Lilly CEO sees no windfall from health reform

WASHINGTON (Reuters) - Drugmakers stand to benefit from expanded insurance coverage that may come with U.S. healthcare reform but do not expect a windfall, Eli Lilly and Co's chief executive said on Thursday.

Lilly CEO John Lechleiter, speaking to reporters, said more people would likely take medications if insurance coverage were expanded as part of a U.S. effort to overhaul the health system.

"There's been some who characterized that as a windfall. I don't think that's been proven to be the case. I do believe there would be some additional benefit if we could ensure the 45 to 47 million people (without insurance) had access to the kind of quality care that those of us with insurance take for granted," Lechleiter said after delivering remarks to the U.S. Chamber of Commerce.

In his speech to the business group, Lechleiter said he was "very concerned" some proposals under discussion in Congress "will have unintended side effects" that could discourage development of new medicines.

"The encouragement of innovation does not even seem to be on the table in today's policy discussions," he said.

Lechleiter said allowing Medicare to negotiate drug prices and having the government offer its own insurance plan to compete with private insurers could be harmful.

"Doctors and patients need to retain the ability to choose from all of the available alternatives. That ability would decline considerably if the U.S. government continues to expand its role as a health insurer," he said.

Congress is weighing measures to expand health insurance coverage, improve the quality of care and control costs. President Barack Obama wants to sign a healthcare overhaul into law by the end of the year.

(Reporting by Lisa Richwine; Editing by Brian Moss)