January 10, 2017

Dear Senator,

As you consider S.Con.Res. 3, the concurrent resolution that will provide reconciliation instructions to begin the process of repealing the Patient Protection and Affordable Care Act (ACA), better known as Obamacare, you will be asked to consider numerous amendments.  On behalf of the more than 1.2 million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I ask that you vote against any amendments that would allow drug importation and/or implement pharmaceutical price controls.

Government price controls cause market disruption and lead to shortages or excesses.  Contrary to popular belief, importing drugs from countries such as Canada, which utilizes price controls, is not a “free market.”  Importing another country’s drugs because the prices are lower is simply importing that country’s price controls.

Even worse, allowing drug importation would be dangerous for patients.  It would encourage corrupt, fly-by-night businesses to manufacture counterfeit drugs and sell them to unsuspecting Americans. 

While the Food and Drug Administration (FDA) does allow some importation of drugs for personal use in very special circumstances, the agency has long expressed anxiety about drug importation in general.  Some drugs sold overseas have different formulations than drugs sold in the U.S.  The FDA has stated it cannot “assure the authenticity, safety, or effectiveness of drugs from foreign countries.”

Finally, it is highly unlikely any pharmaceutical company will ship more drugs to a country, such as Canada, than its population requires.  It is also unlikely that Canadian pharmacies would send large quantities of their drugs to the United States without increasing prices.

It is understandable to be concerned about high drug prices, but competition, not price controls, is the best way to solve this problem.

Taxpayers and patients would be better served if Congress makes sure the FDA quickly adopts many of the measures that are included in the 21st Century Cures Act, which will help to speed up clinical trials, thus bringing more innovative drugs to the market.  The agency should also reduce the backlog of generic drug approvals, now standing at about 2,200, and shorten median generic drug approval timelines to 10 months or less.

All votes on S.Con.Res. 3 will be among those considered for CCAGW’s 2017 Congressional Ratings.

Sincerely,

Tom Schatz
President, CCAGW