BILL NUMBER: S9838
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the public health law and the education law, in relation
to creating a wholesale prescription drug importation program
 
PURPOSE:
To create a state program to import prescription drugs from other coun-
tries at lower cost.
 
SUMMARY OF PROVISIONS:
Section one adds a new section 280-d to the Public Health Law to direct
the Commissioner of Health, in consultation with the Commissioner of
Education, to design a wholesale prescription drug importation program
for the wholesale importation of prescription drugs from Canada. The
prescription drugs imported under the program would be restricted to
those that meet certain standards, including drugs that are expected to
generate substantial savings for consumers in NY.
Under the bill, the Commissioner of Health would seek all necessary
federal certifications and/or approvals for the program. The Department
of Health would be authorized to impose annual fees on approved whole-
salers to support the operation of the program. Additionally, the
Department of Health would promulgate regulations in consultation with
the State Education Department and report annually to the legislature.
Section two adds a new subdivision 10 to section 6808 of the Education
Law to prohibit a wholesaler from participating in the wholesale drug
importation program without prior application and approval by the State
Education Department
Section three sets forth the effective date.
 
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:
New bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect 18 months after it shall have become a law.
Effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date are authorized to be made and completed on or before such
effective date.

Statutes affected:
S9838: 6808 education law