House, Senate budgeters agree to drug importation deal

WASHINGTON (AP) -- House and Senate budget negotiators approved a plan Thursday to allow drug distributors to import U.S.-made drugs sold cheaper abroad. Democrats denounced the measure as a watered-down "sham."

"I think this is all a charade," declared Sen. Tom Harkin, D-Iowa. The measure "is not going to do anything to lower the costs of prescription drugs."

Added Rep. David Obey, D-Wisconsin, "The underlying bill is so weak it really doesn't matter."

The measure, passed by a voice vote, was attached to the agriculture spending bill which also passed the conference committee. That bill now goes before the full House and Senate.

Still, it was a highly partisan ending for a bill that began with Democratic and Republican support as lawmakers grappled to find some health care measure to pass before adjourning.

Congress had already been unable to reach agreements on a prescription drug benefit and a patients' bill of rights. A bipartisan group of lawmakers proposed the drug importation measure, which quickly gained the backing of the White House.

But the atmosphere surrounding negotiations for the drug importation proposal quickly deteriorated. By late Wednesday, Republicans declared they had reached an agreement and Democrats were denouncing the process.

"I'm sorry it has become a political football," Rep. Jo Ann Emerson, R-Missouri, said during the hearing.

It is unclear what the White House position will be on the newly passed language. White House senior health adviser Chris Jennings commented a day earlier that the administration had yet to see the Republican language. "We are highly skeptical," Jennings said then.

A White House official, speaking on condition of anonymity, reiterated that position Thursday night, saying the administration was reviewing the language but had serious concerns.

The measure is meant to lower the cost of drugs in the United States. Supporters have argued that drugs manufactured in the United States are cheaper in Canada, Mexico and other foreign countries.

Under the measure, the Secretary of Health and Human Services must ensure safeguards are in place to protect consumers, including a requirement that wholesalers submit records on the type of drugs imported and where they are shipped. Lawmakers included $23 million so that the Food and Drug Administration can implement the deal.

But Democrats said the language approved by budget-writers Thursday essentially guts the bill and favors big drug companies. Republicans said consumers would benefit and called it a good first step.

"This bill does everything it can to ... make sure the drugs are safe," said Rep. Jack Kingston, R-Georgia.

Democrats offered amendments to close what they called a loophole that would allow the drug industry to manipulate contracts and inflate the cost of products. They also tried to delete a provision that limits the countries from which drugs could be imported. Mexico was not included, a country Democrats wanted to add.

The program would expire in five years, another provision that Democrats tried to delete.

Rep. Bernie Sanders, a Vermont independent who authored a House version of the bill, said after the vote, "The pharmaceutical industry which has spent $40 million in opposition to this legislation ... got a good return on their investment tonight."

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