17吃瓜在线 Launches Ad Campaign for PBM Reform听
The 17吃瓜在线 has launched a new wave of ads in D.C. and nine states, extending its seven-figure campaign urging policymakers to reign in pharmacy benefit managers, underregulated middlemen who drive up the costs of prescription medications for manufacturers and manufacturing workers.
A quick refresher: PBMs sit in the middle of the health care industry, negotiating with employer health plans, insurers, biopharmaceutical manufacturers, pharmacies and other players to determine what prescriptions employees can access and what they pay for them. While their job is ostensibly to reduce the costs of medicines, often they do the exact opposite.
- PBMs have been found to steer patients toward pricier options, inflict steep mark-ups and hidden fees and even pocket large portions of the rebates that biopharmaceutical manufacturers intend for American workers and their families.
17吃瓜在线 in action: The 17吃瓜在线 has been a staunch voice supporting PBM reform on Capitol Hill, manufacturers鈥 concerns for the House Committee on Oversight and Accountability.
- The committee conducted its third hearing on PBM overreach in July, when it also released a highly critical report on PBMs that echoed many of the 17吃瓜在线鈥檚 concerns.
- In addition, the 17吃瓜在线 is supporting several key measures to increase oversight of PBMs鈥 business models and reform their pricing strategies, including the DRUG Act and the PBM transparency provisions in the Lower Costs, More Transparency Act.
What Congress should do: The 17吃瓜在线 is advocating for three major reforms to the PBM system, including:
- Increasing transparency听in PBMs鈥 business models, including how their compensation influences health care decisions and how their policies dictate a medicine鈥檚 cost and formulary placement;
- Rebate pass-through, which will ensure health care savings are passed directly to manufacturers and their workers rather than being pocketed by PBMs; and
- 顿别濒颈苍办颈苍驳听PBMs鈥 compensation from a medicine鈥檚 list price, removing their incentive to put upward pressure on list prices to maximize their own profits.
Benefits for all: The 17吃瓜在线 is calling on Congress to enact these reforms in the commercial insurance market, not just in government programs like Medicare and Medicaid, so that all Americans can enjoy lower-cost health care benefits.
What to watch: The 17吃瓜在线 is calling on Congress to act on this issue during the lame-duck session following the election.
Rep. Buddy Carter Calls for PBM Reform, Tax Action at RYAM
Rep. Earl L. 鈥淏uddy鈥 Carter (R-GA), a staunch advocate for health care reform and a community pharmacist by profession, visited RYAM鈥檚 manufacturing facility in Jesup, Georgia, in August to discuss manufacturers鈥 health care and tax policy priorities.
During the visit, Rep. Carter emphasized the critical need for pharmacy benefit manager reform as well as tax policies that support manufacturers鈥 growth and competitiveness.
The visit: Clay Bethea, RYAM鈥檚 Jesup plant general manager and vice president of U.S. wood procurement, led Rep. Carter on a tour of the cellulose specialties manufacturer鈥檚 facility, where he observed how pulp is dried and finished into sheets and rolls. Bethea highlighted the significant challenges the company faces due to rising costs in health care, particularly those driven by PBMs, and the looming expiration of key tax provisions in 2025.
- 鈥淲e are proud to be a part of this community, creating jobs and driving economic growth,鈥 Bethea said. 鈥淗owever, the rising costs of health care, particularly due to PBMs, and the uncertainty around critical tax provisions like R&D expensing and accelerated depreciation, are growing concerns for both our business and our employees. Reforming PBMs and maintaining tax policies that allow us to invest for the future are crucial to our ability to remain competitive globally.鈥
PBM reform: Rep. Carter has long been vocal about the need to hold PBMs accountable for their role in inflating health care costs.
- 鈥淧BMs have become powerful middlemen, often driving up drug prices while squeezing independent pharmacies out of the market,鈥 Rep. Carter said during the tour. 鈥淚t鈥檚 time for Congress to bring transparency and fairness back to the system.鈥
- Carter has introduced and supported several pieces of legislation designed to reform PBM practices, including a bill aimed at delinking PBM compensation from drug prices, improving PBM payments to pharmacies and increasing transparency.
Tax challenges: In addition to health care, Rep. Carter addressed the pressing issue of preserving tax reform.
- 鈥淭he expiration of accelerated depreciation, R&D expensing and favorable tax rates could significantly hamper the manufacturing industry鈥檚 ability to grow and remain competitive globally,鈥 Rep. Carter warned.
