U.S. House OKs prescription drug imports

By ANDREW TAYLOR - Associated Press Writer - Fri, Aug. 3, 2007
WASHINGTON - The House passed legislation Thursday effectively permitting the importation of lower-cost prescription drugs from places such as Canada, Australia and Europe.

The move came as lawmakers passed a $91 billion spending measure funding farm subsidies and nutrition programs for the budget year beginning Oct. 1.

The bill, passed by a 237-18 vote, faces a promised veto from President Bush over its price tag, and the administration also opposes the drug importation provision.

The sprawling measure is the final domestic spending bill to pass the House. It contains almost $1 billion more than requested by Bush. But the overall measure is more than $10 billion below comparable costs for the current budget year because it does not contain farm disaster aid and reflects lower crop subsidy costs due to the good farm economy.

The administration "strongly opposes" the drug provision, which would effectively permit individuals, wholesalers and pharmacists to import lower cost U.S.-made and FDA-approved prescription drugs from Canada and other countries.

The White House says there is no system in place to protect consumers from counterfeit or unsafe drugs, but an administration policy statement stops short of an outright veto threat.

"I understand the intention to lower drug prices to the seniors, that is critically important," said Rep. Mike Rogers, R-Mich. "What we're doing is throwing open the gates to every (drug) counterfeiter in the world."

A move supported by drug companies to strike the drug importation provisions from the bill was defeated 283-146.

Supporters of the idea say it would save consumers great sums by allowing them to purchase U.S.-made medications from other countries where they often sell for much lower prices than in the U.S. Under current law, consumers are permitted to buy a 90-day supply in Canada.

Overseas, drugs can cost two-thirds less than they do in the United States, where prices for brand-name drugs are among the highest in the world. In many industrialized countries, prices are lower because they are either controlled or partially controlled by government regulation.

"I would prefer to stand up for my constituents in Missouri as opposed to the pharmaceutical companies keeping competition and low prices out of this country," said Rep. Jo Ann Emerson, R-Mo.

Similar drug importation language has passed the House in recent years but has been forced out by GOP leaders and the White House during House-Senate negotiations.

On spending matters, the measure funds both mandatory programs such as farm subsidies — whose budgets are set according to eligibility criteria — as well as discretionary funding set by lawmakers each year.

The Women, Infants and Children program, which provides food aid to pregnant women and children, would receive $233 million, or 4 percent, more than requested by Bush.

The bill also finances farm subsidies and loan programs, whose costs have gone way down because of high commodity prices. The Commodity Credit Corp. would receive $13 billion, a $10 billion cut from current levels.

The measure also seeks to block the practice of slaughtering horses for human consumption by making it illegal to transport or export horse for that purpose. The House last year passed a bill banning horse slaughter for human consumption, but the Senate failed to act.

Tensions flared late in the debate as the House voted on a GOP motion to require a further amendment to the measure ensuring that illegal immigrants would not benefit from any programs funded by the bill. Rep. Rosa DeLauro, D-Conn., insisted illegal immigrants weren't eligible anyway.

The vote was close as almost 20 swing district Democrats initially supported the idea.

Just as Rep. Michael McNulty, D-N.Y., gaveled the vote to a close and said the GOP motion failed on a 214-214 tie, the tally board inside the chamber read that it had passed by a 215-213 vote. After final switches by Democrats, the tally moved back in their column.

Republicans cried "Shame, shame, shame," and Majority Leader Steny Hoyer, D-Md., moved for a revote.
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AARP Texas Vote News Alert; Hutchison, Cornyn Vote to Block Senate Decision

Giving Medicare Power to Negotiate Lower Drug Prices
AARP Texas - Wed, 18 Apr 2007

AUSTIN, Texas, April 18 /PRNewswire/ -- Despite the support of a majority of the U.S. Senate and nearly 90 percent of surveyed Texans, Senators Kay Bailey Hutchison and John Cornyn voted to block consideration of legislation that would give Medicare the power to bargain for lower prescription drug prices -- S.3, The Medicare Fair Prescription Drug Price Act of 2007.

Similar legislation, H.R. 4, passed the U.S. House of Representatives earlier this year.

TEXAS VOTED TO BLOCK S.3 GIVING MEDICARE THE POWER TO BARGAIN FOR LOWER PRESCRIPTION DRUG PRICES John Cornyn X Kay Bailey Hutchison X

"Working Texans were poorly represented today in the U.S. Senate on this all
important issue," said AARP-Texas State Director Bob Jackson. "Score one for the pharmaceutical industry and the power of their lobby."

Jackson said the bill would have put downward pressure on Medicare drug prices. Given the overwhelming support in both Texas and the U.S. for giving Medicare the power to negotiate, he said AARP will continue working so that the will of the people will eventually be heard.

"We are particularly disappointed with Sen. Hutchison's vote as this is a reversal from her previous vote in support of negotiating drug prices. Nearly 11,000 Texans called her offices and another 1,400 sent e-mails or faxes urging her to support the bargaining for lower prescription drug prices," said Jackson.

David Sloane, AARP Director of Government Relations, added: "Pharmaceutical manufacturers have given more than $20 million in campaign contributions for the last two cycles alone. They followed that up over the last few months with misleading polling and disinformation aimed at scaring older Americans into preserving the exorbitant profits that pharmaceutical companies make on brand name drugs. Senators should know this issue is not going away. No amount of campaign money can trump the will of 90 percent of Americans."

AARP notified the 110th Congress that it was tracking roll call votes on key legislation important to its 38 million members, and reporting the outcomes of these votes back to its members. "We believe people make the right choices when they understand the issues and position taken by their elected officials. AARP intends to ensure that its members get that information," Jackson concluded.

BACKGROUND INFORMATION: Despite the outcome in the Senate today, prescription drug affordability remains a high priority for AARP and its members. Because an overwhelming majority of Americans support S.3, AARP is confident this issue will be back. The association will continue to fight to make prescription drugs more affordable for all Americans. While millions of older Americans and persons with disabilities have been helped by Medicare Part D drug plans, more should be done to put downward pressure on drug costs. AARP will continue to support legislation that would allow Americans to safely and legally import lower-priced prescription drugs from abroad, and legislation to help bring generic drugs to market sooner, including generic versions of biologic therapies. AARP is also working to pass legislation that would reduce the asset test that prevents low-income people from qualifying for extra help under the Medicare drug program.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole.