Pharmaceutical Corruption News Stories

Excerpts of Key Pharmaceutical Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on pharmaceutical industry corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

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Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

Drugmakers including Mapp Biopharmaceutical Inc., Johnson & Johnson and Emergent Biosolutions Inc. (EBS) are among companies standing to gain from what may be $2 billion in U.S. contracts related to Ebola. President Barack Obama asked Congress last week for $6.2 billion in emergency funding to stop the spread of the virus that has killed more than 4,800 people in West Africa. The request is heavily focused on health needs as opposed to prior funding that was largely centered on defense contracts, Brian Friel, a Bloomberg Intelligence contracts analyst, said. Friel said he expects multiple drugmakers involved in Ebola will share in what will likely be no-bid contract awards to “make everyone happy.” His $2 billion estimate is based on the percentage of its budget the Department of Health and Human Services spent on contracts last year. Little information is available yet about which companies are getting Ebola-related public funding. Congress has approved $838 million in Ebola money this year, resulting in $77 million in contracts so far. Not all awards have been made public. The U.S. has spent more than $400 million as of Oct. 24.

Note: Read this webpage which lays bare the gross profiteering by pharmaceuticals on pandemics like ebola as reported in the mainstream media.

The CDC pledges “To base all public health decisions on the highest quality scientific data.” In the case of influenza vaccinations and their marketing, this is not so. Promotion of influenza vaccines is one of the most visible and aggressive public health policies today. Although proponents employ the rhetoric of science, the studies underlying the policy are often of low quality, and do not substantiate officials’ claims. The vaccine might be less beneficial and less safe than has been claimed, and the threat of influenza appears overstated. Twenty years ago, in 1990, 32 million doses of influenza vaccine were available in the United States. Today [the number is] around 135 million doses. This enormous growth has not been fueled by popular demand but instead by a public health campaign. Drug companies have long known that to sell some products, you would have to first sell people on the disease. In the 1950s and 1960s, Merck launched an extensive campaign to lower the diagnostic threshold for hypertension, and in doing so enlarging the market for its diuretic drug, Diuril. Could influenza ... be yet one more case of disease mongering? Marketing influenza vaccines ... involves marketing influenza as a threat of great proportions. The CDC’s website explains that “Flu seasons ... can be severe,” citing a death toll of “3000 to a high of about 49000 people.” However, a far less volatile and more reassuring picture of influenza seems likely if one considers that recorded deaths from influenza declined sharply over the middle of the 20th century ... all before the great expansion of vaccination campaigns in the 2000s. Yet across the country, mandatory influenza vaccination policies have cropped up ... precisely because not everyone wants the vaccination, and compulsion appears the only way to achieve high vaccination rates.

Note: Read the entire revealing article at this link. The author clearly shows how fear and profit are the driving force behind flu vaccines and not good science and health. And the report available on this US government webpage states, "Since 1988, over 22,045 petitions have been filed with the VICP [Vaccine Injury Compensation Program] ... with 7,423 of those determined to be compensable. Total compensation paid over the life of the program is approximately $4.3 billion." For other information on health corruption, see the excellent resources in our Health Information Center.

Researchers who have fought for years to get full data on Roche's flu medicine Tamiflu said on Thursday that governments who stockpile it are wasting billions of dollars on a drug whose effectiveness is in doubt. In a review of trial data on Tamiflu, and on GlaxoSmithKline's flu drug Relenza, scientists from the respected research network the Cochrane Review said that the medicines had few if any beneficial effects, but did have adverse side effects. "Remember, the idea of a drug is that the benefits should exceed the harms," Heneghan said. "So if you can't find any benefits, that accentuates the harm." Tamiflu sales hit almost $3 billion in 2009 - mostly due to its use in the H1N1 flu pandemic. The drug, one of a class of medicines known as neuraminidase inhibitors, is approved by regulators worldwide and is stockpiled in preparation for a potential global flu outbreak. It is also on the World Health Organization's "essential medicines" list. The United States has spent more than $1.3 billion buying a strategic reserve of antivirals including Tamiflu, while the British government has spent almost 424 million pounds ($703 million) on a stockpile of some 40 million Tamiflu doses. There was no evidence of a reduction in hospitalizations or in flu complications ... and Tamiflu also increased the risk of nausea and vomiting in adults by around 4 percent and in children by 5 percent.

