Taxpayers Network Study Shows Importing Foreign Prescription Drugs May Not Deliver Savings

Over 10 million Americans are purchasing $1.4 billion of prescription drugs from foreign sources with the intent of saving money, even though the practice is illegal.  Many state and local governments are also looking for savings through the purchase of foreign pharmaceuticals.  The problem of pharmaceutical affordability has led to calls by many government leaders to eliminate drug importation restrictions creating one of the most heated political debates in the country.

The Taxpayers Netork study found that:

• There are numerous opportunities for savings by individuals on their prescription drug costs through options and programs in the U.S.  More specifically, this year seniors can receive significant discounts as part of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.
• Cost savings to federal, state and local governments from the purchase of pharmaceuticals from foreign sources is grossly exaggerated.  Other liability risks may make such an option cost prohibitive.
• The assumption that all prescription drugs purchased from Canada or other foreign sources are cheaper than buying them in the U.S. is false. 

If you would like more information about this issue, please review the policy section on Drug Reimportation.