go belly-up everyday - it' s not possible to fill America' s medicine cabinets at below-market prices. Think of the airlines and discount seats. If everyone were to fly in the heavily discounted seats, pretty soon there would be no seats available because the airline could not afford to fly. All passengers would lose. The same is true in the drug industry. If politicians impose massive discounts on drugs, eventually the companies that invent those drugs will go out of business. Or they'd stop developing new cures. "Cheap drugs" are good politics but lousy economics. Further, drugs in Canada aren't always even less expensive"'- generic drugs are dramatically cheaper in the United States than they are in Canada, and generics account for over half of all prescriptions filled. That's the truth about Canadian healthcare. Before Congress moves forward with reimportation, the nation's legislators should make a few calls to Canada and talk to people who' are suffering from AIDS, Hepatitis C, or arthritis. Take it from me - a former Canadian - America doesn't want Canada's price-controls ... at any cost. Sally C. Pipes is president and CEO of the Pacific Research Institute and author of “Miracle Cure: How to Solve America’s Health-Care Crisis and Why Canada Isn’t the Answer.” She can be reached at spipes@pacificresearch.org.
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