SPRINGFIELD, Mass. (AP) – This cash-strapped 367-year-old New England city began buying prescription drugs for some city workers and retirees in Canada this month in hopes of saving millions of dollars.

“It boggles the mind that we can purchase the exact same drugs for 20 percent to 80 percent less in Canada,” Mayor Michael Albano said Monday. “As far as I am concerned it would be irresponsible not to take advantage of the savings.”

Americans seeking relief from high prescription drug prices, have increasingly turned to pharmacies in Canada where the cost of prescription drugs is drastically cheaper, because of government controls and a favorable monetary exchange rate.

Albano and William Hubbard, associate commissioner for the U.S. Food and Drug Administration, said they didn’t know of any other U.S. municipality that has taken the step.

“We strongly discourage it,” Hubbard said. “People are taking real risks. You are on your own in assuring the safety of the drugs. The Canadian government says it’s not part of its responsibility to ensure the safety of drugs being sent to the U.S.”

However, Hubbard said he could understand why people are looking to Canada. “The cost-savings are there,” he said.

The city of 152,000 people, which is self-insured, could save up to $4 million depending on how many of its 9,000 workers and retirees sign up for the voluntary option, the mayor said. The savings, he said, could then be used to restore other city services. The city also has prescription contracts with local pharmacies and U.S. mail-order pharmacies.

In February, the city’s budget troubles prompted Albano to lay off 320 city workers, including 76 police officers and 53 firefighters. The city currently spends about $9 million on prescription drugs, and its health care costs have nearly doubled in the past seven years.

“With the economy continuing to stagnate we don’t have other options,” Albano said.

About 200 retirees and workers, including Albano, have signed up for the program since July 1. The mayor, who has a diabetic son, said the city has already saved $237 on his prescriptions, and could save about $853 annually.

“I wouldn’t have my family use it if I didn’t feel these drugs were safe and effective,” said Albano.

The program operates in much the same way as mail-order prescription arrangements the city has with U.S. pharmacies. Instead of ordering a three-month supply of prescription drugs from a U.S. mail-order house, city workers and retirees get their drugs from Windsor, Ont.-based CanaRx Services Inc.

The FDA has issued warnings, but so far has not cracked down on individuals importing U.S.-made drugs for personal use.

Hubbard said the FDA would review the Springfield program. “Clearly, they didn’t consult with us first. If they had we would have told them they were taking a chance with their constituents,” he said.

Albano argues that the city program – since it is voluntary – should have the same leeway so far given to individuals importing prescription drugs for personal use.

“There is no difference between what we are doing and a senior citizen in Michigan going over the border to buy his or her prescription drugs,” Albano said.

He said he hoped the city’s program would encourage Congress to enact more protections for U.S. consumers who seek prescription cost relief in Canada.

On Friday, the U.S. House of Representatives approved a bill ordering the Health and Human Services Department to set up a system to allow importation of FDA-approved drugs from FDA-approved facilities in Canada, the European Union and seven other nations.

However, the measure faces opposition from the Bush administration and an uncertain future in the Senate. Congress has twice before passed legislation dealing with drug importation, but both times required HHS certification and HHS secretaries in both the Clinton and Bush administrations have refused to do so.

AP-ES-07-28-03 1606EDT

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