Ryam Grim of the Huffington Post got his hands on a July 7 memo documenting the deal between PhRMA and the White House, which both are now denying but which was initially confirmed by Jim Messina, Deputy White House Chief of Staff to the New York Times. The memo was ostensibly written following the July 7 meeting at the White House between pharmaceutical industry representatives and members of the administration (who the White House refused to name).
It says the White House agreed to oppose any congressional efforts to use the government’s leverage to bargain for lower drug prices or import drugs from Canada — and also agreed not to pursue Medicare rebates or shift some drugs from Medicare Part B to Medicare Part D, which would cost Big Pharma billions in reduced reimbursements.
In exchange, the Pharmaceutical Researchers and Manufacturers Association (PhRMA) agreed to cut $80 billion in projected costs to taxpayers and senior citizens over ten years. Or, as the memo says: "Commitment of up to $80 billion, but not more than $80 billion."
The White House began negotiating with representatives of stakeholder groups including PhRMA in May after they submitted a proposal for reducing the growth rate of health care costs by 1.5% annually over the next ten years. The growth rate of health care costs is projected to be 6.2% per year. In agreeing to the cuts, the groups weren’t actually reducing what is being paid now, they were just agreeing to raise costs by only 4.7% each year instead of 6.2% per year. The "annual savings of $2,500 for a family of four" touted by Obama wasn’t actually savings out of what they’re currently paying, but rather what they would be paying if costs keep rising as they have been.
That’s what all the "bending the curve" talk is about that most of the public finds incomprehensible.
The White House first viewed the proposals on May 11. On June 6, a deal between the White House and major hospital associations for $150 billion in savings over the next 10 years was announced, though details of that deal are still not known. Just as in the PhRMA deal, Max Baucus and the Senate Finance Committee were key to the negotiations.
Increasing Medicare reimbursement rates to rural hospitals is one of the AHA’s objectives. On June 8, a "bipartisan" bill was introduced by Kent Conrad, Pat Robert, Tom Harkin and John Barrasso that would increase reimbursement rates to rural hospitals immediately (such that they wouldn’t have to wait for any health care bill to take effect in 2013). Both Conrad and Roberts are on the Senate Finance Committee.
The Blue Dogs began threatening to block the House health care bill if rural reimbursement rates were not increased shortly thereafter.
The American Hospital Association is also a part of the coalition running $12 million in advertising in the states of "centrist Senators" key to passing the Baucus deal.
The White House needs to be open and transparent about the deals that they cut, who was involved in making them, and what the ultimate impact on a health care package might be.




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Obama seems to have “wonderful” staff coming up with these “wonderful” ideas. not.
im through with demafrauds.
Money talks and our health care walks.
It’s not illegal collusion if the WH does it. W made the case. O’s just glomming on.
Can’t they throw in some free valium or prozac or something?
So Nothing Changes when A Different Party Goes Into Power.
http://www.youtube.com/watch?v…..annel_page
Lets face it – just start calling ALL Politicians “whores” from this day forward, because that’s what they really are and always will be.
Nothing changes.
lol. I’m gonna need some *large* doses.
What a shock! NOT.
W.T.F.
Yep. Put THAT in yer 11-teen-dimensional chess and smoke it.
Crap. Crap. Crap.
FunnyWheelieDiva
Only Viagra or Cialis.
Reform I can’t believe in.
oh my. John Dean, on Olbermann, just said that Cheney has always seen himself as “exceptional”, but the only thing exceptional about him is an unbroken record of failure.
ouch.
we are empire! please settle down and enjoy(or not) the ride
The Obama White House is quite fond of repeating that tired old refrain of “let’s not make perfect the enemy of the good”.
I usually interpret that as code for “let’s not make atrocious the enemy of the just, plain awful”.
They are just openly making war on any non-billionaire anymore.
Not to mentiion an unbroken record of crime. Sigh.
um.. in return for this “deal” does Big Pharma warrant that healthcare reform will pass, and if it doesn’t for any reason, do we get to cancel whatever concessions we gave them?
Betcha Dems in Congress are PISSED.
I do agree this is disturbing. My problem with this is that a bill which doesn’t contain these restrictions essentially makes the enforcement of the bill unsustainable.
Be sure to be specific when your local Democratic Party calls for contributions. We want Single Payer. But give no contributions until there is a Public Option. And no deals with the those Pharmaceutical pirates. And no more Helth Insurance Death Panels that control our medical care.
