Signed! Bill to Expand Canadian Prescription Drug Importation Program Becomes Law

New law works to lower the cost of prescription drugs, expand access to affordable medications & improve patient outcomes

Denver, CO – Today, Governor Polis signed a bipartisan bill into law that would expand the Canadian Prescription Drug Importation Program. SB21-123, sponsored by Senator Joann Ginal and Representative Karen McCormick, seeks to increase access to affordable prescription drugs for Coloradans, as health care costs continue to rise throughout the country. 

“As pharmaceutical costs continue to skyrocket, it is becoming harder and harder for Coloradans to afford the medications they need to maintain their health,” said Senator Joann Ginal, D-Fort Collins. “No one should be forced to ration or forego medications all together simply because they are too expensive. This law will pave the way for a more equitable and affordable healthcare system that prioritizes the well-being of patients over profit.” 

“Even the most successful drug on the market becomes zero percent effective when a patient can’t afford it,” said Rep. Karen McCormick, D-Longmont. “This meaningful proposal will help us meet our goal of lowering health care costs for all Coloradans by ensuring that we are ready to implement an innovative program to implement safe and affordable drug imports. Now we need the federal government to act.” 

Drug prices continue to increase in Colorado and throughout the nation, resulting in many patients struggling 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.

HCPF estimates that drugs imported from Canada are on average, 63% cheaper compared to Colorado prices. This new law authorizes the Department of Health Care Policy and Financing (HCPF) to expand its current drug importation program to include other countries in addition to Canada – ensuring Colorado’s readiness to increase opportunities for consumer savings on prescription drugs if and when the federal government approves such a program.

Under the law, 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.