A bit tough to backtrack now that both the head of Big Pharma and the Deputy Chief of Staff at the White House both already confirmed the deal’s existence.

Just to remind folks, this was a deal where the White House agreed not to include in the health care reform package any provisions permitting the government to negotiate down Medicare drug prices with Big Pharma. In other words, they agreed to let Big Pharma continue charging older Americans four times what the same prescription drugs cost in Europe. Candidate Obama repeatedly promised to stop giving Big Pharma this sweetheart deal. Now he’s agreed to it. Secretly. That’s why people are upset.

And for that matter, why not give the government the power to negotiate across the board for cheaper drug prices, not just in Medicare? European drug companies charge 1/3 to 1/5 the price that American companies charge for the exact same drugs. Yet the European drug companies do just fine surviving. The other day I spoke to someone who works for a pharmaceutical company in Europe. I asked them why drugs were so much more expensive in America. Was it due to the R&D; costs that we hear so much about, the billions that American drug companies invest in creating new drugs, so thus they simply must charge us a ton to recoup their investment?

His answer: They charge you four times as much because you’re willing to pay four times as much.