When we get the Public Option, yes give the local D’s a contribution. As far as the national D’s, a contribution boycott is in order as long as they keep selling us out.
I’m almost as sick of that phrase as I am of using the word disingenuous.
I have eyes and can see, living in the the land of the blind!
Did you ever stop to consider that John Dean is one of the few whistleblowers in the history of the world to come out smelling like a rose? Never trust someone who changes sides.
PhRMA promise = nil
These people would sell their mothers. And ours.
and are somehow able to make those non-billionaires into their shock troops.
Never underestimate the ability of hard-core right wingers to leap enthusiastically into the war against their own best interests.
I see said the blind man as his picked up his hammer and saw.
Never trust someone who changes sides.
It came slowly and grudgingly, but i now admire John Dean.
and people can in fact change – it just takes more proof from some than others, imo.
never underestimate the ability of the opposition to underestimate the ability of their
opposition
I must have missed the original C-SPAN broadcasts of these meetings. Surely they will be re-run; does anyone know when???
And this:
is infuriating! Why are there private side bills at all? There’s lots else that needs done in the health care/ health insurance arena that’s waiting on implementation. Why shouldn’t this little pet project wait?
What he said was absolutely correct, though. He said that he was an abject failure as COS, SecDef, Halliburton CEO and VP.
this is consistent with their notion of an “ownership society.” The rethug party psychology seems to permit only fatcat owners and their poor, deluded cannon fodder property.
My, my, my . . . Froomkin moves over to HuffPo to head up their DC operation, and this little gem pops up. Gotta love it.
Meanwhile, Rahm is going nuts. “Paper? Someone put this down on paper? What kind of ^#&*%&^ idiot puts stuff like this down on *#^$*%&^ paper?”
If you can’t beat them with logic, shame them with exposure. Nice job by Ryan Grim.
Well said jayt!
I wouldn’t trust John Dean as far as I could throw him. He’s at minimum an opportunist, but there’s also a good possibility that he got handsomely rewarded for his sting on Nixon.
No House Democrat should feel bound by this bill.
Look, Max Baucus decided the GOP of goodwill was CHUCK GRASSLEY. He’s proven this week that’s not the case. So much for Max’s political instincts. It’s time for Mr Chicago Rules to tell these small square state Senators to take a fucking hike. Really.
Just because he sometimes shows a command of the obvious does not define him as a solid citizen.
You’ll notice that Organizing for America is not attracting the enthusiasm that the campaign did.
name one even possibly nefarious activity from Mr. Dean *since* Watergate.
Agreed. Be nice to see Congress teach Obama a lesson. Especially after his CSPAN pledges during the campaign.
Also: iconic.
He got his sentence reduced from one to four years down to four months (the time he had served when Sirica made the reduction).
a fiasco. wh steps up rpessure etc today with bullet points etc and then this crap comes out. did these pelarn anything from hillary care? nope. they thought-we will show those clintons and do a better job this time. um ok. no wonder ofa is struggling-how can they gets those millions mobilized while potus breaks a secret deal with pharma! yea right. its hard to not become fatalistic here. sp many screwups. and wh says they are so shokced by the right wing troops comming out? duh that is the gop guys. they take no prisoners in their fights. they know they must prevent healthcare reform period. they dont care if people die. its 4 am. pres obama call bill clinton and join forces. bill knows how to fight the right in tn and mo. dont let egos get in the way here
Well…how about supporting Rep Anthony Weiner and his single payer Medicare for All…with a robust private option? HR676 to be substituted for the mishmash the Blue Dogs made of HR3200.
Give health CARE a chance.
Does this kind of negotiating not tell you something? That Obama just isn’t that into actual health CARE? Digital record keeping and insurance, sure. Actual delivery of care at the best cost to the nation? Doesn’t look like it….
And the NYTimes is reporting Obama’s been making “behind the scenes” deals all along, mostly with Baucus. Why? To try to reward the Repubs for being completely obstreperous? I don’t get it.
Some legislation is actually worse than nothing. This is looking (well, if there ever is a bill we the public get to see before it’s passed) like on of the worse than nothing.
Medicare for All…the bailout for the rest of us.
Rachel is brilliant! Comparing the fact that the republicans don’t want government involved in end-of-life decisions with what these idiots did wrt Schaivo.
