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Senate Finance Committee advances wholesale drug importation bill amid questions about Canadian cooperation

March 11, 2025 | 2025 Legislature NY, New York


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Senate Finance Committee advances wholesale drug importation bill amid questions about Canadian cooperation
ALBANY — The New York State Senate Finance Committee on March 11 advanced S 371, a bill to amend the Public Health Law and Education Law to create a wholesale prescription drug importation program, after members debated whether Canada would cooperate and whether the bill would address high prices driven by pharmacy benefit managers.

The measure was moved to the floor by Senator Shelley Mayer and seconded by Senator Bailey. Chair Senator Krueger presided.

Supporters and several committee members said the bill aims to lower prescription costs by allowing wholesale purchases of drugs available at lower prices in neighboring countries. "The purpose of the bill, of course, I think we know that, is to lower the cost of drugs where in many cases, drugs that our people need so desperately cost so much more here than they do in neighboring countries," Chair Krueger said during debate.

Opponents and skeptics focused on implementation questions. "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?" Senator Perella asked, raising concern about whether Canada would permit shipments to New York. Senator Perella added that, given New York's large population relative to Canada, relying on Canadian supply could be difficult.

Senator Helman questioned whether the bill would encourage domestic manufacturing. "Does this bill do anything to incentivize the manufacturing of drugs in The United States?" she asked. Krueger and other supporters replied the bill does not include direct manufacturing subsidies but argued that increased competitive pressure could incentivize price changes by manufacturers.

Members also discussed pharmacy benefit managers (PBMs). Perella argued PBMs contribute to high drug prices and said eliminating middlemen might be an alternative approach. Krueger responded that the importation bill and other PBM-targeted proposals are not mutually exclusive.

A committee staff presence was noted but no staff witness provided a detailed implementation plan during the hearing. When asked about operational questions, a member said a staffer was not available to answer.

The motion passed and the bill was moved to the Senate floor. The committee record shows senators voting in favor with some members recording "without recommendation" on the measure; the chair observed multiple "without rec" hands during the roll call. The transcript does not provide a complete numeric roll-call tally.

What happens next: With the committee's approval, S 371 advances to the full Senate for further consideration. The bill text would need parallel action in the Assembly and, if enacted, would require federal and international cooperation and operational steps not detailed during the committee session.

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Scribe from Workplace AI
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