CBO Cost Estimate of H.R. 2427  (Drug Importation Without FDA Approval)
Posted 10/23/2003

Press reports have erroneously (or at least misleadingly) implied that widespread drug importation would save the federal government $40.4 billion over 10 years.  Actually, the Congressional Budget Office (CBO) estimates the bill would save the federal budget $4.5 billion over ten years.  That is a very small amount compared with the possible economic dislocations and safety concerns the bill could cause.

CBO Estimate of H.R. 2427, Pharmaceutical Market Access Act of 2003
(by fiscal year, in billions of dollars)
	2004-2008	2004-2013
Change in Direct Spending
Federal Outlays for Prescription Drugs	-0.8	-2.9
Change in Revenues
Income and HI payroll Taxes (on-budget)	0.3	1.1
Social Security Payroll Taxes (off-budget)	0.1	0.5
Total	0.4	1.5
Net Effect on Surplus
On-budget	1.1	4.0
Combined	1.2	4.5
Source:  Congressional Budget Office.