Drug Industry Agrees To Health Overhaul

Pharmaceutical Companies Will Spend $80 Billion Over Next Decade To Improve Drug Benefits For Seniors

(AP)  The pharmaceutical industry agreed Saturday to spend $80 billion over the next decade improving drug benefits for seniors on Medicare and defraying the cost of President Barack Obama's health care legislation, capping secretive negotiations with the White House and key lawmakers.

The deal, expected to be announced later in the day, marked a major triumph for Sen. Max Baucus, D-Mont., as well as the administration. The chairman of the Senate Finance Committee has been negotiating with numerous industry groups for weeks as he tries to draft legislation that meets Obama's goal of vastly expanding health coverage, has bipartisan support and does not add to the deficit.

Under the deal, which several officials confirmed, drug companies would pay as much as half of the cost of brand-name drugs for lower and middle-income seniors in the so-called doughnut hole - a gap in coverage that is a feature of many of the plans providing prescription coverage under Medicare.

In addition, the entire cost of the drug would count toward a patient's out-of-pocket costs, meaning their insurance coverage would cover more of their expenses than otherwise.

Officials said Medicare patients with incomes up to about $80,000 or $85,000 would realize some benefit.

While none of the changes in the prescription drug program would directly lower government costs, the industry also agreed to additional measures that would give the Treasury more money under federal health programs. In particular, officials said drug companies would likely wind up paying pay higher rebates for certain drugs under Medicaid, the program that provides health care for the poor.

Those funds would be used to help pay for legislation expanding health insurance for millions who now lack it.

One official said the deal was agreed to late Friday night when Billy Tauzin, head of the Pharmaceutical Research and Manufacturers of America (PhRMA), called Baucus.

It was not clear what impact, if any, the agreement would have on other health care providers who are in negotiations with Baucus.

But at a minimum, the agreement serves as an effective counter to impression that the drive to enact health care legislation was sputtering.

Ken Johnson, senior vice president of the Pharmaceutical Research and Manufacturers of America, or PhRMA, said Friday night, "We remain committed to comprehensive health care reform and we are still in discussions with the administration and congressional leaders about ways we can make a positive contribution to this important effort."

The disclosure of negotiations came near the end of an up-and-down week for the administration and its allies on health care.

Congressional Budget Office estimates showed early versions of two major Senate bills were either too costly or failed to make a large enough dent in the ranks of the uninsured. Republicans seized on the reports as evidence that Democrats were losing traction.

They leapt again when it was disclosed that House Democrats were considering a wide array of tax increases to finance their legislation, including an income tax surcharge, a tax on employers based on the size of their payroll and a value-added tax, a form of a national sales tax.

House Democrats on Friday unveiled draft legislation they said would cover virtually all of the nation's nearly 50 million uninsured but it came without a price tag or an indication of how it would be paid for.

Major provisions of the 850-page measure would impose new responsibilities on individuals to obtain coverage and on employers to provided it. It also would end insurance company practices that deny coverage to the sick and create a new government-sponsored plan to compete with private companies.

Speaker Nancy Pelosi has said she hopes the legislation can clear the House before lawmakers leave for their annual August vacation.

[cydygitt1]

"One official said the deal was agreed to late Friday night when Billy Tauzin, head of the Pharmaceutical Research and Manufacturers of America (PhRMA), called Baucus."

-----------------

Not surprising that billy tauzin was right in the middle of this....

He was a GOP congresscritter for 25 years from Louisiana, where he played a key role in shepherding the Medicare Prescription Drug Bill through Congress in 2004, which had been criticized by opponents for being too generous to the pharmaceutical industry.

Then, in 2005, billy tauzin just happened to begin work as the head of the Pharmaceutical Research and Manufacturers of America, or PhRMA, a powerful trade group for pharmaceutical companies, for a mere $2.5 Million per year.

Just another republicant't sleezebag making pharmaceuticals and health care in general cost so much more in America!

[cbsblogger]

If big pharma was restricted from spending big mega dollars on marketing and lobbying we'd be getting our drugs at half price. Why market to those who need a prescription?

[nofoolling]

The deal, expected to be announced later in the day, marked a major triumph for Sen. Max Baucus, D-Mont., as well as the administration.

