Obama caught in his own web on the PhRMA deal

Over the summer Obama made a deal with PhRMA, the drug companies lobbying arm, to cap drug cuts at $80 billion over 10 years in exchange for their support of his health reform.

Well, health reform as we knew it in July (ie: a public option, among many others) has blown up but the President is sticking by his deal. Or trying to. Sen. Byron Dorgan (D-ND) has proposed a bill to allow for the reimportation of pharmaceutical drugs from Canada. Meanwhile, Sen. Tom Carper (D-DE) is working to keep the amendment from coming to a vote, ostensibly at the behest of the White house, who intends to stand by its deal.

The amendment has the support of a number of other Republicans, including Sens. John McCain (AZ), Charles Grassley (IA), John Thune (SD) and David Vitter (LA).

Huff Post reports: Opponents of the amendment worry that many more Republicans may join the amendment not because they agree with it, but because they want to put the health care bill in jeopardy.

So the White House and the drug makers are trying to persuade as many Democrats as they can to oppose the amendment despite their previous support for it.

"I don't think that's going to get my vote," Sen. Jay Rockefeller (D-W.Va.) said when HuffPost asked about the reimportation amendment. He said that even though he is a supporter of reimportation, he is concerned that if it passes it could blow everything up.

"I'm not messing around with anything without 60 votes. Nothing," he said. "And I'm a co-sponsor of the amendment."

Why the fuss?

According to Huff, Within a decade, reimportation would save consumers roughly $80 billion and the federal government $19 billion, according to the Congressional Budget Office. But that would mean $100 billion more in lost revenue than the powerful Pharmaceutical Research and Manufacturers of America (PhRMA) lobby agreed to bear-- in exchange for being supportive of the overall health reform effort.

Obama HAS to walk away from this deal. HAS TO. He cannot appear to be in bed with the pharmaceutical lobby in opposition to further savings for the American consumer. He cannot let the GOP get any leverage. Right now, they (along with Joe Lieberman) appear to be the whores for big pharma and big insurance - more interested in protecting their corporate masters than helping the American taxpayer.

That's HUGE leverage come 2010 and 2012. Obama must walk away.