Commitment of up to $80 billion, but not more than $80 billion.An understanding between the White House and PhRMA has been the topic of some debate. The $80 billion figure has been out there, and The New York Times reported August 5 that an agreement had been reached.
1. Agree to increase of Medicaid rebate from 15.1 - 23.1% ($34 billion)
2. Agree to get FOBs done (but no agreement on details -- express disagreement on data exclusivity which both sides say does not affect the score of the legislation.) ($9 billion)
3. Sell drugs to patients in the donut hole at 50% discount ($25 billion)
This totals $68 billion
4. Companies will be assessed a tax or fee that will score at $12 billion. There was no agreement as to how or on what this tax/fee will be based.
Total: $80 billion
In exchange for these items, the White House agreed to:
1. Oppose importation
2. Oppose rebates in Medicare Part D
3. Oppose repeal of non-interference
4. Oppose opening Medicare Part B
But earlier this week, President Obama suggested that "now, we may be able to get even more than that," referring to the promised $80 billion in savings pledged by the drug industry. Was there a binding agreement, or just a savings pledge?
The memo purports to detail (and again, this has been denied) what the White House gave up, basically that it promised to: not give the government power to negotiate for lower drug prices, with the scale and bargaining power it enjoys; not move some drugs from Medicare Part B to Part D, which would result in drug companies getting paid less for them; not import drugs from Canada; and not require drug companies to pay back some money in rebates to negate the rates they've enjoyed.
This article available online at:
http://www.theatlantic.com/politics/archive/2009/08/details-of-the-80-billlion-prescripton-drug-deal/23238/
