US Pharma looks to some changes with control of House passing to Republicans following mid-term election

Tuesday’s massive victory for US Republicans in securing a majority in the House of Representatives offers some opportunities for the nation’s pharmaceutical industry to get certain changes to health care reforms under legislation signed by President Barack Obama’s at the start of this year though provisions, but some, including Medicaid rebates and drug discounts for Part D Medicare are here to stay, Eli Lilly chief executive John Lechleiter told the Dow Jones news service.

During negotiations over the health-care bill enacted in March, in exchange for commitments not to introduce some cost-cutting measures – including re-imports of drugs from cheaper areas such as Canada and direct negotiations of Medicare prices, the pharmaceutical industry offered $80 billion in rebates to produce future cost savings. These have been taking a significant toll on drugmakers’ financial results, as has been witnessed in recent third-quarter reports.

Many of the victorious candidates in the newly elected Republican-controlled House campaigned on repealing health care reform. But with the Senate remaining under Democratic control, efforts to "repeal and replace" President Obama's Affordable Care Act remain uncertain (The Pharma Letter November 3).