From Greg Palast and you're not gonna like it

[graywarrior]

(edited for copyright purposes-proud patriot Moderator Democratic Underground)

Obama on Drugs: 98% Cheney?
by Greg Palast
Thursday, August 13, 2009

For The Huffington Post


Eighty billion dollars of WHAT?

I searched all over the newspapers and TV transcripts and no one asked the President what is probably the most important question of what passes for debate on the issue of health care reform: $80 billion of WHAT?

On June 22, President Obama said he'd reached agreement with big drug companies to cut the price of medicine by $80 billion. He extended his gratitude to Big Pharma for the deal that would, "reduce the punishing inflation in health care costs."

Hey, in my neighborhood, people think $80 billion is a lot of money. But is it?

I checked out the government's health stats (at HHS.gov), put fresh batteries in my calculator and toted up US spending on prescription drugs projected by the government for the next ten years. It added up to $3.6 trillion.

In other words, Obama's big deal with Big Pharma saves $80 billion out of a total $3.6 trillion. That's 2%.

Hey thanks, Barack! You really stuck it to the big boys. You saved America from these drug lords robbing us blind. Two percent. Cool!

(Snip)

[earth mom]

1. Chump change is the kind of change you can believe in.

:puke:

[John Q. Citizen]

2. It's going to take a lotta love, to get us through the night

[Jim Sagle]

6. Back back, coming with a double attack. Step back, here comes the shark attack.

[EVDebs]

3. Rep Lynn Woolsey is leading the charge to keep the public option open

But Obama's secret deals are really screwing things up...

[global1]

4. I Like Obama - But Palast Is Spot On .......

Obama got taken to the cleaners on this.

Big pharma has proprietary products - that have no competition. No generics yet because their products are patent protected. They monopolize the market for these patented meds. As a result - they will raise their prices every year as long as they could - as long as their drug is patent protected. The result will be that the 2% that Palast talks about - will evaporate.

This was not a good deal and in my mind Obama screwed up on this.

I'm hoping that now that Tauzin outed this deal that Obama pulls back and says the deal is off.

We need to be able to negotiate prices on prescription drugs. We need to be able to access drugs from Canada - if need be. (kind of like a public option with insurance - competition with Canada - might cause the drug companies to lower pricing right here); we need to close the 'donut hole' altogether.

This was a bad call and Obama got outplayed on this move.

[flyarm]

5. Obama hasn't gotten taken to the cleaners..he took us to the cleaners and cleaned our clock!

we are screwed..and anyone who tells you different is a lying sack of doo!

[Jim Sagle]

7. Oh stop it, you silly PUMA.

;)

[SpartanDem]

8. To be fair the they've been denying this story for days

8/6 Dem Senators: White House Says It Cut No Deal With Drug Makers
http://www.huffingtonpost.com/2009/08/06/dem-senators-white-house_n_253502.html

8/10 White House Insists It Didn't Give Away The Store To Big Pharma
http://www.huffingtonpost.com/2009/08/10/white-house-insists-it-di_n_255682.html

[graywarrior]

9. I hope that is true.

Palast doesn't get it right all the time.

[zulchzulu]

12. Sometimes Greg is a bit of a drama queen

First of all, Big Pharma is deeply entrenched in our health care programs. It's going to take incremental legislation to lop off their profits as well as get Single Payer style health care for all. Hell, even if it was true, 2% is a start.

Secondly, the White House (as indicated) says there is no deal with Big Pharma... and no bill has been signed in the first place.

Thirdly, the last thing we need to do is play Cap'n Purity and demonize Obama like the Right is doing and undermine what will probably be adding the Public Option in the new health care reform efforts. It's complicated, it's legislative processes, it's going to have to be incremental.

Greg should hold off on the cartoonish demonization of Obama and clearly should NEVER try to point fingers that he is like fucking low-life scum Dick Cheney, ferchrissakes.

Do some more homework, Greg.

[graywarrior]

13. Your post makes me feel better.

:toast:

[QC]

14. Palast is an enemy of the people. n/t

[OwnedByFerrets]

20. He DOES do his homework. Moreso than most

of the "so-called" journalists in the media.

[zulchzulu]

26. Hey, I like Greg

He gave me his business card a couple years ago at the Fighting Bob Fest. I've videotaped him at several speaking engagements.

