Government
Bill aims to lower federal spending on drugs advertised to consumers
NEWS IN BRIEF — Posted June 13, 2005
Drug companies would be required to give Medicaid and other programs an extra discount for any drugs for which they run direct-to-consumer advertisements under legislation proposed by Sens. Ron Wyden (D, Ore.) and John Sununu (R, N.H.). DTC advertising increases use of drugs, many of which are among the drivers of rising federal health care spending, the lawmakers argue.
"The government should make smarter use of its purchasing power for drugs advertised directly to ... consumers. The federal government provides a tax break for that advertising, and taxpayers shouldn't have to further subsidize the drug companies' marketing efforts through Medicare and Medicaid," Wyden said in a statement. The measure also requires the Dept. of Health and Human Services to study ways to reduce the amount of tax dollars spent on advertised drugs and to ensure patients are receiving pharmaceuticals based primarily on medical need.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/06/13/gvbf0613.htm.
