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Connecticut's Opioid Tax is Met with Opposition from Distributors

June 11th, 2019 Featured Article 3 minute read
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Connecticut's Opioid Tax is Met with Opposition from Distributors

Connecticut is making plans to include a new tax on opioids in its state budget.  But this effort has been met with opposition from the pharmaceutical industry.  A national coalition of pharmaceutical distributors warned the tax ultimately would be paid by patients, many of whom need prescription-opioid medications to manage chronic pain.“By adopting the opioid tax, the state of Connecticut would be increasing health care costs for thousands of patients who need these medications for a number of conditions and surgical procedures, including the treatment of cancer and end-of-life hospice care,” wrote John Gray, president and CEO of the Healthcare Distribution Alliance.House Speaker Joe Aresimowicz, D-Berlin, predicted the tax would be included in the budget, but did not identify a specific rate.  The tax would be imposed at every level of the distribution process, including at the first point of sale in Connecticut, which typically means distributors selling to health care providers.“The producers of opioids have made a lot of money in a very inappropriate way,” Aresimowicz said. “So, it’s our intention to make sure they will be paying it, not the consumers.”

Connecticut's Opioid Tax is Met with Opposition from DistributorsPhoto by Ibrahim Rifath on Unsplash

The opioid tax was recommended by Comptroller Kevin P. Lembo and a few other of Connecticut legislators recently to complement a state-sponsored health insurance option for individuals and small businesses.  It was originally part of the “Connecticut Option” bill and is estimated to bring in $20 million by the second year.  Senator Matt Lesser, D-Middletown, said it will help 26,000 low-income parents obtain Medicaid coverage.“It seemed that the least objectionable way was to ask companies associated with the opioid epidemic to chip in a very modest amount,” Lesser said.New York was the first state to propose taxing the sale of opioids.  It passed its tax in 2018 as part of that state’s budget, but it was struck down by a federal judge before the plan could officially be rolled out.  The judge concluded that “the provision barring manufacturers and distributors from passing the tax onto consumers violates the dormant commerce clause.”In April 2019, New York’s Governor Andrew Cuomo approved a budget that would allow the tax to be passed along to consumers.  However, Rep. William A. Petit Jr., a physician, said this is illogical.  “It’s going to raise the cost of care for people in the worst moment of their lives,” he said.Petit predicted the tax will increase the cost of medication, and at $20 million will likely increase health insurance premiums for every everyone by $6 or $7.  “You can’t take $20 million out of the system and expect it not to have an impact,” he added.Senator Saud Anwar, D-South Windsor, also a doctor, said, “When somebody is getting anesthesia, when someone is having surgery, when somebody is actually going to get care in the hospital or an outpatient procedure, they will be paying a lot more than they have.  Opioids have a legitimate use and there is a legitimate risk of abuse, but in order to try and reduce that abuse we’re going to have an impact on people with a legitimate use.”

Sources:

Democratic Legislative Leaders Press Forward With Opioid TaxOklahoma Faces Off Against J & J in First Trial of an Opioid Maker

Sara E. Teller

About Sara E. Teller

Sara is a credited freelance writer, editor, contributor, and essayist, as well as a novelist and poet with nearly twenty years of experience. A seasoned publishing professional, she's worked for newspapers, magazines and book publishers in content digitization, editorial, acquisitions and intellectual property. Sara has been an invited speaker at a Careers in Publishing & Authorship event at Michigan State University and a Reading and Writing Instructor at Sylvan Learning Center. She has an MBA degree with a concentration in Marketing and an MA in Clinical Mental Health Counseling, graduating with a 4.2/4.0 GPA. She is also a member of Chi Sigma Iota and a 2020 recipient of the Donald D. Davis scholarship recognizing social responsibility. Sara is certified in children's book writing, HTML coding and social media marketing. Her fifth book, PTSD: Healing from the Inside Out, was released in September 2019 and is available on Amazon. You can find her others books there, too, including Narcissistic Abuse: A Survival Guide, released in December 2017.

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