Drug Companies May Narrow Medicare Coverage Gap

Nor was it known whether other elements might be envisioned that could ease the sting for the industry.

Any agreement with Pharmaceutical Research and Manufacturers of America, or PhRMA, which represents drug companies, would mark a major accomplishment for Sen. Max Baucus, the chairman of the Senate Finance Committee, who is attempting to draft legislation that can command bipartisan support in Congress. The Montana Democrat has been negotiating with several outside interests — hospitals, doctors and insurance companies among them — in hopes they would accept lower-than-planned payments from government-run health care programs. A deal with drugmakers would presumably increase pressure on other groups to do the same.

It would also counter a recent series of stumbles that, while common with any major legislation, have contributed to the impression that the drive to enact health care legislation was sputtering.

Ken Johnson, senior vice president of the PhRMA, declined to comment, except to say, "We remain committed to comprehensive health care reform and we are still in discussions with the administration and congressional leaders about ways we can make a positive contribution to this important effort."

The industry is under pressure, particularly in the House, where senior Democrats are considering legislation that could cut more deeply than drug companies would accept on their own. Additionally, some lawmakers have sought for years to permit the importation of prescription drugs from Canada and other countries, a step the industry has fought and was able to fend off while Republicans controlled Congress.