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Health Spending Growth Falls on Flood of Generics

Health-care spending in the U.S. grew the least since 1998, driven by the slowest rise in retail drug purchases in more than four decades. Payments for everything from doctor visits and hospital construction to home-health care increased 6.1 percent to $2.24 trillion, according to a government report today in the journal Health Affairs. Americans paid $228 billion for prescription medications, a 4.9 percent rise from 2006. Cheaper copies of heart and blood-pressure drugs such as Merck & Co.’s Zocor, Pfizer Inc.’s Norvasc and Bristol-Myers Squibb Co.’s Pravachol became available in 2006 and 2007. Generic drugs accounted for 67 percent of retail prescription sales in 2007, up from 63 percent the preceding year, according to the report. As the number of top-selling brands facing generic competition tails off, drug spending may rebound, said Paul B. Ginsburg, a health-policy analyst in Washington. “It’s a very happy short-term development for those people who pay for medical care,” said Ginsburg, president of the Center for Studying Health System Change, a Washington-based policy-research group, in an interview. “But it will be used up in a few years.” Spending grew faster than personal incomes, which rose 5.4 percent in 2007, and the U.S. economy, which expanded 2 percent. Payments to hospitals, doctors and clinics, and home providers also outpaced the overall increase. Consumers paid more for health-care out of pocket. Health-care spending amounted to $7,421 a person in 2007, or 16.2 percent of gross domestic product, the broadest measure of the U.S. economy. That compares with 16 percent a year earlier. Expanded Drug Benefit Drug spending had increased 8.6 percent in 2006, when Medicare added a $41 billion drug benefit for elderly and disabled Americans. Annual growth in drug spending peaked in 1999 at 18.8 percent. Demand for prescriptions also was curbed by the U.S. Food and Drug Administration’s increased use of so-called black-box warnings, strongly worded cautions for possible side effects and hazards, the report found. In 2007, the FDA slapped 68 prescription drugs with black- box warnings, up from 58 the year before and 21 in 2003, said Micah Hartman, a Medicare statistician and lead author of the Health Affairs article. He said he couldn’t estimate the financial impact of the warnings. Statisticians drew information for the spending report from the Census Bureau, IMS Health Inc., the American Hospital Association, along with other sources, Hartman said. Total costs included construction of health-care institutions such as hospitals, Hartman said. Figures weren’t adjusted for inflation. Other “blockbuster” drugs that lost patent protection and met generic competition during the period were Pfizer’s Zoloft, an antidepressant; GlaxoSmithKline Plc’s sinus spray Flonase; and Sanofi-Aventis SA’s insomnia drug Ambien, Hartman said. Through 2006, $47 billion worth of prescription drugs lost patent protection. Two-Thirds of Sales Generic drugs, costing 30 to 80 percent less than their patented equivalents, have also reined in the prices that can be charged by brand-name drugmakers, Hartman said. The fastest-growing health service cited in the report was home care. Helped by increasing claims to Medicare, the health program for the elderly, and Medicaid, the program for the poor, home-health expenditures jumped 11 percent to $59 billion. Inpatient and outpatient hospital care rose 7.3 percent to $697 billion. Payments to doctors and clinics increased 6.5 percent to $479 billion. Consumers shelled out $269 billion in out-of-pocket costs in 2007, an increase of 5.3 percent, compared with a 3.3 percent rise the year before, and they picked up a growing share of the premiums for coverage provided by employers. Of the $736 billion in premiums for employer-sponsored health insurance, companies’ share shrunk to 72.9 percent from 73.1 percent the previous year.

Diet Pill Acomplia Now Widely Available in Mexican Border Pharmacies

Diet drug Acomplia (rimonabant), which seems at best months away from sale in the United States, is now widely available in pharmacies just across the Mexican border. Readers increasingly are sending us reports on their experiences purchasing the highly anticipated diet pill in Mexican towns just across the border from California, Arizona, New Mexico and Texas.

