• Most Popular
  • Most Shared

FACTBOX: Health lobbyists fight to keep lucrative programs

Wed Jul 8, 2009 8:03pm EDT

(Reuters) - Lobbyists for drugmakers, insurance companies, hospital chains and others are trying to protect lucrative businesses threatened by U.S. healthcare reforms.

Barack Obama

Following are some of the top concerns of the healthcare industry as Senate and House lawmakers prepare a legislative package:

DRUGMAKERS

* Oppose requiring lower prescription drug prices for poor, elderly citizens who qualify for both Medicare and Medicaid programs. In 2006, Congress moved drug coverage for dual-eligible citizens from Medicaid to the new Medicare Part D program on the assumption that it would be able to negotiate better prices. Democratic Rep. Henry Waxman criticized the switch as a "windfall" for drugmakers and said the government paid $3.7 billion more in 2006-2007 for the top 100 drugs used by dual-eligibles than it would have paid under Medicaid.

* Want 12 years to 14 years of exclusivity for new biologic drugs before cheaper, generic versions are approved by the Food and Drug Administration. The Obama administration has endorsed seven years of protection. Biologics are man-made forms of human proteins that are more complicated to make than more traditional, chemical-based medicines. These often-expensive medicines are used to treat conditions ranging from anemia to cancer and are expected to help drive future profit growth for the drug industry.

* Agreed to $80 billion in prescription drug discounts over the next 10 years, in part by reducing the cost of medicines for elderly Medicare patients who find themselves in the so-called "doughnut hole" and pay the full costs of drugs for a certain period of time.

HEALTH INSURERS

* Oppose creating a government-run public insurance plan to compete against private insurers. President Obama, along with many Democrats, backs a public option. Insurers say it could drive them out of business and lead employers to drop coverage for their workers.

* Resist payment cuts for Medicare Advantage health plans for the elderly and disabled offered by some companies. Such plans can offer more benefits than traditional fee-for-service Medicare coverage but cost the government $12 billion more, according to the independent Medicare Payment Advisory Commission (MedPac).

HOSPITALS

* Opposed the Obama administration's original proposal for $220 billion in payment cuts, but have agreed to $155 billion in cuts over 10 years, in part from reduced Medicare and Medicaid payments. Also oppose reduced payments for long-term care and rehabilitation hospitals, saying that could prevent better care coordination for patients.

* Oppose a public health insurance plan that would pay providers at the same rates as Medicare and Medicaid.

* Want a Medicaid drug rebate expanded to more hospitals as well as in-patient services.

* Want funding assistance expanded for hospitals treating large numbers of undocumented immigrants.

DEVICEMAKERS

* Oppose paring the use of various medical technologies or related reimbursement rates, especially for imaging tests.

(Reporting by Susan Heavey, Julie Vorman, Lewis Krauskopf)



More from Reuters

 A boy looks for recyclable items in the polluted waters of the Yamuna river in New Delhi December 9, 2009. REUTERS/Rupak De Chowdhuri

U.N. Climate Change Conference

Welcome to our coverage of the U.N. Conference on Climate Change. This is your space to respond to our panelists and voice your views on the events at COP15.  Full Coverage 

     A broker waits for a phone call as he trades on the dealing floor at ICAP in Jersey City, New Jersey December 9, 2009. REUTERS/Lucas Jackson

    Easy come, easy go

    After a run of easy money this year, fund managers cast a wary eye on investment prospects in 2010: "The consumer has had a stay of execution but there's still a lot of hard labor yet to come."   Full Article 

    An employee counts U.S. bank notes at the Korea Exchange Bank in Seoul. REUTERS/Jo Yong-Hak

    Is greed on the way out?

    A generation of perverted rewards and divisive leadership is finally coming to an end, says GE chief Jeff Immelt.   Full Article