Is there a secret agreement between the White House and the pharmaceutical industry to block any Congressional efforts to use the weight of the government to lower drug prices?

Both sides strongly deny that any such deal exists, but a memo obtained by the left-wing site Huffington Post apparently contradicts their denials.

It says the White House agreed to oppose any congressional efforts to use the government’s leverage to bargain for lower drug prices or import drugs from Canada — and also agreed not to pursue Medicare rebates or shift some drugs from Medicare Part B to Medicare Part D, which would cost Big Pharma billions in reduced reimbursements.

In exchange, the Pharmaceutical Researchers and Manufacturers Association (PhRMA) agreed to cut $80 billion in projected costs to taxpayers and senior citizens over ten years. Or, as the memo says: “Commitment of up to $80 billion, but not more than $80 billion.”

Representatives from both the White House and PhRMA, shown the outline, adamantly denied that it reflected reality. PhRMA senior vice president Ken Johnson said that the outline “is simply not accurate.” “This memo isn’t accurate and does not reflect the agreement with the drug companies,” said White House spokesman Reid Cherlin…

PhRMA’s Johnson cast doubts on the provenance of the outline. “The memo, as described, is simply not accurate,” he said in a statement. “Anyone could have written it. Unless it comes from our board of directors, it’s not worth the paper it’s written on. Clearly, someone is trying to short circuit our efforts to try and make health care reform a reality this year. That’s not going to happen. Too much is at stake for both patients and the U.S. economy. Our new ads supporting health care reform are starting this week, and we are redoubling our efforts to drive awareness of why this issue is so important to America’s future.”

Johnson added that “no outside lobbyists — not a single one — were ever involved in our discussions with the Senate Finance Committee or the White House so someone is blowing smoke.”

Keep in mind that the New York Times has already reported that PhRMA will spend $150 million to push for ObamaCare over the August recess alone. So clearly the pharmaceutical industry feels safe enough to push for the socialized health care without concern that any harm will be inflicted on its business. What better way to sooth fears than an agreement with the White House to ensure that the government won’t affect you?

Incidentally, the HuffPo commenters are busy eating their young in an attempt to rationalize any such deal. Don’t be surprised to find that trend continue throughout the mainstream media if this ever does get picked up.

Thanks to Hot Air.