Legislation Allowing US Cheap Drug Imports Cuts Budget Deficit $6.8Bln

Pending legislation that is intended to lower drug costs by expanding imports of prescription medicine would reduce the US government budget deficit by $6.8 billion over the next decade, according to a preliminary estimate by the non-partisan Congressional Budget Office (CBO) on Monday.

WASHINGTON (Sputnik) — "The bill, as introduced on February 28, 2017, would expand the Food and Drug Administration’s regulatory authority surrounding importation of prescription drugs," a CBO press release said.

The CB explained the legislation would also permit pharmacies, wholesalers and individuals to import prescription drugs into the United States under certain new conditions from selected countries.

The release included a chart showing a modest deficit reduction of $36 million beginning in 2020, which would gradually increase to a cumulative total of $6,843 billion by 2027.

Soaring drug prices have become a key issue in the US debate over health care reform. Under the present system, Americans often pay more for prescription drugs than customers in other developed nations due to monopolies granted by drug companies for the US market.

The CBO analysis noted that the budget impact could change based on future congressional appropriations, the subject of a future analysis.