Bill to Expand Canadian Prescription Drug Importation Program Clears Committee!

Legislation lowers cost of prescription drugs, expands access to more Coloradans and improves patient outcomes

Denver, CO -- Today, the Senate Health and Human Services Committee approved legislation sponsored by Senator Joann Ginal that would expand the Canadian Prescription Drug Importation Program. The bill, SB21-123, seeks to increase access to prescription drugs for Coloradans at a lower price as health care costs continue to rise throughout the country. 

“The ever-increasing rise of pharmaceutical costs has kept patients across Colorado from accessing the critical medications they need,” said Senator Joann Ginal, D-Fort Collins. “By expanding this program, we have the ability to drive down costs while improving patient outcomes. This bill will bring us a step closer toward addressing barriers that keep patients from getting the care they need and lead us on a pathway to a more equitable, affordable, and accessible system of care for all.” 

Drug prices continue to increase in Colorado and throughout the nation, presenting a great need for this legislation as patients struggle to afford medications. A 2020 analysis of 2018 claims from the Colorado All Payer Claims Database (CO APCD) shows that Colorado spent nearly $4 billion, or 13% of total health care spending ($23 billion), on prescription drugs -- an increase of over $300 million since 2016.

This bill would authorize the Department of Health Care Policy and Financing (HCPF) to expand its current drug importation program to include importation from other countries in addition to Canada, if federal policy allows such an expansion. This bill would ensure Colorado’s readiness to expand opportunities for consumer savings on prescription drugs if federal statute changes to allow importation from additional countries.

Colorado needs to be prepared to move forward when Congress amends federal law to allow for the importation of drugs beyond Canada. HCPF estimates that drugs imported from Canada, on average, are 63% cheaper compared to Colorado prices. If the current Importation Program with Canada expands to other countries, the Department’s initial analysis shows that Colorado could access even lower drug prices.

Moreover, Colorado is the third highest state for growth of our senior population, which almost doubled between 2003 and 2013. The AARP reports that the average annual retail cost in 2017 for widely used prescription drugs that treat chronic conditions reached almost $20,000 per year, nearly 20% higher than the average Social Security retirement benefit ($16,848). If passed, this bill would highly impact Colorado seniors’ ability to access prescription drugs at a price they can afford.

Under the bill, all prescription drugs approved for importation through the Colorado program will be the same as the current FDA-approved versions, which are produced worldwide for the U.S. market today. They will meet federal supply chain laws and U.S. labeling requirements, and be tested for authenticity and degradation.

Currently, a majority of the active pharmaceutical ingredients (APIs) or finished drugs sold in the U.S. are already manufactured overseas. About 80% of active pharmaceutical ingredient manufacturers are located outside of the country and 70% of popular brand name drugs are imported.

Having passed the Senate Health and Human Services Committee, SB21-123 now moves to the Committee of the Whole for consideration. To track the progress of the bill, visit the Colorado General Assembly’s website.