Welcome!

News Feed Item

New Economic Impact Study Examines Costs Of Prescription Requirement in Missouri

Missouri Wonk Study Predicts A Total Cost of $43 Million In Additional Healthcare Costs

ST. LOUIS, Aug. 6, 2014 /PRNewswire/ -- Missouri Wonk, a St. Louis based public policy research firm, today released a new economic impact study conducted by the firm's president and founder, Brian Schmidt. The study, which was supported by a grant from the Consumer Healthcare Products Association (CHPA), examined the potential costs associated with a proposed prescription requirement for popular cold and allergy medicines containing pseudoephedrine (PSE)—such as Advil Cold & Sinus, Claritin-D, Mucinex D and Sudafed—in the state of Missouri. In recent years, a number of Missouri lawmakers and other leaders have pushed for a prescription requirement in order to combat the state's methamphetamine problem (meth criminals often misuse PSE products to manufacture meth).

Highlights from the Missouri Wonk economic impact study:

  • The net impact of a prescription requirement— more than $43 million in additional health care costs— will be distributed across the Show-Me State's health care system, affecting consumers, private insurance companies, Medicare, and Medicaid. The additional $43 million in health care costs consist of:
    • More than $5 million in consumers' out-of-pocket expenses;
    • An additional $17 million in costs to private insurance companies, which are likely to be passed on to consumers;
    • An $11.6 million increase in Medicare costs, borne by the federal government; and
    • More than $4 million in additional Medicaid costs, split between federal and state governments
  • In addition, the policy change will impact Missouri in other ways, including:
    • The economy as a whole could lose an estimated $8.5 million in worker productivity from the additional physician office visits associated with obtaining a prescription for pseudoephedrine products;
    • Missouri state government will pay an additional $1.6 million in Medicaid expenditures;
    • Missouri could realize an estimated $700,000 decrease in state sales tax collections; and
    • There will be an estimated 477,000 additional physician office visits

"When I set out to examine the potential costs of a prescription requirement, it was critically important to me that we get it right," said Brian Schmidt of Missouri Wonk. "Our goal was to provide Missouri policymakers with an objective and evidence-based analysis that would assist them in developing sound legislation designed to tackle Missouri's meth problem. There is no question that the General Assembly should pass bills to address the meth problem, but I think it's important that any legislation be balanced with potential economic consequences for consumers, employers and the state as a whole. I think our study effectively demonstrates that the costs associated with a prescription requirement are significant by any standard."

Background
Brian Schmidt started his career in the Missouri General Assembly as the Executive Director of the Joint Committee on Tax Policy. During his six years with the committee, he assisted legislators in researching, developing, and crafting legislation focusing on state and local tax matters. While with the committee, Brian earned a Master of Public Affairs degree at the University of Missouri-Columbia's Truman School of Public Affairs where he published two papers on Missouri tax policy.

Brian currently teaches a graduate class on Organizational Theory and Leadership at Truman State University in Kirksville, MO. Additionally, he serves on the Governor's Tax and Incentives Strategy and Implementation Team of the Missouri Strategic Initiative for Economic Growth. Brian formed Missouri Wonk in 2011.

This study was conducted independently and funded by a grant from the Consumer Healthcare Products Association (CHPA).

SOURCE Missouri Wonk

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.