Obama Reverses Stand on Drug Industry Deal

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http://www.nytimes.com/2009/08/08/us/08lobby.html?_r=1&partner=rss&emc=rss

By DAVID D. KIRKPATRICK
Published: August 7, 2009

WASHINGTON — Caught between a pivotal industry ally and the protests of Congressional Democrats, the Obama administration on Friday backed away from what drug industry lobbyists had said this week was a firm White House promise to exclude from a proposed health care overhaul the possibility of allowing the government to negotiate lower drug prices under Medicare.
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David Axelrod, left, senior adviser to President Obama, and Jim Messina, the White House deputy chief of staff, on Feb. 10.
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The reversal underscored the delicate balancing act the White House has pursued in its strategy of negotiating behind-the-scenes deals to win industry support without alienating liberal supporters on Capitol Hill.