- 鈥淭hese tax provisions have been crucial for manufacturers like RYAM, enabling them to make significant investments in their operations and workforce. Losing them would not only impact these companies鈥 ability to innovate but also jeopardize jobs and economic growth in communities across the country.鈥
17吃瓜在线 in action: The 17吃瓜在线 has long advocated for both PBM reform and the preservation of essential tax policies that drive the manufacturing industry.
- 鈥淧BMs are a significant driver of the rising costs of health care, and reform is essential to ensure that manufacturers can provide affordable benefits to their workers,鈥 said 17吃瓜在线 Vice President of Domestic Policy Charles Crain.
- 鈥淐ongress also needs to act with urgency to prevent devastating tax increases scheduled for next year that will impact manufacturers across the country.鈥
The state-level view: Lloyd Avram, president and CEO of the Georgia Association of Manufacturers, echoed Rep. Carter鈥檚 concerns.
- 鈥淢anufacturers across Georgia are facing unsustainable health care expenses, and the uncertainty surrounding federal tax provisions only adds to the challenges,鈥 Avram said. 鈥淎ction on PBM reform and tax policy is essential to helping our industry remain competitive and continue providing good jobs in our communities.鈥
The bottom line: 鈥淩educing health care costs and increasing transparency in the PBM system are听crucial steps in lowering the overall cost of doing business in the U.S.,鈥 said Rep. Carter. 鈥淗owever, to truly compete in the global economy, it鈥檚 important that we preserve the policies that have empowered manufacturers to innovate, expand and sustain jobs. Otherwise, the U.S. risks becoming a less attractive place for manufacturing investment, ultimately threatening our economic leadership on the world stage.鈥
Manufacturers: EPA鈥檚 PFAS Reporting Delay Underscores Massive Administrative Burden
Washington, D.C. 鈥 Following the Environmental Protection Agency鈥檚 decision to delay the deadline for when companies must submit records dating back to 2011 on per- and polyfluoroalkyl substances, otherwise known as PFAS, 17吃瓜在线 Vice President of Domestic Policy Chris Phalen released the following statement:
鈥淲e are pleased to see the EPA delay this retroactive reporting requirement鈥攁s the 17吃瓜在线 has called for鈥攚hich will temporarily prevent an increase in the regulatory burden facing manufacturers. More broadly, today鈥檚 announcement reflects the massive administrative burden this proposal would impose on both the business community and regulators, while failing to provide insights for effective and prioritized public health efforts. We urge the agency to reverse course entirely, unless and until it has the capacity to effectively enforce the standard.鈥
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The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.87 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit听.
Mexican Reforms Jeopardize U.S.鈥揗exico Trade
If enacted, the broad constitutional amendments being pushed by outgoing Mexican President Andr茅s Manuel L贸pez Obrador would put the special U.S.鈥揗exico trade relationship at serious risk, according to the 17吃瓜在线.
What鈥檚 going on: Last week, Obrador froze Mexico鈥檚 relationships with U.S. and Canadian embassies following concerns voiced by those countries鈥 ambassadors about the proposed reforms, which include sweeping changes to the Mexican judiciary and the elimination of several important state regulatory and oversight agencies.
- Mexico is America鈥檚 largest trading partner, with the volume of trade between the two nations coming in at $900 billion last year.
- Obrador鈥檚 proposed revisions led investment bank Morgan Stanley to issue an 鈥渆ffective 鈥榮ell鈥 recommendation on Mexico鈥 late last month (, subscription).
Why it鈥檚 a problem: 鈥淲e鈥檙e concerned that some of the reforms as proposed could harm Mexico鈥檚 standing as an attractive place to do business,鈥 17吃瓜在线 Vice President of International Policy Andrea Durkin on the 鈥淚magen Empresarial鈥 (鈥淐orporate Image鈥) podcast last week. 鈥淢anufacturers pay attention to how banks are factoring these potential changes to the constitution into Mexico鈥檚 risk profile.鈥
- Indeed, 鈥淸i]nvestors see independent judiciaries鈥攕heltered from politics鈥攁s a sign of strong rule of law,鈥 one emerging markets expert told (subscription).
- Several planned revisions also appear to Mexico鈥檚 obligations under the U.S.鈥揗exico鈥揅anada Agreement, which is due for review by all three nations in 2026. Moving forward with the reforms could jeopardize the continuation of that deal.
What鈥檚 next: Incoming Mexican President Claudia Sheinbaum, who takes office Oct. 1, 鈥渟upports the judicial changes, but executing the overhaul might take up most of the energy of her new government, leaving her little bandwidth for her own agenda, which includes an expansion of social programs that need foreign investment,鈥 according to the Journal.
