Trump administration outlines plan to import drugs from Canada

The Trump administration on Wednesday announced a plan to allow Americans legal access to lower-cost prescription drugs from Canada.

President Donald Trump has repeatedly spoken out against the soaring cost of prescription drugs and is backing a bipartisan bill in the Senate that would cap prices.

Americans pay on average $1,200 on prescription drugs per year, according to the Organization for Economic Cooperation and Development, more than citizens in any other country.

"Americans deserve protection from high drug costs, and they deserve a healthcare system that provides affordable, patient-centric care," said Alex Azar, Health and Human Services Secretary.

The plan proposed by the HHS and Food and Drug Administration (FDA) outlined two pathways.

The first involves using the agencies' current authority to propose a rule that would authorize pilot projects developed by states, wholesalers and pharmacists to import certain drugs from Canada, though these would be limited to a narrow class of drugs.

Under the second pathway, the FDA would work with manufacturers seeking to import into the US versions of those drugs they sell in foreign countries, "potentially allowing them to offer a lower price than what their current distribution contracts require."

These could include medications like insulin used to treat diabetes, as well as those used to treat rheumatoid arthritis, cardiovascular disorders, and cancer, a statement said.

The agencies did not provide a timeframe for the implementation of the plan, which will likely be met with legal challenges from the pharmaceutical industry.

Pharmaceutical companies argue that high prices are the cost of innovation, but a 2016 Harvard Medical School study blamed factors such as the US patent system, which grants makers "government-protected monopolies" through market exclusivity that lasts decades.

It also noted that unlike nearly every other advanced nation, the US health care system allows manufacturers to set their own prices rather than having to negotiate with a national health insurance systems.