House Bill 715 aims to lower prescription drug costs for Ohioans

COLUMBUS, Ohio - Ohio House Bill 715 (HB 715) made its way to the Ohio House Health Committee for its first hearing on Tuesday. Co-sponsored by Representatives P. Scott Lipps (R-District 62) and Tom Young (R-District 42), the bill was first introduced to the House in August. The bill, if signed into law, would require the State Board of Pharmacy to develop a program for the importation of prescription drugs from Canada.

The bill’s introduction follows a similar bill in Florida signed into law by Gov. Ron DeSantis in June 2019. Citing a section in the 2003 Medicare Modernization Act, President Trump signed an executive order in July 2020, which created the Section 804 Importation Program. The program gives individual states the ability to establish their own Canadian Prescription Drug Importation Program, upon approval from the FDA.

According to the bill summary from the Ohio Legislative Service Commission, the bill will require “the State Board of Pharmacy to contract with a third-party entity to establish and administer the program.” The third-party will be authorized “on behalf of state agencies, to negotiate prices and directly purchase from drug manufacturers any prescription drugs, including insulin and epinephrine.” Additionally, the third-party entity “must have previously assisted one or more other states in developing, establishing or administering a prescription drug importation program.”

In order to answer some of the unfounded narratives that critics may point to in reference to the bill, Young said, “Imported drugs are still held to the same standards of quality assurance as if they were produced in the United States, or imported from another country using criteria that satisfies the FDA safety and effectiveness standards.”

Furthermore, Young stated, “They’ll be coming at us with every single thing they have in the pharmacy community, to defeat any effort to create supply in our country at a cost basis that people can afford, that can save lives.”

In reference to any effects the bill might have on Canadian prescription drug supply, Young testified, “It is important to note that prescriptions are required to either be surplus or produced in excess of what Canadian manufacturers normally make, to avoid negative impact on Canada’s internal supply.”

In a phone call with Young, he gave some context to his testimony: “The program is not designed to decrease the amount of prescription drugs available to the Canadian people, but to create demand, which will increase supply. This will help lower costs for Ohioans.”

 The price tag for HB 715 will cost Ohio taxpayers $2 million — appropriated from the General Revenue Fund — which Young believes is worth it when compared to the cost savings generated for, and benefits experienced by, Ohio consumers.

“This program will allow for great efficiency, a closed supply chain, easier reporting, visibility and accountability, and greater safety,” said Young. “This bill will expand access to affordable, accessible prescription medication to populations across Ohio who are most in need … In Florida, the low estimate of savings is around $150 million.”