America’s drug industry, which pulls in billions of dollars in profits, is likely to face political attacks similar to those waged against tobacco and big banking, according to analysts.

Tactics similar to those used in the past to fight against the tobacco industry and investment banking, such as targeting the harmful effects of smoking or sales and marketing techniques, are now being used in a campaign against the pharmaceutical giants.

Two states, Connecticut and New York, are already filing lawsuits against drug companies on the grounds of their sales and marketing practices. Another hot topic in the campaign involves drug pricing.

America spends more money on drugs ($149 billion in the year to February, according to a research firm) than Britain, Canada, France, Germany, Italy, Japan and Spain combined. While Americans do consume more drugs than these other countries, drug prices in America are also much higher. Canadian, European and Japanese governments set limits on drug prices, while in America the market has more freedom to set prices.

Americans often take the brunt of these expensive drug prices directly. Private health insurers are continually introducing higher co-pays in order to switch costs to consumers, fewer employers are offering prescription-drug benefits to retirees, and those without insurance are faced with particularly high drug prices.

Meanwhile, through the Internet Americans are realizing that their drug prices are much higher than those in other countries, and some have turned to Canadian Internet pharmacies as a way to get less expensive drugs.

As the drug industry attempts to justify their high prices, several states are looking for ways to lower the prices. For example, Michigan is using an "approved-drug list" as a way to harness discounted prices. The state reportedly saved $45 million on drugs in 2002 by requiring drug companies to discount drugs from the "average wholesale price" in order to be included on the list.

Drug companies maintain that America’s free market in regard to drug pricing makes the companies more likely to spend R&D money, and that the states’ efforts to lower prices is potentially harming research and new drug development.

Another widespread perception is that drug companies bribe doctors with free or cheap drugs and spend billions on advertising in order to convince consumers to embrace their expensive and sometimes unnecessary treatments.

But, more and more consumers are starting to see drug companies as firms out to profit from the public. While drug companies are spending the same amount on marketing today as they did in 1997, spending on direct-to-consumer advertising has increased from $1.1 billion in 1997 to $3 billion in 2001.

Nonetheless, the drug industry argues that drugs lower health care costs overall by reducing the need for more costly treatments such as surgery. However, whether consumers and politicians will continue to accept this argument remains to be seen.

Economist April 24, 2003

Dr. Mercola's Comments:

For the first time in almost a decade, according to federal health economists, health expenditures outpaced the growth of the economy. This is one amazing statement, but one that is not hard to believe considering retail pharmacies filled 3 billion prescriptions in 2000. The United States currently spends about $1.5 trillion for health care, and the projections are that it will double in less than 10 years. Like the late Senator Everett Dirksen from Illinois was fond of saying when he was referring to the Defense Department budget, a billion dollars here, a billion dollars there, and before you know it you are talking real money. Well, we are talking about a lot more than a few billion dollars; we are talking about nearly $1.5 trillion, an amount that is even beyond Bill Gates’ level. Why is it that we are spending huge amounts of money on health care, yet Americans are suffering from more and more chronic illnesses? Obviously the system is not working. We are nowhere near achieving the high levels of health that we could be. More and more people do not have the energy they need to get through the day while millions of others are suffering with painful, crippling diseases--but it does not have to be this way. The tragedy is that rather than spending money on education and methods that can stop disease at its roots, we are spending billions of dollars on drugs and surgery to temporarily cover up the real problem. And what is the real problem? The violation of basic health principles. But, it seems the tide may be turning. More and more Americans are getting fed up with expensive drugs that often cause more harm than good, and the drug companies’ deceitful sales and marketing techniques are being exposed for the scams they truly are. In time the truth will naturally come out, but it is my vision and passion to facilitate the spread of truth now. You can take control of your health and your life and free yourself from needless drugs. There is no secret potion needed--only basic health principles. You can find these health principles explained in detail in my new book, The No-Grain Diet. Additionally, this Web site contains a wealth of health information that you can use to educate yourself and your loved ones. Related Articles: Health Spending Growing Faster Than US Economy Prescription Drug Sales Increased By Nearly 20% Last Year in US Nearly $3 Trillion Dollars in US Health Spending is Projected