As those in Washington continue to make their arguments for or against the proposed health care reform bill, those in the healthcare industry are spending millions to have their views heard. One large sector of the health care system is the pharmaceutical industry. National Public Radio (NPR) recently reported that the Pharmaceutical Research and Manufacturers of America, or PhRMA, paid approximately $40 million to lobbyists just this spring. In doing so, PhRMA sought to make early changes to the bill which would be beneficial to both health care consumers and the pharmaceutical industry.

In exchange for removing items of the bill allowing importation of drugs from Canada and negotiation of drug prices by the government, PhRMA offered $80 billion in drug discounts over the next 10 years. Billy Tauzan, president and CEO of PhRMA, stated in an interview with NPR that, overall, health care consumers will receive some relief as it relates to drug costs. He contends, however, that prescription drug costs only account for 8 percent of total healthcare spending. Should the health care reform bill pass, PhRMA’s deal will mean there will be less money for drug research over the next 10 years. While it is a little more costly to the pharmaceutical industry than anticipated, Mr. Tauzan feels that this is a step in the right direction. He states that health care costs can be controlled long-term if more focus is placed on preventative care and disease management. In his opinion, the passage of the health care bill is the first step.

Check out the full post on Mr. Tauzan view of the new health care bill.