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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...