The U.S. Department of Health and Human Services formally denied Thursday a petition from Gov. Rod Blagojevich seeking authority for Illinois to start a test program to buy prescription drugs from Canada.

The decision is the latest development in the fight Blagojevich and others have waged against the Bush administration over prescription-drug importation. The governor and others, including Rep. Rahm Emanuel (D-Ill.), argue that allowing legal importation from Canada, where price controls keep drug prices down, will increase pressure on drug manufacturers and eventually lower the cost of pharmaceuticals.

In denying the appeal, officials with the Food and Drug Administration reiterated their concerns that the agency opposes importation from Canada because the FDA cannot guarantee the safety of medicine coming from north of the border. FDA officials say drugs from Canada carry numerous potential risks, including false labeling and incorrect ingredients.

"Our review indicates that such state pilot projects are not authorized under current law and present added safety concerns," Lester Crawford, acting commissioner of the FDA, wrote in a four-page letter to the governor's office.

Blagojevich spokeswoman Abby Ottenhoff said the governor's office had not yet seen the letter from Crawford or an accompanying one from the head of Medicare, Mark McClellan, but said the decision was "not surprising."

The Bush "administration has not been very concerned about finding honest ways of helping people afford their prescription drugs," she said. "Fortunately the mood in the Capitol is changing, and it looks like Congress may take action on legislation that would help Americans import affordable drugs and Illinois will continue its efforts ... to bring about long-term change in our prescription drug system."

Ottenhoff said the governor is still hoping for federal approval allowing importation as the result of a petition drive the governor's office led. Blagojevich petitioned Health and Human Services Secretary Tommy Thompson following the signing of the new Medicare bill, which allows the secretary to waive importing restrictions.

But Crawford said the legislation that such waivers be national in scope.

"In essence, the secretary must certify that unapproved drugs can or cannot be safely imported for all Americans, not just those people in one state or region of the country," Crawford wrote.

The governor said the pilot project to purchase Canadian prescriptions for state employees and retirees would save the state $91 million. Blagojevich also has looked for relief from Europe, where medicine is also cheaper than in the United States due to stricter regulation. Last month, he sent emissaries to Europe to determine how much the state could save by importing drugs from there. Their report has not yet been made public.

In addition to Crawford's letter, McClellan also wrote Blagojevich, telling the governor that his office has worked with others to help decrease costs on medicine.

Recently, the federal government approved a joint drug-buying program among five states--Michigan, Vermont, New Hampshire, Nevada and Alaska--allowing states to adopt a list of drugs that doctors should use when treating Medicaid patients. States then bargain for discounts on the drugs. Other states have been invited to join the program, but Illinois has chosen not to participate.