On June 22, President Obama said he’d reached agreement with big drug companies to cut the price of medicine by $80 billion. He extended his gratitude to Big Pharma for the deal that would, “reduce the punishing inflation in health care costs.”
For perspective: Imagine you are in a Wal-Mart and there’s a sign over a flat screen TV, “BIG SAVINGS!” So, you break every promise you made never to buy from that union-busting big box — and snatch up the $500 television. And when you’re caught by your spouse, you say, “But, honey, look at the deal I got! It was TWO-PERCENT OFF! I saved us $10!”
The Big Pharma kingpins did not actually agree to cut their prices. Their promise with Obama is something a little oilier: they apparently promised that, over ten years, they will reduce the amount at which they would otherwise raise drug prices. Got that? In other words, the Obama deal locks in a doubling of drug costs, projected to rise over the period of “savings” from a quarter trillion dollars a year to half a trillion dollars a year. Minus that 2%.
What did that cost us? The New England Journal of Medicine notes that 13 European nations successfully regulate the price of drugs, reducing the average cost of name-brand prescription medicines by 35% to 55%. Obama gave that up for his 2%
What else went down in Obama’s drug deal? To find out, I called C-SPAN to get a copy of the videotape of the meeting with the drug companies. I was surprised to find they didn’t have such a tape despite the President’s campaign promise, right there on CNN in January 2008, “These negotiations will be on C-SPAN.”
When Dick Cheney was caught having secret meetings with oil companies to discuss Bush’s Energy Bill, we denounced the hugger-muggers as a case of foxes in the henhouse.
Cheney’s secret meetings with lobbyists and industry bigshots were creepy and nasty and evil.
But the Obama crew’s secret meetings with lobbyists and industry bigshots were, the President assures us, in the public interest.
We know Cheney’s secret confabs were shady and corrupt because Cheney scowled out the side of his mouth.
Obama grins in your face.
See the difference?
The difference is 2%.