A whistleblower (on POTUS no less) ending up on his feet is rare enough to raise high suspicions. We don’t know what he was, is, and will be up to. An hypothesis, reached by trying to learn to be as cynical as possible, as that seems to be the only self-preservation technique in the U.S.
Because it’s entirely unclear what OFA email recipients are being asked to organize for and around. Electing a person is one thing; banding together to ensure the survival and continued profitability of insurance companies is something else entirely.
And it doesn’t help that people who got OFA emails and then signed up to “visit” their congresscritters thought they actually had APPOINTMENTS, since they got a confirming email from OFA. The first complaining Senate office about these horrible constituents showing up unannounced was, unsurprisingly, Dianne Feinstein’s.
Is there anything to this rural reimbursement gripe? Ross’s staffers fed me that when I called a couple of weeks back. Can anyone explain this, so that I can make informed references if I’m able to ask Ross a question in Arkadelphia tomorrow?
One does not just drop in on the Queen. :)
…learn to be as cynical as possible,…
you’ll forgive me if I try to temper my cynicism, as a human being, as much as is practical. We may disagree as to what might define “practical”, but after 35 years or so, I’m more inclined to err on the side of compassion and reliance on demonstrated behavior.
wrt politicians?
Those must have been some rather frustrated California voters showing up at her office, too: it’s high atop One Post Plaza at Montgomery & Market, a building you cannot even enter without an appointment. I mean, you can’t get into the LOBBY without being confirmed by someone who works there. Her offices are on the 27th floor, so climbing up outside is unpossible.
I couldn’t agree more, Teddy.
IMO, it’s not about the Republicans at this point in time, it’s about industry and money.
republicans are just an excuse.
That is SO Diane. She doesn’t mix with the common folk. She certainly isn’t going to make it easy for them to get to her – no, sir, no store front office for Her Highness.
I never mentioned active politicians. So far as i know, Mr. Dean has neither held, nor sought, political office – ever.
oh, my!
My mom collects those images, mostly from Christmas cards. I must print that one out for her.
forget it
Eff this. The answer is NO.
Hi to your mom!
DING!!
You’re here early today! I usually just get to read your comments on Attaturk’s posts!
Finally, Americans trust the GOP more on health care than they trust Democrats! Heckuva job, Rahm:
http://tinyurl.com/Inahxa
Please pardon me for being a bit OT but tonight in my blog rounds I just saw an amazing chart, one if true puts a lie to the idea that liberal’s campaign donations mean anything at all, other than slop to the congressional hogs -
http://www.doctorhousingbubble…..donors.png
It’s part of the doc’s post here -
http://www.doctorhousingbubble…..sing-data/
Dunno if it’s true but if so, it says that 6/10 largest donors to Washington D.C. are labor organizations. Would someone better connected than me please examine this? Thanx.
BTW, http://www.doctorhousingbubble.com has been a good & accurate read for years WRT SoCal RE (and I have no connection to the site whatsoever outside of being a daily reader, same as I am w/firedoglake…)
Well, it is Rasmussen, but I do have to chuckle a little.
Heckuva job, Rahm:
well – nobody could ever have anticipated that.
My enthusiasm at seeing Rahm named COS was right up there between getting multiple root canals and mucking out swine barns.
I love you Jayt. I love your words. And, your heart.
Just catching up here….
Rachel will be on MTP with Dick Armey this Sunday.
I hope she mops the floor with him. Though I doubt the host will allow the facts to become a problem.
Rachel and Keith have been very, very sharp tonight. Couple of minor misrepresentations, but they’re hitting hard.
FWDiva
given his fairly recent misogynist dismissal of Joan Walsh on Hardballs, I can’t wait to see what he comes up with against Rachel, short of something truly despicable.
He can’t touch her on the issues. I’ll be watching that one…
The hallmark of a gifted con artist is a silver tongue that can convince his or her marks that what is in actuallity really very bad for them is very good for them. In Obama we’ve got a master of the silver tongue. Republicans, big pharma, the insurance companies and certainly Wall Street have to be giving one another high fives. The American people might as well be passing out the KY jelly for what is coming.
They’ll be distributing SOMA using Obama’s email lists.
You mean like Obama?
*smooch*
Some years ago, I had some of those, and I really liked them. Too bad I took my name of of Obama’s list. Sticking to teas these days, but, on the other hand, things are pretty rough lately.
demi, SOMA was the drug of choice in Brave New World for keeping the masses happy, content and docile.
