Drug Importation Order (E.O. 13938)

Summary

Makes it easier to buy safe, lower-cost prescription drugs from other countries, like Canada, to help reduce prices for Americans.

What problem does this solve?

Americans often pay much more for the same medicines than people in other developed countries. This order directs government agencies to create rules that allow drugs to be safely imported from countries where they are sold for less.

What does this order do?

Allows drug importation from Canada

Directs the Secretary of Health and Human Services to finish the rulemaking process that would allow certain prescription drugs to be imported from Canada.

Permits individuals to import drugs

Tells the Secretary of Health and Human Services to make it easier for individuals to get waivers to import prescription drugs, as long as it is safe and saves them money.

Authorizes re-importation of insulin

Allows for insulin products to be re-imported if the Secretary finds it is necessary for emergency medical care.

Who does this affect?

American patients
Individuals requiring prescription medication
Pharmaceutical companies

What is the real world impact?

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Reduces high prescription drug costs

Addresses public concern over the high cost of medicine in the United States compared to other nations. By allowing importation, it creates competition and aims to drive down prices for consumers.

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Puts pressure on pharmaceutical companies

Introduces foreign competition to the U.S. market, which could force drug manufacturers to lower their domestic prices to stay competitive. This may be opposed by pharmaceutical companies who benefit from higher U.S. prices.

When does this start?

This order went into effect on July 24, 2020, and directs government agencies to begin taking action.