|
E-mail this page to a friend!
Senior Citizen Politics
Questions Linger Over Pharmaceutical Industry
Agreement to Cut Costs for Health Reform
The deal includes $30 billion to lower seniors
drug costs in Medicare, 23% off drugs for Medicaid
 July 1, 2009 - "As details emerge of the
pharmaceutical industry's agreement to kick in $80 billion to help pay
for health care reform, the deal is facing increasing skepticism from
inside and outside the health care industry,"
Politico reports.
 The deal includes $30 billion to lower seniors'
drug costs and $50 billion to help pay for reform, which will come in
four broad categories including Medicaid, Biogenerics, Medicare and a
Reform fee, which will charge drug companies a fee to cover any
difference between the cost of Medicare, Medicaid and biogenerics
programs and the "$80 billion the industry has committed to spending."
Drugs will be sold to the Medicaid program at up to
23 percent off average drug pricing, and new biologic generic drugs will
be allowed under the plan, but "others are beginning to wonder just how
much money the deal will actually save taxpayers.
The questions are reminiscent of the $2 trillion in
savings six major health industry groups recently promised to deliver to
the administration, only to find that many of their savings proposals
weren't counted, or 'scored' as savings by the CBO."
"There are also questions about how much goodwill
PhRMA's deal bought among Democrats, many of whom would like to see the
industry contribute even more toward reform's estimated $1-trillion
price tag. Some Democrats, particularly in the House, have suggested
using price controls and importation to rein in costs ideas that are
deal killers for drug makers" (Frates, 7/1).
Drug Industry Increases Lobbying Targeting Democrats
The drug industry began ramping up its lobbying
efforts in 2003, when Medicare Part D began, and now is targeting
Democrats.
CQ Politics reports: "The industry is increasingly employing
Democratic lobbyists with ties to the Obama administration and
congressional leaders such as Sen. Max Baucus, D-Mont., chairman of the
Senate Finance Committee.
A few years ago, when Republicans controlled
Congress and the White House, industry representatives were solidly
allied with the GOP. Such efforts might be having an effect.
The drug industry sealed a deal recently with
Baucus to offer $80 billion in drug discounts for seniors as part of
Medicare. The agreement might preempt efforts by liberal Democrats to
seek even deeper concessions from the drug industry.
The drug companies have opposed a government
health insurance component that President Obama and more liberal
Democrats are seeking, a provision that could lead to more control over
drug prices."
CQ Politics notes: "Pharmaceutical manufacturers
spent more than any other health care sector on lobbying in the first
quarter of this year, shelling out almost $50 million to influence the
federal policy making, 17 percent more than they did on average for each
quarter of 2008, according to an analysis of lobbying disclosure
statements by
CQ Moneyline.
The industry's top trade organization, the
Pharmaceutical Research & Manufacturers Association (PhRMA), spent $6.9
million during the first three months of this year on lobbying expenses,
a 37 percent jump from what it spent on average per quarter last year.
Overall the pharmaceutical and drug products
industry hired 1,309 lobbyists in the first quarter of this year
including three dozen former members of Congress, the Center for
Responsive Politics found in an analysis of lobbying disclosure filings.
PhRMA has built up an extensive lobbying team that now includes both an
in-house staff of at least 26 people and 40 outside firms, according to
lobbying disclosure forms filed with Congress ... when it comes to
campaign money the industry has clearly been shifting its bucks to
Democrats" (Roth, 6/30).
|
This
information was reprinted from
kaiserhealthnews.org with permission from the Henry J.
Kaiser Family Foundation. You can view the entire Kaiser
Daily Health Policy Report, search the archives and sign up
for email delivery. © Henry J. Kaiser Family Foundation. All
rights reserved. |
Click to More Senior News on the
Front Page
Copyright: SeniorJournal.com |
President says agreement has been worked out with
pharmaceutical industry for 50% discount