Drug Firms Woo
Democrats, Helping Defeat Their Bills
By Jeffrey H. Birnbaum
Washington Post Staff
Writer
Wednesday, March 12, 2008; D01
The pharmaceutical industry, long an ally of Republicans, has increasingly
worked itself into the good graces of the Democratic Party and by doing so has helped block the Democrats'
top prescription-drug initiatives.
In the year since they took over on Capitol Hill, Democratic leaders have been unable to pass either a
bill allowing reimportation of drugs from Canada or a measure requiring negotiation of drug prices under Medicare. Neither is likely to reach the president's desk this
year. Lawmakers on both sides of these issues say the primary reason is the
influence, now redirected, of the drug lobby.
Drug companies have gone on a hiring binge, retaining Democratic lobbyists in
dozens of major firms. This strategy, which K Streeters call "clogging the
system," prevents adversaries from hiring anyone from those consultancies.
The drug lobby has also wooed congressional Democrats by plowing millions of
dollars into helping with another Democratic goal: expansion of the children's
health program. In a detente with its traditional foes, the drug industry joined
a group that included AARP and Families USA to buy about $7 million in ads backing the
expansion of the program, under which states receive federal money to provide
health insurance to families with children.
The industry's main lobby, the Pharmaceutical Research and Manufacturers of
America, known as PhRMA, paid for most of the group's budget. "They have all the
money," explained John Rother, policy director of AARP, which is no slouch when
it comes to spending money on lobbying. "They're the ones who can write the big
checks."
In years past, when pharmaceuticals leaned heavily Republican, Democrats did
not have much reason to cut them a break or side with them on policy. Democrats
won control of Congress in 2006 in part by accusing Republicans of being too
close to drug companies and other "special interests." But now that
pharmaceutical money is available to both parties, the drug companies have
reason to hope for better treatment.
The Democratic takeover of Congress means "we just have more friends than we
used to have," said PhRMA President W.J. "Billy" Tauzin, a former Republican
congressman from Louisiana. "We're trying to find more."
The industry worked closely with the previous Republican-controlled Congress
to shape a Medicare prescription-drug program that included a provision barring
the government from negotiating with drug companies for lower prices. Democratic
leaders have wanted to require such negotiation but were stopped initially by GOP resistance and an analysis by federal auditors that found that
the impact of negotiation on prices would be small. Ultimately, the measure did
not resurface because rank-and-file Democrats in Congress were not eager to
revisit it.
Democrats had similar reservations about a bill that would legalize
reimportation of lower-cost prescription drugs from Canada and other countries.
Republican opposition and public fear about imports of all sorts, from food to
toys, blocked the measure at first. Then, Democratic reluctance about pursuing
the matter ended the debate.
Most Democratic leaders are still eager to push this legislation, which the
U.S. pharmaceutical lobby opposes. "They've orchestrated these coalitions and
other efforts to improve their public image, but I still get a lot complaints
from people that the price of drugs is too high," said Rep. Henry A. Waxman (D-Calif.), chairman of the House Oversight and Government Reform Committee.
Still, representatives of both the political left and right said the drug
lobby's influence will make that hard. "They are an extremely powerful,
effective lobby," said Sen. David Vitter of Louisiana, a conservative Republican who tried and
failed to beat the drug lobby on the reimportation issue. Ron Pollack, executive
director of the liberal Families USA agreed: "They are the most effective lobby
on Capitol Hill right now."
PhRMA boosted its spending on lobbying last year by 25 percent, to more than
$22 million. The increase made the group the second-largest purchaser of
lobbying services -- which includes both lobbyists and issue advertising --
after only the capital's perennial top spender, the U.S. Chamber of Commerce, according to CQ MoneyLine, which tracks
money in politics.
Drug firms also have engaged former top aides to Congress's most important
Democratic lawmakers, ensuring access to each of the leaders. These lobbyists
once worked for such lawmakers as House Speaker Nancy Pelosi (Calif.); Senate Finance Committee Chairman Max Baucus (Mont.); House Ways and Means Committee Chairman Charles B. Rangel (N.Y.);
and Edward M. Kennedy (Mass.), chairman of the Senate Committee on
Health, Education, Labor and Pensions.
PhRMA's member companies, which include Merck, Eli Lilly and Pfizer, and their employees have also radically altered their
giving patterns to federal candidates. For the past decade, pharmaceuticals
contributed two-thirds or more of their campaign cash to Republicans. Last year,
their donations split 50-50 in what industry insiders said was a concerted
effort to purchase the sympathy of -- and access to -- Democrats while also
keeping the allegiance of Republicans.
PhRMA is funneling money into targeted advertising as well. Except on
Fridays, when lawmakers tend to be out of town, it is hard to find a Capitol
Hill publication that does not contain at least one ad extolling the virtues of
the pharmaceutical industry and its favored policies.
Even with all this work in Washington, most of the industry's efforts have
been focused outside the capital -- on voters. Its three-year-old program to
provide drugs to people who cannot afford them, called the Partnership for
Prescription Assistance, has rolled its buses and accompanying media blitz into
50 states and 2,000 cities. The program, fronted by the talk-show host Montel Williams, has provided no-cost or low-cost drugs to nearly
5 million people.
"We're doing it because it's the right thing to do," said Ken Johnson, a
PhRMA senior vice president. "It's also the smart thing to do. We want to be
loved, too." He reported that a PhRMA bus has visited every congressional
district and, as a result, the drug industry has seen "a significant uptick of
support among working-class Democrats."
PhRMA's promotional machine recently started to churn out a half-hour
television show called "Sharing Miracles," which the group pays to air on Sunday
mornings in 25 major markets, including the Washington area. The program has
featured first-person stories about life-saving treatments by former White House Press Secretary Tony Snow and other celebrities.
In another approach to Democrats, the industry has joined forces with
organized labor. PhRMA bankrolls the Pharmaceutical Industry Labor-Management
Association, a Virginia group that works to find issues on which unions and drug
companies can agree. For instance, the sides collaborated on the campaign last
year to pass the children's health-program expansion. In the end, President Bush blocked the bill with vetoes.
Tauzin said PhRMA is forming alliances with every patients' group it can
find, including the American Heart Association, the American Lung Association, Mental Health America and even the
Partnership for a Drug-Free America (which counsels against illegal drug
use). Those lobbies have a more positive reputation among lawmakers than the
drug industry does.
"We're finding ways," Tauzin concluded, "to be good friends."
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Washington Post Company