Alliance for Retired Americans Alliance Reveals 'The Profit in Pills' Every day older Americans face impossible choices because of the soaring cost of their prescription drugs. Especially hard-hit are people who lack insurance that covers prescription drug costs.
Prescription drugs travel through several steps to get to consumers, according to the report.
The drug distribution chain begins with the manufacturer and continues to the wholesaler and then goes to the pharmacist, who sells to the cash customer. Individual consumers without insurance coverage pay the highest prices for prescription drugs. In reality, the report says, most core research for new drugs is funded by the federal government, primarily through the National Institutes of Health. Traditionally, manufacturers promote their products by giving samples to doctors for patients to try. In addition to what they pour into profits and marketing, drug companies also spend millions on contributions to political candidates and to lobby Congress.