Los Angeles Times Examines Prescription Drug Companies' Assistance Programs for Uninsured

Main Category: Pharma Industry / Biotech Industry
Article Date: 10 May 2005 - 10:00 PDT

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The Los Angeles Times on Monday examined how drug manufacturers -- under mounting pressure to reduce medication prices -- are "increasingly touting their donations of medicine" for low-income and sick people. Programs vary by company, but most require that recipients earn no more than 200% of the federal poverty level and lack prescription drug insurance and access to government programs. Although drug makers "aggressively" advertise their medications for the retail market, until recently, many companies have been "relatively modest" about their donation programs, the Times reports. According to the Pharmaceutical Research and Manufacturers of America, drug manufacturers donated $4 billion in drugs last year by filling 22 million prescriptions nationwide. Overall, drug companies filled 3.5 billion prescriptions in the United States in 2004, according to IMS Health. In response to a call for lower prices for low-income people, the industry has begun taking out television and print advertisements and mailing literature directing people to Web sites and call centers. According to the Times, "The drug industry says its new outreach efforts will make it far easier for people to find programs for which they qualify." However, some patient advocates and low-income U.S. residents have said that eligibility rules are becoming stricter and that some companies cancel or suspend their programs without notice. Some drug manufacturers require income documentation that many homeless and people with mental illnesses cannot provide and "establish other bureaucratic prerequisites" that prevent many people from qualifying for assistance, according to the Times. In addition, some proponents of the programs are concerned that increasing visibility and popularity of the programs might cause companies to limit access (Rau, Los Angeles Times, 5/9).

Los Angeles Times

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