Drug companies in Maryland can deduct the cost of commercials for prescription drug medications as a business expense, but legislation might change that.Instead, the money would go toward lower health care costs.Health care advocates said the added revenue would be better spent bringing costs down, but Big Pharma is pushing back. They said singling out their industry is not only unfair, but also a violation of free speech.Nearly three-quarters of people polled by Opinion Works said they support legislation to eliminate the tax break.The money would be reinvested into Medicaid and the Maryland Health Benefit Exchange. The goal is to help stabilize and lower costs.”So that we could use the $24 million that we received every year to make sure Marylanders have the health care they need,” said Vinny DeMarco, president of Health Care for All.The state would dedicate $5 million to the Department of Health to boost Medicaid eligibility operations. More staff and upgrades are needed to keep up with new federal restrictions on who qualifies.Remaining funds would go to subsidies in the Maryland Affordable Care Act marketplace.”I work two jobs, neither of which provide insurance,” said Bobby Laughlin, who would benefit from the funds when the state-based subsidy expires.Laughlin’s health insurance will increase from $70 to as much as $500.”Without legislation like this, I will be forced to go without insurance or downgrade to a plan that barely meets my needs. If I’m hurt in an accident or suffer a serious illness, I will be bankrupt,” Laughlin said.Pharmaceutical companies are pushing back, though. Executives said it violates their First-Amendment rights.”It’s a punitive design and it would make Maryland the only state in the country to single out drug researchers and manufacturers for special tax treatment tied to their communications with patients,” Josh White, with Pharmaceutical Research and Manufacturers of America, told a House committee.”Unless the Maryland General Assembly takes action this year, it’s likely that 160,000 Marylanders — 160,000 enrollees, many of (whom) are Black and brown neighbors — will lose coverage,” said Nikki Highsmith, president and CEO of the Horizon Foundation.Advocates hope the poll gives the legislation a boost. A Senate committee heard the bill last week, but no further action has been taken. The House version was heard in committee on Feb. 12, but no further action has been taken.
TIMONIUM, Md. —
Drug companies in Maryland can deduct the cost of commercials for prescription drug medications as a business expense, but legislation might change that.
Instead, the money would go toward lower health care costs.
Health care advocates said the added revenue would be better spent bringing costs down, but Big Pharma is pushing back. They said singling out their industry is not only unfair, but also a violation of free speech.
Nearly three-quarters of people polled by Opinion Works said they support legislation to eliminate the tax break.
The money would be reinvested into Medicaid and the Maryland Health Benefit Exchange. The goal is to help stabilize and lower costs.
“So that we could use the $24 million that we received every year to make sure Marylanders have the health care they need,” said Vinny DeMarco, president of Health Care for All.
The state would dedicate $5 million to the Department of Health to boost Medicaid eligibility operations. More staff and upgrades are needed to keep up with new federal restrictions on who qualifies.
Remaining funds would go to subsidies in the Maryland Affordable Care Act marketplace.
“I work two jobs, neither of which provide insurance,” said Bobby Laughlin, who would benefit from the funds when the state-based subsidy expires.
Laughlin’s health insurance will increase from $70 to as much as $500.
“Without legislation like this, I will be forced to go without insurance or downgrade to a plan that barely meets my needs. If I’m hurt in an accident or suffer a serious illness, I will be bankrupt,” Laughlin said.
Pharmaceutical companies are pushing back, though. Executives said it violates their First-Amendment rights.
“It’s a punitive design and it would make Maryland the only state in the country to single out drug researchers and manufacturers for special tax treatment tied to their communications with patients,” Josh White, with Pharmaceutical Research and Manufacturers of America, told a House committee.
“Unless the Maryland General Assembly takes action this year, it’s likely that 160,000 Marylanders — 160,000 enrollees, many of (whom) are Black and brown neighbors — will lose coverage,” said Nikki Highsmith, president and CEO of the Horizon Foundation.
Advocates hope the poll gives the legislation a boost. A Senate committee heard the bill last week, but no further action has been taken. The House version was heard in committee on Feb. 12, but no further action has been taken.