This interview with Jeff McCullough explores whether advertising for pharmaceutical drugs is good or bad, and how it can affect drug costs.
Monday, April 6, 2009
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While the US is only one of two countries that allows DTC advertising (New Zealand does, too), from a free-market perspective, it's hard to deny pharmaceutical companies the right. Unfortunately, though, DTC advertising is regulated not nearly enough (certainly, we've all heard the myriad warnings and side effects listed at the end of these commercials, but many times, the very effectiveness of these drugs is not even espoused). Moreover, DTC, while perhaps indirectly, contribute to the higher costs in our health care system: consumers are prompted to ask for drugs that may not even be relevant to them (in fact, ads prompt nearly 1/3 of adults to ask physicians about an advertised medicine and 82% of those who ask, receive a prescription); moreover, the drugs consumers ask for are more often than not, the more expensive brand-name drugs, rather than more affordable and just as effective, generic drugs.
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