US Unemployment Looms As A Threat To Pharma, But More Impact In 2021

Sweeping job losses in the US have left people uninsured or transitioning from private insurance to Medicaid, which will impact how drugs are reimbursed. Changing payer mix will have an effect on company revenues.

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Changing payer mix will have an impact on biopharma bottom lines

Sweeping US job losses caused by the COVID-19 pandemic – and the corresponding loss of private health insurance for many American workers – will have an impact on who can afford to pay for drugs and how much drugs are reimbursed if those patients switch to Medicaid. While reporting first quarter financial results, drug manufacturers warned of looming business challenges caused by rising US unemployment if it persists.

Some drug manufacturers are more exposed than others to a big shift in Americans moving from employer-based commercial insurance to Medicaid, which reimburses for drugs differently and often at lower prices than private insurance or Medicare

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