It's that sometimes he jumps on a story before polishing up some of the details...

:eyes:

[progressoid]

23. Your second link actually supports the idea that Phama is getting a sweet deal.

"The administration, they said, promised that in exchange for the $80 billion commitment it would not push for the inclusion of Medicare rebates as part of health care legislation. Under such a scenario, drug makers would pay back the government some of the difference between the higher prices charged under Medicare and the lower prices that are charged under Medicaid. It is one of several ways the government could lower the price of prescription drugs for seniors. "

And...

"Ken Johnson, the senior vice president for the pharmaceutical industry's lobby...noted that his organization had made it clear from the very beginning "that we cannot support price controls."



Frankly, I find it hard to believe they would just roll over considering how much they have at stake here.
If they weren't getting what they wanted, it's certain they would be making a big stink over this bill.

[depakid]

10. Palast asks a fair question in a sense

It would be interesting to know how and on what timeline, the deal announced- what almost two months ago, would do to fill the doughnut hole.

[Dinger]

11. Ouch (nt)

[ipaint]

15. It will almost be a wash for pharma.

Next up in reform debate: Medicare rebates

July 27, 2009 — 9:57am ET | By Tracy Staton

Democratic Senators have tee'd up pharma rebates as a healthcare cost-cutting strategy. Led by freshman Sen. Jeff Merkley of Oregon, a cadre of Democrats have asked Finance Committee chief Max Baucus to have drugmakers rebate part of the cost difference between Medicare and Medicaid. Even if the rebates only applied to drugs for low-income seniors, the government would save $63 billion, Merkley told the Wall Street Journal.

http://www.fiercepharma.com/story/next-reform-debate-medicare-rebates/2009-07-27


White House Insists It Didn't Give Away The Store To Big Pharma

The administration, they said, promised that in exchange for the $80 billion commitment it would not push for the inclusion of Medicare rebates as part of health care legislation. Under such a scenario, drug makers would pay back the government some of the difference between the higher prices charged under Medicare and the lower prices that are charged under Medicaid.

http://www.huffingtonpost.com/2009/08/10/white-house-insists-it-di_n_255682.html


So if the medicare rebates don't make it into the final bill pharma really is taking a 17 billion dollar cut over 10 years. I'm sure that 17 billion will be worked into the retail price of drugs along with the quarter billion they have spent lobbying so far.

[ProSense]

16. Palast is right

Obama should never have made a deal with Phrma. After all, nothing is better than $80 billion. In fact, when more savings are realized, I think seniors will be screwed.

Everyone is a critic.

[vaberella]

28. This was found to be false though. It was on DU. n/t

[uponit7771]

17. ****THIS STORY HAS BEEN DENIED BY THE WHITE HOUSE****

[ensho]

18. maybe Obama and team was just waiting for someone like Palast

to point out the 2%.

at least he wrangled 2% and now that we know we can, what? shame them, demand more then 2%

just a thought.

[OwnedByFerrets]

19. Thom Hartmann has made the same point earlier this week.

Its chump change to these people.

[demwing]

21. Palast is sort of our Chicken Little

Remember that he assured everyone that Rove had fixed the 2008 election, and we were bound to lose?

http://www.truthout.org/video/greg-palast-rove-has-already-fixed-2008-election

[ProSense]

22. "Greg Palast: Rove Has Already Fixed the 2008 Election"

This is what happens when the RW gets inside your head.

[Sebastian Doyle]

30. Palast also said that massive turnout was the only thing that would beat the fraud.

And so it did. That doesn't negate the fact that the Repukes did everything they could to attempt to steal it. And until we get rid of every last filthy piece of shit electronic "voting" machine, that will be the case. Only a massive turnout will beat the criminals. And without some genuine results (i.e. REAL healthcare reform) that's not likely in 2010 or 2012.

[Lorien]

24. Palast was the ONLY reporter who actually listened to me after I witnessed

voter intimidation and tampering by the police here in Florida in 2000. We spoke to many other reporters about what happened that day, but only Palast listened and investigated what happened.

[Hell Hath No Fury]

25. I think anything that does not allow the government --

to flat out negotiate drug prices is bullshit. If Obama ends up caving to Pharma, he is on my shit list.

