By Milwaukee Courier Staff
Will Martin, CEO of WDI, LLC
MILWAUKEE – Imagine having prescription drug prices rise by double digits after all the inflation Americans already have experienced regarding food, housing, automobiles, gasoline, clothing, and so much more over the past two years. That was just the concern a multicultural coalition of small business owners from across Wisconsin had when they learned Congress was considering legislation that would change how the prescription drug market works. Today, that coalition is thanking Wisconsin’s elected officials instead of worrying.
Several bills were introduced in Congress that would have blocked the way prescription drug cost savings are generated and shared with businesses and families. These bills potentially could have increased profits by billions of dollars for large pharmaceutical corporations as a result. By changing the way the prescription drug market works, some studies show health insurance premiums could have increased annually by as much as $40 billion, and pharmaceutical profits could have grown by up to $32 billion.
“Many don’t realize over 131 million adults have been prescribed at least one medication,” said Will Martin, CEO of WDI, LLC and a member of the small business coalition. “That’s nearly 40% of the entire nation’s population.”
Martin continued, “With most Americans receiving access to healthcare and prescription drug benefits through their employers, the small business coalition knew it had to speak up and educate Wisconsin’s members of Congress about the potential negative effects of making proposed changes in the prescription drug market. Thankfully, U.S. Senator Ron Johnson and others listened to us, and voted in favor of families and small businesses over big pharmaceutical profits.”
Under current law, employers are 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. Some proposals introduced in Congress would have prevented those savings being passed along to employers and their employees. None passed as a standalone bill, or as an amendment to other bills, such as the federal budget.
“Like many Americans, small business owners are struggling with prices continuing to rise, including in healthcare coverage. Having Congress side with us means more small businesses can continue to access prescription drugs at an affordable price for employees and their families,” said Martin.