Economy-Finance

FACTBOX-Winners, losers in U.S. Senate health bill

Nov 21 (Reuters) – Democrats in the U.S. Senate hope toclear the first procedural hurdle for sweeping healthcarereform on Saturday by voting to open debate on the historiclegislation.

If the Senate debate goes forward on Nov. 30, it isexpected to last for at least three weeks.

Senate Democrats want passage by the year-end but the billfaces challenges before a final vote. If approved, it wouldhave to be reconciled with a bill already passed by the U.S.House of Representatives and approved again by both chambersbefore it could be signed into law by President Barack Obama.

The $849 billion Senate bill aims to extend coverage totens of millions of uninsured and to cut costs in thehealthcare system, which accounts for one-sixth of the U.S.economy. The measure looks to several industries to helpfinance it.

Following are some of the health industry winners andlosers based on the Senate leadership’s bill.

WINNERS

DRUGMAKERS

* The pharmaceutical industry kept its previous $80 billionagreement with the Senate Finance Committee to provide savingsand rebates, including a $2.3 billion annual industry fee to beparceled out among companies such as Pfizer Inc, Merck & Co Incand others. Wider insurance coverage could help offset theindustry’s costs by providing more potential customers.

* Drug companies avoided provisions found in the House billcalling for greater rebates under the government’s low-incomeMedicaid insurance program and price negotiation under theMedicare program for the elderly.

* However, the bill allows an Independent Medicare AdvisoryBoard to make recommendations to lower Medicare payments forprivate drug insurance plans, which could in turn reduceprescription drug usage.

DEVICEMAKERS

* Medical devicemakers won a major reduction in an industrytax to be imposed over 10 years to $20 billion from $40 billionto conform with the House bill. Devicemakers had fought toeliminate the tax.

HOSPITALS

* Hospitals maintained their $155 billion, 10-year dealaccepting lower government payments from Medicare and Medicaidin exchange for what the industry hopes will be an increase ininsured customers.

* Hospitals, including companies such as Universal HealthServices Inc and Tenet Healthcare Corp, were exempted fromdecisions made by the Medicare advisory board, sparing themfrom future potential payment cuts.

BRAND BIOLOGIC DRUGMAKERS  Continued…