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House OKs Buying Drugs from Abroad By Mail, Net

By: Robert A. Rosenblatt & Edwin Chen
Los Angeles Times, July 12, 2001

WASHINGTON — The House voted yesterday to make it legal for Americans to purchase prescription drugs from foreign countries by mail order or through the Internet, a step that could lead to significant savings, particularly for older Americans.

Thousands of Americans from California and Arizona now travel to Mexico, while residents of some northern states, including Washington and Oregon, go to Canada for medicine.

If the proposal becomes law, they could forgo travel and instead legally use the Internet, the mail system or a fax machine to order federally approved drugs from foreign pharmacies. Many drugs sold in the United States are far less expensive in foreign countries, where governments often impose price restrictions.

The measure easily passed the House by a vote of 324-101, including “yes” votes by all Washington state representatives except Democrat Adam Smith and Republican George Nethercutt.

But it faces an uncertain fate in the Senate and tough opposition from the Bush administration, with the Food and Drug Administration (FDA) citing possible safety concerns for drugs ordered through the mail from abroad. And the idea poses a threat to profits of the pharmaceutical industry.

Passage of the House bill underscores the growing importance of prescription-drug costs as a political issue.

President Bush today plans to offer his proposals for Medicare reform, highlighted by a call for Medicare's 35 million beneficiaries to participate in discount drug-purchasing programs.

The potential for even deeper savings could come from the House-approved measure. Its sponsor, Rep. Gil Gutknecht, R-Minn., cited an example in which a constituent using a special ointment for a skin problem paid $130 for a tube in the United States but on a trip to Ireland bought the same medication for $46. A 30-day supply of Claritin, an allergy medication, costs $63 in the United States and $16 in Europe, according to the Life Extension Foundation, an advocacy group.

“The bottom line is if you are wealthy enough to travel to Europe twice a year, you can bring back all the drugs you need for the year,” Gutknecht said. “But if you are a senior living on a fixed income, you pay the full price.”

The legislation was an amendment to an appropriations bill providing funding for the FDA.

Computer technology allows for verification that a doctor has written a prescription, that an order has been placed with a legitimate supplier and that a package is on its way to the United States. “If we can transfer millions of dollars with the push of a button, we can do this,” Gutknecht said.

But Alan Holmer, president of the Pharmaceutical Research and Manufacturers of America, argues that the amendment “would open up the possibility for individuals to bring into the country medicines that may not be as safe or effective as they appear.”

The House earlier rejected by a 267-159 margin an amendment by Rep. Bernard Sanders, an independent from Vermont, that would have allowed companies — distributors and marketers — to import pharmaceuticals for sale to U.S. consumers.

The amendment passed yesterday applies only to individuals, allowing the freedom to order drugs — something that is ambiguous under current law. People are deterred because the FDA often sends letters to those who obtain drugs from abroad, warning they might be in violation of federal law.

In the Senate, the timing for consideration of the bill is uncertain. Separately, Bush still intends to fulfill a campaign promise to propose adding a full prescription-drugs coverage plan under Medicare, White House press secretary Ari Fleischer said.

Fleischer said the separate proposal to give the states money to help indigent people older than 65 buy prescription drugs remains in Bush's budget.

Information from The Associated Press is included in this report.