Illegal Drug Import Schemes Put Patients at Risk, Homeland Security Investigation Reveals
A growing network of “alternative funding programs” (AFPs) is under federal scrutiny for illegally importing prescription drugs, potentially endangering patients and circumventing established safety protocols, Homeland Security Investigations announced today.
Every step is a struggle for Bruce Zimmerman, whose health has been deteriorating since he was diagnosed with multiple sclerosis eight years ago. In 2019, Zimmerman was offered an opportunity through Florida-based PriceMDs: all-expense-paid trips to the Cayman Islands and the Bahamas to retrieve his medication, Avonex, which retails in the U.S. for $2,159 per weekly dose. AFPs contract with employer-sponsored health plans to offer coverage on specialty drugs, promising more affordable access. While PriceMDs flies patients to other countries, most AFPs obtain medications overseas and ship them directly to patients. “These alternative funding programs are fulfilling prescriptions through unverified suppliers and online pharmacies, potentially illicit,” said Nicole Johnson, a special agent with Homeland Security Investigations. “And they’re not actually importing the drugs themselves… Customs has no idea how many prescriptions have made it to U.S. citizens.”
A CNBC investigation found AFPs are becoming more pervasive as drug costs skyrocket, penetrating the country’s health-care system through private employers, cities, counties, school districts and unions. In some cases, employers are requiring staff to use an AFP. The savings can be significant, but come with risks. The Rand Corporation reports that U.S. prescription drug prices are nearly three times higher than those in other high-income countries, creating a market for these programs. However, the FDA allows Americans to import medications for individual use only if the drug is not available domestically, a rule AFPs are allegedly exploiting. “No patient, no American should ever have to be forced to take a medication that’s going to put their life at risk,” Johnson stated.
Despite concerns, some AFPs defend their practices. Greg Santulli, CEO of Georgia-based Rx Valet, told CNBC he’s confident in the medications his company sources, even using them for his own parents. However, a recent study by the Vanderbilt Health System Specialty Pharmacy Outcomes Research Consortium found patients using AFPs experienced significant delays – an average of 41 days to receive medications, compared to 15 days for those who didn’t. Gilead Sciences is currently pursuing legal action against several AFPs, including CANARX and ElectRx, alleging illegal importation of its HIV medication, Biktarvy, as detailed in recent reporting.
Homeland Security Investigations has launched several criminal investigations into AFPs, and the FDA is expected to release a comprehensive report on strengthening oversight in the coming months, officials said.
