Three Canadian drug firms eyed

Haverhill may join a growing number of Massachusetts communities that have turned to Canada for cheaper prescription drugs for their municipal employees.

Mayor James J. Fiorentini said he expects to choose one of three companies to provide municipal workers with prescription drugs from Canada -- a move he expects will save the city about $200,000 a year.

Healthcare costs account for nearly $19 million of the city's $130 million budget, a number that has increased about 15 percent annually.

''Healthcare costs ultimately have the potential to bankrupt every city in this state," he said. ''Every mayor is worried about that."

Fiorentini began considering Canadian drugs as a cost-cutting measure after it was discussed by Mayor Thomas M. Menino of Boston at a 2004 conference. Despite the fact that federal law prohibits importing Canadian drugs, the US Food and Drug Administration has yet to take action against communities that have enrolled their employees in Canadian drug plans.

''My thought is that I'm probably going to do it," Fiorentini said. ''I want to interview all three companies and talk to the insurance committee about which company they recommend."

Several Massachusetts communities -- including Springfield, Boston, Worcester, Pittsfield, and Revere -- already offer mail-order Canadian plans to their employees and retirees. Malden is considering the option.

Fiorentini put out a request for proposals to Canadian drug companies early in the year. He said he also wrote a letter to US drug companies to see whether their mail-order systems could match the savings of roughly 40 percent offered by the Canadian plans.

He said he never heard back from the US companies, but three Canadian pharmacies responded to the request.

The companies -- Winnipeg-based K-tel Drug Mart of Canada, Ontario-based Canusa Health Inc., and Montreal-based CanAm Health Source -- sent representatives to speak with the city's Insurance Advisory Committee about what they would offer to Haverhill employees and retirees.

Joseph Romatelli, chairman of the advisory committee, said his board philosophically supports offering a Canadian drug plan to city workers, but stopped short of an official endorsement because of concerns about recommending a program that is illegal.

''To be on the safe side, they said they were not opposed" to the program, rather than voting in favor of it, said Romatelli, a retired firefighter.

Fiorentini, who has the authority to decide whether to pursue Canadian options, said he plans to meet with representatives from each of the companies and get feedback from the insurance committee about which company best suits the needs of city workers.

If Fiorentini approves a Canadian drug plan for Haverhill, it will be one of three prescription options for city employees. Already, workers can get prescriptions filled at a pharmacy, where they make a standard copayment. Most employees also have the option of a mail-order drug plan that gives them three months supply of a drug for one copayment.

The Canadian drug plan, like the regular mail-order plan, would apply to employees who have long-term prescriptions. The Canadian plan would most likely wipe out the copayment expense, according to the city's benefits manager, Margaret Pfifferling.

Mary Carrington, the city's human resources director, said that if Haverhill enrolls in a Canadian program, she does not expect more work for her office. Carrington said the chosen company would most likely provide adequate information about the drug plan, and that her office would share the mission of educating employees about their options with city unions.

''It's all about saving money," she said. ''If people can save money and the municipality can save money, as long as there are no legal issues, why shouldn't we pursue the Canadian drugs?"

In Revere, employees have had the option of ordering drugs from Canada since October.

Police Captain James Guido, the chairman of Revere's Insurance Advisory Committee, said that despite some initial concerns about the safety of imported drugs, the system seems to have worked.

''If it was bad, I would have heard about it, so that leads me to believe it's going OK," Guido said.

Guido and Mayor Thomas G. Ambrosino said they are not sure how many people have opted to enroll in the program over the past year, but said it hasn't been overwhelmingly popular, despite the elimination of a copayment for those enrolled in the plan.

''Participation has been less than we hoped," Ambrosino said, estimating that the plan has saved Revere less than $100,000 so far. ''There's a learning curve."

Even if only some employees opt to order their prescription drugs from Canada, it's worth having the option, Fiorentini said. Springfield estimates it has saved $4 million since it began offering the Canadian prescription plan to employees in 2003.

Meredith Goldstein can be reached at mgoldstein@globe.com