Health Care Reform Collapses Drug Sales

Previously, if someone covered by the German socialized health care system got the sniffles, that individual could go to the drug store, stock up on all conceivable Over-The-Counter (OTC) medicine, and the government would pay the bill. That's all changed. On January 1, 2004, German health care reform stipulated that non-prescription drugs would no longer be covered by Germany's health system. Now those individuals buying non-prescription medicine have to pay out-of-pocket.

Well, guess what? Non-prescription drug sales have collapsed. According to Jurgen Petersen, OTC drug expert at IMS Health, OTC sales slumped by 13% this year and 80% of the drug producers have seen a decrease in sales. One can only assume that customers are much more prudent in their purchasing when it's their own money they are spending.

It can easily be concluded that the need for health care is a direct function of who pays for it. Therefore, any intelligent health care system or, more appropriately, any common-sense health care system would incorporate measures to assure that the recipients of care have a personal stake in the cost of the care. Of course, as long as a significant segment of the U.S. population continues to believe in the ludicrous concept of the "free lunch," there will be no common-sense health care.