Hardy, har har har.

More song and dance, more smoke and mirrors.

We need to take the profit completely out of the health care arena.

We need to take the profit from those who prey upon the sick and needy.

We're not gonna settle for more vulturous predatory aquiecence by our bought and paid for leaders in Washington who's only purpose seems to be getting us to swallow another bitter pill candy coated to fool us into thinking they're actually helping us, instead of helping the corpserobbers in the health care carnival.

Universal health care without the insurance companies now!

[John_Merritt]

What they are failing to tell you, is that they will increase their charges by approximately 25-30% over that same time period. How about cost controls? That is a good start, reduces the moving parts and establishes a true baseline by which we can negotiate and manuever.

[Solarrays247]

"The deal, expected to be announced later in the day, marked a major triumph for Sen. Max Baucus, D-Mont., as well as the administration. The chairman of the Senate Finance Committee has been negotiating with numerous industry groups for weeks as he tries to draft legislation that meets Obama's goal of vastly expanding health coverage, has bipartisan support and does not add to the deficit."



Do you really believe that Sen. Baucus is working for the good of WE THE PEOPLE? Think again!

Here's a rundown of all the money that the people who are blocking real reform in health care have received from the health care industry.

Arlen Specter (R-D- PA- $4,026,933)
Max Baucus (DLC- MT- $2,833,731)
Mitch McConnell (R-KY- $2,758,468)

And when you just go right to Big Insurance, the non-presidential candidates who got the biggest legalized bribes were the 7 senators who have been tasked with the job of killing single-payer:

Ben Nelson (DLC-NE- $1,196,799)
Max Baucus (DLC- MT- $1,184,113)
Joe Lieberman (DLC- CT- $1,036,302)
Arlen Specter (R-D- PA- $1,035,530)
Chuck Schumer (D-NY- $981,400)
Mitch McConnell (R-KY- $929,207)
Chuck Grassley (R-IA- $884,724)

[Solarrays247]

* According to a recent report, the United States has $480 billion in excess spending each year in comparison to Western European nations that have universal health insurance coverage. The costs are mainly associated with excess administrative costs and poorer quality of care.

* The United States spends six times more per capita on the administration of the health care system than its peer Western European nations.

Source: The National Coalition on Health Care

www.nchc.org/facts/cost.shtml


For all those that parrot the far right, insurance companies and big pharm talking point that we don't need universal health care...

As Bill Maher so gracefully put it, 'With the system we have now the doctors are not making the calls, the patients cannot make the calls because the insurance companies make all the calls. It's called 'hospital gown coverage' whatever condition you currently have, chances are your @ss ain't covered.'
Posted by rednomo at 5:08 AM : Jun 9, 2009

[bajajohn1]

This debate about healthcare is not confined to healthcare alone. Rather it is also a debate about the future fiscal solvency of the nation.

[formrusmcsgt]

The deal, expected to be announced later in the day, marked a major triumph for Sen. Max Baucus, D-Mont., as well as the administration.
----
And for us all.

For years, the dubya administration was extolled by many to utilize the government's position of being the #1 client of big pharm to reign in excessive costs.

All to no avail.

It was obviously available for the asking.

[Dgunner]

ONLY IN AMERICA -- LAND OF THE RED WHITE AND BLUE.

[omega39-2009]

Oh boy, if those pirates are willing to part with 80 Billion dollars of their swag, what were they promised in return?

[cbsblogger]

Big Pharma spends huge amounts of money lobbying both Congress and physicians, and the marketing their products. The therapeutic value of their products should be able to stand on its own merit and not require megabucks in advertising to sell the public who still needs a prescription to obtain it. It is a huge cost of the product.

[sjc_1]

If they can not their way lobbying Congress and selling to physicians, they saturate the media with ads trying to get the prospective customer to promote the drugs to their doctors for a prescription.

[iam4honesty]

The only solution to the problem is the total elimination of health care insurance companies, and the nationalization of drug companies.

[quapawsix]

Congress? Corporate America has the best Congress that money can buy.
And they spend billions lobbying.
We the Corporate America of the United States of America in order to form a
bigger money generator to be ruled buy Corporate America for Corporate America. And that all consumers are will buy what ever we choose to sell.

