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Obama Pharma Deal - A Surprising Political Alliance

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A promise by the pharmaceutical industry to save the nation $80 billion over a decade in exchange for protection from further givebacks under health care reform pending in Congress was confirmed recently by the White House. Apparently, the pharmaceutical companies got spooked by action in the House that would give the feds negotiating authority for drug prices and bigger rebates from the industry. So the industry got an explicit affirmation of protection from deeper cuts.

The trade group PhRMA explained the quid pro quo -- drugmakers stepped up first with a cost-saving pledge, and, in return, got "a rock-solid deal" not to make further cuts in prescription drug prices beyond the $80 billion. The White House confirmed the deal.

Neither party mentioned what is apparently a side deal - drug companies will bankroll a TV ad campaign in support of health care reform. The ads would bolster the administration's plans to remake health care and expand insurance coverage to nearly 50 million people.

The drug industry, already a big spender on commercials for its medicines, is an unlikely patron for the planned ad blitz, which could cost $150 million or more, until you stop to think about all the new customers an expansion of coverage might bring to pharmacies. To put the size of the ad campaign in perspective, Sen. John McCain spent $126 million on TV ads in his bid for the presidency.

Some of the TV ads expected this fall will carry the name of the Pharmaceutical Research and Manufacturers of America, the main trade group for brand-name drugmakers, which has pushed hard for an $80 billion limit on price concessions under an overhaul.

About this Entry

This page contains a single entry by Phil Daigle published on August 11, 2009 1:35 PM.

Nurses on drugs. How many patients have suffered? was the previous entry in this blog.

Why We're Waffling on Health Care Reform is the next entry in this blog.

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