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May 28, 1927


JAMA. 1927;88(22):1742-1743. doi:10.1001/jama.1927.02680480052023

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"Patent Medicines" in Insurance Practice  The problem of medical prescriptions in insurance practice has become a serious question. In 1922, 8.75 per cent of all expenditures was for medical prescriptions. The figure went up to 9.82 per cent in 1924. This has happened in spite of contracts between the insurance bodies and the associations of pharmacists by which the prices to be charged to insurance bodies for medicines have been cut down three times in the course of the last five years. These contracts are concerned only with prescriptions that are written out in full. Therefore, to avoid losses those in the drug trade are introducing "patent medicines" into insurance practice. Most of the "patent medicines" contain simple remedies that would cost less by regular prescription. However, "patent medicines" are easy to prescribe and physicians have been influenced by an intensive advertising campaign inaugurated by the pharmaceutic industry. In some

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