Senate Finance Committee advances bill to create wholesale drug importation program amid concerns about Canada and pharmacy middlemen

The Senate Finance Committee on March 11 moved S.371, a bill to create a wholesale prescription drug importation program, to the Senate floor after a debate about implementation challenges and whether the measure addresses the role of pharmacy benefit managers.

The bill, introduced as an act to amend the Public Health Law and the Education Law to create a wholesale prescription drug importation program, was advanced by committee motion. Senator Shelley Mayer moved the bill and Senator Bailey seconded it; the committee chair then called the question and the bill was reported out of committee to the full Senate.

Why it matters: Sponsors say the program aims to lower the cost of prescription drugs by permitting wholesale importation of drugs available at lower prices in neighboring countries. Supporters argued the program could provide a lawful alternative to individuals who already seek lower-priced medications from abroad. Opponents and skeptical members warned that the program may be unworkable if potential foreign suppliers will not participate and that the bill does not address other drivers of price such as pharmacy benefit managers.

Committee discussion and concerns Senator Perella raised practical concerns about the ability to implement a Canadian import pathway, saying, “Canada has said they're really not interested in this, so how are we going to implement this if the Canadians are do not want us to report drugs?” He went on to note the relative population sizes, arguing that New York’s demand could pose a challenge for Canadian supply.

Committee Chair Senator Krueger responded that having the authority in state law could position New York to act if international arrangements change: “But we could have it in law, and live in hopes that relationships between our 2 countries improve, and then perhaps it will work.”

Several members discussed pharmacy benefit managers (PBMs). Senator Perella suggested tackling PBMs as an alternative, saying eliminating middlemen could reduce costs. A sponsor acknowledged other bills addressing PBMs and said those efforts are complementary: “I don't think it's an either or. I think you can work on the problem of overpricing through the pharmacy benefit manager system we have in place and at the same time, giving us a potential option for us to purchase drugs that we need and use at lower price from our neighbor to the north.”

Implementation and next steps The committee did not provide a detailed implementation timeline in the hearing. The bill was reported to the floor for further consideration. Committee remarks noted that Canadian participation is an open diplomatic and market negotiation and that the bill would give the state a statutory mechanism should international arrangements permit importation.

Votes at the committee The transcript records the committee moving the bill to the floor; committee members recorded four votes described as “without recommendation.” The hearing record did not specify a complete numerical yes/no roll call for the committee’s favorable report, and the committee clerk announced that the bill would move to the Senate floor.

Ending The committee advanced S.371 to the Senate floor. Sponsors and some members expressed continued interest in addressing PBMs and other drivers of drug prices in parallel with the importation option.