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Microsoft word - chpa_eig - pse economic impact study release_120213.docx

FOR IMMEDIATE RELEASE
Feb. 13, 2012
Contact: Kim Moyer
(Office) 405.605.2003 or (Cell) 405.249.6070 Study shows Oklahoma’s proposed prescription mandate could lead to
$59 million in additional healthcare costs
Mandate could also mean more than 296,000 new doctor’s visits per year
OKLAHOMA CITY – Oklahoma residents and the state could be forced to contend with
296,775 additional doctor’s visits—with costs reaching as much as $59 million—if a proposed
prescription requirement for safe and effective medicines containing pseudoephedrine (PSE)—
such as Advil Cold & Sinus, Allegra D, Claritin-D, Mucinex-D, and Sudafed— are signed into
law and precipitate even modest changes in consumer behavior, according to a new study.
The study, conducted by Oklahoma City-based Economic Impact Group, estimates that of the
total expenditures, 10 percent will fall on Oklahomans as out-of-pocket expenses, 48 percent on
private health insurance plans, 22 percent on Medicare and 9 percent on the federal and state’s
Medicaid programs.
As the study points out, wage and productivity losses due to viral respiratory tract infections in
Oklahoma range from $227 million to $400 million every year. Under a prescription
requirement, these losses would likely rise considerably, the study finds.
“Based on our findings and established research, it’s evident that a prescription requirement for
over-the-counter medicines containing pseudoephedrine in the state of Oklahoma would lead to
increased costs for individuals, physicians, healthcare providers, Oklahoma businesses and the
state as a whole,” said Russell Evans, principal and co-founder of the Economic Impact Group.
“The costs associated with viral respiratory infections already take a tremendous economic toll
on the state. Currently, the cost to consumers in terms of wages and salary foregone due to
missed workdays associated with common cold and allergy symptoms are estimated to exceed
$227 million dollars annually. There’s little doubt that we would see a marked increase in these
costs if a prescription requirement for medicines like Claritin-D or Sudafed were signed into
law.”
Finally, the study suggests that a prescription mandate would not significantly reduce overall methamphetamine abuse figures in Oklahoma, yet would significantly impact law-abiding consumers. The study finds that under such a prescription requirement, meth users would be able to obtain the drug from other sources, such as Mexican drug trafficking organizations. This fact, coupled with the similar potency of alternative meth sources, suggests that a prescription mandate would not significantly reduce overall meth abuse figures in the state yet significantly raise the cost to consumers. “As the evidence summarized in our study makes clear, a prescription requirement would do little to deter meth users from obtaining the highly-addictive drug,” Evans said. “The unfortunate but unavoidable reality is that methamphetamine can be found through a number of different sources in Oklahoma. It is our conclusion that precursor restrictions at the expense of citizens would only lead to increased demand and output from another source.” To access a copy of the study, visit http://www.economicimpactgroup.com/Resources/EIG%20Report%20on%20PSE%20Legislati.
pdf. The Economic Impact Group, LLC, is an Oklahoma City-based consulting firm specializing in policy analysis, regional forecasting, impact studies, and forensic economics. The firm was founded in 2005 by Kyle D. Dean and Russell R. Evans, who currently serve as the Associate Director and Executive Director, respectively, of the Steven C. Agee Economic Research and Policy Institute in the Meinders School of Business at Oklahoma City University. Funding for this study was provided by the Consumer Healthcare Products Association, with EIG retaining full editorial control and solely responsible for the contents thereof. For additional background on the Economic Impact Group, LLC study, go to www.economicimpactgroup.com.

Source: http://www.economicimpactgroup.com/Resources/PSE%20Press%20Release.pdf

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