Recently, the Biden administration’s decision to permit Florida to import prescription medications from Canada at lower prices has caught the attention of several other states, including Colorado, which are now investigating similar policies.
On January 5, the Food and Drug Administration (FDA) gave Florida the green light to proceed with its import plan, making it the first state to receive federal approval for the bulk importation of prescription drugs from another country.
Colorado views Florida’s approval as a hopeful development towards accessing Canada’s more economical drug prices. According to updates from the Department of Health Care Policy and Financing (HCPF), Colorado might see its importation initiative operational by late 2024, pending the federal acceptance of the state’s revised submission.
In collaboration with a team of actuaries, HCPF conducted a comprehensive analysis of thousands of drugs eligible for import. They pinpointed 24 brand-name and specialty drugs that could provide substantial savings within the Program. The review identified medications for conditions such as blood clots, cystic fibrosis, respiratory diseases like COPD, various cancers, type 2 diabetes, HIV, psoriatic arthritis, and rheumatoid arthritis.
In response to the FDA’s feedback, the program now includes a more streamlined list of drugs for import compared to previous applications. Nevertheless, the addition of these drugs will depend on successful negotiations with manufacturers to finalize supply agreements.
Texas is also advancing its efforts, spurred by Florida’s success. The state’s health agency believes that Florida’s approval will aid in establishing Texas’ own wholesale prescription drug importation program.
Meanwhile, Vermont, a trailblazer in this domain with legislation dating back to 2018, remains in dialogue with the FDA. However, under the Trump administration, the FDA deemed Vermont’s application incomplete due to 2020 regulations. Given its smaller size and purchasing power, Vermont might explore partnering with another state to progress its importation program.
On a less positive note, the FDA rejected New Hampshire’s application in 2022 because the state could not secure a Canadian wholesaler to supply affordable medications.
As political pressure increases on state governors to explore drug importation initiatives, more states are likely to consider Canadian import programs. However, obtaining FDA approval is merely the initial phase of a comprehensive regulatory process. Additional drug-specific data must be submitted for further FDA review and approval.