Understanding the President's Medicare Proposal....

[vaberella]

What does this mean? Obama will propose using Medicare's purchasing power to reduce prescription drug costs for seniors.

[Snotcicles]

1. I would say it sounds like, Volume Purchasing Power. nt

[vaberella]

3. Expand on that please.

Cause I don't get it, that's why I asked.

[TheWraith]

16. The use of bulk purchasing in order to obtain lower prices.

For instance, buying 10 million units of cholesterol drugs, you could negotiate for a lower price. The company would make less per pill, but they'd have a guaranteed revenue stream, which would keep them happy. Medicare reduces it's costs, and the drug manufacturer has a more reliable stream of revenue than if they have to sell lots of 1,000 units of cholesterol meds to 10,000 different pharmacies.

[thelordofhell]

18. It's how wal-mart stays in business

That and paying/treating your employees dick

[donco]

28. That is the way the VA does it now. nt

[DFab420]

2. This may not be entirely right but

I believe it's because Medicare will purchase large amounts of generic drugs, thus cause the pharmaceuticals to lower prices of their Brand Names to compete?

Again that might not be right...

[vaberella]

4. If it's right. I like it. n/t

[Frances]

6. I am a senior

and the present drug plan (Part D) was written by insurance companies when the Republicans enacted the law (under Bush). Once when I was talking with a mail order rep, he said that the Part D drug prices change like the stock market, not just daily, but within the day. My Dem rep wanted to have Medicare purchase the drugs at a discount because of the volume and pass the savings on to Seniors, but the insurance companies said no and they are the ones who "purchase" Repubs.

Isn't it amazing that it's cheaper for the insurance companies to give Repubs millions and millions of campaign dollars than to give Seniors fair prices/

[gateley]

11. Sounds right to me. If we buy in volume from ANY supplier, we get a discount,

it is only fair -- MORE than fair -- that drugs for Seniors should get the same consideration and break.

The pharmaceuticals should be ashamed that they don't volunteer to do this. I understand they are mandated to make the highest profit for their shareholders, but they'll still make plenty even at reduced prices, I would imagine.

[Jackpine Radical]

5. Remember that in the Bush implementation of the drug benefit,

the government was forbidden to try to work out better deals with drug companies using the lever of mass-purchasing. This rule was insisted on by the Republicans, and constituted a giveaway to the drug companies. Obama's proposal will permit the government to bargain for lower rates.

[vaberella]

9. Excellent. So this is like an alternative to the Snowe-Durbin plan?

Without the international aspect---something like other nations enjoy with pharma.

[Jackpine Radical]

10. I have no details, but suspect so.

It would be an obvious target, and about the first thing I'd think of if charged with reeling in prescription prices.

[safeinOhio]

7. Isn't there wording in the current

Medicare prescription plan that prohibits the government from negotiating volume discounts from drug companies?

[vaberella]

12. Apparently he's planning on changing that. n/t

[frazzled]

8. The Prescription Drug Act of 2007 banned negotiating for lower drug prices

I believe that ban was never lifted, despite a bill introduced in 2007 to change it.

Bill trying to lift the ban outlined here:

http://www.themiddleclass.org/bill/medicare-prescription-drug-price-negotiation-act-2007

[vaberella]

13. Thanks a lot. I understand now. n/t

[AtomicKitten]

14. Just that alone, lifting the ban, would dramatically change the paradigm.

I hope it can be done.

[vaberella]

23. Exactly. That's what I'm hoping for. n/t

[gateley]

15. I think if this was LOUDLY made public and driven home, NOBODY could

oppose it. Teabaggers, Republicans, racists -- they all have Seniors in their ranks who are hurt by the current pricing.

I never knew there was a ban - it's unconscionable, and par for the Republican course.

[slipslidingaway]

26. Obama spoke about this in 2008, seems most people forgot the deal he with Pharma :( n/t

[eridani]

21. Not only that, Obama was perfectly willing to leave it out of health care reform

Better late than never, though--especially if he has the sense to keep on ragging Repukes about it.

[slipslidingaway]

27. We need action ... not talk. n/t

[slipslidingaway]

17. Same thing was stated in the Obama HC plan before the inauguration. n/t

[Bluenorthwest]

19. It means 'good thing'

Negotiation of prices, now forbidden by one of Bush's most blatant money grabs.

