Pressure intensifies on top drug lobbyist to fix 'doughnut hole' issue

The pharmaceutical industry was dealt a significant blow on Thursday when a key provision impacting its payment obligations under the Medicare program was omitted from legislation to fund the Department of Health and Human Services.

Drug companies rarely lose in Washington, and the latest defeat will intensify pressure on the industry’s top lobbying group at a time when the White House is fighting to reduce treatment costs. Reversing a provision in February’s government funding bill that will effectively increase the portion of the cost of a brand-name drug that manufacturers must cover in Medicare Part D eclipses even pushback to the administration’s efforts.