Drug pricing probed

Article Abstract:

Drug manufacturers are under investigation by the federal government for overpricing. The Justice Department is investigating pricing practices that could be costing taxpayers over $1 billion a year. The investigation is focusing on the practice of drug companies to set wholesale prices high so that physicians and other healthcare providers can bill Medicare and Medicaid higher than what the providers are actually paying for.

Government regulation

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Drug spending soars 84% in last five years

Article Abstract:

Prescription drug spending soared 84% from 1993 to 1998, according to a study prepared for the research group National Institute for Health Care Management. The increase was prompted by higher drug prices, which accounted for 64% of the total gain in medication expenditures from 1993 to 1998, as well as raised demand for heavily advertised pharmaceuticals. The report also revealed that insurance companies and employers bore most of the increase in expenditures.

Sales & consumption

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Diet drug maker settles for $4.8 billion

Article Abstract:

American Home Products agreed to pay $4.8 billion to consumers who may suffer heart damage from its weight-loss combination drugs called 'fen- phen.' Some 5.8 million dieters used the drugs. The popular diet drugs were taken off the market after studies indicated that they caused heart valve damage. The agreement includes $1 billion for medical tests, $2.3 billion for damages to those suffering from or will later develop heart problems and $429 million for legal costs.

Legal issues & crime, Wyeth

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