[eridani]

20. I think it's a great idea, and that he should be constantly ragging on Repukes about it--

--and not just let it degenerate into one of those "noted in passing" non-events.

[MH1]

22. Sounds like something DU complained about Bush not doing.

[Recursion]

24. Under Bush's plan the gov't has to pay whatever Pharma charges

He wants to let HHS negotiate prices, like the VA does.

[slipslidingaway]

25. Hope everyone realizes this was part of his HC plan, but then a deal was cut...

to drop this portion when Pharma agreed to run ads in support of the HC plan that included a mandate and excluded a public option.

Great speech today, but did you forget this was promised in 2008? It was detailed in the Obama HC plan with links to how much could be saved. Some videos in the link below ...

:shrug:

http://www.huffingtonpost.com/2009/08/09/flashback-obama-promises_n_254833.html

"How Barack Obama has changed!

We recently learned that President Obama has secretly made a sweetheart deal with Billy Tauzin, the former congressman turned chief lobbyist for the pharmaceutical industry. In return for $80 billion in projected cuts -- and $150 million in supportive television ads Obama has apparently sworn to protect the industry from congressional efforts to, among other things, let the government use its bargaining power to lower prescription drug costs.

Now flash back to April 2008, when the Obama campaign put out this ad, in which Obama held Tauzin up as an example of everything that was wrong with the game-playing in Washington..."

[TheWraith]

30. Except that, you know, that never actually happened.

Except in the imaginations of some people who repeated it as fact. It was flatly denied by the White House.

[slipslidingaway]

31. So when did Obama push for bulk pricing on Medicare drugs after he was...

in the WH, do you have links to public statements and how he used the bully pulpit to push for this campaign promise? It just seemed to disappear once he was in the WH, even though the Obama campaign put out an ad entitled "Billy" on this very same issue.

Obama: Billy
http://www.youtube.com/watch?v=NCRO0g9CfAw

Now the same promise is surfacing again, what to believe!

:shrug:

The "deal" happens to be what in the final product of HC reform ... so again, watch what is done, not what is said.

Carper Publicly Defends Secret PhRMA Deal In Exchange For Support Ads
Video and more here...

http://fdlaction.firedoglake.com/2009/09/23/carper-public-defends-secret-phrma-deal-in-exchange-for-support-ads/

"In a stunning moment during the Senate Finance Committee markup Sen. Tom Carper defended a secret deal that the White House, Baucus, and PhRMA had reached. The White House has long denied the deal. Carper publicly acknowledges that part of the deal was that PhRMA would run millions of dollars worth of campaign ads in support of health care reform.

According to Carper the “golden rule” in Congress is that secret back room deals in exchange for advertising buys must be honored. Carper’s statement below.


I was not involved in negotiations with PhRMA but I believe that the administration was, obviously PhRMA was, and I presume this committee was involved in some way in those negotiations.

And what PhRMA agreed to do through those negotiations is to pay about
80 billion dollars over 10 years to help fill up half the donut hole. That’s my understanding. And they are prepared to go forward and to honor that commitment. As I understand it, the commitment from our colleague Senator Nelson would basically double what was negotiated with PhRMA.

And whether you like PhRMA or not — remember I talked earlier today in our opening statements, I talked about four core values, and one of those is the golden rule, treat other people the way I want to be treated? ...


The Legacy of Billy Tauzin: The White House-PhRMA Deal
http://sunlightfoundation.com/blog/2010/02/12/the-legacy-of-billy-tauzin-the-white-house-phrma-deal/

"...The White House's Jim Messina later confirmed Tauzin's claim, stating, “The president encouraged this approach … He wanted to bring all the parties to the table to discuss health insurance reform.”

Democratic lawmakers were furious. Rep. Raul Grijalva, chairman of the Progressive Caucus, asked, “Are industry groups going to be the ones at the table who get the first big piece of the pie and we just fight over the crust?”

On September 7, Baucus' bill made a private circulation on the Hill; pharmaceutical industry cost-cutting did not exceed $80 billion. Five days later, the New York Times reported that PhRMA planned to spend up to $150 million in an advertising blitz in support of Baucus' bill. The Times noted that the ad spending “…would be a follow-up to the deal that drug makers struck in June with Mr. Baucus and the White House.” On September 16, Baucus released the full text of his legislation to the public..."

[slipslidingaway]

29. Kick, cannot believe how easily some people are fooled again ...

vaberella, hope you found your way to the Obama/Biden HC plan from 2008.