Cato Institute
Policy Analysis
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318. This is not unusual. Russia now accepts
324. Tara Parker-Pope, "Doctors Often Hold the
Key to Paying Less for Prescriptions," Wall Street
FDA-approved substances. Philip Hilts, "Russia
Allows Sale of Drugs Made in U.S.," New York
Journal, September 7, 2001, p. B3
Times, February 17, 1994, p. A16; Rick Weiss,
"Russia Agrees to Approve Sales of U.S. Drugs
325. Thomas Morgan, "The Economic Impact of
Cleared by FDA," Washington Post, February 17,
Wasted Prescription Medication in an Outpatient
Population of Older Adults,"Journal of Family Practice
1994, p. A37.
50, no. 9 (September 2001), www.jfponline. com.
319. See, for example, Noel D. Campbell, "Replace
326. See generally Fred Brock, "Around the
FDA Regulation of Medical Devices with Third-
Prescription-Drug Hurdle," New York Times,
Party Certification," Cato Institute Policy
October 7, 2001, p. BU3.
Analysis no. 288, November 12, 1997.
327. See www.medicare.gov/Prescription/Home.
320. See, for example, Louis Lasagna, "The
asp.
Chilling Effect of Product Liability on New Drug
Development," in The Liability Maze, ed. Peter W.
328. Brock.
Huber and Robert E. Litan (Washington:
Brookings Institution, 1991), pp. 334­59.
329. Melody Petersen and Milt Freudenheim,
"Drug Giant to Introduce Discount Plan for the
321. See, for example, Jacob Sullum, "Paying
Elderly," New York Times, October 3, 2001, p. C1.
through the Nose," Washington Times, May 23, 2001,
p. A19; Ceci Connolly, "Panel: Reclassify Allergy
330. See, for example, "United against AIDS?" The
Pills," Washington Post, May 12, 2001, p. A1; Milt
Economist, June 30, 2001, pp. 73­74; Christopher
Freudenheim, "Panel Says 3 Allergy Drugs Should
Wren, "Before U.N., Powell Renews Call for Global
Be Sold Over the Counter," New York Times, May
War on AIDS," New York Times, June 26, 2001, p.
12, 2001, p. B1; Mark Thompson, "No Doctor
A1; Michael Phillips, "Big Boost in U.S. AIDS
Required," Time, July 17, 2000, p. 38; Sarah Lueck,
Spending Eases Powell's Reception in Africa," Wall
"FDA Examines More Switches of Drugs to Be
Street Journal, May 24, 2001, p. A24; Karen
Nonprescription," Wall Street Journal, June 29, 2000,
DeYoung, "U.S. Gives AIDS Fund $200 Million
p. B26; Sheryl Gay Stolberg, "U.S. May Ease Sales of
Donation," Washington Post, May 12, 2001, p. A19;
Drugs Over Counter," New York Times, June 28,
Alix Freedman, "Annan Gains Pledges from Drug
2000, p. A1. The pharmaceutical firms involved,
Makers," Wall Street Journal, April 6, 2001, p. A2;
facing a loss in revenue--particularly because over-
Rachel Glennerster and Michael Kremer, "A World
the-counter substances are not covered by health
Bank  Vaccine  Commitment,"  Brookings
insurance, responded with paternalistic arguments
Institution Policy Brief no. 57, May 2000, p. 1.
about forcing patients to rely on self diagnosis. See,
for example, "3 Allergy Drugs Ruled Safe without
331. See for example, Doug Bandow, "Help or
Prescription," Washington Times, May 12, 2001, p.
Hindrance:  Can  Foreign  Aid  Prevent
A1; Melody Petersen, "A Push to Sell Top Allergy
International Crises?" Cato Institute Policy
Drugs over the Counter," New York Times, May 11,
Analysis no. 273, April 25, 1997; Doug Bandow,
2001, p. A1; Ceci Connolly, "Allergy Pills Spark
"A New Aid Policy for a New World," Cato
Dispute," Washington Post, May 10, 2001, p. A1. Yet
Institute Policy Analysis no. 226, May 15, 1995.
these same companies laud their new emphasis on
advertising directed at patients. Although at least
332. Goldberg, "Fight AIDS with Reason, Not
one health policy analyst complained that OTC
Rhetoric." More generally, see Patrick Reilly,
sales vitiate patents (see Robert Goldberg, "Pill-
"Patently Wrong: Doctors Without Borders
Splitters vs. Gene Hunters," Washington Times, May
Campaigns for Generic Drugs," Capital Research
22, 2001, p. A16), the patents in fact remain intact.
Center, Organization Trends, September 2001, pp.
The prices of the drugs fall because their parent
1­6
companies must now compete in a broader market
where the costs to consumers are not moderated by
333. Mark Schoofs, "Mining Firm Combats AIDS
insurance.
Via Drug Plan," Wall Street Journal, May 7, 2001, p. A3.
322. Virginia Postrel, "Sometimes the Patient Knows
334. For instance, a half-dozen publishers have
Best," New York Times, January 3, 2000, p. A23.
offered to provide medical journals throughout
poor nations. David Brown, "Free Access to
323. Tara Parker-Pope, "An Easy Remedy: Cut
Medical Journals to Be Given to Poor Countries,"
Your Drug Bills in Half by Cutting Pills in Half,"
Washington Post, July 9, 2001, p. A12
Wall Street Journal, July 27, 2001, p. B1
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