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Update on Vermont’s Efforts to Implement Wholesale Importation of Prescription Drugs from Canada 

Looking down on a large group of prescription medicine bottles. The bottles all have their caps off and have a variety of drugs, tablets and capsules. Horizontal format filling the frame.

The COVID-19 pandemic has impacted many state policy efforts over the last year, with state agencies across the U.S. re-deploying their staff towards tracing and vaccination work. This has undoubtedly contributed to less momentum on drug importation efforts at the state and federal level; however, with the new administration in office and new leadership in place at the Department of Health and Human Services (HHS), there will likely be attempts to move these policies forward soon.

This month, Health Policy News reviews and provides an update on the progress of one such drug importation policy—Vermont’s Act 133, “An Act Relating to the Wholesale Importation of Prescription Drugs into Vermont”—as part of our ongoing series highlighting state prescription drug cost control efforts. We have been following the development of the state’s drug importation program for the last few years. Our overview below includes the history of its establishment, as well as subsequent efforts on behalf of the state to study, design and receive federal approval for the program.

Vermont Program History

Vermont has achieved the following program milestones since 2018:

December 2018:

The Agency of Human Services (AHS), with assistance from the National Academy for State Health Policy (NASHP), submitted to the legislature the proposed program design for the “Canadian Rx Drug Import Supply Program.”

October 2019:

Vermont submitted a concept paper to the Office of Management and Budget, further detailing how the proposed program will satisfy the federal Food, Drug, and Cosmetic Act (FD&C Act) cost-saving and safety requirements.

January 2020:

AHS provided an update to the House Committee on Health Care on prescription drug cost control efforts at both the state and federal level, which also outlined the next steps  for Vermont’s importation program. These included:

Barriers to Implementation

September 2020:

The FDA issued a final rule entitled, “Importation of Prescription Drugs” to implement Section 804(b) through (h) of the FD&C Act.

Next Steps

While Vermont’s initial program design has been submitted to HHS, the lawsuit challenging the final importation rule continues. Also ongoing is collaboration at the state and federal level with Canada to ensure the importation programs target high-cost drugs without affecting Canadian residents’ access to medications.

As always, NASHP is working closely with Vermont and other states seeking to implement importation programs, in addition to tracking the progress of prescription drug cost control efforts across the country.

During his campaign, President Biden indicated support for drug importation, but we have yet to see any action from the new administration or HHS on this topic. Given that new HHS leadership was recently brought on board, we may see movement on this topic in the coming months. The administration was granted an extension to reply to the PhRMA complaint on March 24, 2021, with HHS due to file an answer by May 28th, 2021. Health Policy News will continue to follow developments on this topic—including the Biden administration’s response  to the complaint and case resolution, which could determine the outcome of all state efforts towards wholesale drug importation.

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