BILL NUMBER: S604
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the public health law, in relation to creating a whole-
sale prescription drug importation program
 
PURPOSE:
To create a state program to import prescription drugs from other coun-
tries at lower cost.
 
SUMMARY OF PROVISIONS:
The Commissioner, of Health will seek federal certification for a
program under which an approved wholesaler may import drugs that meet
U.S. Food and Drug Administration standards from only suppliers who are
regulated and authorized under the laws of their country for distrib-
ution and sale only in New York.
The operation of the program will be funded by annual fees paid by the
authorized wholesaler. The Commissioner will make regulations to require
and authorized wholesaler application process, reporting and audits;
collaborate with the Attorney General to combat fraud; seek all required
federal approvals for participation including those required for the
340-B program; and report annually to the legislature.
 
JUSTIFICATION:
Concern about drug pricing is at an all-time high. Studies show how U.S.
consumers pay the highest prices in the world for life-saving and
enhancing drug treatments. The prices we pay may fund the research and
development that benefits the entire world but those same prices make
treatment options unavailable here at home if patients cannot afford
their medicines or public programs cannot finance expensive treatments
for everyone in need. Drug importation is high on the list of solutions
the public wants to pursue.
Federal law allows the Secretary of Health and Human Services (HHS) to
certify programs for personal and wholesale importation from countries
such as Canada if consumer safety is on par with the U.S. drug supply
chain system and significant consumer cost savings are realized.
Under the federal law, shipments from Canada, for example, will be test-
ed on a sample basis for purity and potency and products would be
labeled properly for the U.S. market and distributed to retail pharma-
cies and other settings included in the program. Just as in the regular
commercial market, retail pharmacies and other dispensing settings order
and pay for products, and administrative costs set by the Commissioner.
The product acquisition cost will be the Canadian price. Pharmacies and
other dispensers will charge the Canadian price without mark-up, except
for cost-based dispensing fee, for uninsured people or people in their
deductible period. Health plans and other payers will pay dispensers for
the product at the Canadian price without mark-up except for cost-based
dispensing fee.
Medical care is a fundamental fact of life at some point or another, but
the burden of paying for that care should not, on its own, be the death
of us.
 
LEGISLATIVE HISTORY:
Senate
2020 - S5682, Referred to Health
2021-2022- 51737, Passed Senate Assembly
2020 - A7588 Referred to Higher Education
2021-2022- A133, Referred to Higher Education
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.