[Congressional Record (Bound Edition), Volume 146 (2000), Part 18]
[Senate]
[Page 25833]
[From the U.S. Government Publishing Office, www.gpo.gov]



   DIRECT-TO-CONSUMER ADVERTISING AND RISING PRESCRIPTION DRUG PRICES

  Mr. JOHNSON. Mr. President, anyone who has lived or visited in the 
United States during the last few years has been exposed to a 
phenomenon which is uniquely American. I speak of the direct-to-
consumer advertising of prescription medicines.
  U.S. pharmaceutical manufacturers will spend an amount this year very 
close to $2 billion on advertising to the general public. This can be 
compared to about just $150 million in 1993--which explains why no one 
can avoid these advertisements even if they wanted to. They are 
ubiquitous--TV, radio, newspapers, and magazines are all replete with 
prescription drug ads.
  Typically, the drugs that are most heavily advertised are among those 
that ultimately are the most heavily prescribed. According to a 
recently released National Institute for Health Care Management study, 
for example, the seven drugs in 1999 which had more than $1 billion in 
sales were advertised an average of $58.5 million each. Together, they 
contributed an estimated 24.3 percent toward the increases in total 
expenditures of prescription drugs during 1999.
  Clearly, advertising works, just as it always has.
  Advocates of this relatively new technique to increase name brand 
prescription sales will say that consumers become more aware of 
treatment possibilities and may have a better starting point for 
discussion with their physicians. Other observers believe this practice 
artificially increases demand from consumers who are still not fully 
educated enough to know about less expensive, or maybe even safer, 
alternatives. Certainly, the advertising costs are passed along to the 
consumer.
  Is the information value worth the yearly increases in drug costs 
that advertising inevitably causes? Are patients getting the best 
individualized choices of medicines or the just best advertised ones? 
Are generic drugs, often an excellent cost-effective alternative, 
getting equal consideration?
  Frankly, I have my concerns about this practice. Many professional 
organizations have gone on record as opposing the kinds of direct-to-
consumer advertising that goes on today. I believe it bears very close 
watching and we all need to closely scrutinize its value and its place 
within the health care system.

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