The Cost of American Medicine - 11 Simple Facts

Fact #1: 45.8 million Americans under the age of 65 lacked health insurance coverage in 2004.

Fact #2: In 2005, the cost of health care insurance for family coverage surpassed the annual salary of a minimum-wage worker.

Fact #3: Drug benefits of many employer insurance plans are being reduced every year. These reductions in drug benefits include steps such as higher premiums for drug benefits, higher co-payments on drug purchases, higher annual deductibles, tiered cost sharing, annual dollar limits on drug purchases, tightening eligibility rules and completely cutting drug benefits all together. This means more and more individuals are becoming underinsured when it comes to prescription drug coverage.

Fact #4: U.S. National Health Care Expenditures per Capita rose by 123% from 1990 to 2004. In that same time frame Prescription Drug Expenditures increased 78.6%. Prescription drug spending is one of the fastest growing components of national health care spending. In fact, in 1999, national prescription drug spending increased an astounding 18.2%, compared to an 5.2% increase for physician and clinical services and a 5.0% increase for hospital care.

Fact #5: Retail prescription drug prices increased an average of 8.3% a year from 1994 to 2004 (from an average of $28.67 to $63.59), more than triple the average annual inflation rate of 2.5%.

Fact #6: The five most highly paid Drug Company executives pocketed more than $183 million in compensation in 2001, with the top 25 pharmaceutical execs averaging nearly $6 million in annual compensation in 2000. That compensation does not count stock options, which can add millions of dollars to a CEO's income.

Fact #7: Prescription drug costs are expected to increase by 12.6% a year for the next 10 years, according to a recent report issued by the U.S. Department of Health and Human Services. By 2010, 16% of what Americans spend each year on personal health care will be spent on prescription drugs, the department said. In 1999, it was 9.4%.

Fact #8: The United States is the only developed nation that does not regulate drug prices. American consumers pay much more for their prescription drugs than any other country in the World. In fact, a 2003 study by the U.S. Department of Commerce International Trade Administration compared the U.S. prices of a list of 54 prescription drugs with the prices in 9 other countries and found that the prices in these 9 other countries were 18 to 67% lower than the U.S. prices.

Fact #9: FDA-approved does not mean "Made in the U.S.A.". Actually, more than 40% of the drugs sold in the U.S. are made by foreign-based firms that may have American operations.

Fact #10: An estimated 2 million Americans now buy their drugs from a Canadian pharmacy.

Fact #11: A study published in the Annals of Internal Medicine in September 2005 (Volume 143 Issue 6) concluded that brand name medications are often substantially less expensive when purchased from Canadian Internet pharmacies instead of from major online U.S. drug chain pharmacies.

Individual's struggling to afford their medication costs may want to look to Canada as a viable option for purchasing their prescription drugs. Canada is a very highly regulated and safe country to buy medications from. Millions of Americans have been ordering medications from Canada for more than 5 years now and there have been no reported cases of an American citizen harmed by an inferior medication. American residents can save an average of 80% on their prescriptions when buying from a licensed Canadian pharmacy.

Original Facts presented by Jeremy Cockerill a licensed Canadian pharmacist. Mr. Cockerill graduated from the Faculty of Pharmacy at the University of Manitoba with Honors in 1998.

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