President Obama Announces Historic Agreement with Big Pharma

Today President Obama announced an agreement between his administration and several of the nation’s largest pharmaceutical companies that would offer $80 billion in prescription drug discounts for Medicare recipients. The announcement today is the latest of several agreements reached between the Obama Administration and a diverse set of health care stakeholders – including insurance companies, doctors, hospitals and medical device manufacturers – that would result in significant reductions in health care costs.

Here’s an excerpt from the President’s remarks:

“…Our goal -- our imperative -- is to reduce the punishing inflation in health care costs while improving patient care. And to do that we're going to have to work together to root out waste and inefficiencies that may pad the bottom line of the insurance industry, but add nothing to the health of our nation. To that end, the pharmaceutical industry has committed to reduce its draw on the health care system by $80 billion over the next 10 years as part of overall health care reform.

“Real health care reform that reduces the spiraling costs of health services and extends quality, affordable health coverage to all Americans will require these kinds of commitments throughout the system. And drug and insurance companies stand to benefit when tens of millions more Americans have coverage. So we're asking them, in exchange, to make essential concessions to reform the system and help reduce costs. It's only fair. Today marks a major step forward. But it will only be meaningful if we complete the journey.

“…And to those who, here in Washington, who've grown accustomed to "sky is falling" prognoses and the certainties that we cannot get this done, I have to repeat -- revive an old saying we had from the campaign: Yes, we can. We are going to get this done.”

And a link to a few articles on the announcement: Politico, “Health Care Reform Gets Boost”; Washington Post, “Obama, Democrats Cheer Announcement of Drug Savings for Federal Programs”; and CNN, “Deal Reached to Cut Medicare Costs”.

UPDATE (by Cloe): DNC Chairman Tim Kaine issued the following statement after the President's announcement this morning:

Another Key Stakeholder Buys Into President’s Efforts To Fix Health Care, Continuing To Pave The Way For Reform This Year

“Today's announcement that the pharmaceutical industry has agreed to a landmark deal to reduce the costs of health care coverage is an important marker in the drive to enact comprehensive health care reform. Coming on the heels of multiple public polls that show the American people overwhelmingly support the President's principles for health care reform, including a public health insurance option, today's announcement shows that momentum is clearly behind getting meaningful reform done this year that cuts costs, expands coverage and ensures choice.”

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