Sandoval urges caution in quest for Canadian drugs

Tuesday, Feb. 22, 2005 | 8:42 a.m.

CARSON CITY -- Attorney General Brian Sandoval cautioned Monday that the "state needs to be certain" of the quality of prescription drugs before allowing them to be imported from Canada.

Democrats in the state Legislature want to set up a state Web site to permit residents to order cheaper drugs online. And the state also could purchase Canadian drugs in bulk for prisoners to save money.

The average nongeneric prescription could be 50 to 80 percent less when bought from Canada, the Democrats say.

But on Monday, Sandoval, a Republican, told the Senate Finance Committee there is a split in the National Association of Attorneys General, which is concerned about who will be held liable if people in this country become more ill after taking imported drugs.

Outside the hearing, Sandoval said his first impression is that there must be a way to legally import the drugs. After all, Minnesota already is doing it, Sandoval noted. But, he added, his office has not been asked to provide a legal opinion as to whether or not obtaining prescription drugs from Canada would violate any federal laws.

Democrats advocating for the Nevada Web site said five other states and four cities have existing programs that encourage residents to buy Canadian drugs online.

Senate Minority Leader Dina Titus, D-Las Vegas, said she and other Democrats will push legislation forward to follow those examples.

She said she was glad to hear that Sandoval initially thinks the project is legal. And she said that the legislation will include a section to insure that the quality of the drugs is high. "Most of the drugs are sent from the United States to Canada and then back," she said outside of the hearing.

Senate Majority Leader Bill Raggio, R-Reno, said the issue is where these drugs are manufactured.

Sandoval replied that some of the medication comes from India to Canada and "quality control is clearly an issue."

"The state needs to be certain before we go down that road," he told the Senate Finance Committee.

Sandoval also reminded the committee that a lawsuit is pending in Washoe District Court against major pharmaceutical companies that allegedly "shortchanged" the state in rebates on drugs purchased by the state for Medicaid.

"We anticipate a favorable outcome," Sandoval told the committee. "But it will take years to complete."

The case is being prosecuted by the Medicaid Fraud Unit in the Attorney General's Unit. Sandoval said it will need $288,000 in the 2007 fiscal year, mostly to finance the pharmaceutical suit.

The unit is funded 75 percent by the federal government and 25 percent by the state.

Raggio noted that the recoveries from Medicaid fraud cases are decreasing. Sandoval said the office has been "aggressive" in pursuing doctors and others who are trying to defraud the state.

The number of Medicaid investigations has gone up and the number of civil suits has risen from two in 2001 to 31 at present.