Canada connection explored

City officials met last week with a representative of CanaRX, the Canadian drug company that administers a program for Springfield, the first US city to defy a federal ban on buying drugs from Canada or any other foreign country.

The move follows a unanimous vote by the Malden City Council last month for the city to establish a prescription drug buying program. The vote came at the urging of local senior citizens who would benefit the most.

"I think it's worth exploring," said Malden Mayor Richard C. Howard, who has yet to formally endorse the resolution. "There are still a lot of questions to be answered, mainly the legality of it and the potential savings. What I'd really like to see, is the state and federal government take the initiative on this."

Price controls in Canada make drugs there anywhere from 20 to 80 percent cheaper than in the United States. But the US Food and Drug Administration says prescription drugs purchased abroad pose risks to public health and often do not meet US standards. The agency also bans the reimport of drugs made by US pharmaceutical companies. A provision to change that was left out of the landmark Medicare bill passed by Congress last week.

Mindful of the law, Malden officials are moving cautiously. Although they met with CanaRX, the city must still evaluate the potential cost savings and legal hurdles. A preliminary look pegs the potential savings at anywhere from $300,000 to $800,000 annually, although city officials stress the numbers are just estimates.

"There are still a million questions to answer," said Councilor at Large Martin Gately, who sponsored the council resolution and met with the CanaRX representative last week. "It could be a great thing, and hopefully it is. If not, we're not any worse off than we are now. With the way our finances are, we need to take a good solid look at it."

They might not have much time. An FDA official this week said the agency is working with its Canadian counterpart, Health Canada, to shut down CanaRX. "If we shut down the supplier, we can stop this illegal and unsafe behavior," said Peter Pitts, associate commissioner for external relations at the FDA in Washington.

Although the FDA has yet to act against Springfield, Pitts said the agency has no intention of looking the other way.

"There is no free pass," Pitts said. "We absolutely retain the right to enforce the law, in ways we feel are most appropriate. . . . Right now, that's by working with [HealthCanada] to shut down suppliers."

Malden officials think the potential savings could be worth the risk. Health care accounts for about 10 percent of the city's $108 million operating budget. The most expensive non-salary item, health care this year is budgeted at $12 million.

Prescription drugs account for 30 to 40 percent of that figure, said Human Resources director Anthony Chiccuarelli.

"We don't have any control right now over our health care costs. With the fiscal problems facing the state, we've made [budget] cuts left and right. Health care is the only item that we can't touch, and it's the one that keeps going up," Chiccuarelli said.

Malden seniors, fearing looming cuts in Medicare, have been pushing for the city to adopt a Canadian drug program. Although seniors have long taken bus trips to Canada to buy drugs on their own, action by Malden and other cities could force the state and federal governments to act to protect consumers, they said.

"We want to pass a law to allow the reimportation of drugs made here," said Howard McGowan, a Malden senior who has aggressively pushed the issue through the Metro North chapter of Mass. Senior Action, a senior advocacy group. "I don't buy the argument that they aren't safe. Why should drugs made in the US cost more here than in Canada?"

Joanne Repoza, president of the Metro North chapter, said looming changes to Medicare add urgency to the debate over buying prescription drugs from Canada. Although the new bill contains a prescription drug benefit, seniors are confused about its implications. It's not clear how much or little will be covered, she said.

"It's overwhelming, really, all the changes that are coming," Repoza said of the law that won't change until 2006. "But we know how much we're paying for our prescription drugs now, and it's a lot. It can't get to the point where seniors can't afford to buy their prescriptions. We've got to band together and work for this [Canada option]. This is just beginning."

Kathy McCabe can be reached by e-mail at kmccabe@globe.com.