Pharma Industry Persuaded to Embrace Healthcare Law
(Editor's Note: This guest blog was written by Michael LaMagna.)
In a rare glimpse into political backdoor dealing, emails were released this last week revealing exactly how the White House was able to convince the pharmaceutical industry to embrace the controversial healthcare law. The emails, which were released from the Pharmaceutical Research and Manufacturers of America show that in exchange for their support of the law, the White House pledged to abandon price controls for prescription drugs and would prohibit importing cheaper drugs from foreign countries. In return, the pharmaceutical industry pledged to back the law.
In addition, emails reveal that it was made clear that if the industry did not back the law, the administration would seek a 15% rebate on Medicare drugs and try to remove a tax deduction that would cost the industry around 100 billion dollars over the next 10 years. Moreover, the pharmaceutical industry agreed to pay higher Medicaid rebates and publically supported the law. For their support, the drug companies were given input into the very policies that would govern their industry.
The administration fired back, defending their alignment with the drug companies as a private/public partnership and considers the release of the emails a political measure. As many of you are aware, the Supreme Court will be ruling on the constitutionality of the law at some point this month. This article will have a full analysis of the ruling as it is announced. Stay Tuned!!
This article is provided for informational purposes only. Nothing in this article shall be construed as legal advice or should be relied upon as such. Michael LaMagna is a partner at Timins & LaMagna, LLP, practicing Health Care Regulatory, Elder /disability/veteran's law, trusts and estates, Social Security and general legal practice in both New York and Connecticut. Michael was just appointed to the ACO Task Force of the American Health Lawyers Association. Email him at Mlamagna@nyandctlaw.com, call him at 914-819-0663 or visit Attorney LaMagna's website at www.nyandctlaw.com for more information.