[vaberella]

27. I thought this was debunked on DU? The WH said they made no deal with Big Pharma. n/t

[ipaint]

31. On the 10th white house aides said they struck a deal

On Monday, White House aides called early reports "confused" and "confusing." They acknowledged that they had struck a deal with the pharmaceutical industry on one front, but not the one reported.
The administration, they said, promised that in exchange for the $80 billion commitment it would not push for the inclusion of Medicare rebates as part of health care legislation. Under such a scenario, drug makers would pay back the government some of the difference between the higher prices charged under Medicare and the lower prices that are charged under Medicaid.

http://www.huffingtonpost.com/2009/08/10/white-house-insists-it-di_n_255682.html

Those medicare rebates are worth a minimum of 63 billion to pharma. If the final bill that is adopted does not include the medicare rebates pharma basically hasn't given much of anything.

[Phx_Dem]

29. Bullshit. $80 BILLION dollars in reduced Rx costs PLUS $150 MILLION

in advertising, which begins today. Sometimes to have to make deals to get things done. Progressives never understand that. They always think they can and should have everything they want with no concessions. Sadly, that's not how things work, especially health care form. If it was so fucking simply, we have passed it long ago.

But not to worry, "Democrats" like Palast and Huffington Post can take pleasure in the fact that with the growing chorus of naysayers -- including them -- it's increasingly unlikely there will be any healthcare reform.

They seem to think the status quo is better than any kind of reform if it doesn't include single-payer, but watch how they scream and cry when we get nothing at all, or next to nothing.

************************************************

A massive new ad campaign FUNDED BY PHARMACEUTICALS hits the airwaves in support of health care reform. Uh oh, Progressives are not going to be happy about this!

http://www.politico.com/news/stories/0809/26076.html#ixzz0O56I9JRg

"A new coalition on Thursday launched $12 million in television ads to support President Barack Obama’s health reform plan, in the opening wave of a planned tens of millions of dollars this fall.

The new group, funded largely by the pharmaceutical industry, is called Americans for Stable Quality Care. It includes some odd bedfellows: the American Medical Association, FamiliesUSA, the Federation of American Hospitals, PhRMA and SEIU, the service employees’ union.

PhRMA’s participation is key, because the group has promised to kick in as much as $150 million for advertising and grass-roots activity to help pass the president’s plan. "

[debbierlus]

32. Democrats wont stand up and demand real reform, the corporations buy the politicians

And, DU has been reduced to cheerleading a President who wouldn't even allow DISCUSSION of single payer and defending the wet dream of mandated private health insurance, in the name of the corporate salesman.

Man, do the corporations have it easy.

[TheCoxwain]

33. 3.6 trillion is the total healthcare expenditure - not on medicines

[ipaint]

34. For the years 2003-2014 for medicare it was 1.84 trillion.

3.6 trillion for all drug spending sounds about right for the 10 year span Palast is referring to. The baby boomers are beginning to roll into medicare.

The Congressional Budget Office (CBO) has recently updated its projection of aggregate spending for outpatient prescription drugs by and on behalf of Medicare beneficiaries. As shown in the attached table, CBO estimates that spending for outpatient prescription drugs for Medicare beneficiaries will total $1.84 trillion over the 2004-2013 period.

http://www.cbo.gov/doc.cfm?index=5197&type=0

[Wednesdays]

35. K&R

:kick:

[ncteechur]

36. No, I don't like it BUT do you want $150 million on your side or $200-300 million advertising

against you along WITH the insurance companies, and the repubs?

Everything you do in Washington creates allies or enemies.

This is sausage making 101. Idealists need not apply.

Unfortunately, this is not "Mr. Smith Goes to Washington" Never was.

[ipaint]

37. No it is not sausage making.

It is pointless useless busy work. No one in their right mind in any country that has a form of universal care not dominated by corporations and their 100 million dollar ceo's would call this spectacle of chaos and manipulation good government.
It exists to make people feel powerless as if they have to agree to rotten deals which make things worse in the long run for just a bit temporary relief for the lucky ones.

The corporations will never be on our side. Ever. If they agree to push this bill then it's because their shareholders will benefit financially. End of story.

Since I know how they make their money you can keep your shit sausage.

[mgcgulfcoast]

38. i cant believe this is true, i hope not