Kaiser Daily Health Policy Report

Thursday, August 19, 2004

Prescription Drugs

      Irish health officials on Wednesday said that they were unaware of a new program announced on Tuesday by Illinois Gov. Rod Blagojevich (D) under which state residents can purchase lower-cost prescription drugs from Ireland, as well as Canada and the United Kingdom, a practice that would violate Irish law, the Chicago Tribune reports (Flynn, Chicago Tribune, 8/19). Blagojevich said that the program, which will become the first in the United States to include medications from Europe, must involve non-Canadian pharmacies and wholesalers because at least five large pharmaceutical companies have begun to limit supplies to Canadian pharmacies that sell prescription drugs to U.S. residents. The program, which Illinois will make accessible through a Web site and 24-hour toll-free telephone number, will allow state residents to refill prescriptions for 100 of the most common prescription drugs used to treat chronic illnesses; the program will exclude pain medications, treatments such as insulin that require refrigeration during shipment and generic drugs. Under the program, Illinois will contract with a Canadian pharmacy benefit manager to form a clearinghouse of more than 35 pharmacies and wholesalers that state officials said will offer medications at discounts of 25% to 50%. Non-Illinois residents will not have access to the program. In the future, Illinois plans to waive copayments for state employees and retirees who purchase medications through the program. Illinois officials estimate that the program in the future could save the state as much as $50 million annually. According to Blagojevich, the program could save $1.9 billion in the first year if all Illinois residents participated. Illinois plans to launch the program within the next month (Kaiser Daily Health Policy Report, 8/18).

Irish Health Officials Never Contacted
Officials for the Irish Department of Health and Children said that they could not comment on the Illinois program because state officials never contacted them to discuss the proposal. Siobhan Molloy, a spokesperson for the Irish Medicines Board, the Irish equivalent of FDA, said, "It just seems unusual, very unusual. We haven't come across it before. We don't know the details at this point." Blagojevich spokesperson Scott McKibbin said that earlier this year a special envoy from Illinois met with European Union officials and developed a plan to avoid the direct purchase of prescription drugs from Ireland. Under the plan, Illinois would purchase prescription drugs from Irish wholesalers through pharmacies in the United Kingdom, which allows the sale of medications by mail. Irish health officials oppose the sale of prescription drugs by mail because of concerns similar to those voiced by FDA, such as the "possibility of faulty labeling or improper ingredients," the Tribune reports. Representatives for the Irish Pharmaceutical Healthcare Association called the Illinois program "totally unworkable and impractical" and raised concerns about the effect of the proposal on the Irish prescription drug supply. Anne Nolan, CEO of IPHA, said, "It probably sounds fantastic and it probably sounds as if Irish pharmacists and the Irish pharmaceutical industry here would be delighted with this. We wouldn't. It would cause enormous problems for us to meet our local obligations here." She added, "It might have been better if [Blagojevich] had spoken to us first."

Illinois Reaction
Aides to Blagojevich said that the Illinois program "work[s] around" Ireland's prohibition of mail-order drugs and "downplayed concerns about the possibility of Illinois depleting prescription drug supplies in Ireland," the Tribune reports. Blagojevich spokesperson Abby Ottenhoff said that the program would only take advantage of the free trade system among EU nations. According to McKibbin, "We are not going to dispense from Ireland. We have relationships with Irish wholesalers, and they will provide product to pharmacies in the U.K." (Flynn, Chicago Tribune, 8/19).

Chicago Tribune Editorial
Blagojevich's "impatience" to launch a program to reduce prescription drug costs for Illinois residents is "understandable," but the state "should not be in the business of helping people break the law, even if its elected officials disagree with that law," a Tribune editorial states. According to the editorial, the program would lead to charges of "political posturing" by Blagojevich and leave the state vulnerable to "legal challenges and possible liability questions." Although Illinois and other states have experienced "real frustration with the slow pace of change," Congress likely will pass legislation to legalize prescription drug reimportation in the near future, the editorial states. The editorial concludes that Blagojevich "must be patient" and "should not let his frustration with the slow pace of reform lead him to help people commit another crime" (Chicago Tribune, 8/19).