The Pharmaceutical Research and Manufacturers of America announced an agreement June 20 with the Senate Finance Committee and the White House to reduce drug costs for elderly Americans.
The plan would be incorporated into upcoming comprehensive healthcare reform legislation.
PhRMA President and CEO Billy Tauzin said the plan would help close the coverage gap in the Medicare prescription drug program. He praised the White House and Senate Finance Committee for their commitment to health reform.
"This marks an important first step toward our shared goal of providing high-quality, affordable healthcare to everyone in America," Tauzin said. "This is a once-in-a-lifetime opportunity and, working together, we can make this hope for a better tomorrow a reality today."
According to National Community Pharmacists Association (NCPA) Executive Vice President and CEO Bruce Roberts, community pharmacies are on the front lines in the effort to keep seniors healthy. "We share the goal of lowering drug costs, but want to learn more about this program to ensure community pharmacies are treated fairly and can continue serving patients," he said.
The agreement, negotiated by Senate Finance Committee Chairman Max Baucus (D-Mont.), includes a 50-percent discount on brand-name drugs for most Medicare beneficiaries. Senior citizens currently pay $2,700 to $6,100 a year on medication not covered by the Medicare Part D drug plan. Baucus said the deal should amount to $80 billion in lower drug costs for senior citizens over the next 10 years.
President Barack Obama said the deal will become part of the health reform package.
"The existence of this gap in coverage has been a continuing injustice that has placed a great burden on many seniors," he said. "This deal will provide significant relief from that burden for millions of American seniors. This is a tangible example of the type of reform that will lower costs while assuring quality healthcare for every American."
Opponents of the plan said Baucus should not have forged ahead alone in cutting deals prior to the passage of any reform legislation.