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Friday , Aug 02, 2002

Aging groups reach deal with Canadian company to buy drugs

(AP) - As federal lawmakers squabble over a national prescription drug plan, aging groups in three
states have reached a deal with a Canadian company to buy cheaper drugs over the Internet for
their members.

The savings can easily reach up to 50 per cent on many brand-name drugs, even after shipping and
other costs are included, said Tom Frazier, executive director of the Coalition of Wisconsin Aging
Groups. His group, and counterparts in Minnesota and Indiana, spent months researching different
Canadian companies that sell prescriptions to Americans.

They inked a deal with Canada Rx, a Toronto-based company that takes prescriptions by fax or mail
and sends the filled orders to U.S. residents by registered mail.

"We ultimately want to see a Medicare prescription drug benefit. But given the fact that Congress
can't seem to get its act together and pass a decent program, we feel like we have no other choice
if we're going to be advocates for older people," said Frazier, whose coalition represents more
than 600 aging groups and 2,500 Wisconsin residents.

The plan started Thursday, in conjunction with other aid programs offered by the group.

After spending three weeks debating a prescription drug plan, the Senate failed Wednesday to reach
an agreement. The latest Democratic-backed initiative would have helped poor seniors and those
with huge pharmacy bills.

"The calls come in daily" about the soaring cost of prescription drugs, said Dennis Gerhardstein,
programs director for the Minnesota Senior Federation. "Most of our members are low-income
seniors, and, well let's say they know the value of a dollar."

His group started its 60-day trial program July 1 with Canada Rx. About 150 seniors already have
sent orders or inquired about the program, Gerhardstein said

Minnesota seniors have taken bus trips to buy drugs in Canada since 1995, but this offers a faster
and more accessible alternative for seniors who don't have the time or ability to travel,
Gerhardstein said.

Participants can order up to 90-day supplies of drugs, and it takes about 20 days for delivery.

The biggest savings for seniors are in name-brand maintenance drugs people take regularly,
officials said. A wider variety of generic drugs also is available in Canada, which helps cut
costs, Frazier said.

Canada Rx did not return calls Friday from The Associated Press.

Wisconsin officials have received 27,800 applications for the new SeniorCare program to start in
September, offering reduced cost prescriptions for very low-income seniors, said Cheryl McIlquham,
director of the Bureau of Health Care Eligibility for the state.

Bureau officials haven't yet determined how many of the applicants are eligible for the program,
which provides drugs with a $5 copay for residents making less than $14,176 or couples making less
than $19,104 annually. Others with higher income levels are eligible but pay graduated rates.

The state Department of Health and Family Services declined to comment on the Canadian deal until
officials learn more about it.

A study of seniors in eight states recently found nearly one in four sometimes do not fill
prescriptions or skip doses to make their prescription last longer because of the high costs.

"If drugs are not affordable, they are neither safe nor effective," Frazier said.


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