Health and Human Services Secretary Donna Shalala is refusing to implement a law aimed at cutting prescription drug prices by allowing the drugs to be reimported from Canada. In a letter to President Clinton, Shalala cited "serious flaws and loopholes" that "make it impossible . . . to demonstrate that [the law] is safe and cost effective." The legislation directed her to determine the safety and cost effectiveness of the law before requesting funds to implement it.

The legislation was an attempt to address concerns regarding the high cost of prescription drugs, particularly for elderly Americans. Pharmaceuticals manufactured in the U.S. can be purchased for less in Canada, mainly because the Canadian government regulates prices.

Shalala’s concerns included the lack of a guarantee that imported drugs would carry labels approved by the FDA, and the lack of any mechanism to keep drug manufacturers from strong-arming distributors into raising prices on imported drugs.