Obama breaks Obamacare promise to drug companies

Well, Obama's promise to pass Obamacare lasted about a year.

The White House’s new deficit plan has the drug industry crying foul, and that means Big Pharma may now join Big Insurers to push back on health reform.
Drug industry sources tell FOX Business the Administration is backtracking on what is called the “PhRMA deal” in health reform, a deal that was struck behind closed doors in late 2009 and early 2010 in order to get the industry to support and endorse health-care reform.
In the “PhRMA” deal, drug companies would fork over $80 billion in fees as well as give drug discounts to seniors in Medicare over 10 years, among other things (The CBO has reported that those fees may be passed along to customers, anyway, in the form of higher drug prices. (See EMac's Bottom Line, "CBO Says Health Reform Causes Drug Costs to Rise")
In exchange, the White House agreed, among other items, to not force the drug industry to accept rebates on drugs sold through Medicare Part D, a program launched under President George W. Bush to subsidize prescription drugs for seniors.
But President Barack Obama's new deficit push calls for those Medicare rebates, via the Simpson-Bowles plan. . . .

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