Posted on 08/06/2009 7:45:59 AM PDT by reaganaut1
Pressed by industry lobbyists, White House officials on Wednesday assured drug makers that the administration stood by a behind-the-scenes deal to block any Congressional effort to extract cost savings from them beyond an agreed-upon $80 billion.
Drug industry lobbyists reacted with alarm this week to a House health care overhaul measure that would allow the government to negotiate drug prices and demand additional rebates from drug manufacturers.
In response, the industry successfully demanded that the White House explicitly acknowledge for the first time that it had committed to protect drug makers from bearing further costs in the overhaul. The Obama administration had never spelled out the details of the agreement.
“We were assured: ‘We need somebody to come in first. If you come in first, you will have a rock-solid deal,’ ” Billy Tauzin, the former Republican House member from Louisiana who now leads the pharmaceutical trade group, said Wednesday. “Who is ever going to go into a deal with the White House again if they don’t keep their word? You are just going to duke it out instead.”
A deputy White House chief of staff, Jim Messina, confirmed Mr. Tauzin’s account of the deal in an e-mail message on Wednesday night.
...
The insurers, however, have also stopped short of the drug makers in their willingness to cut a firm deal. The health insurers shook hands with Mr. Obama at the White House in March over their own package of concessions, including ending the exclusion of coverage for pre-existing ailments.
But unlike the drug companies, the insurers have not pledged specific cost cuts. And insurers have also steadfastly vowed to block Mr. Obama’s proposed government-sponsored insurance plan — the biggest sticking point in the Congressional negotiations.
(Excerpt) Read more at nytimes.com ...
I hope Tauzin and his pharma clients understand that Obama will be quite willing to throw them under the bus to get a bill.
Related story: For Health Insurers’ Lobbyist, Good Will Is Tested .
FUBO!
I haven’t seen anyone address the issue of having to replace the tax revenue from the soon to be defunct Health Insurance Industry and Pharmecutical Companies.
Why has no one questioned where that is going to come from?
It’s one thing to say “It’s going to cost this much”, but if someone somewhere doesn’t address the revenue LOST, the bottom line will be even higher.
The drug comapnies are fools if they beleive Obama has the authority to bind this Congess or any future President to such a deal. One of the many bad things about this bill is that it will result in the Feds being the only customer for pharmaceticals and therefore artificially low prices. Say farewell to the innovations in drug development that have revolutionized the pratice of medicine in my lifetime.
Excuse me LOBBYIST...What makes you think they are telling you the TRUTH!!!!!!!!!!!!!!!!!!!!!!!!
The List, ping
I thought lobbyists were the right wing extremist town hall protestors? I’m getting so confused........
I wholeheartedly agree. This "deal" is just to grease the skids, and it'll last as long as it takes to get a deal passed. It won't be long before the next fiscal year comes along, and Obama will be pressing the drug companies: "we need you to make another concession..." Except that won't be in the form of a deal; Congress will just flat out pass a bill, limiting drug prices, or outrightly sieze their patents.
I can probably kiss my current medication coverage goodbye. My current co-pay is $9 for $2000 per month. But under BambiCare I would be considered useless and not worthy of medication.
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