Myths
Pharmaceutical companies & government programs
Origins of the Pharmaceutical Industry
What are pharmaceutical policies
How much do you know?
100
TRUE OR FALSE. To protect all Americans (or all Medicare recipients) against the cost of prescription drugs, they—or we—will have to spend more. Much more.
What is ... FALSE. We can re-shape Americans’ payments to drug makers to protect everyone without spending appreciably more money.
100
How are pharmaceutical policies related to Medicare?
What is... Medicare offers prescription drug coverage to everyone with Medicare.
100
When did the pharmaceutical industry emerge in the United States?
What is...(1906) The modern pharmaceutical industry in the United States has its origins in the Pure Food and Drug Act passed by Congress in 1906. Before this time there was little marketing for drugs and remedies. This act allowed for testing pharmaceutical products through its Bureau of Chemistry.
100
What is a pharmaceutical policy?
A branch of health policy that deals with the development, provision and use of medications within a health care system. It embraces drugs (both brand name and generic), biologics (products derived from living sources, as opposed to chemical compositions), vaccines and natural health products.
100
Who is the President and CEO of Pharmaceutical Research and Manufacturers of America?
John J. Castellani
200
TRUE OR FALSE. Drug makers spend their money well, and particularly spend much more on research than on marketing.
What is... FALSE. Drug makers spend money badly, exaggerating their research spending and distorting and minimizing their marketing efforts. 

200
What are the two ways to get Medicare prescription drug coverage?
What is... Medicare Prescription Drug Plans.These plans (sometimes called “PDPs”) add drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service (PFFS) Plans, and Medicare Medical Savings Account (MSA) Plans. Medicare Advantage Plans (like an HMO or PPO) or other Medicare health plans that offer Medicare prescription drug coverage. You get all of your Part A and Part B coverage, and prescription drug coverage (Part D), through these plans. Medicare Advantage Plans with prescription drug coverage are sometimes called “MA-PDs.” You must have Part A and Part B to join a Medicare Advantage Plan
200
How do pharmaceutical companies market their products?
What is Direct-to-consumer advertising. This is an important way to provide consumers with information about their health and treating disease, and at least 29 million Americans have talked to their physicians about a health condition for the first time after seeing a pharmaceutical advertisement.
200
What is some controversy surrounding prescription drugs costs and pharmaceutical manufacturers?
In favor: Availability of a wide array of new pharmaceutical products Patent protection programs provide incentives to invest the vast sums required which allows pharmaceutical manufacturers to take the risk involved in developing new drugs Opposed: Research done by pharmaceutical companies does not really result in new drugs Most research is dedicated to finding a way to develop a drug that is similar in effect to a drug patented by a competing manufacturer Billions of dollars are spent on marketing and advertising
200
What do you think of this video?
http://www.youtube.com/watch?v=lNFuEcy5ekg
300
TRUE OR FALSE. If government interferes with today’s high price and profits, “The lights go out in the labs, and there is no R&D.“
What is... FALSE. The drug makers’ short-term profit-maximization is the real long-term threat to adequate research financing.
300
How do pharmaceutical policies affect Medicare and Managed Care?
What is... Medicare: State governments make difficult decisions about tradeoffs between rising costs and maintaining access to newer pharmaceutical products Managed Care: struggle to stay within their budgets as a continuing stream of newer and very expensive products becomes available.
300
What is off labeling?
What is... The practice of prescribing pharmaceuticals for an unapproved indication or in an unapproved age group, unapproved dose or unapproved form of administration. 1/5 of prescriptions are written off label
300
What two general categories do new pharmaceutical products fall into?
1.Drugs that are in an entirely new class of therapeutic agent 2.Drugs that are within an established class of therapeutic agents but have certain characteristics that distinguish them from other drugs within the category
300
What are atleast 3 of the top prescription drugs.
1. Vicodin (Pain) 2. Zocor (High Cholesterol) 3. Xanax (Anxiety) 4. Ambien (Insomnia) 5. Prilosec (Acid Reflux) 6. Lipitor (High Cholesterol)
400
TRUE OR FALSE. It is reasonable to develop a series of incremental and partial solutions to affordably protect all Americans against the rising cost of prescription drugs.
What is... FALSE. We need to put together a comprehensive approach that protects the legitimate needs of all parties, test that approach, and then refine it incrementally.
400
What role do prescription drugs play in modern medicine?
What is... Prescription drugs play an ever-increasing role in modern medicine. New medications are improving health outcomes and quality of life, replacing surgery and other invasive treatments, and quickening recovery for patients who receive these treatments.
400
When and why were pharmaceutical industries strengthened?
What is... Federal regulation of pharmaceutical industries was strengthened in 1938, following a national scandal in which more than 100 people died from taking a drug that was marketed for use in children and contained toxic materials. After Roosevelt signed the Food, Drug and Cosmetic Act, all new drugs needed to be tested before being made available to the public.
400
Are most new drugs modifications of existing drugs?
Yes. Most drugs are simply chemical modifications of existing drugs Less than 10% of new drugs applications approved by the U.S FDA are for new compounds that represent a significant improvement in therapy.
400
In what year did prescription cost begin to rise?
As the health care system began to experience rapidly increasing costs in the 1970's, the cost of prescription drugs also began to rise.
500
TRUE OR FALSE. Prescription drugs aren't that expensive and prices are really stable.
What is... FALSE. Between 1993 and 2003, the overall cost of prescription drugs increased 249 percent, while the cost of health increased 89%. Prescription drugs is projected to remain at approximately 10% of national health expenditures through 2019.
500
What role did the American Medical Association play in the emergence of Pharmaceutical Policies?
What is... The AMA established its own Council on Pharmacy and Chemistry which had extensive influence with the editors and publishers of medical journals. Only those that had been analyzed and approved by the council could be advertised by physicians.
500
Who was charged with conducting the premarket testing of drug safety and in what year did their role expand?
What is The Food and Drug Administration. Their role was expanded in 1962 by the Kefauver-Harris Amendments which required manufacturers of new pharmaceutical products to provide the FDA with scientific proof of the products safety and efficacy.
500
How do pharmaceutical manufacturers market new drugs to physicians?
1. Advertisement in medical journals 2. Educational meetings and conferences sponsored by pharmaceutical companies 3. Direct marketing to the physician, using mail and visits to the physician's office * Substantial resources go into this and has raised questions about conflict of interests for physicians
500
Does age factor into prescription costs? If so, how?
Yes. In 2000, the average number of prescriptions filled by a person younger than 65 was 10.1, at an average of $485 compared to those 65 & older whose average prescription filled was 23.5 and totaled $1,102 per year (more than double).
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