Pharmaceutical Giants are Being Targeted for Cuts by President
On 27.07.11, In Legal Industry, by Blake Houser
In order to provide solutions to the country’s deficit, the president targets pharmaceutical giants such as Merck & Co. and Pfizer Inc. for cuts on Medicare. According to the president, these pharmaceutical companies were still doing well because of the Medicare program. He also said that something could still be done in relation to giving lower medicine prices to seniors who belong to Medicare through the Affordable Care Act.
Talks on providing solutions to the deficit problems include cutting a substantial portion on Medicare and Medicaid. Last year, around $80 billion was contributed to the health care law by the drug industry.
According to Karl Uhlendorf, Pharmaceutical Research and Manufacturers of America’s vice president, “It’s extremely unfortunate that President Obama continues to push for a policy that could destabilize the successful Medicare Part D program.” He also said that these proposals to cut on Medicare and Medicaid could lead to job losses, and would actually “undermine the business foundations” of these drug companies. It was estimated that about 118,000 workers for the drug sector were already fired because of cuts.
Merck, along with Whitehouse Station, are among those companies that are meant to answer for the $200 billion targeted budget savings in a span of 10 years. The president also suggested that those with a much higher income should also pay a much higher amount for premiums on Medicare, as this could save approximately $38 billion.
Negotiations between the two parties, Republicans and Democrats, regarding the possible solutions that could raise the legal borrowing limit of the country are still ongoing. The deadline is on August 2, and decisions have to be made or else the government would be in default.