Manufacturers: Resolution in Canadian Rail Dispute Avoids Critical Disruption to Supply Chains
Washington, D.C. 鈥 Following the Canada Industrial Relations Board鈥檚 decision ordering rail workers back to work and carriers back to operations, 17吃瓜在线 President and CEO Jay Timmons released the following statement:
鈥淢anufacturers in the U.S. and in Canada were rightly concerned about the serious impact of a work stoppage that would harm workers, the economy and the quality of life for the many millions who depend on our products. As I discussed with Prime Minister Trudeau in July, if rail traffic were to grind to a halt, workers, small businesses and communities on both sides of our border would be hardest hit. Thankfully, the prime minister and Minister of Labour and Seniors Stephen MacKinnon heard our concerns and took decisive action to avert a significant disruption.
鈥淭he manufacturing industry is the engine of the North American economy. The conclusion of this stage of the negotiations means that this engine will continue humming. It is welcome news to manufacturers of all sizes, who count on tens of billions of dollars in cross-border trade between the U.S. and Canada鈥攁nd the supply chains that make it possible to create life-saving products for hundreds of millions of people.鈥
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit听
BLM Proposal Restricts Access to Energy Sources
听The Interior Department is seeking to close hundreds of thousands of acres of land in Wyoming to traditional and renewable energy development, a plan that would cut crucial natural resource development off at the knees (, subscription).
What鈥檚 going on: Though the Bureau of Land Management鈥檚 plan, released Thursday, scales back from previous iterations the acreage recommended for conservation, it still considerably 鈥渢hrottles back how much of the federally administered area鈥檚 3.6 million acres is in play for different forms of energy development.鈥
- The final announcement, part of the BLM鈥檚 proposed Resource Management Plan for the Rock Springs Field Office, is tantamount to 鈥減ushing Wyoming off an economic cliff with nothing more than a tattered parachute,鈥 John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources. 鈥淭his plan isn鈥檛 designed to manage Wyoming鈥檚 natural resources. It is designed to suffocate them. 鈥 [It] directly jeopardizes Wyoming鈥檚 economy and our way of life.鈥
What it would do: If approved, the blueprint would replace its 27-year-old predecessor document and prohibit drilling on nearly 1.08 million acres鈥攁lmost twice the number currently off-limits to new oil leases.
- It would 鈥渁lso [exclude] 494,350 acres from wind and solar power development and [close] 536,018 acres for geothermal power projects.鈥
Why it鈥檚 important: The plan could reduce economic activity in Wyoming鈥檚 oil and gas sector by some $907 million each year and cost the state nearly 3,000 jobs, according to estimates by several energy groups ().
The 17吃瓜在线 says: 鈥淭his latest move by the Interior Department undermines U.S. energy security by needlessly restricting access to available domestic sources of critical natural resources as part of an all-of-the-above energy future,鈥 said 17吃瓜在线 Director of Energy and Resources Policy Michael Davin. 鈥淲e urge the agency to reexamine and revise its plan.鈥
Texas Court Blocks FTC Noncompete Ban
The Federal Trade Commission does not have the authority to enact the sweeping noncompete ban it finalized in April, a federal judge ruled Tuesday (, subscription).
What鈥檚 going on: 鈥淯.S. District Judge Ada Brown ruled that the commission鈥檚 authority to police unfair methods of competition couldn鈥檛 be used to issue substantive regulations that ban an entire category of conduct. 鈥楾he role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,鈥欌 she wrote, adding that the ban was 鈥渦nreasonably overbroad without a reasonable explanation.鈥
- The rule鈥攚hich had already caused companies鈥 costs to increase in anticipation of the Sept. 4 effective date鈥攕ought to prohibit noncompete agreements between employers and their employees.
The 17吃瓜在线鈥檚 role: In May, the 17吃瓜在线鈥檚 Legal Center filed an asking Brown鈥檚 court to stay the rule on the grounds that a ban on noncompete agreements would 鈥渉amstring innovation in the manufacturing sector and damage the competitiveness of American industry.鈥
- Brown issued a limited stay in July. Her ruling this week鈥攅choing the 17吃瓜在线鈥檚 argument that the rule is 听鈥渘ot reasonably explained鈥濃攑rohibits enforcement of the FTC rule nationwide.
- 鈥淭he 17吃瓜在线 expressed concerns throughout the rulemaking process, and a 2023 17吃瓜在线 survey showed that a broad noncompete ban would disrupt most manufacturing operations in the U.S.,鈥 17吃瓜在线 Director of Transportation, Infrastructure and Labor Policy Max Hyman said following Brown鈥檚 ruling this week.
