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Archives | (July 2002)
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THE RISING TIDE OF PRESCRIPTION DRUG COSTS:
A CORPORATE CON JOB (cont.)
------------------------------------------------------------------ Page 2 of 6 There has been a marked trend towards prescribing newer, more costly drugs, driven to no small degree by aggressive pharmaceutical company marketing. Consumers increasingly are asking their doctors to prescribe drugs they see advertised, and doctors giving in to pressure from their patients are complying with their requests. One study found that roughly 26% of patients visiting their doctors ask about an advertised drug. The same study found that 81% of the time, the doctors prescribe the requested medication. The reason this is important is that newer drugs are more costly than older ones. Indeed, the average price of a drug approved prior to 1992 was $30.47 in 2000, whereas the average for drugs approved after 1992 $71.49. This is not to say that the new formulations are necessarily better – they are just newer. In 2001, this “shift” in the nature of drugs prescribed accounted for 24% of the overall increase in outlays. But even these higher prices were not the most important factor. Fully 39% of the increase in spending on pharmaceuticals is a result of more prescriptions being written. In 1985, doctors wrote an average of 109 prescriptions for every 100 office visits. By 1999, that figure rose to 146 prescriptions per 100 office visits. The impact of this trend on the total number of prescriptions written is dramatic. In 1992, physicians wrote some 1.9 billion prescriptions for various pharmaceutical products. By 2001 that figure had increased to 3.1 billion a rise of more than 63%. This year the number of prescriptions written may be double the 1992 level. Indeed, at the current growth rate, it is expected that total U.S. spending for prescription drugs will reach $366 billion by the year 2010. That would be more than double the current level, and more than 4.6 times the amount spent in 1992. But why are so many more prescriptions being written? Is it a matter of new medical breakthroughs that permit us to treat previously incurable diseases? Is some sort of hidden epidemic being treated? Is the best interest of the patient driving the change? The answer to all these questions, of course, is a simple no. What is actually driving increased spending on prescription drugs is an aggressive, diverse and highly successful campaign by the multinational pharmaceutical industry to enhance its bottom line. More important, rather than being in the best interest of patients, it may actually be causing them harm. The campaign is taking place across a number of fronts, but the most insidious may be the manipulation of the so-called “standard of care.” STANDARD OF CAREIn every jurisdiction in America, physicians operate under what are termed “standards of care.” These are guidelines that describe the appropriate treatment regimens for various medical conditions. The standards of care are established by specialty medical associations – the professional organizations certify a doctor’s competence to practice a particular medical specialty and are often based on federal recommendations. Violations of standards of care are considered malpractice and open any physician who fails to follow them to both civil and criminal liability. They therefore are taken very seriously. |
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