Amidst a potential US tariff on pharmaceuticals, the White House and Florida are pushing for the importation of cheaper Canadian medications to reduce drug costs.
President Trump's executive order directs the Secretary of Health and Human Services to streamline the process for states to import drugs from Canada, with FDA approval. Florida received FDA approval in 2024, aiming for US$180 million in savings.
Florida hasn't yet imported any drugs due to roadblocks from pharmaceutical companies and the Biden administration. Health Canada expressed concerns about potential domestic shortages given that Florida's population is roughly half of Canada's. Experts question the feasibility, noting both countries often source medications from the same manufacturers.
The plan to import drugs from Canada seems to contradict the Trump administration's initiation of a national security investigation that could lead to pharmaceutical tariffs, which would likely increase prices for generic drugs. Around 90% of US prescriptions are generics, mostly from India and China.
The US has significantly higher drug prices than Canada, partially attributed to pharmacy benefit managers (PBMs). Recent legal actions against PBMs in both the US and Canada are aimed at addressing the issue of inflated drug prices.
Multiple states are pushing for legislation prohibiting PBMs from owning pharmacies, highlighting bipartisan concern.
Trump's executive order also included a directive to improve transparency on PBM fees paid by employer health plans.