Monday, November 30, 2015

Drug lobby says Medicare drug proposal will cost jobs

Pharma trade group says proposed cuts to Medicare prescription reimbursements will cost jobs in PA and NJ.

Drug lobby says Medicare drug proposal will cost jobs


The Pharmaceutical Research and Manufacturers of America is not fond of President Obama’s suggestion that federal budget cuts include $135 billion in reduced reimbursements for Medicare drug costs.

The industry trade group asked Archstone Consulting to pull together numbers for key pharma states. New Jersey and Pennsylvania are right behind national leader California in pharma employment and then the jobs that spin out of them.

The research suggested that biopharmaceutical companies supported a total of 189,592 jobs in Pennsylvania in 2008 (the last year numbers were apparently available), which meant 37,518 directly in the sector and 152,074 in other sectors.

Many of those jobs were lost in takeovers and the ensuing layoffs. Nonetheless, PhRMA is also suggesting that many more employees will lose jobs if the industry is hit with a $20 billion “event,” though it doesn’t actually say the event is a cutback.

The Battelle Technology Partnership Practice, working on behalf of PhRMA, estimated that such an event would cost New Jersey 3,702 jobs and Pennsylvania 2,500 jobs in the biopharmaceutical sector, with thousands more disappearing from secondary businesses.

“This is a sector that has had a real challenge over several years with job retention and job growth,” Chip Davis, PhRMA's executive vice president of advocacy, said recently, “and is poised to sustain more significant hits if this becomes law.”

Inquirer Staff Writer
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at or 215-854-4506.

David Sell Inquirer Staff Writer
Also on
letter icon Newsletter