Les Jones

Memo: Obama made backroom deal with pharma companies

Thursday, August 13th, 2009 | Health Care, Politics |

Via Ace of Spades, Huffington Post - Internal Memo Confirms Big Giveaways In White House Deal With Big Pharma:

The memo, which according to a knowledgeable health care lobbyist was prepared by a person directly involved in the negotiations, lists exactly what the White House gave up, and what it got in return.

It says the White House agreed to oppose any congressional efforts to use the government’s leverage to bargain for lower drug prices or import drugs from Canada — and also agreed not to pursue Medicare rebates or shift some drugs from Medicare Part B to Medicare Part D, which would cost Big Pharma billions in reduced reimbursements.

In exchange, the Pharmaceutical Researchers and Manufacturers Association (PhRMA) agreed to cut $80 billion in projected costs to taxpayers and senior citizens over ten years. Or, as the memo says: “Commitment of up to $80 billion, but not more than $80 billion.”

Obama got cuts in exchange for not asking for more cuts. He also got the pharma companies to pledge $150 million in advertising to support the plan. (Which may well be illegal, as Ace notes.) That quid pro quoe seems like collusion against taxpayers and against citizens opposed to his healthcare plan, or even less generously like Obama was charging protection money to the pharma companies.

If this is happening before the government takeover of healthcare begins, imagine what’s going to happen later. We’ll see non-stop influence-peddling and influence-buying. That’s what happens when politicians control money and power.

UPDATE: Linda Douglas, the communications director for the White House Office of Health Reform, was on CNN August 13th. CNN anchor Wolf Blitzer asked her if the White House had struck a deal for pharma to cough up $150 million for advertising to support Obamacare. Douglass deflected the question. Blitzer immediately asked about the $150 million again, and Douglass again evaded the question. RealClearPolitics has the CNN transcript.

BLITZER: Did the White House make a secret deal with pharma, the pharmaceutical lobby here in Washington, that would limit how much cost reductions they would have going forward over the next 10 years?

DOUGLASS: Here is what — what happened. The White House, the pharmaceutical industry, the Senate Finance Committee agreed that the pharmaceutical industry would contribute $80 billion over 10 years — a very, very substantial sum of money that would lower the high cost of prescription drugs for seniors, who are paying exorbitant costs for prescription drugs. That was a crucial piece of this deal, as well as other steps that they would take to lower costs.

It’s an $80 billion agreement. That’s what the White House, the Senate Finance Committee and pharma have agreed to. And the final details are being worked out with the — with the Senate Finance Committee.

BLITZER: Did pharma, in exchange, make a promise of $150 million to pay for advertising to help the president’s plan go forward?

What — what you have, Wolf, is this deal that is $80 billion. And we are very pleased, obviously, that — that the pharmaceutical industry agrees with us, that there’s an urgent need for comprehensive health insurance reform that’s going to protect Americans from unfair rules, from rising costs. They agree with that. They’ve agreed with it from the beginning. That’s why they came to us and we worked out this agreement with the pharmaceutical industry. And they’re supporting health reform legislation. And that is good for the country.

BLITZER: So is part of the deal that they would support this legislation, go forward with $150 million in advertising?

DOUGLASS: You know, Wolf, part of the agreement here is that we’re all going to work together to bring comprehensive health reform. I mean, clearly, the pharmaceutical industry said we are going to support comprehensive health reform. And that’s what they’re doing.

Tags: obama

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