March 28, 2024
Archive

Mass. city buying Rx drugs from Canada

SPRINGFIELD, Mass. – This cash-strapped New England city began buying prescription drugs in Canada this month for some city workers and retirees in hopes of saving millions of dollars.

“It boggles the mind that we can purchase the exact same drugs for 20 percent to 80 percent less in Canada,” Mayor Michael Albano said Monday. “As far as I am concerned, it would be irresponsible not to take advantage of the savings.”

Americans seeking relief from high prescription drug prices have increasingly turned to pharmacies in Canada, where the cost of prescription drugs is drastically cheaper, because of government controls and a favorable exchange rate.

Albano and William Hubbard, associate commissioner for the U.S. Food and Drug Administration, said they didn’t know of any other U.S. city that has taken the step.

“We strongly discourage it,” Hubbard said. “People are taking real risks. You are on your own in assuring the safety of the drugs. The Canadian government says it’s not part of its responsibility to ensure the safety of drugs being sent to the U.S.”

However, Hubbard said he could understand why people are looking to Canada. “The cost-savings are there,” he said.

Springfield, a city of 152,000 people, is self-insured and could save up to $4 million depending on how many of its 9,000 workers and retirees sign up for the voluntary option, Albano said. The savings then could be used to restore other city services, he said.

In February, the city’s budget troubles prompted Albano to lay off 320 workers, including 76 police officers and 53 firefighters. Springfield currently spends about $9 million on prescription drugs, and its health care costs have nearly doubled in the past seven years.

“With the economy continuing to stagnate we don’t have other options,” Albano said.

About 200 retirees and workers, including Albano, have signed up for the program since July 1. The mayor, who has a diabetic son, said the city already has saved $237 on his prescriptions, and could save about $853 annually.

“I wouldn’t have my family use it if I didn’t feel these drugs were safe and effective,” said Albano.

Springfield also has prescription contracts with local pharmacies and U.S. mail-order pharmacies. The Canadian purchase plan operates in much the same way as the mail-order services. Instead of ordering a three-month supply of prescription drugs from a U.S. mail-order house, city workers and retirees get their drugs from Windsor, Ontario-based CanaRx Services Inc.

“It’s a bad way to go,” said pharmacist Nicholas E. Creanza of Campus Pharmacy and Medical Services in Springfield, whose customers include city workers. “I don’t think we are safeguarding our community by going outside the country.”

Creanza said the city should seek alternatives, including negotiating lower prices within the community, to control its drug costs.

The FDA has issued warnings, but so far has not cracked down on individuals importing U.S.-made drugs for personal use.

Hubbard said the FDA would review the Springfield program. “Clearly, they didn’t consult with us first. If they had we would have told them they were taking a chance with their constituents,” he said.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

You may also like