Good news for Barrack Obama and his administration that the pharmaceutical industry has finally agreed to spend over $80 billion over the next 10 years on improving the drug benefits for senior on Medicare.

The decision was announced this Saturday and the industry agreed to bear the expenses of Obama’s health care plan. Announcing the accord, Max Baucus, chairman of Senate Finance Committee, said that this deal will mean some affordable prices on the prescription drugs when the current Medicare coverage does not cover the cost of prescriptions. This deal is undoubtedly the first step of success for Baucus and for Obama.Speaking to the press, Obama said,” this agreement by the medical and pharmaceutical industries is indeed the triumph to the pledge of many health care industries leaders who approached me last month and offered to play their part in reducing the health care spending by $2 trillion in the next decade or so. Obama also added that this signing of the deal is America start to a new journey of health care reforms. No one can just forget the efforts made by Baucus in making this deal a successful one. He had been the key is executing the administrations plans by speaking and negotiating with leading health care industries and has finally played his part in executing it with perfection.

Baucus also added that the medical companies will pay half of the cost of any brand-name drugs to seniors in doughnut hole – a gap in the coverage that is the normal feature of many plans providing this prescription coverage under Medicare. Obama also added that, the removal of this gap will do a great help to all the American seniors. Though these reforms will incur some costs for the government they are sure to benefits millions of US citizens.