RHODE ISLAND LAW TO ALLOW LICENSES FOR CANADIAN PHARMACIES

A new Rhode Island law allowing for the importation of prescription drugs would provide licenses to Canadian pharmacies -- a plan that represents a new strategy by states seeking to lower residents' drug costs.

The licensing regulation, which is scheduled to take effect later this month, was approved overwhelmingly last summer by the state legislature. Under the new regulation, any Canadian pharmacy that maintains a valid, unexpired license to operate in a Canadian province, can obtain a Rhode Island pharmacy license for a fee. State residents would then be able to place orders and purchase drugs from the licensed pharmacies. "The federal prohibition on the importation of pharmaceuticals shall not be a basis for denying licensure to a Canadian pharmacy," according to the state law authorizing the regulation.

So far, the federal government has not taken legal action against similar Rx importation initiatives, including the multistate I-Save Rx program, which allows residents in Illinois, Wisconsin and Missouri to purchase drugs from Canada, the UK and Ireland. Unlike the Rhode Island plan, I-Save Rx does not specifically license foreign pharmacies, but rather requires network pharmacies to agree to comply with Illinois pharmaceutical standards.

The Rhode Island health department said it recognizes the safety concerns associated with Rx importation. As such, it determined that requirements for the licensure of Canadian pharmacies should parallel the more extensive and detailed requirements for the licensure of out-of-state pharmacies that operate in the state.