Healthy Skepticism Library item: 7888

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Kinard ME.
Key components responsible for increasing drug costs
ASHP Annual Meeting 2001 Jun; 58:

Abstract:

During recent years, drug costs have been the fastest rising component of medical care. Information is presented to provide an understanding of the market place dynamics and the multiple inflationary factors with an impact on drug costs. Examination of the effect of prescription drug coverage and the impact of regulatory pressures are presented. In addition, an in depth view of the role of the pharmaceutical industry is also discussed. Strategies used to mitigate rising drug costs are suggested. Learning objectives: 1. List three reasons for the high rate of drug cost inflation. 2. Explain the effect of prescription drug coverage on rising drug costs. 3. Describe the relationship between marketing costs and research and development costs within the pharmaceutical industry. Self-assessment questions: True or false: 1. During 2000 the pharmaceutical industry spent in excess of 2 billion dollars advertising their products directly to consumers. 2. The annual inflation rates for the amount spent on drugs are likely to be markedly less in each of the next five years. 3. The prices charged by manufacturers for new drugs coming to market are driven mostly by research and development costs. Answers: 1. T; 2. F; 3. F.