Texas legislature considering buying prescription drugs from Canada; move could save the state $898 million

• Concerned about the impact of rising drug costs on a tight state budget, the Legislature's financial arm is recommending that officials study the possibility of importing prescription drugs from Canada or another foreign country.
• State taxpayers, public employees and beneficiaries of public assistance programs could save as much as $898 million in drug costs over the next two years if the state had an import option, the Legislative Budget Board estimates.
• The 2006-07 LBB budget, which serves as the starting point in lawmakers' budgetary deliberations, recommends that the Employees Retirement System study the cost-effectiveness, safety and feasibility of importing drugs for use in state programs.
• A recent California study found that Canadian prescription drugs cost 40 percent less than in the United States and about 1 million Americans already buy drugs from Canadian pharmacies.
• The U.S. pharmaceutical industry says because Canada has price controls, the American consumer is picking up an unfair share of research and development costs in its prices.
• Federal law prohibits large-scale importation of prescription drugs from foreign countries, but the LBB noted that several bills are pending in Congress to permit drug imports on a commercial scale.
• The Food and Drug Administration allows American citizens with a valid U.S. prescription to import a 90-day supply of drugs for personal use.
• State government, its employees participating in state health plans and beneficiaries of public health programs will spend more than $9.2 billion on prescription drugs during the 2006-07 budget period, the LBB estimated.
• State Rep. Scott Hochberg, D-Houston, already has filed a bill that would let Texas consumers order prescriptions in limited quantities from Canadian pharmacies.
• "My concern is making sure we are buying safe drugs," he said.