Vermont Governor Phil Scott signed a bill Wednesday that sets up a mechanism to allow prescription drugs to be imported to the state from Canada. But such a program requires federal approval, and that’s up in the air.
When Governor Scott signed S.175, Vermont became the first state to create a program to import cheaper prescription drugs from Canada. The Pharmaceutical Research and Manufacturers of America, a trade group for drug makers, has argued such plans threaten people's health because drug quality cannot be assured.
But Scott said he's confident the program has safeguards and will save taxpayers money. “I’m in favor of doing whatever we can to reduce the cost on Vermonters. We’re going to do our best to make sure that it ah the Agency of Services does their due diligence in trying to accomplish that. Not sure what the outcome’s going to be but we’ll do the best we can. Again our Agency of Human Services will be working hand in hand with others to make sure that it is safe.”
Vermont House Health Care Committee Chair Bill Lippert says the bill allows the state to apply to the federal government for authorization to create a Vermont wholesaler that would then work with Canadian prescription drug wholesalers to import less expensive Canadian drugs. “If we are able to do this successfully the savings to Vermont could be in the millions of dollars. And we’re a small state. We recognize that there are barriers to overcome to taking the next step. But the fact that the Vermont House and Senate have voted overwhelmingly to support this and that our Republican governor has signed it into law is in fact I think groundbreaking and will allow us to take the next step to try to actualize savings for Vermonters.”
The primary barrier is federal authorization. In a speech this week regarding President Trump’s Drug Pricing Blueprint, Health and Human Services Secretary Alex Azar called plans to import prescription drugs from Canada a "gimmick."
Vermont will work with the National Academy for State Health Policy to implement the program. Executive Director Trish Riley notes that while nine states have considered such bills, Vermont is the trailblazer by enacting the measure. “This is the first state in the nation to enact a wholesale importation proposal. This wholesale proposal is an important one because it both assures savings for certain high cost drugs and safety to make sure that the drugs brought in from a wholesaler in Canada to a wholesaler in Vermont meet all the terms and conditions of a drug that would be sold in the United States.”
The bill passed unanimously in the Vermont Senate and was approved 141-2 in the House.
Audio of Governor Scott is courtesy of Vermont Digger.
