Member Article

Can tax help in dealing with the Opioid crisis

As per a report, the Lawmakers in California will contemplate some legislation that would impose a tax on the opioid sold by prescription like OxyContin and Norco. This step is being taken to raise money for drug treatment centers and other prevention programs.

This was an idea of California Assemblyman Kevin McCarty (D-Sacramento), wherein the tax would be imposed on opioid manufacturers and wholesalers and not to the consumers directly. The tax would be 1 cent per milligram at the drugs first point of sale.

However, the fiscal review of this idea is still pending with the Legislative Analysts. To pass successfully in the legislature the measure needs to get two-thirds majority votes.

Even Congress is considering to levy a similar class of tax for the federal opioid crisis with the same intentions; to raise fund for the treatment centers. The Alaska state legislature would impose a 1-cent-per-milligram opioid tax.

As per the reports of U.S. Centers for Disease Control and Prevention (CDC) the sale of prescription opioids and overdoses has almost quadrupled since 1999.As of 2014, over 2 million people were either addicted or misused the painkiller medications, CDC reports add further.

Some health officials told that though the number of deaths caused by opioid misuse has leveled off in the state, the number of overdoses is still on the higher side. In another report of the California Department of Public Health, it is claimed that there are still some countries that witness deaths due to opioid overdose.

The Californian proponents say that it is very important to tax the measures as raising fund has become a must because most of the addicts suffer from lack of care and effective prevention programs.

“We must do more to help these individuals find hope and sobriety,” said McCarty. “This plan will provide counties with critical resources needed to curb the deadly cycle of opioid and heroin addiction in California.”

However, The Pharmaceutical Research and Manufacturers of America (PhRMA) which is a national trade association for drugmakers have strongly opposed the bill stating that the drug-making industry is already overburdened with the existing tax laws and the bill would be an addition to it. They also claimed that the U.S. Drug Enforcement Agency already hold the rights to regulate opioids. They said that to deal with the opioid crisis all have to collaborate and work collectively, “rather than a narrow focus on one sector or aspect.”

David Powell, the RAND Economist in his interview with California Healthline said that it is indeed a great notion to help the addicts with preventive care but imposing a tax on the pills and its regulatory effects on drug usage are a point to be considered beforehand.

“When asked, what other policies would he recommend to prevent addiction or overdose, Powell said, Unfortunately, this is the part where the research is so new. We don’t really have a solid, “This is the most effective way to fight the opioid epidemic right now.” It sounds like a cop-out, but you have to take a comprehensive approach, and do a lot of things.”

There are many drug treatment centers California that are in a pathetic state because of lack of funds. Also, many preventive programs are paused as the facility requires financial aids to run them. It is yet to see what will be the final decision in this case.

This was posted in Bdaily's Members' News section by Nicki Jenns .