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American Morning

Mayor of Springfield, Massachusetts Has Plan to Save Millions in Health Care Costs

Aired July 30, 2003 - 07:39   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: The mayor of Springfield, Massachusetts has a plan to save his city millions in health care costs. City employees now have the option of buying prescription drugs from Canada, sometimes at substantial savings. One example, in the U.S., 30 pills of the blood pressure medication Aldactone costs about $28. The same in Canada is $8.66. Also, that pain reliever Vioxx, in the U.S., 100 pills, $102. In Canada, it's only $67.
Springfield's mayor, Michael Albano, is with us now to talk about the program in his town.

Good morning, Mr. Mayor.

MAYOR MICHAEL ALBANO, SPRINGFIELD, MASSACHUSETTS: Good morning, Bill.

HEMMER: Listen, all the research shows me that this is illegal. Is this within the limits of the law?

ALBANO: Well, I believe it's within the limits of the law and we're doing exactly what seniors all over America are doing, and that is getting on buses and going to Canada to get their prescription medications. We're doing the same here in Springfield, Massachusetts with my city employees.

HEMMER: So you feel no backlash from police, then, if this program, as expected, goes forward?

ALBANO: Well, no, I don't, and I would hope that Congress would see what's going on here in my city and take the appropriate action and sign a bill that would authorize in a more formal way this type of activity and make the marketplace even more competitive. In my city, we can save between $4 million and $9 million annually and with that money I can redirect it to police, fire and education.

HEMMER: Wow, that's a lot of savings, if, indeed, it goes that way. So the program goes forward. How does it work? Give us a quick explainer.

ALBANO: Well, very simple. You get a prescription from your physician, as I have done with my son Michael. We fax it off to Canada and our prescriptions come within eight to 10 days, delivered to our home. It's perfectly safe. I had visited Canada. I've looked at the operation. I've looked at the procurement process, spoke to health care specialists, physicians. Everything is in good order and that's why we are taking advantage of it here in Springfield, Massachusetts.

HEMMER: A couple of quick clarifications. You're going by bus. This is not through the mail, is that right?

ALBANO: No, this is through the mail or FedEx. There are obviously seniors from my city that do get on a bus every day and go to Canada to purchase their prescription medication because of the lower costs. But we are doing it through the U.S. mail and by FedEx.

HEMMER: You say it's safe. The FDA says it cannot ensure the medication is, indeed, safe.

Do you think you're taking any health risks with this, Mr. Mayor?

ALBANO: Well, that's why I checked it out myself. My son Michael, who is a diabetic, injects insulin three times a day and I can assure you if the product was not safe, I would not allow him to take the medication. It's the exact same medication here in America that they offer in Canada. There is no safety factor.

Again, I think it's disingenuous for the FDA to make that claim.

HEMMER: You threw out a heck of a figure a few moments ago, $4 million to $9 million? How do you arrive at that number?

ALBANO: Well, we spend about $18 million annually for prescriptions in Springfield. The cost in Canada, 20 to 80 percent less. Can you imagine, 20 to 80 percent less for the same medication? So you do the math. If everybody participates, 7,000 employees, 2,000 retirees, we can save substantial dollars. And, once again, that can go for core services such as police, fire and education.

HEMMER: Only about 30 seconds left and I'm curious to get your thoughts on this. It's my understanding that it's the only city in America that is doing a plan such as this. Have you heard from other parts of the country? Do you anticipate that if things go the way you plan right now this could be a new trend?

ALBANO: Well, I think after this interview, we're going to be hearing -- my phone is going to be off the hook. But Springfield, Mass. has been a city of firsts. We had the Durea (ph) automobile, the Basketball Hall of Fame, Dr. Seuss. We're out front on a number of issues and I think this is another example of the creativity of the people of Springfield.

HEMMER: Mayor Michael Albano in Springfield, Massachusetts.

Thank you, sir.

ALBANO: Good to be with you.

