Obama Negotiates Reduction of Prescription Drug Costs

When people discuss the ever-rising costs of health care, one of the most common complaints is the sometimes exorbitant price of prescription medicines. For those with multiple medical conditions or the elderly, the costs can become so overwhelming that overseas options are sought or, worst case, patients refrain from necessary treatments in order to pay for other life necessities. In a long-term effort to reduce health care costs for Americans in the most need of such assistance, President Obama took another step in the process of reform by announcing an $80 billion deal with pharmaceutical companies to reduce prescription drug costs.

While the details of the plan were vague, it was noted that the $80 billion savings would occur over the course of the next decade and primarily come at the hands of drug manufacturers to try to help those who fall into the category of Medicare prescription drug coverage that leaves many customers with high costs.

Brand name prescriptions without generic counterparts are the target group of prescriptions, and analysts estimate that senior citizens will benefit most from the savings, with annual decreases in the range of $2,700 to $6,100 per year. But it was reported that implementation of the plan would only occur if Congress passes a comprehensive health care bill.

Speculation began immediately after the announcement, as both sides of the Congressional aisle and the health care reform issue expressed concerns about the plan. Some believe the $80 billion cut will hurt drug companies, but others argue that drug companies will ultimately manufacture alternatives and benefit from the distribution of higher quantities of cheaper medications.

The savings to be had by Americans with serious prescription needs is by far the biggest benefit of the plan, and some say that the U.S. government will be able to take advantage of the savings as well and use it to help pay for the oft-discussed government-sponsored health care plan. However, one pharmaceutical analyst told Kaiser Health News that the government would not benefit greatly; the offer from the drug companies was simply a peace offering to Congress and the Obama administration to clear the air after an early 1990s disagreement with the Clinton Administration.

The official word from White House officials disclosed that the new program would offer brand-name drugs at half price to seniors, a process that would create a $30 billion savings would be recycled into the system to help the industry, while the other $50 billion of the plan would help provide coverage for the uninsured.

More details of the plan should emerge in coming days and months, along with other reform proposals to forward the Obama Administration’s goals of comprehensive health care reform for Americans.