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Article #125: New Drugs Bring Health, But at What Cost?

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The wonder drugs of present times help to coverage. So the cost of these products
keep pain at bay and cholesterol levels hits people very hard." - Mahan said.
low. They also guarantee good mood, A few facts: Due to AARP's last "Rx
strong sexual prowess and lots of other Watchdog Report," published in August,
benefits. prices of 195 top brand-name medications
Unfortunately, many Amercicans are increased by 6.6 percent from the spring
feeling the pain in their pocketbooks, of 2004 to the spring of 2005 - more than
instead of general relief as the costs of double the 3 percent yearly factor of
prescription drug reported to be inflation.
increasing at twice the factor of AARP calculates that the average older
inflation. American, who takes three prescription
"These drugs do help a lot of people - medications, pays for the drugs about
that's why it's such a shame that they $866 more than five years ago.
are so expensive and out of reach for so When the report was released, Ken
many," stated Dee Mahan who is a deputy Johnson, PhRMA's senior vice president
director of health policy at Families USA stated that the AARP used "fuzzy math in
from Washington, D.C., a nonprofit reaching its flawed conclusions."
consumer organization that has fought for Trewhitt said: "Today's pharmaceutical
lower prices of drug. price increases, which are at near
Mahan said: "Prices are much lower in decade-low levels, are in line with those
other countries. You can't help but feel of other health-care services, which
as an American that you're getting gouged aren't as cost-effective."
with the prices here." He is sure that the true problem is in
A spokesman for the industry group PhRMA the growing groups of uninsured people in
(Pharmaceutical Research and America: "Today, about 45 million
Manufacturers of America), Jeff Trewhitt, Americans lack adequate insurance or any
had a diefferent opinion. insurance. They often pay cash on the
"The critics have done a good job of barrelhead for medicines at retail
distorting the cost record," Trewhitt pharmacies and they don't have anyone
said. "The fact is, prescription drugs negotiating good discounts on their
(including generics) account for about 11 behalf."
percent of each health-care dollar, with In response, Mahan agreed and at the same
hospitals, doctors, surgeries, the cost time disagreed again: "We certainly do
of medical equipment and other expenses have too many people without coverage -
accounting for the remaining 89 cents." I'm not arguing with him on that one"-
More importantly, Trewhitt claimed, the said. But she added that health plans
disease-management powers of a large cut out prescription-drug coverage
number of these drugs - such as accurately because prices have increased
antidepressant SSRIs or very quickly to a high level.
cholesterol-lowering statins - are Mahan's group fight for price rollback as
actually saving "billions of dollars" of well as lobby for some kind of federal
the health-care system and the consumers controls of the prices as occur in Canada
as they preclude expensive and and Europe. Industry representatives try
complicated care such as surgery and to defend by saying that the controls
hospitalizations. could strike research and development,
"For example, the average cost of an but Mahan doesn't believe it.
anti-ulcer drug is about $900 a year. "We've looked at profits and spending
When a patient takes the medicine and patterns in pharmaceutical companies and
avoids the surgery, he avoids paying an what you see consistently is that R&D is
average of $28,000 for the operation. The well overshadowed by spending on
average cost of a heart disease drug is marketing, advertising and
$1,200 a year, compared to an average of administration," she noticed. "It's also
about $42,000 for coronary artery bypass well overshadowed by profits."
surgery." - Trewhitt emphasized. Price controls in the USA appear to be
Mahan stated she doesn't deny either of very distant. According Trewhitt and
Trewhitt's points, despite the fact that Mahan people should be careful with
she is sure the cost of prescription shopping and use all the available
drugs in health-care spending is "a discounts as well as comparison shopping.
little higher" than the 11 percent he In January, for those in age of over 65,
mentioned. the expected Medicare drug benefit is to
In her opinion lots of expensive new be kick off.
medications save lives and keep patients Both sides agree to a point that a great
from having to experience even much more deal of the highly popular, expensive
expensive interventions. prescription drugs are able to improve
"But that's exactly why we think it's people's lives.
incredibly important that people be able Mahan said: "I spend a lot of my time at
to afford these products. And what you my work trying to get policy changes that
have right now is a situation where there would help people access affordable
are a lot of people who have no drugs. If I didn't think the drugs were
[insurance] coverage and a lot who have good and worth it, I'd be doing something
coverage that excludes prescription drugs else.
or has very meager prescription-drug






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