State Auditor Crit Luallen Testifies See the audit report for Full Details See the Power Point Presentation For Further Details |
Crit Luallen |
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(Frankfort - January 26, 2005)
State Auditor Crit Luallen testified before the House Health and Welfare Committee about the Auditor’s Office Report that documented a potential of over $70 million in savings for state government from the reimportation of pharmaceuticals. Drug reimportation is the term used to describe pharmaceuticals that are brought back into the United States at the lower cost they garner in other countries.
The report outlines a “detailed analysis that shows, through the reimportation of drugs, Kentucky state government could save over $36 million a year in public employee health insurance and over $37 million a year in Medicaid. This would bring the total potential savings to over $70 million annually for state government. In addition, public employees, including teachers could see savings associated with co – payments of nearly $34 million.” Luallen said. Luallen added “on average drug costs are 40% less in Canada as compared with the U.S. However, the price differential can range from 30% to 80% less on specific drugs.” The testimony came before Chairman Tom Burch’s House Health and Welfare Committee and was in support of House Bill 163. Senator Denise Harper – Angel, who has a companion bill in the State Senate. Bill Harned of the American Association of Retired Persons also testified on behalf of the House bill that is sponsored by Chairman Burch. The bill, which passed out of committee, would begin the steps required by the federal government to import cheaper pharmaceuticals from other countries. Auditor Luallen pointed out how the bill under review would protect the role of Kentucky pharmacists, allowing them to obtain prescription drugs from foreign pharmacies, distributors, and wholesalers and then sell them directly to consumers. In addition, the Auditor testified that drug companies currently are allowed to import and reimport drugs but consumers are not allowed to do so. Luallen testified, “The train is leaving and Kentucky, especially in the midst of a health care crisis, cannot afford to miss it. At a time of increasing financial strain upon our families, from the rise in health care to gas and heating, I urge the committee to take action now and pass House Bill 163 so Kentucky’s families can begin to obtain relief from these spiraling costs.” “Kentucky is in the throws of yet another budget crisis, yet another health care crisis. It is time we think outside the box and pursue policies that help our citizens with the burden of health care. We encourage and applaud all the initiatives to make Kentuckians healthier, but that is not enough. We must go after all the savings we can in order to insure our people have the most affordable access to quality health care possible.” |
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