In a move that’s unlikely to curry much favor with House progressives, the White House has reaffirmed its commitment to a long-standing deal it made with the pharmaceutical industry, that will require them to cover, through industry reforms, no more than $80 billion worth of what’s expected to be the approximately $1 trillion cost of health care reform.
President Obama struck a deal with PhRMA early–a move that the administration says was crucial to build momentum within the health care industry for reform. But House health care leaders and progressives insisted that they were party to no deal, and included in their overhaul legislation provisions that would have put drug makers–a key industry stakeholder–on the hook for more than they agreed to.
The White House’s insistence on maintaining this bargain means the House legislation will have to be changed before a floor vote, or during conference committee with the Senate, leading some to wonder why Obama–who’s been notably averse to drawing lines in the sand over key progressive goals–is putting himself out there for the insurance company.
“It is a pivotal issue not just about health care,” Rep. Raul Grijalva (D-AZ), co-chair of the Congressional Progressive Caucus, told the New York Times. “Are industry groups going to be the ones at the table who get the first big piece of the pie and we just fight over the crust?”
