b"BIG PHARMA'SR&DLine is a TOTAL CROCK!pharmaceutical companies(collectively referred to as Big Pharma) rake in record profits and $245 billion in annual revenue. As justification for the astronomical cost of prescription drugs, pharma-ceutical manufacturers often argue the obscene prices are necessary to offset the money they spend on re-search and development (R&D), but the facts show that R&D makes up only 22% of Big Pharmas spending and they spend more than twice as much on advertising (19%), profit (18%) and corporate overhead (9%)!See Graph 1 (source: www.csrxp.org).Graph 2For an interesting and detailedTo be fair, Im not suggesting that pharmaceuti-comparison of Big Pharmas take compared tocal companies dont play an inimitable role in health insurer profitability, take a moment tohealth care or that their products havent saved review Graph 2 that shows where your healthhundreds of millions of lives around the globe. insurance dollar goes. Despite the fact thatIm simply saying theres a social responsibility pretty much everyone hates health insurancethat comes with the power to save or dramatical-companies because they (unfairly and errone- ly improve the quality of a human life, and that ously) believe we are rolling in piles of gold, amoral and ethical responsibility must yield to quick look at the graphic below compiled fromthe almighty dollar. Charging tens of thousands data collected by Americas Health Insurance erhundreds of thousands of dollars year-Plans (AHIP) will show we really arent asafter-year for a medication to treat a chronic bad as people think. By way of summary, healthhealth condition is loathsome and indefensible insurance companies spend 81.8% of premiumto me, especially when nearly half of the cost dollars on medical services and prescriptiongoes to profit, marketing, advertising and corpo-drugs, 15.8% on operating costs and taxes, andrate overhead!(if were lucky), we earn a mere 2.3% profit. Compare that to the 19% advertising spendI like to think of myself as a rational capitalist and 18% profit earned by Big Pharma, andwho advocates the basic principles of supply you might just reach the conclusion that drugand demand; however, when demand is inelasticIf you have questions companies are charging a bit too much for theirand supply is protected by government laws andabout this article or critically necessary product and are making justregulations, its hard not to advocate for socialistwould like to discuss a bit too much profit! intervention anddare I sayprice control. your companys health See Graph 2 (source: www.ahip.org). insurance progam, feel free to contact me at (801) 263-8000 or info@wmimutual.com. SWPMA News / Autumn 201921"