Note: For more along these lines, see concise summaries of deeply revealing health corruption news articles from reliable major media sources. For more along these lines, see the excellent, reliable resources provided in our Health Information Center.

America spends a fortune on drugs, more per person than any other nation on earth, even though Americans are no healthier than the citizens of other advanced nations. Of the estimated $2.7 trillion America spends annually on health care, drugs account for 10 percent of the total. Government pays some of this tab through Medicare, Medicaid and subsidies under the Affordable Care Act. But we pick up the tab indirectly through our taxes. We pay the rest of it directly, through higher co-payments, deductibles and premiums. Drug company payments to doctors are a small part of a much larger strategy by Big Pharma to clean our pockets ... The drug companies say they need the additional profits to pay for researching and developing new drugs. But the government supplies much of the research Big Pharma relies on, through the National Institutes of Health. Meanwhile, Big Pharma is spending more on advertising and marketing than on research and development -- often tens of millions to promote a single drug. And it's spending hundreds of millions more every year on lobbying. Last year alone, the lobbying tab came to $225 million, according to the Center for Responsive Politics. That's more than the formidable lobbying expenditures of America's military contractors. In addition, Big Pharma is spending heavily on political campaigns. In 2012, it shelled out over $36 million, making it the biggest political contributor of all American industries.

Note: Read how cancer research is crippled by the greed of drug companies in the New York Times article Profits Over Patients. For more along these lines, see concise summaries of deeply revealing health corruption news articles from reliable major media sources.

Federal prosecutors in the U.S. will be reading with amusement the Australian press's coverage of a class action trial down under for patients who took Merck's now-withdrawn painkiller Vioxx. Details emerging in Oz make some of the antics that Merck's American counterparts got up to look tame by comparison. For example, in Australia, Merck allegedly: Had a doctor sign his name to an entirely ghostwritten journal article even though a Merck staffer had complained that the data within it was based on "wishful thinking;" created a fake "peer-reviewed" journal, the "Australasian Journal of Bone and Joint Medicine," in which to publicize pro-Vioxx articles; created a Ricky Martin-style pop song to get Merck sales reps all jazzed up about Vioxx; [and] hatched a Blackadder-style "cunning plan" to seed seminars with speakers who were sympathetic to Vioxx. Here's The Australian's description of the Merck PR team's over-the-top "handling" of reporters at ... a class action trial down under for patients who took Merck's now-withdrawn painkiller Vioxx: A hired crisis management team sits in court every day, under the guidance of Merck & Co's media spokeswoman flown out from the US, watching what journalists write, who they talk to and where they go in the court breaks. The team ... follow journalists out of court, ask them what they are writing, hand out daily press releases and send "background" emails they say should not be attributed to the company but which detail what they think are the "salient points" from the evidence presented in court. The team rings reporters first thing in the morning, accuses them of "cherry-picking" the evidence and bombards newspapers with letters to the editor arguing their case in detail based on the day's evidence - five were sent to The Australian in just seven days.

Note: FDA analysts estimated that Vioxx caused between 88,000 and 139,000 heart attacks, 30 to 40 percent of which were probably fatal, in the five years the drug was on the market. Read another CBS News article which shows how Merck literally created a hit list for doctors who opposed use of Vioxx. For more along these lines, see concise summaries of deeply revealing health corruption news articles from reliable major media sources.

What should happen if a massive viral outbreak appears out of nowhere and the only possible treatment is an untested drug? And who should receive it? The two American missionaries who contracted the almost-always-fatal virus in West Africa were given access to an experimental drug cocktail called ZMapp. It consists of immune-boosting monoclonal antibodies that were extracted from mice exposed to bits of Ebola DNA. Now in isolation at an Atlanta hospital, they appear to be doing well. It’s an opportunity the 900 Africans who’ve died so far never had. The reasons for different treatment are partly about logistics, partly about economics and, partly about a lack of any standard policy for giving out untested drugs in emergencies. Before this outbreak, ZMapp had only been tested on monkeys. But privileged humans were always going to be the first ones to try it. ZMapp requires a lot of refrigeration and careful handling, plus close monitoring by experienced doctors and scientists—better to try it at a big urban hospital than in rural West Africa, where no such infrastructure exists. And the two Americans who got it in Africa had been infected for more than a week, making its efficacy completely unknown.