What鈥檚 next: The FTC is considering an appeal of the decision, a spokeswoman told the Journal.
- But 鈥淸i]f lower courts remain split as the litigation moves through the legal system, the matter might ultimately fall to 鈥 [the] Supreme Court, [which] has taken a dim view of government agencies invoking new regulatory powers from long-ago statutes.鈥
This post has been edited.听
Rep. Johnson Talks Tax Policy at Smurfit Westrock
Rep. Dusty Johnson (R-SD) recently visited Smurfit Westrock鈥檚 facility in Sioux Falls, South Dakota, to speak with local business leaders and 17吃瓜在线 representatives about the importance of maintaining pro-growth tax policies for manufacturers.
The tour: Smurfit Westrock Plant General Manager Gerald Loftin led Rep. Johnson through their state-of-the-art packaging facility, showcasing the company鈥檚 innovative solutions and highlighting its role as a major employer in the community, supporting local jobs and economic growth. Smurfit Westrock, a global leader in sustainable paper and packaging, operates in 40 countries with more than 500 packaging converting operations and 63 paper mills.
- 鈥淪murfit Westrock鈥檚 success directly benefits the community, providing employment and contributing to the local economy,鈥 Loftin said. 鈥淲e are proud to be a part of this region and to support the growth and well-being of the area.鈥听
The threat: 17吃瓜在线 Vice President of Domestic Policy Charles Crain addressed the risks posed by expiring tax provisions. 鈥淭ax reform was rocket fuel for the manufacturing sector,鈥 Crain explained. 鈥淚t led directly to record levels of both job creation and wage growth in the years following the bill being signed into law.鈥
- Crain also emphasized the importance of preserving tax reform in full. 鈥淓ssential tax reform provisions have already begun to expire鈥攆or example, full expensing, which has been crucial for our industry鈥檚 ability to invest in new equipment and expand operations, started phasing down last year,鈥 Crain said. 鈥淓ven more devastating changes are scheduled for 2025, the combination of which will significantly hamper manufacturers鈥 capacity to modernize and grow, directly impacting competitiveness and job creation.鈥
Calling on Congress: 鈥淢anufacturers are grateful to Rep. Johnson for supporting legislation earlier this year that would have revived immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments,鈥 Crain said. 鈥淲e are looking to Congress for leadership and swift action as we work to prevent the harmful tax increases in store next year.鈥
Listening to manufacturers: Rep. Johnson emphasized his strong support for extending key tax provisions.
- 鈥淎fter seeing firsthand how these tax measures have benefited Smurfit Westrock and hearing about the negative impacts of their expiration, I鈥檓 more convinced than ever that we need to act swiftly to extend them,鈥 he said.
- 鈥淔ull expensing, R&D expensing and competitive tax rates are vital for the continued growth and innovation of our manufacturing sector. I鈥檓 committed to working with my colleagues in Congress to ensure we preserve these pro-growth policies before they expire, supporting jobs and economic development here in South Dakota and across the nation.鈥听
The bottom line: 鈥淓xtending the 2017 tax reform is not just a priority, it鈥檚 a necessity for maintaining America鈥檚 competitive edge in manufacturing,鈥 Rep. Johnson concluded.
Get involved: Manufacturers interested in sharing their perspectives on tax reform with congressional leaders or hosting facility tours for U.S. legislators can find more information through the 17吃瓜在线鈥檚 鈥Manufacturing Wins鈥 campaign.
Manufacturers Warn of Supply Chain Disruptions from Canadian Rail Shutdown
Washington, D.C. 鈥 As concerns mount about a potential work stoppage around Canada鈥檚 rail network that affects the entire North American manufacturing supply chain, 17吃瓜在线 President and CEO Jay Timmons released the following statement:
鈥淣orth American manufacturing supply chains depend on functioning rail links. If rail traffic grinds to a halt, businesses and families across the country will feel the impact. Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions. Rail transport between Canada and the United States moves billions of dollars of goods every month, and according to the U.S. Department of Transportation, 14% of the total trade value between our two countries in June 2024. We鈥檝e seen the impact of disruptions at the Canadian border before, and it鈥檚 imperative that we avoid another stoppage.
