June 22, 2009 12:38 PM

Obama: Drug Deal A "Major Step Forward"

By
Stephanie Condon
Topics
Health Care
(AP Photo/Pablo Martinez Monsivais)
President Obama on Monday lauded an agreement from the pharmaceutical industry to cut the cost of prescription drugs for seniors through Medicare, calling it a "major step forward" toward comprehensive health care reform.

Comprehensive reform will require, he said, "these kinds of commitments throughout the system."

"Everyone in the health care community is going to have to come together and do their part," Mr. Obama said, standing in the White House Diplomatic Reception Room.

In the deal, the Pharmaceutical Research and Manufacturers of America (PhRMA) has agreed to reduce its draw of revenues by $80 billion over 10 years by discounting the cost of medicines in Medicare's Part D prescription drug program for some seniors by as much as 50 percent. The discount would go to seniors who fall into the "doughnut hole" -- a gap in Medicare Part D coverage. Currently, once seniors have received $2,700 worth of drugs, they are left to pay the full cost of their medication until that cost reaches $6,100.

"This gap in coverage has been placing a crushing burden on many older Americans," Mr. Obama said. The agreement, he said, will make health care "more affordable for millions of seniors and restore a measure of fairness to Medicare Part D."

The agreement with PhRMA was negotiated with the White House and Sen. Max Baucus (D-Mont.), who is leading health care reform as chair of the Senate Finance Committee. Baucus stood by the president on Monday as he praised the agreement, as did Sen. Chris Dodd, who is leading health care deliberations in the Senate Health, Education, Labor and Pensions Committee and Barry Rand, head of the senior citizens' advocacy group, AARP.

The president pointed out that the pharmaceutical industry stands to benefit from the millions of more customers it could receive as a result of reform. Therefore, he said, "it's only fair" that pharmaceutical companies do their part to reduce costs.

The goal of comprehensive reform, Mr. Obama reiterated, is to reduce costs while improving care. The agreement with PhRMA would only account for a fraction of the costs facing reform, but the president on Monday emphasized his resolve to complete health care reform.

To skeptics with "sky is falling progneses" for reform, the president said, he would respond with his campaign mantra: "Yes we can," Mr. Obama said. "We are going to get this done."

Add a Comment
by mitziejones September 23, 2009 2:15 AM EDT
Things are already changed, They changed my ULCER medicine for a cheaper one. They call it a 'challenge;. If the new one makes me sick and I have to go to the hospital , then they will give back my old good one. It took me 3 weeks to get a walker after breaking my hip, they have changed two blood pressure pills to a cheaper generic. I know there's a lot of unnessasary costs, but I hope it's for the right people and reasons. This has happened in the last two to three weeks.
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by Slrman-21001573651763300012869 June 22, 2009 4:22 PM EDT
When will the drug companies be told that yes, recover your development costs, but not forever on the same drug. They will keep exorbitant prices an a drug they developed for long after they have recouped the initial research costs. Perhaps that's one reason why health care in Brazil is so much better and cheaper than the USA.
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by erasmus111 June 22, 2009 3:05 PM EDT
by rightaboutit June 22, 2009 11:43 AM PDT
I can't believe he is folding. pathetic!


I wouldn't lose faith just yet. : ) He has a million things to do, and so maybe he's just looking out for the seniors right now and will do more later?
Reply to this comment
by erasmus111 June 22, 2009 2:41 PM EDT
Dropping prices just for the seniors? The whole freakin' country is being ripped off! When there can be a 20% to 40% difference in price, depending where you go to get your drugs, there's DEFINITELY a problem! When you can pay $75 for an antibiotic in one pharmacy and $10 in another for the same thing, there's DEFINITELY a problem!!!!!
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by blog_fever2 June 22, 2009 2:37 PM EDT
Yay! We are on our way to reform Healthcare in America!! I will be so nice to be able to go to the dr and not worry about the costs.... God help us.
Reply to this comment
by sjc_1 June 22, 2009 2:34 PM EDT
"Everyone in the health care community is going to have to come together and do their part,"

That means EVERYONE, from the CEOs to the doctors driving $200,000 cars and living in $2 million dollar custom homes.
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