“Even with PhRMA’s offer to help seniors,” says Dorgan, “American consumers will continue to pay the highest price for prescription drugs in the world.”

“The fact is,” adds Snowe, “that while the announced savings are substantial, they amount to less than 4 percent of our nation’s annual prescription drug spending, and when you consider that other developed nations pay 35-55% less for their medications, it certainly doesn’t close the gap much.”

For years, the two lawmakers have pushed legislation — anathema to drug companies — allowing U.S. pharmacists to import Food and Drug Administration-approved drugs from some countries abroad, where costs are much lower, and pass the savings on to domestic consumers. (Current law limits the importation of prescription drugs exported by the United States).

Obama, as senator, was a sponsor of the same bill. By agreeing to take an estimated $80 billion haircut under Medicare’s drug benefit, however, the drug makers are surely hoping to stave off further cuts, like the Dorgan-Snowe bill certainly represent.