Vermont’s Drug Importation Plan Could Cost More Than Savings

A Vermont initiative to allow importation of drugs from Canada could save millions of dollars each year, but it’s not clear that those savings would exceed the program’s costs, according to a report by the state’s Agency of Human Services (AHS).

The program, signed into law last May by Gov. Phil Scott, will allow the agency to create a list of the 10 to 15 priciest drugs and to designate a state agency to serve as a licensed wholesaler to import them across the northern border. Only drugs projected to generate significant savings for consumers would be eligible for importation.

In its report, the AHS said the state stands to save up to $5 million a year on 17 drugs for which two of the state’s three commercial insurers spent the most in 2018.