The US prescription drug market remains anemic, but don't blame the federal government. The Medicare Prescription Drug Benefit that began in 2006 is the only reason there has been any growth in the retail sector. No wonder industry is so eager for health care reform.

Senate compromise attempts to meet in the middle by offering additional donut hole relief without using Part D dual-eligible rebates to pay for closing the coverage gap altogether.

The creation of an independent health council to weigh in on Medicare reimbursement rates may be part of a final health reform bill. The idea has a number of implications for biopharma-good and bad.