Financial Times FT.com

Obama health plan gets boost from drugmakers

By Tom Braithwaite in Washington

Published: June 21 2009 19:53 | Last updated: June 21 2009 19:53

President Barack Obama’s plans for health reform received a double boost over the weekend, with drugmakers agreeing to cut prescription charges and an opinion poll showing a significant majority of Americans want the option of public health insurance.

Pharmaceuticals companies agreed to cut about $80bn over the next decade in charges for prescription drug users aged 65 and over, the Obama administration announced on Saturday. These users of the Medicare government-backed scheme currently have to pay the full price of medicines that cost between $2,700 and $6,153 a year.

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