Note: For more on this, see concise summaries of deeply revealing health news articles from reliable major media sources.

Three of Britain’s leading Ebola specialists have said experimental treatments for the deadly Ebola virus must be offered to the people of West Africa, after two US aid workers were administered with the “cure” in Liberia. The two missionaries, Dr Kent Brantly and Nancy Writebol, are alive and now being cared for at a specialist isolation unit in Atlanta. Though the pair remain weak – and there is no way of knowing at this stage how much of a help the new drug has actually been – the fact that it was given to the two Americans has resulted in widespread criticism and recriminations in West Africa. Almost 900 people have died from the Ebola virus across Guinea, Liberia and Sierra Leone since the latest outbreak began in February this year. Some strains can have fatality rates of up to 90 per cent, though that of the current crisis appears to be around 60 per cent. Now Peter Piot, who discovered Ebola in 1976, David Heymann, the director of the Chatham House Centre on Global Health Security and Jeremy Farrar from the Wellcome Trust have said there are in fact several drugs and vaccines under study that could be used to combat the disease. Liberia’s assistant health minister, Tolbert Nyenswah, said that the news of Dr Brantly and Ms Writebol’s treatment had “made our job very difficult” as dying patients and their relatives in Africa request the same “cure”. The US aid workers were given ZMapp, a drug made from antibodies produced in a lab that has never gone through human trials or been approved by the US’s FDA Food and Drug Administration. Piot, Farrar and Heymann questioned why Africans were not being given the same chance.

Note: For more on this, see concise summaries of deeply revealing health news articles from reliable major media sources.

It is one of the most common components of emergency medicine: an intravenous bag of sterile saltwater. Luckily for anyone who has ever needed an IV bag to replenish lost fluids or to receive medication, it is also one of the least expensive. The average manufacturer’s price, according to government data, has fluctuated in recent years from 44 cents to $1. Yet there is nothing either cheap or simple about its ultimate cost, as [revealed by] the commercial path of IV bags from the factory to the veins of more than 100 patients struck by a May 2012 outbreak of food poisoning in upstate New York. Some of the patients’ bills would later include markups of 100 to 200 times the manufacturer’s price, not counting separate charges for “IV administration.” And on other bills, a bundled charge for “IV therapy” was almost 1,000 times the official cost of the solution. At every step from manufacturer to patient, there are confidential deals among the major players, including drug companies, purchasing organizations and distributors, and insurers. These deals so obscure prices and profits that even participants cannot say what the simplest component of care actually costs, let alone what it should cost. And that leaves taxpayers and patients alike with an inflated bottom line and little or no way to challenge it. The real cost of a bag of normal saline, like the true cost of medical supplies from gauze to heart implants, disappears into an opaque realm of byzantine contracts, confidential rebates and fees that would be considered illegal kickbacks in many other industries.

Note: For more on this, see concise summaries of deeply revealing medical corruption news articles from reliable major media sources.

Just months after U.S. Congressman Bill Posey compared the Center for Disease Control (CDC)'s vaccine safety studies to the SEC's Bernie Madoff scandal, malfeasance in the CDC's studies of thimerosal-containing vaccines has, for the first time, been documented in peer-reviewed scientific literature. The journal BioMed Research International now provides direct evidence that the CDC's safety assurances about the mercury-containing preservative are not fact-based, according to the article's lead author, Brian Hooker. The paper [cites] over 165 studies that have found thimerosal to be harmful, including 16 studies that had reported [serious detrimental] outcomes in human infants and children. "Substantial scientific evidence exists and has existed for many years that the vaccine ingredient thimerosal is a developmental neurotoxin" says George Lucier, former Associate Director of the National Toxicology Program. Studies showing harm from thimerosal sharply contradict published outcomes of six CDC coauthored and sponsored papers – the very studies that CDC relies upon to declare that thimerosal is "safe" for use in infant and maternal vaccines. Dr. Hooker ... said of the six CDC studies, "Each of these papers is fatally flawed from a statistics standpoint and several of the papers represent issues of scientific malfeasance. For example, important data showing a relationship between thimerosal exposure and autism are withheld from three of the publications. This type of cherry-picking of data by the CDC in order to change the results of important research studies to support flawed and dangerous vaccination policies should not be tolerated."

