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The Honolulu Advertiser
Posted on: Sunday, April 17, 2005

Drug policies vary in industrialized nations

Associated Press

In several leading industrialized nations, advertising of prescription drugs is banned or tightly regulated. Drug costs in many countries are government-subsidized.

UNITED STATES: Private insurance pays for much of the cost of prescription drugs, and publicly funded Medicaid covers many poor people. Drug companies may advertise directly to consumers but must portray benefits and risks. The Food and Drug Administration sometimes requests follow-up safety studies after approving a drug for marketing, but it has limited powers to force completion of such research. The FDA can force a drug from the market but often encourages a drug company to act voluntarily.

CANADA: Medicines are purchased through a variety of public and private health plans. Government price controls keep prices low, making the market attractive to many cross-border American buyers. Consumer advertising is tightly regulated, with many forms banned outright. The federal government can demand safety studies after a drug is approved and pull it off the market if they show a problem.

BRITAIN: The government heavily subsidizes prescription medication, typically picking up all but about $12 per prescription. Some get free prescriptions, like the elderly, children, the disabled and people on welfare. Prescription contraceptives are free to all. However, any medicine not on a government list must be bought at full cost to the consumer. Drug companies may advertise to consumers, but the content is strictly regulated. Regulators keep track of adverse drug reactions and investigate worrisome patterns. They can ask a company to do further tests, suspend the license, or order a withdrawal.

SWEDEN: All medicines are sold retail through a state corporation, and the government also heavily subsidizes the cost of prescriptions. Under a recent directive, a prescribed drug that qualifies for a subsidy should be exchanged for the cheapest comparable generic. Direct-to-consumer advertising is banned. Marketing permission must be renewed every five years, and some new medicines are given only conditional approval that requires follow-up studies.

JAPAN: National Health Insurance typically picks up two-thirds of drug costs. Companies may not advertise prescription drugs to consumers but can advertise over-the-counter drugs. The law allows large-scale imports of unapproved drugs in an emergency, such as an epidemic. After initial approval, new drugs are subject to a six-year probation, then re-evaluated for safety and effectiveness.