U.S. consumer group, drug companies want Medicaid expanded

A leading consumer group and a trade association representing major drug companies said on Tuesday they would spend millions to promote three changes to the U.S. healthcare system, including expanding government insurance for the poor.

Families USA and the Pharmaceutical Research and Manufacturers of America (PhRMA) said they would launch a multimillion-dollar advertising and lobbying campaign to get lawmakers to expand Medicaid insurance to more people, provide subsidies for moderate income individuals and families to buy insurance and cap out-of-pocket expenses for low- and middle-income people with insurance.

Ron Pollack, executive director of Families USA, said at a news conference with PhRMA chief Billy Tauzin that the groups, often on opposite sides of issues, had found areas of agreement that were “designed to make sure nobody’s left out of the system.”

Families USA has attacked drugmakers’ prices and advocated importation of cheaper medicines and other policies opposed by PhRMA, which represents Pfizer Inc, GlaxoSmithKline PLC and Merck & Co Inc and other companies.

Despite lingering differences on some major issues, Tauzin said there was “a lot of common ground.”

Soaring health care costs, rising unemployment and millions of uninsured Americans are putting pressure on lawmakers to reform the health care system in the United States.

PhRMA and Families USA did not address a major question facing lawmakers about whether a government-run plan would be part of the mix of insurance options that will be available to Americans.

Democrats want a public plan, but insurers and Republicans argue that private companies would be unable to compete with a potentially cheaper government-run option.

Senate Democrats who are drafting health insurance legislation are aiming to have bills ready for consideration by early June.

Drugmakers could expand their markets if more people had health insurance, but they could also face government efforts to lower drug prices.

Tauzin said pharmaceutical companies were concerned about a call for lower drug prices in Medicaid, which he called “an extremely regulated area of healthcare” that needed changes.

By Lisa Richwine

WASHINGTON (Reuters)