In contrast to our last report on this back in March, when many Mexican pharmacies had not heard of Acomplia or had not received it yet, the latest reports suggest that if you stumble across a pharmacy that does not have it in stock, all you probably need to do is check the pharmacy across the street. A sampling of Mexican prices for the diet drug found most hovering right around $117 for the standard package of 28 pills, making purchases in Mexican border towns -- if you live nearby -- a less expensive option than purchasing the diet pill by mail order from Europe.

The lowest price we have heard of in a Mexican pharmacy is $110, so if you find it at a dramatically lower price, you might wish to keep in mind the repeated FDA warnings that many "brand-name" drugs purchased in Mexican border towns -- even those in perfect packaging -- have been found to be counterfeit. Mexican border pharmacies have traditionally shown little interest in such niceties as prescriptions, and that seems to continue to be the case -- even though one reader informed us that the Acomplia box had a removable plastic-band label that said "Prescription from a U.S. doctor required."

Rimonabant, aka Acomplia, HOT NEW OBESITY PILL

A drug which treats obesity by reducing the desire to eat has been launched in the UK.

But NHS chiefs warned people not to expect it to become widely available straight away as the cost-effectiveness of the pill needed to be assessed.

Rimonabant is the first drug to target factors governing the body's appetite, metabolism and energy use. Trials showed it can reduce weight by a tenth.

UK experts said it could not replace healthy food and regular exercise.

In the UK, it is estimated that one in five men and a quarter of women are obese.

Cost

But at a cost of over £55 for a month's treatment, it could end up costing the NHS billions of pounds of money.

The drug still has to be assessed by NHS advisers the National Institute for Health and Clinical Excellence.

The review is not expected for another two years and NHS bosses warned the public not to expect its widespread use immediately.

Gill Morgan, chief executive of the NHS Confederation, said primary care trusts may be reluctant to prescribe the drug ahead of NICE guidance.

"PCTs receive a fixed allocation of money to deliver all the services for their local community and have to take difficult decisions on competing priorities."

And she added weight loss was "predominantly about diet and exercise".

Preventative measures aren't enough on their own
Dr David Haslam, of the National Obesity Forum

The drug's manufacturer, Sanofi Aventis, has argued the drug represents good value for money when set against the £7bn per year cost of tacking obesity.

Other anti-obesity drugs are already available, but rimonabant is the only one to target the endocannabinoid system, which governs the body's appetite.

In a series of trials involving more than 6,000 patients in the US and Europe, a quarter lost more than 10% of their initial body weight after a year. About half lost more than 5%.

Side effects in some patients included nausea, dizziness and anxiety.

Significant improvements in measures of glucose control, cholesterol and triglyceride blood fats were also seen.

Smoking

Rimonabant, sold under the brand name Acomplia, is currently licensed for the treatment of obese patients, or overweight patients with associated risk factors such as type 2 diabetes or poor cholesterol and triglyceride readings.

But there are also trial data suggesting that the drug can help people give up smoking by overcoming their cravings.

However at present it is only being marketed to tackle obesity.

Dr David Haslam, clinical director of the National Obesity Forum, said the drug offered a real opportunity to get to grips with the obesity crisis.

"Preventative measures aren't enough on their own. It brings into focus the priority that should be given to treatment as well as prevention.

"The launch of rimonabant is important news for patients who are overweight, with type 2 diabetes, or low HDL cholesterol or high triglycerides."

Watch Fox News Video on Hot New Weightloss Pill

'Miracle' Weight Loss Pill May Offer Obesity Cure

Today on Fox News Live with E.D. Hill, we discussed a new weight loss pill, Acomplia (rimonabant). This pill currently being sold in Europe has been seen by many patients struggling with obesity as a "miracle pill." Many studies have shown that this medication helps patients lose weight when compared to a placebo. Most of the weight reduction results from patients limiting the number of calories they consume on a daily basis.