Note: A Reuters article reports that the former head of the US's CDC was later named president of Merck's vaccine division with accompanying high salary. Could this be payoff for her support in suppressing studies that cast doubt on vaccines? For more on this, see concise summaries of deeply revealing vaccines news articles from reliable major media sources.

The drug Tamiflu, given to tens of thousands of people during the swine flu pandemic, does nothing to halt the spread of influenza and the [UK] Government wasted nearly Ł500 million stockpiling it, a major study has found. The review, authored by Oxford University, claims that Roche, the drug’s Swiss manufacturer, gave a “false impression” of its effectiveness and accuses the company of “sloppy science”. The study found that Tamiflu, which was given to 240,000 people in the UK at a rate of 1,000 a week, has been linked to suicides of children in Japan and suggested that, far from easing flu symptoms, it could actually worsen them. Roche claimed at the time of the 2009 swine flu outbreak that trials had shown that it would reduce hospital admissions and complications such as pneumonia, bronchitis or sinusitis. Based on [these claims], the Department of Health bought around 40 million doses of Tamiflu at a cost of Ł424 million and prescribed it to around 240,000 people. In 2009, 0.5 per cent of the entire NHS budget was spent on the drug. However, researchers from The Cochrane Collaboration, a not-for-profit organisation which carries out reviews of health data, found that Tamiflu only cut flu-like symptoms from seven days to 6.3 days and there was no evidence of a reduction in hospital admissions. Eight children who took the drug in Japan ended up committing suicide after suffering psychotic episodes. Other side effects included kidney problems, nausea, vomiting and headaches. Many people reported feeling anxious or depressed when taking the drug.

Note: We sent out numerous messages at the time of all the fear-mongering around the avian and swine flu scares that this was wasting huge amounts of money. Of course the money wasn't just wasted, much of it went into the pockets of Donald Rumsfeld and others, as reported in this newspaper article. For the revealing news articles we compiled showing the blatant greed and corruption involved, click here.

The Medicare program is the source of a small fortune for many U.S. doctors, according to a trove of government records that reveal unprecedented details about physician billing practices nationwide. The government insurance program for older people paid nearly 4,000 physicians in excess of $1 million each in 2012, according to the new data. The release of the information gives the public access for the first time to the billing practices of individual doctors nationwide. Consumer groups and news outlets have pressured Medicare to release the data for years. The American Medical Association and other physician groups have resisted the data release, arguing that the information violates doctor privacy and that the public may misconstrue details about individual doctors. Among the highest billers were: a cardiologist in Ocala, Fla., who took in $18.1 million, mainly putting in stents; a New Jersey pathologist who received $12.6 million performing tissue exams and other tests; and a Michigan vascular surgeon who got $10.1 million. In some instances, the extremely high billing totals could signal fraudulent doctor behavior, as government inspectors have previously found. Indeed, three of the top 10 earners already had drawn scrutiny from the federal government, and one of them is awaiting trial on federal fraud charges. The greatest tallies also may signal that the Medicare payments for some procedures are too high for the amount of work involved or that perverse incentives lead doctors to overuse a procedure. The specialties most common at the top ranks of the Medicare payments were ophthalmologists, oncologists and pathologists.

Note: For more on medical corruption, see the deeply revealing reports from reliable major media sources available here.

