Whether your employees or customers know it: their prescription drug costs increased nearly 60% while their incomes increased about 11%. Even more troubling? About 32% of people of working age have had to stop taking a prescription because of cost.
How does this impact small businesses in Michigan?
Retaining talent is one of the top concerns we hear from local businesses. On average it can cost a small business owner $1500 to replace an hourly staff role. For salaried staff, it can cost 50-200% of salary expenses to replace positions. In total retention issues are costing businesses 1 trillion dollars every year.
There are internal organizational culture steps business can take to reduce turnover. But advocating for key cost reductions for your staff is another step. It’s easier to retain and attract talent when you are located in a state that helps reduce health care costs for people .
Prescription drug costs are the biggest share of health insurance premiums. By lowering prescription costs, small businesses will see lower health care premiums, saving them money without having to sacrifice employee benefits. Additionally, hard-working employees need access to affordable medications to be healthy, productive team members. A Prescription Drug Affordability Board (PDAB) makes prescription medicine and health insurance more affordable, benefiting small business owners and employees.
When the people in our communities are better able to afford the medications they need, they are supported to contribute back to the community as thriving employees, involved community members, and as customers spending more at small, local businesses as the result of more stable financial footing.
What can business owners do to help lower prescription drug costs for consumers?
- People First Economy is partnering up with MI Affordable RX to support the creation of a Prescription Drug Affordability Board. We know Governor Whitmer sees this as a priority. At this point we need our state house and state senate to pass legislation to create such a board.
- Get started and personalize a message to your state senator and state representative here.
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