Business is flush with cash and getting ready to hire. Or at least, so said this morning’s Wall Street Journal, the bible of the business class.
But one group of firms is hunkering down for a tough year. Pharmaceutical companies face a sluggish environment because of the new health care law, the paper’s industry roundup said. Why? The Affordable Care Act, slated for repeal before the president gives his state of the union address, forces companies to offer senior citizens who fall into the donut hole of non-coverage half-price name brand drugs. Said the Journal:
Dave Holveck, CEO of Endo Pharmaceutical Holdings Inc., estimated that closing the Medicare hole will cost his company between $20 million and $30 million in annual revenue.
Repeal the law and that’s $20 to $30 million that will come straight out of senior citizens’ pockets. I suspect most senior voters, who disproportionately supported Republicans and their call to repeal health care reform, were not aware they were voting for higher drug prices. Democrats in the coming weeks will undoubtedly be telling them about that consequence of reform’s repeal.Did you like this? If so, please bookmark it, RSS feed.