The British drug maker GlaxoSmithKline will no longer pay doctors to promote its products and will stop tying compensation of sales representatives to the number of prescriptions doctors write, its chief executive said ..., effectively ending two common industry practices that critics have long assailed as troublesome conflicts of interest. The announcement appears to be a first for a major drug company — although others may be considering similar moves — and it comes at a particularly sensitive time for Glaxo. It is the subject of a bribery investigation in China, where authorities contend the company funneled illegal payments to doctors and government officials in an effort to lift drug sales. For decades, pharmaceutical companies have paid doctors to speak on their behalf at conferences and other meetings of medical professionals, on the assumption that the doctors are most likely to value the advice of trusted peers. But the practice has also been criticized by those who question whether it unduly influences the information doctors give each other and can lead them to prescribe drugs inappropriately to patients. Under the plan, which Glaxo said would be completed worldwide by 2016, the company will no longer pay health care professionals to speak on its behalf about its products or the diseases they treat “to audiences who can prescribe or influence prescribing.” It will also stop providing financial support directly to doctors to attend medical conferences, a practice that is prohibited in the United States through an industry-imposed ethics code but that still occurs in other countries.

Note: For more on this, click here. For a treasure trove of great news articles which will inspire you to make a difference, click here.

After more than 50 years leading the fight to legitimize attention deficit hyperactivity disorder, Keith Conners could be celebrating. Severely hyperactive and impulsive children, once shunned as bad seeds, are now recognized as having a real neurological problem. Doctors and parents have largely accepted drugs like Adderall and Concerta to temper the traits of classic A.D.H.D., helping youngsters succeed in school and beyond. But Dr. Conners did not feel triumphant this fall as he addressed a group of fellow A.D.H.D. specialists in Washington. He noted that recent data from the Centers for Disease Control and Prevention show that the diagnosis had been made in 15 percent of high school-age children, and that the number of children on medication for the disorder had soared to 3.5 million from 600,000 in 1990. He questioned the rising rates of diagnosis and called them “a national disaster of dangerous proportions.” “The numbers make it look like an epidemic. Well, it’s not. It’s preposterous,” Dr. Conners, a psychologist and professor emeritus at Duke University, said in a subsequent interview. “This is a concoction to justify the giving out of medication at unprecedented and unjustifiable levels.” The rise of A.D.H.D. diagnoses and prescriptions for stimulants over the years coincided with a remarkably successful two-decade campaign by pharmaceutical companies to publicize the syndrome and promote the pills to doctors, educators and parents. With the children’s market booming, the industry is now employing similar marketing techniques as it focuses on adult A.D.H.D., which could become even more profitable.

Note: For more on corruption in the medical industry, see the deeply revealing reports from reliable major media sources available here.

In a medical system notorious for opaque finances and inflated bills, nothing is more convoluted than hospital pricing, economists say. Hospital charges represent about a third of the $2.7 trillion annual United States health care bill, the biggest single segment, according to government statistics, and are the largest driver of medical inflation, a new study in The Journal of the American Medical Association found. A day spent as an inpatient at an American hospital costs on average more than $4,000, five times the charge in many other developed countries, according to the International Federation of Health Plans, a global network of health insurance industries. The most expensive hospitals charge more than $12,500 a day. And at many of them ... emergency rooms are profit centers. That is why one of the simplest and oldest medical procedures — closing a wound with a needle and thread — typically leads to bills of at least $1,500 and often much more. At Lenox Hill Hospital in New York City, Daniel Diaz, 29, a public relations executive, was billed $3,355.96 for five stitches on his finger after cutting himself while peeling an avocado. At a hospital in Jacksonville, Fla., Arch Roberts Jr., 56, a former government employee, was charged more than $2,000 for three stitches after being bitten by a dog. Insurers and patients negotiated lower prices, but those charges were a starting point. The main reason for high hospital costs in the United States, economists say, is fiscal, not medical: Hospitals are the most powerful players in a health care system that has little or no price regulation in the private market.

Note: For more on corruption in the health industry, see the deeply revealing reports from reliable major media sources available here.

