By David M. Herszenhorn
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The fight over the deal with PhRMA stems from the legislative battle over the Medicare prescription drug bill that Republicans successfully pushed through Congress in 2003.
As a result of that legislation, about 6 million elderly Americans who had been receiving drug benefits under Medicaid, the state-federal insurance program for the poor, were instead shifted into the new Medicare drug program, resulting in the government paying far higher prices for drugs.
Representative Henry Waxman, Democrat of California, and now the powerful chairman of the House Energy and Commerce Committee, has long complained about that switch.
And as a main author of the House health care bill, Mr. Waxman has inserted a provision that seeks to reverse the arrangement and to recoup the extra money that the government has been spending.
Like Mr. Nelson’s amendment, the House bill would restore the old Medicaid drug discounts or “rebates” as they are known.
PhRMA has said it would support the health care legislation provided the White House lives up to its deal. PhRMA said that deal included assurances that the White House would resist the effort by Mr. Waxman to restore the drug rebates for elderly Americans who are dually eligible for both Medicare and Medicaid.
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