Drug industry lobbyists are spending more to influence Congress, the states and even foreign governments to fight price controls and other regulations on prescription drugs.

The Pharmaceutical Research and Manufacturers of America, known as PhRMA, will spend at least $150 million in 2004, according to confidential budget documents.

This is a 23 percent increase over this year's budget of $121.7 million.

The debate over drug costs and benefits is likely to continue for some time, although Congressional leaders have noted their intent to add drug benefits for the elderly and reconstruct Medicare.

PhRMA gets close to all of its revenue from dues paid by member companies. It plans to spend $1 million on an "intellectual echo chamber of economists" to speak against federal price control regulations.

For the fiscal year budget that begins on July 1, the pharmaceutical lobby plans to spend $72.7 million to lobby at the federal level, directed mainly at Congress; $4.9 million to lobby the Food and Drug Administration; and $48.7 million to lobby at the state level.

Additionally, the budget allows $17.5 million to fight price controls and protect patent rights in foreign countries and in trade negotiations.

There is also money set aside "to change the Canadian health care system" and discourage low-price drugs from online pharmacies in Canada from reaching U.S. customers. Canada offers health insurance to all citizens but limits drug prices.

Since 1999 the federal affairs staff at PhRMA has quadrupled, from five employees to 20. The organization plans to spend $5 million for lobbyists at the federal level and $3.1 million to retain more than 60 lobbyists in the 50 states.

Additionally, PhRMA plans to spend $12.3 million to develop coalitions and strategic alliances with doctors, patients, universities and leading members of minority groups.

The New York Times, June 1, 2003

Dr. Mercola's Comments:

As government debate continues over prescription drug costs and regulations, it is not surprising that the drug companies will spend more and more to influence the outcome. Although $150 million is a huge sum of money, it is nothing compared to the amount drug companies spent on advertising their drugs directly to consumers. Drug companies spent over $3 billion in 2002 to advertise their drugs to consumers. The advertising seems to have paid off, as Americans spent over $500 billion on drugs in 2002. Imagine the profits that could be lost if government regulations were passed that would restrict drug prices or prohibit direct-to-consumer marketing. With the drug companies’ influence being as strong as it is now, it is no wonder why two-thirds of doctor visits result in a drug being prescribed. This is one of the main reasons why spending for prescription drugs is the fastest-growing category of health care expenditures. It is also one of the major factors contributing to the reason why physicians are the third-leading cause of death in the United States, as they have an over reliance on using drugs as Band-Aids, rather than seeking the true cause of the problem. Fortunately, you do not have to capitulate. This newsletter, and many other fabulous resources that are now available, will help enable you to take control of your own health. You can start by using the site’s search feature, located in the upper-right corner of this page, to look through thousands of health-related articles. This Web site contains a wealth of information that you can use to educate yourself and your loved ones. Related Articles: Drug Companies Triple Money on Direct-to-Consumer Drug Ads Drug Companies are the Most Profitable Industry Drug Companies Greatly Influence Doctors’ Prescribing Habits Medical Research or Drug Company Secrets? Medical Journal Drug Ads Often Misleading Drug Industry Using Senior Group Fronts to Promote Own Agenda