Propelled by an increase in prescription narcotic overdoses, drug deaths now outnumber traffic fatalities in the United States, a Times analysis of government data has found. Drugs exceeded motor vehicle accidents as a cause of death in 2009, killing at least 37,485 people nationwide, according to preliminary data from the U.S. Centers for Disease Control and Prevention. While most major causes of preventable death are declining, drugs are an exception. The death toll has doubled in the last decade, now claiming a life every 14 minutes. By contrast, traffic accidents have been dropping for decades because of huge investments in auto safety. This is the first time that drugs have accounted for more fatalities than traffic accidents since the government started tracking drug-induced deaths in 1979. Fueling the surge in deaths are prescription pain and anxiety drugs that are potent, highly addictive and especially dangerous when combined with one another or with other drugs or alcohol. Among the most commonly abused are OxyContin, Vicodin, Xanax and Soma. One relative newcomer to the scene is Fentanyl, a painkiller that comes in the form of patches and lollipops and is 100 times more powerful than morphine. Such drugs now cause more deaths than heroin and cocaine combined. Overdose victims range in age and circumstance from teenagers who pop pills to get a heroin-like high to middle-aged working men and women who take medications prescribed for strained backs and bum knees and become addicted. The seeds of the problem were planted more than a decade ago by well-meaning efforts by doctors to mitigate suffering, as well as aggressive sales campaigns by pharmaceutical manufacturers.

Note: For more on pharmaceutical industry corruption, see the deeply revealing reports from reliable major media sources available here.

Recent news out of China raises the question once again of whether any aspect of the pharmaceutical business can be trusted. First, Chinese authorities announced they were investigating GlaxoSmithKline and other pharma companies for bribing doctors, hospitals and government officials to buy and prescribe their drugs. Glaxo is accused of using a Shanghai travel agency to funnel at least $489 million in bribes. Then the New York Times revealed last week the alarming news that an internal Glaxo audit found serious problems with the way research was conducted at the company’s Shanghai research and development center. Last year Glaxo paid $3 billion to resolve civil and criminal allegations of, among other things, marketing widely used prescription drugs for unapproved treatments and using kickbacks to promote sales. Glaxo is a leader in pharma fraud and wrongdoing, with other industry heavyweights close behind. Over the past decade, whistleblowers and government investigations in the US have exposed a never-ending series of problems by numerous pharma companies in all facets of the industry, starting with fraudulent “research” papers used to bolster marketing and continuing through to the manufacture of contaminated and defective products, the marketing of drugs for unapproved and life-threatening uses and the mispricing of prescription drugs. Pharma ... has paid more than $30.2 billion in civil and criminal penalties to the US and state governments and continues to face more allegations of wrongdoing. The industry – despite huge penalties and a long string of public mea culpas – has a fraud habit that is just too profitable to kick. Finding a cure should be a top priority of regulators worldwide.

Note: For more on pharmaceutical industry corruption, see the deeply revealing reports from reliable major media sources available here.

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: Pfizer, Incorporated, with 116,000 employees and revenues of $50 billion a year, is the world's largest pharmaceutical company. The government was building a case against Pfizer for fraudulently marketing a drug that had raked in hundreds of millions of dollars in profits, a painkiller called Bextra. Pfizer aggressively marketed it for uses and in doses not approved by the FDA. But our investigation found another story, ... about the power major pharmaceutical companies have, even when they break the laws intended to protect patients. In 2001, ... the FDA approved Bextra, but only for limited use and only for menstrual cramps and arthritis. Even so, Pfizer sales reps promoted it, illegally, for surgical pain in higher doses, uses the FDA had rejected due to safety concerns. Doctors responded. Instead of prescribing, say, ibuprofen at pennies a pill, they prescribed Bextra at nearly $3 a pill for all kinds of unapproved uses. Sales were very good. GLENN DEMOTT, FORMER PFIZER SALES REP: They said that the district manager approved it. They think it might not be legal, but if they don't make their numbers, they're not going to keep their job anyway. GRIFFIN : It brought Pfizer nearly $1 billion in profits. And it cost us all, because Medicare, Medicaid, and our private insurance picked up much of the tab. MICHAEL LOUCKS, FORMER FEDERAL PROSECUTOR: If the company is able to push the product for the unapproved indication, then it makes a mockery, if you will, of the FDA approval process.

Note: For an even deeper analysis on Mercola.com titled "Pulling Back the Curtain on the Organized Crime Ring That Is the Pharmaceutical Drug Cartel," click here. You can also watch a video of the above CNN segment at that link. For more on pharmaceutical industry corruption, see the deeply revealing reports from reliable major media sources available here.

