The announcement by drugmakers that they'd cut prices by $80 billion over the next decade gets maximum positive spin in the press and a cool reception from critics. The Washington Post reports the AARP supported the move by the Pharmaceutical Research and Manufacturers Association, which isn't surprising given that most of the relief is aimed at the closing the so-called donut hole in the senior citizen prescription drug benefit. The plan will be officially unveiled at the White House today.

If the Post report is accurate, then not much of the money will be available for health care reform. The donut hole is by definition out-of-pocket costs for seniors. Cutting those expenses will not free up money in government budgets for helping the uninsured. That means the Congressional Budget Office will score the offer at much less than the $80 billion.

And as far as the size of the price reduction is concerned, blogger/economist Dean Baker points out that it amounts to about 2 percent of projected drug expenditures over the next decade. That's better than nothing, but it is still not a major reduction.