Wallace pointed to a recent report by Kentucky State Auditor Crit Luallen that claims the state can save $107.6 million a year through the reimportation of drugs.

"We're going to have to do something to lower the price of pharmaceuticals, and I think that's what we are going to have to do," said Wallace, a Grant County Democrat running in Kentucky's 17th District, which covers southern Kenton County.

Wallace and Luallen campaigned together Thursday at the Independence Senior Center. Earlier this month Luallen campaigned with another Northern Kentucky Democrat running for Senate, Kathy Groob of Fort Mitchell. She also supports drug reimportation.

Groob is challenging Sen. Jack Westwood, R-Crescent Springs.

Reimporting drugs from Canada is illegal under federal law. But Luallen has called on Gov. Ernie Fletcher's administration to follow the lead of states in seeking a waiver from the federal government to allow the flow of cheaper drugs into Kentucky.

"I'm here to express my support for Cliff Wallace to do everything that I can to help him," Luallen said, "and to specifically talk about ... lowering the cost of importing drugs, which is especially important for senior citizens."

Many seniors live on fixed incomes and could use a cost reduction in the drugs they purchase, Wallace said.

"The costs of drugs just keep going up," said Frank Hutchinson, 86, a retired meat cutter from Independence. "Anything that would reduce costs is a good idea and should be looked at."

Also Thursday Wallace lashed out at his opponent, Republican Sen. Damon Thayer of Scott County.

Thayer has run ads accusing Wallace of supporting an increase in the state's gas tax. But Wallace said he has not called for an increase. Instead, he said it should be considered when the price of oil goes down as a way to generate money for badly needed road projects.

"To be blunt, Mr. Thayer is a liar," Wallace said.

Thayer defended his ads, saying he would never consider a gas tax increase no matter how much oil costs.

"My opponent said he would consider, I say unequivocally I will not," Thayer said. "You can't trust Cliff Wallace on taxes."

E-mail pcrowley@enquirer.com