http:www.forbes.comlifestylehealthfeedshscout20050825hscout527620.html

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Big Savings Seen in Medicare Rx Drug Plan
Steven Reinberg, HealthDay Reporter
http//www.forbes.com/lifestyle/health/feeds/hscou
t/2005/08/25/hscout527620.html
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The Problem
In 2003, Americans spent a record of 203 billion
on prescription drugs an increase of 20.4
billion from the previous year. Spending on
prescription drugs is now the fastest growing
portion of healthcare spending in the United
States.
In the 50 states, at least one in five seniors is
receiving Medicaid without prescription drug
coverage. In seven states, more than half of the
senior population has no prescription drug
coverage.
The pharmaceutical companies insist that the high
prices are justified by the amount of money spend
on RD of new medications. Yet, RD is actually
not a high priority for drug companies.
Closer Look These days, it's hard to tell the
difference between pharmaceutical commercials and
car commercials. Both are almost always intended
to look "cool. (Adams, mike http//www.newstarget
.com/001352.html
In 1991 the drug companies spent a 55 million on
advertising drugs directly to consumers. Over the
following 9 years, this increased more than
50-fold to reach 2.5 billion in 2000 and exceed
3 billion in 2003. As a result, between 1999 and
2000, prescriptions for the 50 most heavily
advertised drugs rose six times faster than
prescriptions for all other drugs. Katharine
Greider's book, The Big Fix.
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In addition, the Food and Drug Administration
(FDA) approved only 17 new drugs in 2002, the
fewest in a decade. Scott Hensley of the Wall
Street Journal suggests that this drop in new
medications has prompted "companies to keep
profits flowing the old-fashioned way by
charging more for their existing products."
Last but not least, the average number of
prescriptions per person in the United States
increased from 7.3 in 1992 to 10.4 in 2000. Along
with this increase in demand, there has been a
shift towards the use of more expensive
medications. It's cannot be just a coincidence
that many of the most expensive medications are
those medications that are most heavily
advertised.
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The Solution
To legalize prescription drug importation. This
will give consumers access to affordable
medication and pressure the pharmaceutical
industry to lower the prices of prescription
drugs sold in America.
Illinois began I-Save Rx program in October 2004,
Wisconsin, Missouri and Kansas later joined the
program. It is a program that allows the
residents to order lower-cost prescription drugs
from other nations.
The states contract with CanaRx, a Canadian
pharmacy that operates a network of online
pharmacies, to allow residents to connect with a
45 pharmacies and prescription drug wholesalers
in Canada, the United Kingdom and Ireland. U.S.
residents can purchase over 275 brand-name
prescription drugs, prescription refills, and
most generic medications, narcotics and
treatments that require refrigeration or other
special care are excluded.
The Together Rx Access Card is sponsored by some
of the worlds largest pharmaceutical companies.
Those companies are Abbott Laboratories
AstraZeneca Bristol-Myers Squibb Company
GlaxoSmithKline Janssen Pharmaceutica Products,
L.P. Life Scan, a Johnson Johnson company
Novartis Pharmaceuticals Corporation
Ortho-McNeil Pharmaceutical, Inc. Pfizer Inc
sanofi-aventis Takeda Pharmaceuticals North
America, Inc. and TAP Pharmaceutical Products
Inc.
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• Who is Eligible?
• No prescription drug coverage (public or
  private)
• Income equal to or less than
• 30,000 for a single person
• 40,000 for a family of two
• 50,000 for a family of three
• 60,000 for a family of four
• 70,000 for a family of five
• Legal US resident
• Income limits may be higher in Alaska and
  Hawaii.

According to a report, by Medicare Today, 97 of
Medicare beneficiaries can have drug coverage
under the new program, compared with the 62 who
currently have drug coverage. The report was
based on data from the U.S. Census Bureau, the
Medicare Current Beneficiary Survey and other
sources adjusted to reflect 2006 estimates by the
Congressional Budget Office.
According to the same report, the out-of-pocket
costs for prescription medications will drop by
90 for the people who earn below 14,500 from
1,657 to 180 a year.
Generally, With the free Together Rx Access Card
most cardholders save 2540 on the prescription
drugs.
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CR
CR
MC
Z
PM
PM
ATC
X
MC
PP
Y
Demand
Demand
MR
MR
Q
QM
QP
Q
QM
After Program
Before Program

• Before the program is introduced in some states,
  the market takes the monopoly shape. Where, PMXYZ
  is the monopoly profit.

• After the program is applied in some states, the
  pharmaceutical market in these states may take
  the perfect competitive trend. The price should
  gradually fall to equal the MC and the quantity
  should increase to (QP. )The Monopolist will not
  loose the whole market as the brand-name drug
  will still sell out perhaps for the loyalty to
  the drug, fear of the generic or imported drug,
  or the partial effect of advertising.

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Conclusion
Importing prescription drugs may change the
structure of the pharmaceuticals market to be
more competitive. This will lead to decrease in
the drugs prices and thus increase the welfare of
the society.
However, this should be done in a safe way and
not on the expense of the safety and quality
standards of the drugs.
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Big Savings Seen in Medicare Rx Drug Plan By
Steven Reinberg, HealthDay Reporter
http//www.forbes.com/lifestyle/health/feeds/hscou
t/2005/08/25/hscout527620.html
Health Care Reform, Fair Rx Drug Prices Now
http//masspirg.org/MA.asp?id210447id3MA
If Prescription Drugs are So Good, Where are All
the Healthy Drug Takers? By Adams, Mike,
Jul15,2004
http//www.newstarget.com/001352.html