News in brief - May 26, 2003

Web sites warned against claims of SARS cures - Obesity costs nation billions - Senators call for Medicaid help - Taxol maker settles charges of blocking generic alternative

Web sites warned against claims of SARS cures

The federal government is cracking down on Web site operators who suggest their products protect against, treat or cure severe acute respiratory syndrome. An Internet search by the Federal Trade Commission and the Food and Drug Administration found 48 sites touting a variety of SARS prevention or treatment products. The FTC also retrieved seven promotions advertising SARS-fighting products from its spam database.

The agencies have warned the Web site operators that it is against the law to make claims about SARS prevention or treatment without rigorous scientific support.

Obesity costs nation billions

The epidemic of obesity contributes $93 billion to the nation's yearly medical bill. Public health programs, including Medicare and Medicaid, foot about half that tab, according to a May 14 article in Health Affairs. The prevalence of overweight and obesity was greatest in Medicare, at 56%. The average across all insurance types -- public and private -- was 53.6%.

Senators call for Medicaid help

Several vocal Senate Democrats and one Republican are urging their colleagues to provide more support for state Medicaid programs. Sens. Susan Collins (R, Maine), Ben Nelson (D, Neb.) and John D. Rockefeller IV (D, W.Va.) want state fiscal relief to be part of any tax-cut package that is passed.

"We know from economists that every dollar invested in Medicaid results in an almost threefold return in state economic benefit," Rockefeller said. "We also know that despite that fact, virtually every state is cutting Medicaid spending to balance $100 billion in budget deficits."

Meanwhile, Sen. Jeff Bingaman (D, N.M.) announced plans to introduce legislation that would pump more money into the states for hospitals that treat uninsured patients and for Medicaid.

Taxol maker settles charges of blocking generic alternative

Bristol-Myers Squibb agreed to pay $55 million to settle an antitrust lawsuit that accused the company of blocking a generic version of its cancer-fighting drug Taxol from entering the market. The money will pay for damage claims, penalties and individual consumer complaints in the states and U.S. territories.

The company accepted terms that will bar future anti-competitive conduct. Bristol-Myers Squibb also agreed to give free Taxol to health care facilities that meet certain requirements and are approved by the Drug Enforcement Administration.

A settlement is not an admission of guilt.