Gov. Phil Scott (R) signed into law SB 175, that proposes to establish a program to allow wholesale importation of prescription drugs from Canada into the state, create a bulk purchasing program for prescriptions drugs through the Department of Health, require manufacturers to provide notice before introducing new, high-cost drugs to the market and direct an evaluation of the overall impact of drugs costs on health insurance premiums. In order for the program to go into effect, Vermont will need federal waivers, a plan design, approval from state’s Agency of Human Service and then additional approval by the Legislature, no earlier than 2019, with a new fee to fund the operational costs prior to implementation. Since Vermont has no funding obligations, National Academy for State Health Policy has offered to fund the design of the template for the proposed system, estimated at $200,000 to $800,000. Currently, federal law generally prohibits commercial importation of drugs from Canada unless the U.S. Department of Health and Human Services Secretary certifies to Congress that such a commercial importation program poses no additional risk to the public’s health and safety and results in a significant reduction in the cost of drugs to the American consumer.

For more information, please contact NACDS’ Ben Pearlman at 617-515-2603.