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Healthy Skepticism Library item: 8560

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.


Publication type: Journal Article

Gardner VR, Fulda TR.
Drug insurance and cost containment: an evaluation of where we're going.
Hosp Formul 1978 Jun; 13:(6):460-1,


Possible effects of national health insurance upon pharmacy and the pharmaceutical industry are predicted and pertinent questions are posed which need to be resolved in order to develop a cost effective health insurance drug benefit program. Results of a 2 year pilot study funded by the Social Security Administration to test the effects of various patient cost sharing alternatives on benefit cost and utilization rates are discussed. The use of drug utilization review on an outpatient basis to determine physician prescribing practices and its effects on cost containment in a national health program are also discussed. A thorough evaluation of the Maximum Allowable Cost program is suggested to measure its impact on prices in the pharmaceutical market and on expenditures by HEW for drugs provided under Medicare and Medicaid.

Insurance, Pharmaceutical Services/economics Insurance, Pharmaceutical Services/trends* National Health Insurance, United States/economics* National Health Insurance, United States/trends United States


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As an advertising man, I can assure you that advertising which does not work does not continue to run. If experience did not show beyond doubt that the great majority of doctors are splendidly responsive to current [prescription drug] advertising, new techniques would be devised in short order. And if, indeed, candor, accuracy, scientific completeness, and a permanent ban on cartoons came to be essential for the successful promotion of [prescription] drugs, advertising would have no choice but to comply.
- Pierre R. Garai (advertising executive) 1963