Lost Jobs & Tax Revenue, Higher Unemployment Predicted by Study Tuesday, March 16, 2004 News Release Click here for the full report About 3,000 Michigan jobs and $117 million in wages will be lost in 2004 because of health plan requirements that drug prescriptions be filled by out-of-state mail order companies, concludes a study released today by Lansing-based Health Management Associates. The study shows the statewide effects of Michigan’s 2,000 community pharmacies losing nearly $2 billion in prescription drug business in 2004 as 856,000 UAW employees, retirees and dependents are forced to use mail order to fill certain prescriptions. Summaries of these data are displayed below. Michigan pharmacy marketplace, 2003 • Retail prescription sales $7.4 billion • Retail prescription volume 122.2 million • Mail order prescription revenue $1.5 billion • Indirect loss of Michigan business activity caused by mail order prescription drug purchases $1.9 billion 2004 impact on Michigan of mandatory mail order usage in UAW contract Direct impact on pharmacies • Retail prescription volume loss 4.3 million prescriptions • Retail prescription revenue loss $268.2 million • Pharmacy job losses 167 full-time positions • State income tax loss $341,109 • Jobless benefits increase $1.6 million Indirect impact on non-pharmacy sector • Overall drop in business activity $336 million • Lost jobs 3,000 • Lost wages $117 million Annual impact on Michigan if all employees with were forced to use mail order • Retail prescription volume loss 27.4 million prescriptions • Retail prescription revenue loss $1.8 billion • Pharmacy layoffs 1,128 full-time positions • State income tax loss $2.3 million • Jobless benefits increase $10.6 million This study was funded by the Coalition for Quality Healthcare, a not-for-profit organization that seeks to protect the right of patients to fill prescriptions wherever they wish. It strongly supports efforts to reduce healthcare costs for employers and patients. For more information, visit the Coalition’s Web site at www.PharmacyChoices.org. Welcome | Latest News | Your Legislator | Mail Order | Questions Contact Us | Petition | Links Coalition for Quality Healthcare "Upholding high standards of personal service, assuring full access to consumer options and preserving the traditional contributions of local pharmacies to the state's economy" © Copyright 2004 Coalition for Quality Healthcare. All rights reserved.

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