Acomplia helps to control appetite-- something that for many patients involved in weight reduction programs is a major obstacle to success. Even though the safety of the medication is being monitored, no major problems have yet been reported. There are some mild side effects that people should be aware of, including nausea, dizziness, anxiety and depression. Many Europeans have accepted the efficacy of this medication. Sweden, for example, has approved reimbursement of the drug through their public service program. How does it work? It controls the urge to eat. Many are calling this the "anti munchie effect."

Acomplia works in the central nervous system by affecting the cannabioids receptors in the brain. Yes, the same receptors that give people the urge to eat when exposed to marijuana. The point of all the hype around accomplia is that it has been a long time since we have seen a medication so effective in controlling appetite.

The FDA is considering approval of this drug in the U.S., but there is no clear indication as to when it will happen. In the mean time, other pharmaceutical companies are working on similar typed of drugs. Why? Because the world is severely overweight and obesity is creating pockets of epidemic proportions of diabetes and heart disease. Of course, a simple pill is not the answer to an unhealthy lifestyle. But hopefully, this "miracle drug" will be the miracle we all need to start focusing in eating right and exercising.

Dr. Manny Alvarez is the managing editor of health news at FOXNews.com, and is a regular medical contributor on the FOX News Channel. He is chairman of the Department of Obstetrics and Gynecology and Reproductive Science at Hackensack University Medical Center in New Jersey. Additionally, Alvarez is Adjunct Professor of Obstetrics and Gynecology at New York University School of Medicine in New York City.

Pharmaceutical giants like Pfizer and GlaxoSmithKline are in battle with Canadian and Mexican pharmacies.

Medical & Pharmaceuticals News

(PRLEAP.COM) How do overseas pharmacies sell the same medication at much lower prices? They are not subject the medication copyrights that give pharmaceutical giants the right to charge outrageous prices on namebrand medication. When a drug company first invents a drug (ie: Prozac) that company is the only one allowed to make that drug for a certain number of years (approximately 10 years in the US). After this time period, other companies are allowed to make the same drug. These drugs are called generics. The original drug (ie: Prozac) is called a brand name drug. Brand name drugs and their generics are IDENTICAL in terms of active ingredients. The generic pills may look different (because they are made by a different company) but inside is exactly the same active ingredient which works in exactly the same way. The only difference between brand name drugs and generic drugs is that generics are always less expensive. These Mexico pharmacies are able to sell the generic equivilant to these namebrand medications at up to 90% off the retail price.

Many Americans see it as a waste of time and money to see a physician to get a prescription for Propecia for hair loss when they already know they need the product and insurance will not cover the price of the medication because it is considered "cosmetic". Numerous times, these internet pharmacies are able to sell prescription medication for less than the insurance deductable, even if you are one of the lucky few Americans that are insured, especially when you factor in the cost of a doctor visit to write a prescription. www.RxMex.net and www.CheapMexRx.com are able to order most of your medication with just an online questionaire, & only require a faxed prescription for just a few of their medications. Companies like these are quickly becoming the SAVIORS of older Americans with limited incomes which require prescription refills for the remainder of their lives. The American Government will never grant their blessing on these companies because they have to protect the pharmaceutical giants that helped to place these elected officials into office. It is obvious that the American Government is turning a blind eye to the overseas importation of prescription medication when you read news articles about different states purchasing medication for its employees from canadian pharmacies to save on health costs for its employees. This quote from the Miami Herald states,"Minnesota, the first state to operate a Web site that helps residents import cheaper medications from Canada, plans to expand the program to include British mail-order pharmacies, Gov. Tim Pawlenty said Friday." And this is one of many states choosing to save money from out of the country pharmacies. Visit www.Cheapmexrx.com or www.Rxmex.net and compare prices on the prescription medication you are currently purchasing and see if you can save a few dollars, maybe enough to fill your car with $2.50 per gallon gasoline!
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