The Lipitor loophole.

• Author: Peters, Charles
• Position: TILTING at windmills - Brief article

When the Obama administration was working on health care reform, the drug companies reached a deal with the White House to fend off legislation granting government the power to negotiate drug prices. The drug companies promised that when seniors reached the so-called "donut hole"--the point after which seniors must pay full price for drugs otherwise paid for by Medicare--the drug companies would offer a 50 percent discount on name-brand drugs.

But there is a loophole to which seniors should be alert: 50 percent of what? The drug companies are already increasing retail prices. They could continue to do so to the point that a...