The Washington Times Reported:
The White House promised to let drug companies continue to set their own drug prices.
Obama administration cut backroom deals with the nation’s top drug companies to win support for President Obama’s health care overhaul, threatening them with steeper taxes if they resisted and promising a better financial deal for the industry if they acquiesced.
Obama agreed to drop his long-standing support for letting Americans buy cheaper foreign prescription drugs — something the pharmaceutical industry vehemently opposed — and the drugmakers promised to mount a public campaign to sell the public on the health care legislation.
The threats appeared to work, and the parties met the next month to hammer out a final deal. The drug companies agreed to pay higher Medicaid rebates and a new health care reform fee to raise $80 billion for the legislation, and promised to run positive television ads about it.
promised to run positive ads ?? !!
In exchange, the White House gave them direct input into the new policies and promised to let them continue to set their own drug prices
the Whitehouse bypassed members of its own party to iron out specific details with the drug companies. read more>
oncologists say that the way that they are paid for chemotherapy drugs under Medicare Part B—at average sales price of the drug, plus 6%—makes the Medicare cut “more akin to a double-digit pay cut,” Kliff writes, since the cut has to come out of oncologists’ overhead, not the drug price.
“This is a drug that we’re purchasing, says Ted Okon, director of the Community Oncology Alliance, an advocacy group for cancer clinics. “The costs don’t change and you can’t do without it. There isn’t really wiggle room.”
As a result, oncologists say they are scrambling to figure out a solution in the face of stark cuts, which involves either turning patients away—or continuing to treat them and go out of business.
“If we treated the patients receiving the most expensive drugs, we’d be out of business in six months to a year,” according to Jeff Vacirca, the CEO of New York-based North Shore Hematology Oncology Associates. After an “emergency meeting” this week to review the sequester’s effect on their business, Vacirca’s clinics will turn away about 5,000 Medicare patients, roughly one-third of their Medicare patient population.
COA has lobbied legislators to exempt cancer drugs from the Obama sequester or change how the cut affects oncologists. My answer “Tell Obama his deal to let drug companies continue to set their own drug prices must not endure”
Lets not forget Obamas $750 billion cut from medicare to fund Obamacare.
. A new round of cuts to Medicare is slated for 2015. What further hardship will we face? Will the story be told then?