By Milwaukee Courier Staff
MILWAUKEE – Small business owners across Wisconsin are sounding the alarm about legislation that could make it much harder to offer quality, affordable prescription drug benefits to employees and their families.
More than 131 million adults in the United States have at least one prescription. That is about 40% of the nation’s population, with many getting those prescriptions at discounted prices through employer-based prescription benefit plans.
A coalition of small business owners says that large pharmaceutical corporations are trying to block the way prescription drug cost savings are generated and shared with businesses and families.
Employers have been able to purchase prescription drug benefit plans that save workers and their families from paying full retail price for medications. In order to offer plans with discounted drug prices, businesses hire what are called “pharmacy benefit companies.” These pharmacy benefit companies negotiate price rebates from pharmaceutical corporations. The savings through the price rebates are then passed along to employees and their families through the employer-provided prescription drug benefit plans.
Will Martin, CEO of WDI, LLC
Pharmaceutical companies are working to get Congress to pass legislation that would prevent price rebates from being shared with employers sponsoring prescription drug benefit plans. If those price rebates are blocked, small business owners like Will Martin, CEO of WDI, LLC fear employees and their families will no longer receive discounted prices for the medications they need.
Fears may be justified. Annually, pharmacy benefit companies save individuals over $1,000 and employers nearly $900 through negotiated prescription drug costs, according to research. By changing the way the prescription drug market works, including preventing price rebates, some studies show heath care premiums would increase annually by up to $40 billion and pharmaceutical sector profits would grow by $32 billion.
Martin is among the coalition of Wisconsin employers who wrote to U.S. Senators Tammy Baldwin and Ron Johnson asking them to vote against any legislation seeking to reduce the private sector’s ability to negotiate effectively with drug companies. He remarked, “Controlling healthcare costs is already complicated enough. If Congress takes away employers’ ability to negotiate with big pharma for fair pricing, what leverage will small businesses have to keep down prescription costs for employees and their families?”