Obamas Jobs Act May Reduce Jobs in the Pharmacy Business

By: Riley Evans


According to a new study published by the American Action Forum (AAF), one consequence of the American Jobs Act will be the loss of as many 238,000 jobs in the pharmaceutical industry. Headed by former Congressional Budget Office Director Douglas Holtz-Eakin, the conservative `think tank` AAF found that in order to supply low-income seniors through the Medicare Part D program with rebates, the pharmaceutical industry would have to supplement the federal government with billions of dollars, as the Obama administration seeks to give the same rebates Medicare patients receive to Medicaid patients for brand name and generic drugs.

According to the White House, the purpose of the Jobs Act was to put more people back to work, but the AAF study says differently: ``At a minimum, these additional rebates would constitute a direct, dollar-for-dollar reduction in revenue to the pharmaceutical industry ... Using the historic relationship between revenues and employment, we find that by 2021 the proposal could reduce pharmaceutical and related employment by 238,000 jobs``.

Implementing mandatory Part D drug rebates would require pharmaceutical industries to reduce payroll and profits, which will likely lead to charging prescription drug buyers higher prices. This may also cause slower development and deployment of new drugs to the market, imposing more expenses for patients in need of newer treatments.

Granted, these proposed rebates will end up saving the federal government roughly $135 billion over the course of ten years without adding a dime to the deficit. But do the savings add up to the expense that the pharmaceutical industry will end up having to pay?

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Author of this article Riley Evans Social Media Editor for www.eboxed.com/>">Eboxed Internet Media marketing that specializes in social media, marketing, and advertising. www.eboxed.com/social_media/>">social media

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