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WH unable to provide Source for Prescription Drugs Savings

by Karl Gotthardt - albertacowpoke | June 23, 2009 at 06:57 am

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President Obama announced a new Prescription Drug Plan yesterday that was apparently negotiated by the AARP and Drug Companies. The plan was to save 80 Billion Dollars for seniors and make drugs affordable.

At a Press Conference the White House was unable to explain over half the savings. The White House assumes that there will be a 30 Billion Dollar Savings for Medicare recipients that fall into the so called "donut hole" The savings are to be achieved by pharmaceutical companies reducing the costs by 50% of name brand drugs.

When pressed for a source by Major Garrett of FOX News, White House Press Secretary Robert Gibbs could not name a source. When further pressed on what the savings would be and based on what, Gibbs replied that they could be between 0 and a 100 Billion Dollars.

The Obama White House cannot explain more than half of today's announced $80 billion in prescription drug savings.

A senior official said the White House estimates $30 billion in savings will be achieved through drug companies reducing by at least 50 percent the cost of brand-name prescription drugs for Medicare beneficiaries who fall into the so-called coverage "donut hole."

The other $50 billion in savings will come from unspecified and unknown changes to drug costs linked to Medicare and Medicaid.

The $80 billion in savings is a 10-year estimate.

White House Press Secretary Robert Gibbs said Monday details on non-donut hole savings remain to be negotiated between the drug companies and the Senate Finance Committee.