New MGA Paper Identifies Steps to Reducing Barriers to Biosimilars

In a new paper, MGA discusses why the biosimilars market in the United States is not more developed and what steps can be taken to boost competition for biologic drugs. The paper identifies barriers to biosimilars by four categories, related to reference product manufacturers, biosimilar manufacturers, policy, and stakeholder education and awareness. Among the strategies to overcoming barriers are more physician and patient education, competitive biosimilar pricing, action by employer-sponsored health plans and private payors to encourage biosimilar utilization, and continued FDA efforts to support the budding market.

New MGA Study Estimates Lost Savings from Misuse of REMS and Restricted Access Programs

A new study from MGA examines the practice by brand drug manufacturers of using Risk Evaluation and Mitigation Strategies (REMS) and other forms of restricted access to keep generic manufacturers from obtaining samples needed to develop generic drugs. MGA estimates that this misuse blocks $13.4 billion in generic savings annually, an estimate that has grown nearly 250 percent since MGA’s 2014 analysis of this issue.

Charitable Giving and the Tax Cuts and Jobs Act

This paper investigates how the Tax Cuts and Jobs Act affects household charitable giving in the United States. We find that the law will reduce charitable giving by $17.2 billion (4.0 percent) in 2018 according to a static model and $16.3 billion assuming a modest boost to growth.

The Geographic Variation in the Cost of the Opioid Crisis

As the opioid epidemic worsens in the United States, the toll it imposes on the US economy has risen to staggering heights. The White House Council of Economic Advisers recently estimated the economic burden, inclusive of the value of statistical lives lost, to be $504 billion in 2015. More narrowly constructed estimates find cost burdens as high as $95 billion in 2016.

The Political Economy of a Carbon Tax: A County-By-County Investigation

This report investigates the impact of a revenue-neutral carbon tax whereby revenues raised from a $25/ton carbon tax are used to reduce the tax rate on wage income by a commensurate amount. Recognizing that such a reform is not revenue-neutral for every single taxpayer, nor even revenue-neutral in every county, we investigate the degree of spatial variation across all counties and sort results by the historical partisan preferences of those counties.

The Bleak Long-Run Outlook: US Fiscal Policy and How to Improve It

The United States is slowly but surely headed toward a federal debt crisis certain to inflict serious economic hardship on future generations. Today, the amount of federal debt held by the public stands at $14.8 trillion (all figures in this paper are in US dollars). While the US economy is expected to grow 76 percent in the next 30 years, that debt burden will, in inflation-adjusted terms, increase by over 240 percent during that time. Returning to a sustainable fiscal outlook will require hard choices and a clear understanding of both what led us to this point and the economic consequences of inaction.

The Case for Fiscal Reform: Lessons from the Anglosphere

Federal fiscal reform in the United States is increasingly necessary but over the last two decades has remained elusive. Part of the reason for the inaction reflects different political preferences and priorities. Part of it reflects differing views about the possible economic and social effects of controlling public spending and fiscal deficits. The result is that the US federal debt continues to grow unabated, which poses an increasing threat to future generations of citizens.

MGA’s Study for Generic Pharmaceutical Association is Referenced on USA Today

“As the result of this infuriating tactic, patients, insurance companies and the federal government pay an additional $5.4 billion annually on drugs, according to a study by Matrix Global Advisors for the Generic Pharmaceutical Association.”

AEI Tax Brief: Child Tax Credit Options

Under current law, a taxpayer can claim a Child Tax Credit (CTC) of up to $1,000 for each qualified child under 17 years of age. The credit amount is dependent on the taxpayer’s modified adjusted gross income. If the CTC is greater than the amount of taxes owed, taxpayers may be eligible for the partially refundable Additional Child Tax Credit.

AEI Tax Brief: Repealing the Personal Exemption

Under current law, a taxpayer can claim a personal exemption for themself, his or her spouse, and each qualified dependent. The personal exemption amount for 2017 will be $4,050. The actual benefit depends on the taxpayer’s marginal tax rate and gross income. Taxpayers can also claim a standard deduction as an alternative to itemizing deductions. In 2017, the standard deduction will be $6,350 for single filers, $9,350 for head-of-household filers, and $12,700 for married couples filing jointly.