Drug compaines

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While Congress is busy debating the health care bill, the Obama administration has publicly affirmed its deal with drug makers to block any Congressional
move that would force the drug industry to cough up more than $80 billion in cost reductions.

Panic arose among the drug makers when a House measure was introduced that gave the government the power to negotiate prices and demand additional rebates, prompting the White House to explicitly come forth with its promise to cap the reductions at $80 billion.

The incorporation of the drug industry in the health care debate is part of an overall move by the White House to achieve broad consensus among all the players on health care reform. In addition, it might be working.

Although they publicly oppose a public insurance plan, lobbyists for the drug industry trade group privately acknowledged to the New York Times that they have "no intention of fight [the plan]," partly because of their agreements with the White House which provides them "other safeguards."

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