The American People are not stupid, they are uninformed. And this is deliberate. How can you tell if you are paying too much for something? First you have the know what price you are paying, then you have to know what price other people are paying for exactly the same thing.

The artificially high list prices of patented prescription drugs are the bedrock of the prescription drug pricing system throughout the United States and the World. The disparity between the prices of these drugs in the United States and in foreign countries exists because all of the other First World countries have established price controls and other mechanisms to keep the price of these drugs low (see below). These controls do not exist in the United States because the American People are uninformed about the prices they pay for these drugs and the prices consumers in the other First World countries pay for exactly the same drugs in exactly the same quantitites and dosage amounts. The American People are uninformed about these prices because the Mainstream Media deliberately CENSORS this kind of information.

The artificially high list prices of patented prescription drugs also provide marketing and pricing opportunities for the other components of the health care industry, the HMOs and the health insurance companies. Through the manipulation of HMO and health insurance premiums, these entities have established new "profit centers" through the control of what has become another costly commodity.

No price is too high to pay if you are sick and you know or believe that a patented prescription drug will make you feel better.

How many of the most-prescribed drugs in the United States are still under patent and are therefore high priced? This information is not available to the American People. Our cost comparison spreadsheet shows, that of the 65 prescription drugs listed, 29 (45%) remain under patents. [AHC07e] A July 2000 study commissioned by the White House provided the names of the twenty most-prescribed drugs for the aged on Medicare and the twenty most-prescribed drugs for the disabled on Medicare. In the cost-comparison spreadsheet, which is far from complete, we determined that about half the prescription drugs on both lists were available in a generic form.

The chemical composition of every patented prescription drug is well known. When the patent on the prescription drug runs out, other chemical companies are able to produce and market the drug under its chemical name at a much cheaper price. These are the so-called generic drugs. Most of the generic drugs listed in the price comparison spreadsheet show that the majority of the generic prices range from one-half to one-tenth of the previous artificially high retail price.

Retail prices in Canada and Mexico for many of the drugs listed in the spreadsheet range from one-half to one-third of the retail price for exactly the same drug in exactly the same quantity and dosage amount.

Item. A 1991 General Accounting Office study of prescription drug prices in the US and Canada showed, that on average, the prices in U.S. were 34% higher than in Canada - Of the 121 drugs surveyed, 99 had higher prices.- In 21 cases, prices were 100% higher (twice as expensive); in 8 cases, they were 200% higher, (four times as expensive).

Item. Before the Republican take-over of Congress in the November 1994 election, the General Accounting Office provided a report to the Congress comparing prescription drug prices in the United States and the United Kindom. As we have seen elsewhere, this report and others like it were used from 1995 to the present by the minority Democrats in a number of unsuccessful efforts to force down prescription drug prices. Just as news of these efforts over the past five years has been CENSORED, the news of this report was also CENSORED in U.S. national, regional and local newspapers because it contained information the Mainstream Media did not want the American People to have in the months leading up to 1994 election (or for that matter, at any time). This was dangerous information -- the kind of information that would cause most any citizen of the United States to begin asking WHY? and to begin asking questions about the pharmaceutical industry and the political party it supports.

The following is the GAO's own summary of the original report: "Prescription Drugs: Companies Typically Charge More in the United States Than in the United Kingdom (Letter Report, 01/12/94, GAO/HEHS-94-29)."

"Drug manufacturers charge 60 percent more for 77 commonly prescribed, brand-name drugs in the United States than for the same medications in the United Kingdom. A total of 66 of the drugs were priced higher in the United States than in the United Kingdom; 47 of these were priced more than twice as high. Most of the differences in prescription drug prices between countries cannot be attributed to differences in manufacturers' costs. Instead, U.S.-U.K. drug price differences are mainly due to the lack of regulatory constraints in the United States."

Examples:

Xanax - 278% more (almost 6 times as expensive)

Premarin - 197% more (almost 4 times as expensive)

Lanoxin - 169% more (over 3 times as expensive)

Zantac - 58% more (about 1 and 1/2 times as expensive)

"In the United Kingdom, the government health system--virtually the sole payer for prescription drugs--has an agreement with drug manufacturers that limits the profits that drug companies can earn on sales in the British Isles. Other factors may also work to lower drug prices in the U.K. Pharmaceutical information is more widely available in the United Kingdom than in the United States, possibly enhancing price competition among drug manufacturers in the United Kingdom. U.K. doctors receive information on their own prescribing patterns and on the comparative prices and efficacy of drugs. The government can remove drugs from its list of reimbursable products if the manufacturers' prices for those drugs are considered excessive. Wholesalers and retailers can import brand-name drugs into the United Kingdom from elsewhere in Europe where drugs are cheaper."

A 1999 study by Democrats in the House of Representative compared government sponsored prescription drug coverage for Senior Citizens in the United States and in seven other First World countries:

U.S.

No outpatient prescription drug coverage for seniors under Medicare. Medicaid provides prescription drug gcoverage for some low- income seniors; policies vary by state.

Canada

All provinces provide prescription drug plans for senior citizens, with copayments that vary by province.

UK

Prescription drug coverage with co-payments; exemptions from some copayments for people over age 60.

Germany

Copayments range from $5 to $7, depending on the prescription. Patients also pay the difference between government reimbursed price and the market price (typically the difference between generic and name brand).

Japan

Free medical care for all individuals over age 70 (over 65, if bedridden), with nominal co-payments. Free care includes "supply of medications" Additional nominal co- payment for individuals taking more than one, two to three, or six or more prescription drugs per day.

Netherlands

Patient cost sharing of 20 percent, up to a maximum level. In addition, patients pay difference between maximum reimbursed price and the market price, similar to Germany.

France

"Essential drugs" (e. g., cancer treatment) require no cost sharing; "Normal prescriptions" (e. g., antibiotics) require 30% cost sharing; "comfort" drugs (e. g., tranquilizers) require 60% cost sharing. Elderly individuals with a need for multiple drugs are reimbursed for all costs.

Sweden

No charge for pharmaceuticals for treatment of chronic diseases. $10 co-payment for all other prescription drugs. Annual copayments capped at $200, for combination of prescription drugs, physician consultations, physical therapy, and hospital inpatient care.

Sources :

The Boston Consulting Group, Inc., Ensuring Cost- Effective Access to Innovative Pharmaceuticals: Do Market Interventions Work? , (April 1999). Graig, Laurene A., Health of Nations: An International Perspective of U. S. Health Care Reform . (Congressional Quarterly Inc. Washington, DC: 1999). Lassey, Marie L., Lassey, William, R., and Martin J. Jinks. Health Care Systems Around the World: Characteristics, Issues, Reforms. (Prentice Hall, New Jersey: 1997).

Does government-sponsored prescription drug coverage exist for the non-elderly in the U.S. and these same seven First World Countries?

U.S. - No. Low- income individuals may be covered under Medicaid. Varies by state.

Canada - No. Extent of coverage varies by province.

UK - Yes. However, coverage for elderly is more generous.

Germany - Yes.

Japan - Yes. However, coverage for the elderly is more generous.

Netherlands - Yes.

France Yes. However, coverage for elderly needing multiple drugs is more generous.

Sweden - Yes.