MONDAY, JUNE 22ND, 2009 AT 2:29 PM
A Significant Breakthrough to Assist Our Seniors
Posted by Katherine Brandon

Today, the President announced a landmark agreement with pharmaceutical companies, who pledged $80 billion in prescription drug discounts over the next 10 years. This compromise is the latest step towards a new consensus amongst health care stakeholders to help reduce costs and provide quality care for all Americans –- last month a coalition of health care industry leaders agreed to $2 trillion in savings over 10 years.

The President was joined by Senators Max Baucus and Chris Dodd, and introduced by AARP President Barry Rand, who called the plan a "new opportunity" for those who have been burdened by the costs of prescription drugs.

The President announces the agreement
(President Barack Obama speaks about the agreement to lower drug costs for seniors, Monday, June 22, 2009,
in the Diplomatic Reception Room of the White House.   With the President are, from left, CEO of AARP Barry Rand, Senator Max Bachaus (D-MT) and Senator Chris Dodd (D-CT). Official White House Photo by Chuck Kennedy)
The agreement, which was reached between Sen. Baucus, Administration officials, and the nation's pharmaceutical companies, will ultimately reduce the price of prescription drugs by half for millions of America's seniors. As part of the upcoming health care reform legislation, drug manufacturers that participate in Medicare Part D will either pay a rebate to Medicare or offer a substantial discount of at least 50 percent on prescription drugs to seniors who fall within the infamous "doughnut hole"— payments between $2700 and $6153.75 not covered by Medicare. The deal will help close this unfair gap in coverage, providing relief for millions of seniors who have been burdened by these out-of-pocket expenses, making it easier for them to get the prescriptions that they need.
In addition to providing half-price discounts, the pharmaceutical companies will offer other discounts and savings to total an $80 billion reduction in costs. The President said this historic compromise marks a turning point in the journey towards health care reform that will lower costs for all Americans: