White House affirms deal on drug cost

New York Times, August 6, 2009

Pressed by industry lobbyists, White House officials have assured drug makers that the administration stood by a behind-the-scenes deal to block any Congressional effort to extract cost savings from them beyond an agreed-upon $80 billion. Drug industry lobbyists reacted with alarm to a House healthcare overhaul measure that would allow the government to negotiate drug prices and demand additional rebates from drug manufacturers. In response, the industry successfully demanded that the White House explicitly acknowledge for the first time that it had committed to protect drug makers from bearing further costs in the overhaul.