HEMMER: All right.

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Millions in Health Care Costs>


Aired July 30, 2003 - 07:39   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The mayor of Springfield, Massachusetts has a plan to save his city millions in health care costs. City employees now have the option of buying prescription drugs from Canada, sometimes at substantial savings. One example, in the U.S., 30 pills of the blood pressure medication Aldactone costs about $28. The same in Canada is $8.66. Also, that pain reliever Vioxx, in the U.S., 100 pills, $102. In Canada, it's only $67.
Springfield's mayor, Michael Albano, is with us now to talk about the program in his town.

Good morning, Mr. Mayor.

MAYOR MICHAEL ALBANO, SPRINGFIELD, MASSACHUSETTS: Good morning, Bill.

HEMMER: Listen, all the research shows me that this is illegal. Is this within the limits of the law?

ALBANO: Well, I believe it's within the limits of the law and we're doing exactly what seniors all over America are doing, and that is getting on buses and going to Canada to get their prescription medications. We're doing the same here in Springfield, Massachusetts with my city employees.

HEMMER: So you feel no backlash from police, then, if this program, as expected, goes forward?

ALBANO: Well, no, I don't, and I would hope that Congress would see what's going on here in my city and take the appropriate action and sign a bill that would authorize in a more formal way this type of activity and make the marketplace even more competitive. In my city, we can save between $4 million and $9 million annually and with that money I can redirect it to police, fire and education.

HEMMER: Wow, that's a lot of savings, if, indeed, it goes that way. So the program goes forward. How does it work? Give us a quick explainer.

ALBANO: Well, very simple. You get a prescription from your physician, as I have done with my son Michael. We fax it off to Canada and our prescriptions come within eight to 10 days, delivered to our home. It's perfectly safe. I had visited Canada. I've looked at the operation. I've looked at the procurement process, spoke to health care specialists, physicians. Everything is in good order and that's why we are taking advantage of it here in Springfield, Massachusetts.

HEMMER: A couple of quick clarifications. You're going by bus. This is not through the mail, is that right?

ALBANO: No, this is through the mail or FedEx. There are obviously seniors from my city that do get on a bus every day and go to Canada to purchase their prescription medication because of the lower costs. But we are doing it through the U.S. mail and by FedEx.

HEMMER: You say it's safe. The FDA says it cannot ensure the medication is, indeed, safe.

Do you think you're taking any health risks with this, Mr. Mayor?

ALBANO: Well, that's why I checked it out myself. My son Michael, who is a diabetic, injects insulin three times a day and I can assure you if the product was not safe, I would not allow him to take the medication. It's the exact same medication here in America that they offer in Canada. There is no safety factor.

Again, I think it's disingenuous for the FDA to make that claim.

HEMMER: You threw out a heck of a figure a few moments ago, $4 million to $9 million? How do you arrive at that number?

ALBANO: Well, we spend about $18 million annually for prescriptions in Springfield. The cost in Canada, 20 to 80 percent less. Can you imagine, 20 to 80 percent less for the same medication? So you do the math. If everybody participates, 7,000 employees, 2,000 retirees, we can save substantial dollars. And, once again, that can go for core services such as police, fire and education.

HEMMER: Only about 30 seconds left and I'm curious to get your thoughts on this. It's my understanding that it's the only city in America that is doing a plan such as this. Have you heard from other parts of the country? Do you anticipate that if things go the way you plan right now this could be a new trend?

ALBANO: Well, I think after this interview, we're going to be hearing -- my phone is going to be off the hook. But Springfield, Mass. has been a city of firsts. We had the Durea (ph) automobile, the Basketball Hall of Fame, Dr. Seuss. We're out front on a number of issues and I think this is another example of the creativity of the people of Springfield.

HEMMER: Mayor Michael Albano in Springfield, Massachusetts.

Thank you, sir.

ALBANO: Good to be with you.

HEMMER: All right.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Millions in Health Care Costs>