Drug Industry Girds for Rise in Its Share of Overhaul

New York Times ^ | December 22, 2009 | David D. Kirkpatrick

[reaganaut1]

Facing last-minute liberal resistance in Congress, the drug industry is bracing for an increase in its share of the cost of the proposed health care overhaul beyond the $80 billion over 10 years that it had negotiated with the White House, industry lobbyists say.

...

Now, after narrowly beating back some Senate proposals to extract far more and facing similar demands from House leaders, the drug makers acknowledge that they may have to renegotiate, several drug lobbyists said, speaking on the condition of anonymity because the overhaul legislation is not yet final.

...

Lobbyists for the health insurance industry, meanwhile, are complaining to lawmakers that the administration’s deals for the political support of the doctors, drug makers and other care providers have precluded meaningful cost cuts. As a result, they argue, health insurers have come under the regulatory knife while the providers they pay have largely escaped.

“They pretty much left the rest of the system, which is responsible for pricing medical services, alone,” argued Karen M. Ignagni, the chief executive of America’s Health Insurance Plans, “and therein lies a major problem down the road in terms of whether health care will be affordable.”

The insurers are focused on stripping out measures that would cap the amount of revenue insurers could spend on their administrative costs and profits — 20 percent in the Senate bill and 15 percent in the House bill. Ms. Ignagni argued the caps were “unprecedented regulation” that would limit insurers’ ability to coordinate care.

[reaganaut1]

Oh, the poor health insurers, "under the knife". They supported this monstrosity because the government will force people to buy their product.

[vetvetdoug]

I am seeing my drug costs increase exponentially since Jan 2009. I think they are getting all they can before price controls.

[Will88]

They must not have heard the stories about making deals with the Devil.