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Billions Spent Marketing Drugs to Consumers




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Dorothy Guellec

In the two years since the FDA began an experiment to let the mass media broadcast the prescription-drug message directly to consumers, the pharmaceutical industry has shelled out a whopping $1.3 billion per year on consumer ads. That dwarfs the $763.6 million spent on beer ads, says Competitive Media Reporting. This figure may or may not be accurate, as we all know from the little, but important book, "How to Lie with Statistics." (Copyright 1954) Disraeli said "There are three kinds of lies: lies, damned lies, and statistics". So common sense has to reign. As of August 2, 2999 there were 34 drugs advertised to the public on television.

Why does the world's best-selling drug, the heartburn medicine Prilosec, cost $3.30 a pill in the United States but only $1.47 in Canada? Why does Claritin cost almost $2.00 a pill in the United States but only 41 cents in Great Britain? Why does the United States have the highest drug prices in the world? To begin, every industrialized country with the exception of the U.S. imposes some form of price controls on prescription drugs. Additionally the American consumers literally pay the price to subsidize research and development for the world as well as the pharmaceutical industry's substantial profits. Fortune magazine ranked the pharmaceutical business as the most profitable of all industries in 1998 when measured by returns on equity, sales and assets.

Why do TV ads seem so convincing? What is it that they do in the 60 or so seconds that makes people act on this information? Maybe the television commercial is not about the product at all, but rather the character of the consumer. What the advertiser needs to know is not what is right about the product but what is wrong about the buyer. I have heard many well-educated friends and relatives say, "I saw it on television so it must be right." In 1998 an estimated 55 million people talked with doctors about prescription medicines they saw advertised, and doctors wrote prescriptions 84% of the time they were asked, according to a Prevention magazine study. The television commercial has "embedded in it certain assumptions about the nature of communication that run counter to those of other media, especially the printed word." The commercial is unusually short - an instant, always addressing itself to the psychological needs of the viewer. It may be considered instant therapy. As Neil Postman said years ago in "Amusing Ourselves to Death" "The commercial asks us to believe that all problems are solvable, that they are solvable fast, through the interventions of technology, techniques and chemistry." Of course this is preposterous, yet I hear it over and over. "It must be true otherwise it wouldn't be on television." I would rather hear "It certainly is wrong and oversimplified, and that is precisely why it is on television. The USA is the only industrialized nation that permits prescription drugs to be advertised directly to consumers through television commercials and print ads. High U.S. prices are coming under increasing scrutiny because prescription drug costs are the fastest-growing segment of health care costs. Since 1993 they have risen at a 12% annual rate. There seems to be a cure for everything: allergies, ailing hearts, depression, herpes, high blood pressure, premature hair loss, headache, impotence, and on and on. The most expensive drugs are advertised, not the generic ones of course. But doctors face pressure from their HMO companies to prescribe inexpensive or generic drugs to hold down costs. "I could be de-selected by an HMO or managed care program. Is that a conflict of interest?" said Dr. Thomas Kowalski a Milwaukee pediatrician. I think the answer is obvious

According to Health Affairs a leading policy journal "Advertising prescription drugs directly to the consumers may be harming the quality of clinical care" and upsetting the delicate doctor/patient relationship, if there still is one. In Health Affairs Michael Wilkes, MD and colleagues write that these ads" may cultivate the belief among the public that there is a pill for every ill and contribute to medicalization of trivial ailments, leading to an even more 'overmedicated' society." This type of advertising rarely mentions lifestyle changes and nonpharmacologic interventions. TV ads are for the most expensive pills. The consumer really has no choice if there is one particular medication available for his or her condition. The cost of running ads adds to the price, and companies are currently seeking to extend their patents longer to make sure that generics do not compete.

New travel spin offs have had success as seniors join groups to travel to Canada and Mexico. For $99, RxPassport provides a seat on the bus, pays the Canadian doctor's fees, helps patients fill out the paperwork for their prescriptions, and includes a gourmet box lunch on the return trip. The office, set to open in a month, is ready to deal with up to four busloads of American patients every day. Dr. Paul Zickler, the managing partner of RxPassport, stresses that the office is not a clinic. Although a nurse will be present, patients will not receive exams. Prescription requests must arrive with a letter from the patient's primary care physician or specialist before the visit. If the Canadian doctors find no problems, they will rewrite them, have them filled and give them to the patients when they arrive. Customs allows only a 30-day supply to cross the border. The majority of the patients will be seniors "and the medications that they're on are primarily high blood pressure pills, diabetic pills, heart pills."

American prices for prescription drugs are the highest in the world so it is not surprising that people will travel across borders. The United States actually does have a price control system similar to other countries but it applies to only one customer: the federal government. Pharmaceutical companies are required by law to sell drugs to the government at the best wholesale price given to their large U.S. customers. Then, the four biggest federal customers - the Veterans Administration, Defense Department, Coast Guard and the Public Health Service/Indian Health Service - get an additional 24% discount. This essentially gets international prices for the federal government. But these four markets account for only 1.5% of the U.S. market.

Annie Ryman, a retired nurse in Bay City, Texas, won't shop for cheap drugs in Mexico. "Her doctor told her not to because some of her medicines have very precise formulations. So she copes with the high cost of prescription drugs by skimping on medicines. She cuts some pills in half and ends up taking only half the prescribed dose."

One-third of the elderly have no prescription-drug coverage, and many of those with insurance have high deductibles. A great many folks do not even know if they are in an HMO or not. They are not aware of the caps on prescription coverage that limits them to $1,000 to $2,000 a year.

On the program 20/20 (ABC) about statins, used to control cholesterol levels Dr. Tim Johnson and Barbara Walters advised everyone to take this medication prophylactically, every day. This makes no sense at all. Even if the plaques that cause heart attacks are hidden, taking a medication every day, on the off chance that an attack could be staved off, would not make good medical sense and would cause wear and tear on the liver. It does make good business sense, and that is as usual the bottom line in the good old USA.

Dorothy Guellec guellec@purvid.purchase.edu member Foreign Press Ass'n

 

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