[jab232]

The only health overhaul which will really matter is a public plan option for health insurance. The rich health care and insurance companies will fight that tooth and nail, and the hypocritical congress will cave in.

To me one part of the solution is simple. Let the congress with its excellent public option health plan make it possible for all of us to buy into the same health care they have. Then we can keep what we have, seek other private insurance, or share the same health care our congress people and their families have.

[riob678]

No healthcare delivery system exists in the US at this time. What we have is a hodgepodge of services that are provided to patients, and then charged via multi-tier pricing strategies. Cost shifting to compensate for negotiated pricing structures and group discounts is rampant. Americans have been told for years by the providers that we have the best health care in the world. The most expensive non-system of delivery for those who can afford health services is the reality. Speaker Pelosi would like to see the 850 page piece of proposed legislation passed before the August recess. Nice try ma'am. There isn't a legislator in Washington who is going to read an 850 page document, let alone study it, before the recess in August. This doesn't need to be rushed; it needs to be carefully examined and debated.

[WayAround]

What a coincidence!

Although the Czechs have enjoyed socialized medicine for the last 60 years, the government implemented a 30 Czech Crown service charge (about $1.50) two years ago for every time you visit the doctor. (Clearly, it was a foot-in-the-door for higher charges and more complicated insurance later.)

The Czechs *HATE* the 30 Crown charge.

This year, one chamber of Parliament voted to repeal the charge.

However, just this week, the Senate voted to keep the 30 Crown charge, but to lower the price of pharmaceuticals, which the goverment also controls.

I'm sorry, but when two countries on opposite sides of the globe decide to handle their health care problems in the same way during the same week, I smell a rat.

[sjc_1]

Bush signed the bill spending $50 billion dollars per year on overpriced drugs, with no provision to negotiate prices with quantity discounts. This was a big windfall for the drug companies who were behind the making of the legislation all along.

[bajajohn1]

That action by Bush absolutely raised the price of prescription drugs. The Republicans have been taken over by the Health Insurance Industry.

[Solarrays247]

The pharmaceutical industry, and Sen. Max Baucus, D-Mont., can all go to hell! They are a day late and a dollar short!

Sen. Baucus, it looks like you really earned your $2,833,731 in campaign gifts from the pharmaceutical and health care industries this time!! Way to go there, buddy!

[ianlou]

test

[erasmus111]

by erasmus111 June 20, 2009 3:56 PM PDT

And then after this doctor explained to the guy (who had had the broken leg), and his wife about how the prices were, he asked them if they felt better knowing how things worked. HELLO!? How the hell could anyone feel better after finding out that they are all s-c-r-e-wing you big time!!

[erasmus111]

I watched a program the other day and they were talking about the U.S health care. I knew it was bad, but I just didn't realize HOW BAD! I could not believe my ears. They were saying that you needed to shop around when buying your drugs and when you pick a hospital to go to.

They were saying that there can be a 20% to 40% difference in what you are paying for your drugs! One place can charge you around $75 for an antibiotic and another will only be around $10 for the same one! That is absolutely ridiculous!! They are stealing you blind! I can not believe that they can get away with that. Here, in British Columbia, you might see a slight difference in price from place to place, but that's it.

And as for the hospitals, they were saying that one hospital charged aroung $15,495 for an apendectomy and $15,995 for a freakin' broken leg! Another hospital it was $9,000. What is wrong with your country? It is out of control! One man had a broken leg and waited a couple of days before going to the hospital because of how much it was going to cost!

All you people that think that your health care is okay, you are freakin' mentally retarded! You have been BRAINWASHED!

[Rebel_Rebel]

I see you're still roaming the boards and trashing Americans every chance you get. Most people do not think their insurance coverage is okay, especially those who don't have any. That doesn't mean they can just jump up and change it. Kinda like those mentally retarded people you reference. They really can't change it either. You might try thinking a bit before you go around insulting people. Particularly when this has nothing to do with you.

[randomlybanned]

We's so wetarded we need gub'ment healthcare. You are freakin' retarded if you think the government is going to fix it!