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August 9, 2009
The PHRMA Deal
I'm no fan of the drug companies but when they're agreeing to kick in $150 million in advertising to support healthcare reform (which is both important and historical) and when they're agreeing to contribute $80 billion in savings to the overall effort, trading away price negotiation seems fair.
Remember, reform is really about health insurance -- not drug prices. And while it would've been excellent to throw drug price negotiation into the deal, the goal of achieving affordable, portable and reliable health insurance is worth the trade. $150 million in advertising is significant, especially given they won't be spending $150 million (and who knows what other shenanigans) to oppose reform.
Adding... From Thursday:
A senior White House aide told Democratic senators Thursday that the administration did not make a deal with the pharmaceutical lobby that would prevent Congress from using the government's clout to negotiate for lower drug prices, according to three Democratic senators who were in the meeting.The New York Times had reported on Thursday morning that the White House affirmed that a deal barring price negotiations had been struck.
Sen. Sherrod Brown (D-Ohio) asked two top White House aides, David Axelrod and deputy White House chief of staff Jim Messina, if the administration had cut such a deal with PhRMA.
"He says there's no deal. I take him at his word," Brown told the Huffington Post.
Filed under: Healthcare
Posted By Bob Cesca | August 9, 2009 9:52 AM
Comments
You nailed it Bob.
My daughter claims that I regard Obama "as a savior and he isn't". She has this all wrong. We are not talking about fish and bread here.
Posted by: Hielo
at August 9, 2009 10:13 AM
I agree with Bob, FWIW.
I've said it before, but it seems like if they turned back the clock and disallowed direct-to-consumer pharmaceutical advertising, we'd see a big decrease in drug prices. Currently more is spent on advertising than R&D.
Posted by: Eric
at August 9, 2009 10:20 AM
I'm not at all stressed over this deal. I like the big budget for an ad campaign; it gives our side credibility, visibility, and a chance to play offense. You don't win battles responding to the other side. You make them respond to you and keep them backing away on their heels.
This battle also needs to be about tort reform. I am compassionate toward people who have lost loved ones due to medical malpractice, or have suffered themselves because of it; but the days of winning the lottery because of honest mistakes need to end.
Posted by: Political Party Pooper
at August 9, 2009 10:28 AM
What folks are mad about is this was a backroom deal with Obama and a lobbyist-and mostly leaving out Congress. Which they are not happy about.
During the campaign he said about a hundred times that no lobbyists would be allowed in the WH. Now it's a revolving door.
And the fact that there is no negotiating prices. That's the big prize for Pharma. I'm sure they are more than happy to put out $150M in advertising-they'll just make it up by gouging us some more.
Posted by: Jan
at August 9, 2009 11:06 AM
Unlike the insurance industry, big Pharma actually helps people without insurance. They have numerous programs to give moderate to low income uninsured people free medicine, and have done so for many years. That means this news really isn't that shocking, since big Pharma only stands to gain from real health care reform. Instead of giving product away for free they just might have to sell it less to the government.
Of course everyone seems to ignore the counter side of this as it currently stands. These companies are giving away millions a year in free drugs, so they have to make that cost up somewhere else. Tell the teabaggers to think about that next time they're paying $300 to get that prescription filled. Already they are paying for a gerry-rigged form of minimal universal healthcare.
Posted by: IntoxiNation
at August 9, 2009 11:07 AM
I'm willing to wait and see. You make good points, Bob, but on it's face it just looks bad. They promised the government would have the ability to negotiate drug prices and now that's not the case. And the "not the case" is the result of a quiet deal kept secret from Democrats. Again, they did secure advertising and back-up from the industry, and another 80 billion in savings, but wasn't what was traded away was the ability for the government to save taxpayers many times that amount?
I realize the short term gains here, but I worry about the long term losses.
Posted by: Nanotyrannus
at August 9, 2009 11:20 AM
>>>And the fact that there is no negotiating prices. That's the big prize for Pharma. I'm sure they are more than happy to put out $150M in advertising-they'll just make it up by gouging us some more.
You'd rather they spend that $150 million on advertising against reform?
Posted by: Bob_Cesca
at August 9, 2009 11:28 AM
For those not paying attention, Congress is not cooperating and the President can't get anything done without them. It's not a perfect solution, but as long as it's better than what we have now get your panties unbound and support the man.
I'm not pleased with all his decisions, but I'm also not privy to all his information. If you've never been in charge of anything it's easy to throw your hands in the air, run in circles and scream, "Game over, man, game over!"
We hated the lock (goose?)-stepping of the other guys but the Ds in Congress should be ashamed of their behavior in defense of ripping off the people of this country. If they weren't such gutless assholes, this compromise wouldn't be necessary. Direct your anger there.
Posted by: brutlyhonest
at August 9, 2009 11:48 AM
"If they weren't such gutless assholes, this compromise wouldn't be necessary. Direct your anger there."
Exactly! Let's not forget at election time. The blew dogs gotta go. I'll donate to whoever runs against them.
Posted by: Hielo
at August 9, 2009 12:47 PM
"Ask your doctor if Bullshit® is right for you."
Posted by: bibimimi
at August 9, 2009 4:25 PM
I agree with you, Bob. thanks
focusing on the whole rather than one part is important
no change of large magnitude is going to have everything in it exactly how every person wants it
and Congress still has the power to regulate the pharmas
Posted by: eve
at August 9, 2009 6:39 PM