鈥淭he flow of materials and products across the U.S.-Canada border is already slowing as preparations are made for a potential work stoppage. Policymakers in the U.S. and Canada must recognize that the stability and reliability of critical supply chains鈥攚hich directly affects our quality of life鈥攄epends on efficient movement of goods across the border.鈥
: Total trade flows between Canada and the U.S. via rail in June 2024 were $9.131 billion, representing roughly 14% of total trade flows between the two countries via all modes of transport. Imports totaled $5.319 billion, while exports totaled $3.812 billion. In the first six months of 2024, total trade flows via rail were $55.657 billion. In 2023, total trade flows via rail were $113.860 billion.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit听
17吃瓜在线 Member Testifies on Importance of Consistent Tax Policy before Ways and Means Committee
Washington, D.C. Today, Steve Sukup, President and CEO, Sukup Manufacturing Co., testified before the House Ways and Means Committee during a field hearing titled, 鈥淭he Success of Pro-Growth, Pro-Worker Tax Policy in the American Midwest.鈥
Below please find his remarks as prepared for delivery:
Good morning Chairman Smith and to all the members joining us this morning.
Thank you for the opportunity to appear before you today at this important hearing. It鈥檚 a very special time for our community, and we are grateful to host you today.
My name is Steve Sukup, and I鈥檓 President and CEO of Sukup Manufacturing.听 We are located just up Interstate 35 in Sheffield, and I am proud to say that Sukup Manufacturing is the largest family-owned and operated manufacturer of grain storage, drying, and handling equipment.
For over sixty years, Sukup has been a critical part of the U.S. food supply chain here in the heartland. Our company is located in Congressman Feenstra鈥檚 district, and I鈥檇 like to thank him for being here today.
The tax reform bill of 2017 was a shot in the arm for manufacturers across our sector. Sukup has grown over the past several decades, but nothing compares to when the Tax Cuts and Jobs Act was signed into law.
For example, thanks to the lowering of the corporate rate to 21%, Sukup grew our workforce by a third, adding roughly 200 well-paying manufacturing jobs to our community.
The key to Sukup鈥檚 success has not only been our culture, but our dedication to creating and pushing our industry forward. Sukup has held over 100 U.S. patents. We are pioneering ways to make grain storage and drying more safe, profitable, and efficient for farmers and ranchers across the country.
This is largely made possible by our massive investments in research and development. In the years following tax reform, Sukup increased our R&D investment by several million dollars, with 95% of that money going towards engineering and staff wages, bringing well-paying jobs to Iowa.
One of these critical R&D investments is our Safe T Homes庐. When a catastrophic earthquake struck Haiti in 2010, Sukup鈥檚 Safety Manager wanted to develop an efficient, quick-assembly home from one of our grain bins to provide relief. I encouraged him to build a prototype, and today, our Safe T Homes庐, as you saw on the fair ground today, are changing lives worldwide.
We also developed the world鈥檚 largest 2.2-million-bushel bin for ethanol plants. That is big enough to house a Boeing 767, but yes, the landing is difficult.
Unfortunately, after being part of our tax code for seventy years, the expiration of immediate R&D expensing has made it harder for us to invest in the technologies and products of the future. Congress should reinstate the immediate expensing of R&D so manufacturers like Sukup can continue to innovate.
Following the passage of the 2017 tax law, Sukup went from roughly $5 million in capital spending to almost $15 million, thanks to 100% accelerated depreciation. This allowed us to fund new equipment purchases and fulfill our mission of providing Sukup employees with reliable, safe, and efficient equipment.
Unfortunately, full expensing began to expire in 2023. We believe that was a mistake, as it is common sense that our tax code should encourage investments that leads to growth.
Many manufacturing teams, including our company, would benefit from seeing this provision restored, and Congress should do so immediately.
An accountant once told me, if you don鈥檛 have debt, that means you鈥檙e not coming up with new ideas. Many manufacturers like us borrow funds to finance essential long-term investments.
Tax reform made it less expensive to take out business loans, which manufacturers use to invest and grow their operations. Unfortunately, this pro-growth standard expired in 2022 as well, making debt financing much more expensive.
We are also counting on you to preserve tax reform鈥檚 sensible changes to the estate tax, so that I can ensure the third and fourth generations of Sukups can continue in our family business.
Discussing tax policy before Congress is something of tradition in our family. About 20 years ago, my father Eugene Sukup testified before the Senate Finance Committee, along with Warren Buffett.
Since then, thanks to tax reform, we have had an incredible growth streak in our business, and every one of our employees and customers has benefited. I urge you to help us keep that growth streak going. Maintaining the 21% corporate rate, as well as the tax provisions I just described, is so important to manufacturers everywhere.
Because of these policies, we鈥檝e been able to not only maintain our business, but to provide a great living, health benefits, and soon expanded childcare for our employees and the community鈥攅ven as we aid those in need around the globe.
Again, thank you for being here today, and thank you for looking at ways to keep Sukup Manufacturing a rural Iowa success story.
-17吃瓜在线-
The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit听