News Releases/Media Advisories
Jun 28, 2016
The National Labor Relations Board’s expanded interpretation of “joint employment” could severely hurt small businesses and franchises, warns a new report by National Center for Policy Analysis Senior Fellow Pam Villarreal and Research Associate Laura Wiltshire.
“It would be costly for franchise owners to comply with union demands, and some may simply go out of business,” writes Villarreal.
The impetus for the expanded interpretation was to ease unionization of small businesses that are franchisees of corporations, such as restaurant and retail food chains. But unions have generally been found to lower profitability for firms. One such study on U.S. supermarkets found:
- When controlling for other variables that affect profitability — such as market size, market growth, firm size, expenditures on entry and others — unionized supermarket profits were 76 percent lower than non-union supermarkets.
- This effect was most pronounced in concentrated markets rather than more competitive markets.
Franchise restaurants could face a similar fate. “The franchise sector generates more than $2 trillion in economic activity and employs 20 million people,” write Villarreal and Wiltshire. “It would be a mistake to hamstring it with the costs and responsibilities of a poorly interpreted and overreaching rule that would provide no economic benefit to such a significant industry.”
Jun 21, 2016
Overregulating Drug Plans Could Raise Costs to Consumers: NCPA
Would requiring disclosure of wholesale prices lower prescription drug costs? Experts say no, according to a new report by National Center for Policy Analysis Senior Fellow Devon Herrick.
In a misguided attempt to combat the high prices of some new and specialty drugs, a few politicians and trade lobbyists for pharmacies and drug makers have begun to blame high drug prices on the administrators of employee drug plans – suggesting drug plans are not passing on their discounts to consumers and employers.
This “bogus argument” posits that drug prices would be lower if drug plans were required to disclose the wholesale prices – a requirement that would be detrimental to any wholesale industry.
Regardless of the industry, wholesale prices are often negotiated among private parties and are generally considered proprietary. “If competing hardware stores knew the exact wholesale prices Home Depot negotiated with suppliers, all competing stores would bargain aggressively for the same price. Over time, the likely result is that manufacturers would ultimately set one uniform wholesale price higher than the price volume purchasers would otherwise obtain,” says Herrick.
The end result? Highly competitive firms would no longer be able to leverage buying power and pass on discounted prices to consumers.
“Drugs are affordable for most consumers because of competition among Pharmacy Benefit Managers (PBMs),” adds Herrick. “Taking away PBMs’ ability to compete by regulating price transparency would harm consumers in the long run."
A Bogus Solution for High Drug Costs: http://www.ncpa.org/pub/a-bogus-solution-for-high-drug-costs
Jun 03, 2016
Chairman Jeb Hensarling Unveils Key Points of Republican Plan: NCPA
Because the Dodd-Frank Act is harming the economy and consumers, the House Financial Services Committee plans to offer a pro-growth, pro-consumer replacement, previewed by Chairman Jeb Hensarling at a recent National Center for Policy Analysis briefing in Washington, DC.
“Dodd-Frank stands as a monument to the arrogance and hubris of man in that its answer to incomprehensible complexity and government control is even more incomprehensible complexity and government control,” says Hensarling. “Dodd-Frank codified too big to fail and taxpayer-funded bailouts into law,” made us less prosperous, and harmed our freedom – and needs to be replaced, he adds.
Hensarling says the Republican plan will be based on the following principles:
- Restoring economic growth through competitive, transparent and innovative capital markets;
- Giving every American the opportunity to achieve financial independence;
- Protecting consumers from force, fraud and deception, but also from the loss of economic liberty;
- Ending taxpayer bailouts of financial institutions and the idea that any company is “too big to fail”;
- Reducing systemic risk through market discipline;
- Replacing complexity with simplicity, because complexity can be gamed by the well-connected and abused by Washington bureaucrats;
- Holding both Wall Street and Washington accountable.
“In the weeks to come, we on the committee look forward to unveiling this legislation, receiving your feedback, and ultimately earning your support,” says Hensarling. “Because this is a fight for America’s future, and I’m more confident than ever it is a fight we can win.”
Principles of Financial Opportunity Reforms: http://www.ncpa.org/pub/principles-of-financial-opportunity-reforms
May 31, 2016
Four reforms could rein in Medicare spending growth: NCPA
NCPA: Rising numbers of retirees and excess cost growth have made it imperative that we chance how the Medicare is financed – or the cost burden will crush taxpayers, according to a new study by NCPA Senior Fellows Andrew J. Rettenmaier and Thomas R. Saving.
May 02, 2016
Hardening the state’s electric power grid key should be top priority: NCPA
NCPA: Protecting America’s most vulnerable asset – our electric power grid – starts with Texas, according to a new study by National Center for Policy Analysis Senior Fellow David Grantham.
NCPA in the News
May 30, 2016
Arizona Business Daily: Preferred networks are at the root of how benefits managers have lowered drug costs for Medicare recipients, says NCPA Senior Fellow Devon Herrick in this article from Arizona Business Daily.
May 26, 2016
Orange County Register: Banning tipping and increasing prices to raise server wages will only lead to poor service and disgruntled employees and patrons, warns NCPA Senior Fellow Richard McKenzie in an article at the Orange County Register.
May 24, 2016
As national pharmacy group lobbies for Lipinski-backed bill, critics say measure would raise drug prices
West Cook News: NCPA Senior Fellow Devon Herrick is cited in this article from West Cook News on why recent legislation would “weaken the tools insurers and PBMs use to negotiate low drug prices with pharmacies on consumers’ behalf.”
May 24, 2016
Florida Business Daily: NCPA Senior Fellow Devon Herrick is cited on efforts from pharmacies to affect legislation in order to allow them to charge more in this article from Florida Business Daily.