WASHINGTON — The pharmaceutical industry agreed Saturday to spend $80 billion over the next decade improving drug benefits for seniors on Medicare and defraying the cost of President Barack Obama’s health care legislation, capping secretive negotiations involving key lawmakers and the White House.
The deal "means affordable prices on prescription drugs when Medicare benefits don’t cover the cost of prescriptions,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee.
Obama praised the deal, calling it "a turning point.”
Baucus’ announcement said drug companies would pay half of the cost of brand-name drugs for seniors in the so-called doughnut hole — a gap in coverage that is a feature of many of the plans providing prescription coverage under Medicare.
Other officials said wealthier Medicare beneficiaries would not receive the same break, but there was no mention of that in the statement.
In addition, the entire cost of the drug would count toward a patient’s out-of-pocket costs, meaning that their insurance coverage would cover more of their expenses than otherwise.
Billy Tauzin, president of the Pharmaceutical Research and Manufacturers of America, said, "America’s pharmaceutical research and biotechnology companies are signaling their strong support” for health care reform.
by the associated press
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