BILL NUMBER: S371
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:
Creates a wholesale prescription drug importation program that complies
with federal standards and regulations, generating substantial consumer
savings.
 
SUMMARY OF PROVISIONS:
Section 1: 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 promulgates regulations in consultation with the
State Education Department and reports annually to the legislature.
Section 2: 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 3: Sets the effective date.
 
JUSTIFICATION:
Concern about drug pricing is at an all-time high. Studies show how the
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. Still, 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 federal law, shipments from Canada, for example, will be tested on
a sample basis for purity and potency. Products would be appropriately
labeled for the U.S. market and distributed to retail pharmacies and
other settings included in the program. 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 prod-
uct acquisition cost will be the Canadian price. Pharmacies and other
dispensers will charge the Canadian price without markup, except for
cost-based dispensing fees 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 markup, except for the 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
2019: S5682, Referred to Health
2020: S5682, Referred to Health
2021: S1737, Referred to Health
2022: S1737, Passed Senate
2023: N/A
2024: S604, Passed Senate
Assembly
2019: A7588, Referred to Higher Education
2020: A7588, Referred to Higher Education
2021: A133, Referred to Higher Education
2022: A133, Referred to Higher Education
2023: No Assembly Same As
2024: No Assembly Same As
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect eighteen 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 effective date are authorized to be made and completed on or before
such effective date.

Statutes affected:
S371: 6808 education law