Obama Singles Out Drug Companies for Savings

Obama Singles Out Drug Companies for Savings

By Drew Armstrong

Drugmakers led by Pfizer Inc. (PFE) and Merck & Co. were targeted for Medicare cuts by President Barack Obama as lawmakers push to agree on a deficit plan. The industry predicted “startling” job losses would result.

Pharmaceutical companies “are still doing very well through the Medicare program,” Obama said today at a news conference. “Although we have made drugs more available at a cheaper price to seniors who are in Medicare through the Affordable Care Act, there’s more work to potentially be done.”

The drug industry contributed $80 billion toward the cost of last year’s health-care law, helping Democrats make up for new spending in the bill. With cuts to Medicaid and Medicare on the table as part of deficit talks, the industry may have to give up more as an Aug. 2 deadline looms.

“It’s extremely unfortunate that President Obama continues to push for a policy that could destabilize the successful Medicare Part D program and have a devastating effect on American jobs,” said Karl Uhlendorf, vice president of the Pharmaceutical Research and Manufacturers of America, the drug industry’s Washington lobbying group. “Startling potential job losses could result from policy proposals that would undermine the business foundations of biopharmaceutical companies.”

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