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The other drug lords

V Novak1

  • 1Common Cause Magazine, Washington, DC 20036.

International Journal of Health Services : Planning, Administration, Evaluation
|January 1, 1993
PubMed
Summary

Pharmaceutical companies influence Congress with lobbying and political donations, allowing them to maintain high drug prices and receive significant government benefits. This contributes to the challenge of controlling rising healthcare expenses in the U.S.

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Area of Science:

  • Health Economics
  • Pharmaceutical Policy
  • Lobbying and Political Science

Background:

  • Rising healthcare costs in the United States present a significant challenge.
  • The pharmaceutical industry plays a crucial role in overall healthcare expenditure.

Purpose of the Study:

  • To examine the influence of the pharmaceutical industry on drug pricing and government support.
  • To understand the mechanisms by which the pharmaceutical industry impacts healthcare cost control efforts.

Main Methods:

  • Analysis of pharmaceutical industry lobbying activities.
  • Review of political action committee (PAC) contributions.
  • Examination of government subsidies and tax breaks for pharmaceutical firms.

Main Results:

  • Pharmaceutical companies actively engage in lobbying and political donations.
  • These activities appear to correlate with the industry's ability to set high drug prices.
  • The industry benefits from substantial government subsidies, including tax breaks and patent protection.

Conclusions:

  • The pharmaceutical industry's political influence and government support contribute to challenges in controlling drug costs.
  • Strategies to control healthcare spending must address the financial and political power of pharmaceutical companies.

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