Summary
Following the US Food and Drug Administration's relaxation on direct-to-consumer advertising in 1997, prescription drug ads have taken television and magazine advertising by storm. Milliman USA estimates that in 2003, year-over-year per capita spending on prescription drugs rose nearly 94% since 1998. Health insurers, engaged in a war against rising drug costs, are fighting back with promotions of generic drugs, mail-order drugs and brand-name drugs recently converted from prescription to over-the-counter sales. The results, they say, are saving considerable dollars for members and plans. Increased direct-to-consumer pharmaceutical advertising continues to drive up drug prices by increasing consumer demand for brand-name products. The increased availability of generic drugs, however, along with changes to drug benefit plans that encouraged generic use, "took the edge off rising drug prices" in 2003, according to a national study by pharmacy benefit manager Express Scripts. Insurers are hopeful that as patents for brand-name prescriptions expire in the next several years, even more generics will appear on the market.
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Rx for Costs
Following the U.S. Food and Drug Administration's relaxation on direct-to-consumer advertising in 1997, prescription drug acls have taken television and magazine advertising by storm. From "the purple pill" to "the patch," direct-to-consumer pharmaceutical advertising is reaching into the homes of millions of consumers and, along with increased usage and price inflation, has caused a significant increase in most people's prescription drug spending.
Milliman USA estimates that in 2003, year-over-year per capita spending on prescription drugs rose nearly 94% since 1998.Health insurers, engaged in a war against rising drug costs, are fighting back with promotions of genericdrugs, mail-order drugs and brandname drugs recently converted from prescription to over-the-counter sales. The results, they say, are saving considerable dollars for members and plans.A Large BattlefieldHealth care ...See the full content of this document
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