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Obama's job plan would kill pharmeceutical jobs.


Obama’s jobs plan would raise the cost of drugs for seniors and privately insured Americans. Pharmaceutical companies would have to pull many products and slash jobs. Nearly a quarter million jobs in the pharmaceutical industry could be lost.

From MarketWatch.com…

The Office of Management and Budget (OMB) estimates that the proposal to add Medicaid-style Rebates in the Medicare Part D program would result in $135 billion in additional rebates to the federal government over ten years. These additional rebates could either constitute a direct, dollar-for-dollar reduction in revenue to the pharmaceutical industry, and could make some medicines too costly to produce. As a result, these drugs would be withdrawn from the market and the revenue reduction would be even larger than the rebates paid to the government. This loss in revenue to the pharmaceutical industry could both reduce employment and create higher prices for consumers.

“Employment Impact of Proposed Mandatory Part D Drug Rebates,” written by the American Action Forum’s Douglas Holtz-Eakin, Robert A. Book and Michael Ramlet, focuses on reduced employment – both direct employment in pharmaceutical companies and indirect employment in companies that supply goods and services to the pharmaceutical industry. The downstream effects, such as those on distributors, pharmacies and other additional costs to the economy are not specifically taken into account.