Of all the oddities of the U.S. health care system, one stands out: we spend far more on health care per person than other industrialized nations yet have no better health outcomes. Understanding why isn’t easy. A 2012 paper by the Commonwealth Fund found that among 13 industrialized countries studied, the U.S. has the highest rate of obesity, which is usually a factor in higher health care costs. Yet, the U.S. ranks far behind many other countries in our rates of citizens who smoke or are over 55, two other strong indicators of increased spending. So why is our health care spending more than 17% of our gross domestic product, far more than any other country? A central reason U.S. health care spending is so high is that hospitals and doctors charge more for their services and there’s little transparency about why. There is no uniformity to the system, in which public and private insurers have separate, unrelated contracts with hospitals and doctors. The result is a tangled, confusing and largely secretive collection of forces driving health care prices higher and higher. This isn’t possible in many other countries either because governments set prices for health care services or broker negotiations between coalitions of insurers and providers. Known as “all-payer rate setting,” insurers in these systems band together to negotiate as groups. In contrast, U.S. insurers closely guard the secrecy of their contracted prices with health care providers and negotiate individually. This is why a hospital hosting five patients for knee replacements might get paid five different amounts for the surgeries.

Note: For more on corporate corruption, see the deeply revealing reports from reliable major media sources available here.

Acting on the suggestion of her top data crunchers at the department’s Centers for Medicare and Medicaid Services (CMS), Health and Human Services Secretary Kathleen Sebelius released an enormous data file on May 8 that reveals the list—or “chargemaster”—prices of all hospitals across the country for the 100 most common inpatient treatment services in 2011. It then compares those prices with what Medicare actually paid hospitals for the same treatments—which was typically a fraction of the chargemaster prices. As a result, Americans are a big step closer to being able to compare what hospitals charge them for goods and services with what they actually cost. There are two reasons Sebelius’ release of this newly crunched, massive data file is a great first step toward a new transparency in health care costs. First, it reveals the vast disparity between what hospitals charge for pills, procedures and operations and the real cost of those services, as calculated by Medicare. The second reason the compilation and release of this data is a big deal is that it demonstrates [that] most hospitals’ chargemaster prices are wildly inconsistent and seem to have no rationale. Thus the release of this fire hose of data—which prints out at 17,511 pages—should become a tip sheet for reporters in every American city and town, who can now ask hospitals to explain their pricing. In the through-the-looking-glass world of health care economics, those who are asked to pay chargemaster rates are often under-insured or lack insurance altogether. Moreover, insurers typically negotiate discounts off the grossly inflated chargemaster prices ($77 for a box of gauze pads!), so the chargemaster matters for insured patients too.

Note: For more on corporate corruption, see the deeply revealing reports from reliable major media sources available here.

Amid questions about the safety of the HPV vaccine Gardasil, one of the lead researchers for the Merck drug is speaking out about its risks, benefits and aggressive marketing. Dr. Diane Harper says young girls and their parents should receive more complete warnings before receiving the vaccine to prevent cervical cancer. Dr. Harper helped design and carry out the Phase II and Phase III safety and effectiveness studies to get Gardasil approved, and authored many of the published, scholarly papers about it. She has been a paid speaker and consultant to Merck. It's highly unusual for a researcher to publicly criticize a medicine or vaccine she helped get approved. Dr. Harper joins a number of consumer watchdogs, vaccine safety advocates, and parents who question the vaccine's risk-versus-benefit profile. She says data available for Gardasil shows that ... there is no data showing that it remains effective beyond five years. This raises questions about the CDC's recommendation that the series of shots be given to girls as young as 11-years old. "If we vaccinate 11 year olds and the protection doesn't last... we've put them at harm from side effects, small but real, for no benefit," says Dr. Harper. "The benefit to public health is nothing, there is no reduction in cervical cancers, they are just postponed, unless the protection lasts for at least 15 years, and over 70% of all sexually active females of all ages are vaccinated." She also says that enough serious side effects have been reported after Gardasil use that the vaccine could prove riskier than the cervical cancer it purports to prevent. Cervical cancer is usually entirely curable when detected early through normal Pap screenings.

Note: For more on the dangers of vaccines, see the deeply revealing reports from reliable major media sources available here.

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