The pharmaceutical industry is upset that the Obama administration is reneging on the deal it made to buy the industry’s support for health care nationalization:
Drug industry sources tell FOX Business the Administration is backtracking on what is called the “PhRMA deal” in health reform, a deal that was struck behind closed doors in late 2009 and early 2010 in order to get the industry to support and endorse health-care reform.
In the “PhRMA” deal, drug companies would fork over $80 billion in fees as well as give drug discounts to seniors in Medicare over 10 years, among other things.
In exchange, the White House agreed, among other items, to not force the drug industry to accept rebates on drugs sold through Medicare Part D, a program launched under President George W. Bush to subsidize prescription drugs for seniors.
But President Barack Obama’s new deficit push calls for those Medicare rebates, via the Simpson-Bowles plan.
The deficit plan “has blown the deal to smithereens,” says William S. Smith, managing director of Healthcare National Strategies, a D.C.-based government affairs consulting firm. “The Obama Administration has repudiated the PhRMA deal,” says Smith, a former vice president for US public affairs and policy at Pfizer (PFE).
I know it shouldn’t, but this really makes me smile. These people sold us all out to protect their own interests, and I’m glad to see them get screwed for it. I hope this example will teach the next industry in line the folly of trying to appease the rapacious state.