Drug Lobby Successfully Preventing Democratic Legislation To Reimport Drugs, Negotiate Prices For Medicare Drug Benefit

Main Category: Medicare / Medicaid / SCHIP
Article Date: 13 Mar 2008 - 12:00 PDT

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The pharmaceutical lobby has "increasingly worked itself into the good graces of the Democratic Party" and in doing so has helped block Democrats from passing a measure permitting Medicare to negotiate prescription drug prices and legislation allowing drug reimportation from Canada, the Washington Post reports.

The pharmaceutical industry was "long an ally of Republicans," the Post reports. However, the Pharmaceutical Research and Manufacturers of America, the industry's main lobbying group, last year split donations 50-50 to Republicans and Democrats in an attempt to "purchase the sympathy of -- and access to -- the Democrats, while also keeping the allegiance of the Republicans," according to the Post. The Post reports that for the last decade, Republicans received two-thirds or more of campaign contributions from PhRMA.

According to the Post, the drug industry had "worked closely" with the previously Republican-controlled Congress to pass the Medicare prescription drug benefit with a provision prohibiting the government from negotiating with drug makers for lower prices. Since Democrats took control of Congress in 2006, PhRMA has played a role in the effort to keep Democrats from reintroducing legislation that would lift the ban on negotiation. The Post reports that a measure allowing negotiation initially "did not resurface" because of "GOP resistance" and that a federal analysis showing that price negotiations would be negligible. The measure also did not resurface because "rank-and-file" Democrats in Congress "were not eager to revisit it," according to the Post.

Democrats also had "similar reservations" about a bill that would authorize reimportation of less-expensive prescription drugs from Canada and other countries. According to the Post, although Republican opposition and public fears about health risks initially hindered the legislation, "Democratic reluctance" about pursuing the legislation ultimately ended the debate. However, most Democratic leaders are "still eager" to push the legislation, the Post reports.

PhRMA
According to the Post, the pharmaceutical drug lobby has "wooed" congressional Democrats by "plowing millions of dollars" into support for other Democratic goals, including an expansion of SCHIP. The Post reports that the pharmaceutical drug lobby joined a group that included AARP and Families USA to purchase about $7 million in advertisements supporting expansion of SCHIP. The pharmaceutical lobby also has "engaged" former top aides to Democratic lawmakers, purchased targeted advertising in Capitol Hill publications and "joined forces" with organized labor, according to the Post.

PhRMA President Billy Tauzin, a former Louisiana Republican congressman, said his organization is forging partnerships with patients' groups, including the American Heart Association, the American Lung Association, Mental Health America and the Partnership for a Drug-Free America, because the groups have a "more positive reputation among lawmakers" than the drug industry.

Sen. David Vitter (R-La.) said the pharmaceutical drug lobby is " an extremely powerful, effective lobby." Ron Pollack, executive director of Families USA, said, "They are the most effective lobby on Capitol Hill right now" (Birnbaum, Washington Post, 3/12).

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