Price Discrimination

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Prescription Drugs Are More Expensive in Rep. Waxman's Congressional District in California than in Canada, Europe, and Japan

Rep. Waxman released a report that shows dramatic price difference between what an average senior on the Westside of Los Angeles pays for prescription drugs compared to the price paid by seniors in other countries. Said Rep. Waxman, "A grandmother on the Westside has to pay more than twice as much for her drugs as a grandmother in France, in Canada, in Germany, in Italy, and in the United Kingdom. And for some drugs, seniors in Los Angeles are paying over three times more than seniors in other countries. This unconscionable gouging is unacceptable and has to end."

Prescription Drugs Are More Expensive in the 4th Congressional District in Arkansas than in Canada, Europe, and Japan

This report for Rep. Mike Ross of Arkansas is an example of the reports prepared by the Special Investigations Division that compare international drug prices to prices in the United States. It finds that seniors are forced to pay up to twice as much for drugs as consumers in Canada, Europe, and Japan.

Prescription Drug Fairness for Seniors Act

Reps. Tom Allen and Henry Waxman, along with over 100 other members of Congress, introduced the Prescription Drug Fairness for Seniors Act (H.R. 1400). This bill will protect seniors from price discrimination and allow Medicare beneficiaries to purchase drugs at substantially reduced prices. The legislation achieves these goals by allowing pharmacies that serve Medicare beneficiaries to purchase drugs at the low “average foreign price.” A bill similar to H.R. 1400, H.R. 664, was introduced by Reps. Allen, Turner, and Waxman in the 106th Congress.

Loopholes in the Drug Reimportation Bill

Congress enacted legislation as part of the Agriculture Appropriations bill (Pub. L. No. 106-387) that purports to address prescription drug price discrimination by allowing the importation of lower priced foreign drugs. In reality, however, the drug reimportation provisions contain numerous loopholes that will prevent the law from reducing drug prices for seniors and other U.S. customers. One of the loopholes in the reimportation provisions creates a labeling “Catch 22” under which drugs cannot be imported into the United States unless the drug manufacturer consents to the importation by authorizing the importer to use the FDA-approved label. Because of the loopholes in the legislation, former HHS Secretary Donna Shalala determined that the law could not be successfully implemented.

Breast Cancer Drugs Are More Expensive on Long Island than in Foreign Countries

This report for Rep. McCarthy is an example of the reports prepared by the Special Investigations Division that compare breast cancer drug prices in the United States with prices in Canada, the United Kingdom, France, and Italy. It found that breast cancer patients in Long Island pay much more for drugs than consumers in these four industrialized countries.

Pricing of Breast Cancer Drugs on Long Island: Breast Cancer Victims Face Discriminatory Prices

This report for Rep. Carolyn McCarthy of Long Island, New York, is an example of the reports prepared by the Special Investigations Division that compare breast cancer drug prices. It found that breast cancer patients are forced to pay twice as much for lifesaving medicines as drug companies’ favored U.S. customers, such as HMOs and the federal government.

Drug Manufacturer Prices Are Higher for Humans than for Animals

This report for Rep. Tom Allen is an example of the reports prepared by the Special Investigations Division that compare human and animal drug prices. It finds that drug manufacturers charge twice as much for drugs when they are used to treat humans than they charge when the same drugs are used to treat animals.

Drug Companies Profit at the Expense of Older Americans

This report finds that seniors are forced to pay more than twice as much for drugs than drug companies’ favored U.S. customers, such as HMOs and the federal government.

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