Big Pharma Sells Out
A business ad campaign could defeat ObamaCare, which is falling in polls.
NOVEMBER 27, 2009.
However the Senate's health-care debate pans out, we'll wager this prediction: The pharmaceutical executives who have endorsed this exercise will eventually be exposed as among the most shortsighted CEOs in the history of capitalism.
In June, the Pharmaceutical Research and Manufacturers of America sealed a deal with the White House and Senate Finance Chairman Max Baucus promising to contribute $80 billion in lower drug costs over the next decade to ObamaCare, plus a multimillion-dollar TV ad campaign. In return they were to be spared from price controls and the reimportation of cheaper foreign drugs.
The loophole is that the deal didn't include the House, and now it may fall apart in the Senate. But even if it does somehow survive, by now it is obvious that the industry's political protection will last only as long as it takes to pass a bill, whereupon the same politicians who are trying to override this deal will get back to work.
"You've heard that as a consequence of our efforts at reform, the pharmaceutical industry has already said they're willing to put $80 billion on the table," President Obama said in July. "We might be able to get $100 billion out or more."
Led by Henry Waxman, the House saw that and raised: The bill that passed earlier this month extracts as much as $150 billion from the industry, including demands for a 23.1% "discount" when Medicare buys prescription drugs for some seniors (much like Medicaid imposes now) and gives the government the power to "negotiate" lower prices for everyone.
The pharma lobby was unfazed. "Despite the shortcomings in the House legislation, we remain completely committed to helping the President and Congress pass comprehensive health care reform this year," a senior vice president said in a statement. "This is a three-act play and a good critic doesn't write a review after the opening scenes."
But now the curtain is coming down. The Senate bill is only going to grow more expensive on the floor. Given that Harry Reid is even relying on a 5% "botax" on cosmetic surgery, the drug makers will become ever more appealing targets as the search for revenue to make ObamaCare appear to be deficit neutral grows more desperate.
Meanwhile, the AARP and its media stenographers are levelling allegations ...
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