Hearing of Special Committee on Aging - Internet Pharmacy and Drug Importation: Exploring Risks and Benefits

Hearing of Special Committee on Aging - Internet Pharmacy and Drug Importation: Exploring Risks and Benefits

Senator Kohl. I thank you, Mr. Chairman, and I want to congratulate you on your role as chairman of this committee.
You have been a leader on issues that affect our nation's senior citizens. We have worked together in the past and you
have always brought a thoughtful, practical approach to your work that will serve you well as you steer this committee. The
committee is clearly in good hands and I am most happy to have the opportunity to work with you.

The Chairman. Thank you.

Senator Kohl. This first hearing is on a topic that is critical for many of our nation's senior citizens. Prescription
drugs have become so expensive here in America that many seniors cannot afford to buy the medicines they need. This is a
system in dire need of reform.

Today, American taxpayers foot the bill for most all of the research on the drugs we are talking about today. At the same
time, Americans are charged the highest prices in the world for those drugs, which are sold in other countries for a fraction
of the price.

Faced with the choice of buying the medicines they need to keep them healthy or paying for food and rent, many seniors are turning to Canada and the Internet to find drugs at more reasonable prices. Last August, I met with seniors from
Wisconsin who are getting their medicines from Canada. Mary Ellen Hayes from De Pere, WI, told me how she was able to cut
her $582 drug bill to $370, and Carol Johnson of Eau Claire saves 30 to 50 percent on most of her prescriptions by going
through Canada.

Many States and local communities are doing the same thing. The State of Wisconsin launched a website last February that
connects Wisconsin consumers with three approved Canadian pharmacies. So far, the website has already had nearly 1.4
million hits. Today, we will hear from Mary Jorgensen from the Coalition of Wisconsin Aging Groups about their efforts to help
their members find low-cost drugs, often through Canadian mail order and Internet pharmacies.

The programs in operation today are based on Canadian and Internet pharmacies that have been inspected and certified to
be legitimate, but there are also many unregulated sites in operation today. As long as the Federal Government refuses to
put a sound regulatory system in place for drug importation, then we are leaving Americans at risk of falling prey to
unscrupulous people who might well try to taint the drug supply.

This is a legitimate safety issue and I believe that we can and must address it. Several bills have already been introduced
to create stronger safety standards, but as Congress continues to debate this issue, the reality is that drug importation is
already happening, so it is time for the administration to stop defending the status quo, issuing reports and setting up new
roadblocks, and start working with Congress to give Americans the price relief and safety assurances they need and deserve.
Again, I want to thank you, Mr. Chairman, for holding this hearing. I know we share some of the same views on this topic
and I look forward to working with you to move this important issue forward.

BREAK IN TRANSCRIPT

Senator Kohl. Thank you. I will just make one observation and ask for your reaction.

Dr. Carmona. Yes, sir.

Senator Kohl. I think the American people are rather perplexed with this whole issue for many reasons, but the thing
that comes to mind with me is that we are importing and ingesting food stuffs all over the country and have been for
many decades, whether it is fruits and vegetables, poultry, beef. Enormous amounts of things that are brought into this
country under standards of inspection and as much safety as we can impose on the system are bought and put into our systems every day and we have managed to set up a process that, for the most part, works.

Why would pharmaceuticals fall totally outside of that ability that we have to control other imports?

Dr. Carmona. Well, sir, I don't know that they fall totally outside. It is a slightly different market if you are deciding
to eat a certain food that may be imported from another country versus a medication that is going to be life-saving or prevent
a disease.

However, philosophically, I think the approach is the same, and as we pointed out in the task force report, there can be
systems set up for commercial importation that would allow that to occur. We believe that they would have to be much more
stringent than just usual food products that are coming in and out that we are mostly looking at for the purpose of safety and
were they refrigerated and processed appropriately so that the American public is safe of any disease. We have the added
threat today of the new threats upon us of terrorism and the fact that that presents a new challenge to us.

But notwithstanding that, we do agree that there are options to set up systems that can be well-defined and considered a closed system to ensure the safety of the American public. We also add, and we had recommended to Congress that if
you consider such a system of importation that is well defined, prospectively determined, and regulated by FDA guidelines, that
you consider the economic implications both short-term and long-term, and we had very robust discussions about that with
world economic leaders to find out just what would be the implications of such.

But I am in agreement with you. It can be done.

Senator Kohl. Thank you. Thank you, Mr. Chairman.

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