Portland to offer cheaper Rx drugs

PORTLAND – The city will begin offering its employees the option of buying prescription drugs through a Canadian company the federal government is investigating, officials said Thursday.

Ontario-based CanaRx works with cities to sell Americans cheaper medications, despite the U.S. Food and Drug Administration’s efforts to prevent the company from providing prescriptions. Portland joins about 35 other U.S. cities and counties.

“This program circumvents the safety mechanism that Congress set up almost 50 years ago. And we don’t know anything about these products coming in,” said Tom McGinnis, director of pharmacy affairs for the FDA. “It kind of puts the consumer in a buyer beware kind of situation.”

Last year, the FDA won court backing to shut down CanaRx’s U.S. operations, forcing the company to operate from Canada. The drug administration also asked Canadian authorities to stop the company from selling to American consumers.

Springfield, Mass., was the first U.S. city to work with CanaRx. Similar programs also are in place or being considered by cities and counties in Vermont, Indiana, New York and Connecticut.

So far, the FDA has not gone after consumers who buy drugs from Canadian pharmacies, though it says it cannot guarantee the safety of drugs bought abroad or even that imported drugs come from Canada. Still, Portland officials said they would accommodate about 2,800 employees who choose to buy medications abroad.

“The importation of Canadian pharmaceuticals to the U.S. right now technically is illegal,” said Gerald Cayer, director of the city’s Health & Human Services Department. “But the city is not administering the program. If people want to get their pharmacy needs met through a Canadian option, we’re not passing judgment.”

Brand-name drugs can cost half the U.S. price because of Canadian government price controls. The medications Portland officials will pay for under the plan are only for long-term ailments such as high blood pressure or arthritis.

The city’s plan will not pay for narcotic painkillers.

The FDA has cited poor quality in its concern over the safety of drugs purchased in Canada. The government has intercepted sugar pills, controlled substances and animal drugs sold for human use in shipments from Canada.

CanaRx President G. Anthony Howard said counterfeit medications have never been sent from his firm.

“I do not believe the FDA has ever documented a single sugar pill, a controlled substance, or a bogus medication coming from CanaRx,” Howard said. “Big brother can buy from little sister, and it will be OK.”

Portland Mayor Nathan Smith said the biggest incentive to buy drugs in Canada is cost. The program through CanaRx could save the city at least $100,000, he said. Even with a co-payment, the cost of prescription medications can put a considerable strain on the city’s budget.

“The cost of prescription drugs in the city’s health plan has increased 22 percent per year over several years,” Smith said. “This presents an opportunity for significant savings.”