Clinton Kills Congressional Plan for Low-Cost Prescription Imports

January 2001

On December 26, 2000, President Clinton, after consultation with Donna Shalala, Secretary of Health and Human Services, terminated a Congressional program created to allow less expensive prescription imports to enter the country. The drug import plan was included in the annual spending bill for the Agriculture Department and the Food and Drug Administration. A provision in the bill permitted implementation of the drug import program only if Shalala could demonstrate to Congress that the implementation would "pose no additional risk to the public’s health and safety and [would] result in a significant reduction in the cost of covered products to the American consumer." The President had originally supported the plan as it was stated in Senate legislation, but after the bill left the House the President stated that there were too many "loopholes" in the plan. Both President Clinton and Secretary Shalala believe that the program presents unnecessary health risks to the public and will not save American consumers money in the long run. The problem remains how best to strike a balance between reducing drug costs in the United States and protecting public health and safety. The sponsors of this program have indicated a desire to amend the law during the next Congress.