Internal Memo Confirms Big Giveaways In White House Deal With Big Pharma

[Deja Q]

http://www.huffingtonpost.com/2009/08/13/internal-memo-confirms-bi_n_258285.html

A memo obtained by the Huffington Post confirms that the White House and the pharmaceutical lobby secretly agreed to precisely the sort of wide-ranging deal that both parties have been denying over the past week.

The memo, which according to a knowledgeable health care lobbyist was prepared by a person directly involved in the negotiations, lists exactly what the White House gave up, and what it got in return.

It says the White House agreed to oppose any congressional efforts to use the government's leverage to bargain for lower drug prices or import drugs from Canada -- and also agreed not to pursue Medicare rebates or shift some drugs from Medicare Part B to Medicare Part D, which would cost Big Pharma billions in reduced reimbursements.

In exchange, the Pharmaceutical Researchers and Manufacturers Association (PhRMA) agreed to cut $80 billion in projected costs to taxpayers and senior citizens over ten years. Or, as the memo says: "Commitment of up to $80 billion, but not more than $80 billion."

Article has more... for what it's worth.

[ncteechur]

1. Why didn't they put a scanned copy on Huff Post? It wasn't on ther ealier. Is it on it now?

[Xipe Totec]

2. Welcome to the sausage factory floor n/t

[Becky72]

3. The WH agreed not to import drugs from Canada

Wow. And to think that we were promised that these negotiations were going to be televised by C-SPAN.

[jody]

4. Article says "The deal, as outlined in the memo:"

Commitment of up to $80 billion, but not more than $80 billion.

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

[high density]

5. So is there a reason why I should believe an anonymous lobbyist over the White House?

Representatives from both the White House and PhRMA, shown the outline, adamantly denied that it reflected reality. PhRMA senior vice president Ken Johnson said that the outline "is simply not accurate." "This memo isn't accurate and does not reflect the agreement with the drug companies," said White House spokesman Reid Cherlin.

Edited to add:

The health care lobbyist said that what deal still exists is uncertain, as a result of House pressure.

[Better Believe It]

6. President Obama has not denied any of the back door deals made.

Why do you think that is?

[high density]

7. Well his spokesman did.

I suspect everything is still too fluid to say what has been agreed to.

[flpoljunkie]

17. TPM reports White House ultimately said PhRMA never received a 'guarantee.'

Much more, here. In essence, the administration agreed to stand with PhRMA in opposing a series of measures that would have eaten into drug manufacturers' profits in exchange for PhRMA agreeing to a separate series of provisions which would have freed up $80 billion in funds for the government to put toward a health care overhaul. PhRMA head Billy Tauzin came forward last week, alleging that the White House had committed to the $80 billion concessions as a ceiling. The revelation that sent tempers flaring among congressional health care leaders, who were closed out of negotiations and, therefore, weren't privy to the details of the agreement. The White House ultimately said PhRMA never received a guarantee, putting administration officials in the uncomfortable position of publicly disavowing Tauzin's claims while hoping to retain his support at the same time.

http://tpmdc.talkingpointsmemo.com/2009/08/what-did-the-white-house-promise-phrma.php?ref=fpa

[IndianaGreen]

9. Which White House version of this story do you believe?

You know when someone is lying when they keep changing their version of events.

[high density]

15. Umm, even the lobbyist agrees that he doesn't know WTF he's talking about

What a load of BS.

[Becky72]

18. Did he really say he doesn't know what he's talking about?

Explain please. Can we have an excerpt?

[high density]

19. The excerpt is in my post #5. Here it is again:

"The health care lobbyist said that what deal still exists is uncertain, as a result of House pressure."

[TheCoxwain]

8. But that should not prevent the congress from adding it anyway.

[quiet.american]

10. Here we go again:

Anonymous Lobbyist: I swear this **was** the deal the WH made with Pharma

WH: No, it's not.

PhRMA: No, it absolutely is not.

HuffPo is HuffFaux on this one.

[jody]

11. Big Pharma paid $80 billion for WH opposing importation, Medicare rebates, non-interference repeal,

opening Medicare Part B.

What is the Return on Investment for the $80 billion?

[uponit7771]

12. ***FROM THE WORDS OF A LOBBYIST***

You can believe it if you want, I need to hear Obama's words on the issue and if the deal sucks I'll count it against him.

[jody]

14. Agree, will Obama speak out or let this rumor continue? n/t

[Thrill]

13. Huffington Post is turning into a shitty site

. This reads like something you see on some BS RW site

[nonsequitur]

16. This pisses me off! Same old shit.

.

[ncteechur]

20. Not so fast... go to huff post and look at the "memo" link attached

http://www.huffingtonpost.com/2009/08/13/internal-memo-confirms-bi_n_258285.html

[sudopod]

21. You got trolled, son! nt