Ilovebenefits’s Blog

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Drug Deal Valid If Congress Overhauls Health Care

Editor’s note: Does it strike you as a bit odd that big Pharma is willing to make this deal only if there is healthcare reform? What are they getting in return that isn’t transparent?


Hailed by President Barack Obama, a multi-billion-dollar promise by drug companies to narrow a Medicare drug coverage gap for seniors is valid only if Congress passes a comprehensive health care overhaul.

The commitment was “made in the context of comprehensive health care reform being enacted,” said Ken Johnson, senior vice president of the Pharmaceutical Research and Marketing Association. “We recognize that there has to be a shared commitment if this is going to happen and this is our part of it.”

The industry sealed a weekend deal with the White House and Sen. Max Baucus, D-Mont., chairman of the Finance Committee, to spend $80 billion over the next decade defraying the cost of drugs for seniors and paying a portion of the cost of Obama’s legislation. The president, in an appearance Monday at the White House, said the agreement was “a significant breakthrough on the road to health care reform, one that will make a difference in the lives of many older Americans.”


June 23, 2009 - Posted by | Cost, Economics of Health care, Health care delivery | , ,

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