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Understanding Why Costs Are Out of Control and What You Can Do to Lower Them

Are you aware of how out of control the use and cost of prescription drugs has become in the U.S.? Probably. You can't miss all the media hype. But do you really know the facts?

1. How much will we as a nation likely be spending on prescription drugs by the year 2012?

a.) $15 billion
b.) $28 billion
c.) $100 billion
d.) $450 billion

2. In a single decade, the number of prescription drugs purchased in the U.S. increased by what percentage?

a.) 10
b.) 25
c.) 52
d.) 70

3. In 2000, the average annual out-of-pocket expense for outpatient prescription drugs was $___ for people under 65 and $____ for people over 65:

a.) $75/$250
b.) $199/$623
c.) $250/$841
d.) $350/$1,001

4. True or False: Seniors are not eligible for generous prescription drug discounts.

5. True or False: The U.S. has been called the most over-medicated nation in the world.

6. In 2003, the prescription drug industry spent $____ on research and development and $___ on advertising:

a.) $112 million/$52.1 million
b.) $1 billion/$2.5 billion
c.) $13.3 billion/$9.3 billion
d.) $33.2 billion/$25.3 billion

Most people will need to take a prescription medication at some time in their lives, but it's important to talk to your doctor about what is being prescribed so you make careful decisions at every turn.



Answers

1. D. Kaiser Family Foundation, Prescription Drug Trends – A Chartbook Update, March 2003.

2. D. Between 1993 and 2003, the number of prescription drugs increased 70 percent, from 2.0 billion to 3.4 billion, compared with a U.S. population growth of 13 percent. This is according to the Kaiser Family Foundation, Trends and Indicators in the Changing Health Care Marketplace, 2004.

3. B. The source here is the Center for Financing, Access and Cost Trend, AHRQ, Medical Expenditure Panel Survey, Household Component, 1997–2000. The average daily caloric intake for a healthy adult should be between 1,600 and 2,200, depending on gender, age and activity level, according to the U.S. Department of Agriculture.

4. False. Seniors may have to do some detective work, but they have access to many discounts from drug manufacturers, Medicare, and their health plans.

5. True. When you consider the rest of the questions in this quiz, you can see why many journalists and scientists have called the U.S. the most over-medicated nation in the world.

6. D. While drug companies spent $33.2 billion on research and development in 2003, they spent three-fourths of that amount — $25.3 billion — on advertising (Prescription Drug Trends, Kaiser Family Foundation, October 2004).



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