A year has passed since the US elected Barack Obama as our 44th President.
Traditionally, for the first anniversary, a gift made of paper is in order, which seems to make sense, as Obama's historic Presidency has ushered in an era of legislative activity not seen since the days of Franklin Delano Roosevelt. They went through a lot of paper this year, and could use a few reams to replenish, we imagine. (Coincidentally, More Than Medicine shares the same anniversary, but paper is so Old Media).
In the last 365 days, we saw, among other things, the beginning of a major effort to transform the US healthcare system. Efforts to achieve reform became more complicated last night when Massachusetts, the bluest of the blue states, elected a Republican to this seat for the first time since 1947. Political observers have declared that this election is a complete game changer for the White House's healthcare agenda
Early on in this process, President Obama asked major players in the healthcare industry to commit to improving access to health services for all Americans. Our industry rose to this challenge. In an agreement with President Obama and the Senate Finance Committee, we pledged to help expand prescription drug coverage to seniors whose prescription drug costs fall in the "doughnut hole," the insurance coverage gap in Medicare Part D, by offering a 50% discount for all branded prescriptions in the doughnut hole. This pledge, along with several others made by our industry as part of the PhRMA Agreement, will help the underserved access critical medicines that will improve and extend their lives.
President Obama realizes the importance our companies play in the overall health of this nation and he deserves credit for not shying away from tackling a difficult and controversial issue. While we've agreed with his overall goals, there are important differences in our approach. The President has publicly said he is in favor of importing foreign pharmaceuticals into the US. This could have a lasting, harmful effect that undermines the role of the Food and Drug Administration. It also brings the possibility of counterfeits, incorrect dosages and drugs that could have different pharmacokinetics into the realm of our healthcare delivery system. Further, healthcare providers who write prescriptions assume that the script is for a drug approved by FDA.
As we look ahead to President Obama's second year in office, we hope he will make good on his campaign pledge to make the Research & Development Tax credit permanent. This tax credit is available only for R&D done in the US. For foreign companies looking to open a plant in the US, thus creating jobs, this tax credit is a significant factor in their decision. By making this tax credit permanent, he can ensure American companies, or foreign subsidiaries will continue to invest their R&D dollars in the US and in American workers.
We look forward to working with the Administration and Congress on these and other issues that will ultimately ensure the US healthcare system continues to be the world's best.
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