Just took the chicken off the barby. Have beans, tater salad and cole slaw. Too bad you’re all. the. way. in Indiana. (Back home in Indiana….)
That’s right. I re-read that recently. But, isn’t there a current drug called that? A friend of mine used to buy quantities in Mexico. Shhhhhhh….
Sorry. I was wrong. I recently read Stranger in a Strange Land. Must be the chicken.
She won’t let him get away with anything is my guess. I want Rachel on my team!
*aargh* WTF…? Delay(ed) Redux…? Aloha Ya’ll…! I weathered Felicia in my tent…! ;-)
Rachel is smart. And she is cute. Although not as cute as Kutcher. Nevermind. I don’t like her little friend Kent Jones, though. Did you see his bash of Bob Dylan the other night?
In your tent, CTuttle? Were you drenched?
Heinlein rules…! ;-)
I turn it off when Kent comes on. Just like I do Oddball.
Duuuude.!
Tonight Kent Jones made fun of the back-hair community, with a totally unnecessary swipe during his FurCon segment. We are strong and we fight back!
Big Dog on Netroots now on C-span
CT!
Heh, I was lucky… By the time she was supposed to have hit, Mauna Kea and Mauna Loa had stopped her in her tracks… In fact by morn it was a gloriously sunny day… In fact, it was sunnier than any other morn that I’ve spent on my lot…! 8-) Ain’t Mother Nature a gracious lady…?!
Peas in a pod, darlin’.
Yup. But, wasn’t really listening. He’s just too too.
Ya couldn’t have told us when Kent was on? Kidding. Thank you. I’ve switched channels. Yep. Look at them DFHs.
Hey Teddy! This Sunday I’m attending a civil union between my hanai daughter and her longtime GF… She’ll be wearing the tux…! ;-)
Large luau planned… A large gathering is planned…
Wow, the power of Twitter. Lane Hudson asked via Twitter if he should yell out at Big Dog about DADT; I (probably others, too) responded, YES, YELL OUT. All of a sudden, all these Tweets about “someone” yelling out at WJClinton about DADT, Clinton answering point by point.
And Lane Hudson giving him a standing ovation in his answer to the question! New media, take a bow.
But, What’s Slick Willie’s answer…? He created that quagmire…!
Woo Hoo for love! Congratulations to you and especially to both of them. Or, each of them. Not sure. Still. Have a blastful party.
Kewl! Thanks for pointing that out. More power to them. Maybe they’ll set an example. I won’t hold my breath, tho.
Criticized the Dems for not backing him up enough, as near as I can tell. Lane responded via Twitter: I was a senior in high school then, so don’t criticize me.
Now he’s on health care, with the exciting slogan of “Getting something done….”
Isn’t it stunning that A Prez who overwhelmingly won the election is driving his agenda as if he won by 350 votes.And bear in mind his party is well in control of both houses of congress.
I remember some saying during the primary Obama was not tough enough to enact a Dem agenda as Prez.Are there still doubters out there ?
wow, that sounds a lot like something dick cheney would say (snark)
Sounds like BS to me. Not negotiating lower drug prices was a key problem with Bush’s Medicare part D. Not only was it a key problem, but it was a criticism that Dems made of Bush’s policies.
How are we changing anything if we are still giving billions to drug and insurance companies who got us into this mess?
A third party is looking more viable by the moment. Great job team Obama.
Oh and as of now. I say kill the bad bill…
I actually like Kent — or at least don’t find him a reason to turn off the tv.
OTOH, Keith wastes 5-9 minutes with idiots like Christian Finnegan, Michael Mustow and other total zeros. I don’t understand it. KO’s got this valuable, valuable commodity [air time], and to piss it away with the vanity appearances by these “comics” is just criminal.
It doesn’t add to the debate, and it doesn’t make Keith look cool. He should cut it out.
Great coverage, Jane.
I’ve lost hope for the Democrats, minus a couple of outliers. What will rise out of the demoralization of the base is anyone’s guess. The GOP is so wingnut-silly and scary, and the Democrats so spineless, the conditions are being set for the rise of a third party. Such a party might only be a one election wonder. But sooner or later one of the current parties will go the way of the Whigs and a political realignment will take place in this country. The last time augured a major Civil War.
I usually interpret that as code for “let’s not make atrocious the enemy of the just, plain awful”.
good one. i may steal this line from you.