The pharmaceutical industry believes that it has bought itself
protection by supporting the Obama health care plan, but House
Energy and Commerce Committee Chairman Henry A. Waxman begs to
differ. Reports the New York Times:
As the health care debate focuses on whether cost cuts are
looming in Medicare
coverage, Representative Henry A.
Waxman is on a crusade to save Medicare billions of dollars
- in a way that he says would end up helping the elderly.
That is because the money would come from the drug industry,
which is why Mr. Waxman may have a fight on his hands.
Drug makers contend they have already worked out a 10-year, $80
billion cost-savings deal with the White House and crucial
Senate gatekeepers on the trillion-dollar health care overhaul.
The industry says that trying to add Mr. Waxman's provision
could scuttle that agreement.
"You not only break the deal, but you break the bank for us,"
said Billy Tauzin,
chief executive of the drug industry's trade group, the
Pharmaceutical Research and Manufacturers of America, known as
PhRMA.
At issue is a multibillion-dollar "windfall" that Mr. Waxman
contends the drug industry received when drug benefits were
added to Medicare coverage in 2006. Mr. Waxman, Democrat of
California, is chairman of the House Energy and Commerce
Committee and is central to the House's legislative efforts on
health care.
Does the pharmaceutical industry really believe that the deal
would survive conference committee, in which Rep. Waxman will
play an influential role? And if the drugmakers get
double-crossed, do they really believe the administration would
raise a finger to save them? Not likely.
In fact, a lot of Democrats might be persuaded by Rep.
Waxman's arguments. Concludes the Times:
"We don't have any deal with them, and the whole enterprise of
doing
health insurance for all Americans isn't to make the drug
companies happy, or wealthier," Mr. Waxman said. "They're going
to make a lot of money when we insure all Americans. There's no
argument for them to get a windfall."
