Prescription for plunder
USA: In the final push for Medicare prescription drug legislation, the pharmaceutical industry, Health Management Organisations (HMOs) and related interests spent more money and hired more lobbyists in 2003 than ever before, according to a report issued by Public Citizen. The pharmaceutical and managed care industries spent a combined US$141 million last year, according to Public Citizen's analysis of newly released federal lobbying disclosure records. Drugmakers and HMOs hired 952 individual lobbyists in 2003 — nearly half of whom had "revolving door" connections to Congress, the White House or the executive branch. That's nearly 10 lobbyists for every US Senator. "The Medicare Modernization Act, a top priority of President Bush, promises to safeguard industry profits at the expense of America's taxpayers", said Frank Clemente, director of Public Citizen's Congress Watch. "Considering the legion of lobbyists unleashed by pharmaceutical companies, HMOs and allied industry front groups, no wonder taxpayers ended up with a bill tailor- made to serve these special interests instead of senior citizens." Since 1997, Public Citizen has conducted an annual study of Washington lobbying by the pharmaceutical industry. Among findings in the latest report: * In 2003, the drug industry spent a record US$108.6 million on federal lobbying activities and hired 824 individual lobbyists — both all-time highs. * This army of lobbyists helped ensure that the new drug benefit will be administered by private companies. * The new law expressly prohibits the government from using its bargaining clout to negotiate lower prices and effectively bans the "reimportation" of cheaper drugs from Canada. * Managed care lobbyists helped ensure their clients got a windfall in the bill — US$531.5 billion over 10 years based on data from the Medicare actuary — as enrolment in managed care plans is expected to climb from 12 percent to 32 percent of all Medicare beneficiaries. Revolving door connections * Both the pharmaceutical and managed care industries relied heavily on lobbyists with "revolving door" connections. In all, 431 lobbyists employed by the drug industry or HMOs — or 45 percent of all their lobbyists — previously worked for the federal government. Among them were 30 ex-US Senators and Representatives — 18 Republicans and 12 Democrats. * At least 11 top staffers who left the Bush administration lobbied for the drug industry and HMOs in 2003. White House and administration insiders working as lobbyists on the Medicare bill included several former top advisers to Bush, Vice President Dick Cheney and Department of Health and Human Services (HHS) Secretary Tommy Thompson. * Since Bush signed the new Medicare law at least four key Bush administration officials have exited to help industry clients benefit from the Medicare bill that they wrote or promoted. Another six top congressional staffers at the centre of negotiations over the Medicare bill now lobby for drug companies or HMOs. * The revolving door spins both ways. Three prominent drug industry and HMO lobbyists have recently moved into senior health policy positions at HHS. * Drug industry and HMO executives and lobbyists ranked among Bush's elite fundraisers. Twenty-one executives and lobbyists achieved "Ranger" or "Pioneer" status by collecting at least US$200,000 or US$100,000, respectively, for Bush in the 2000 or 2004 campaigns. "The revolving door between the White House and K Street has made the Bush administration indistinguishable from the industry," said Craig Aaron, senior researcher for Public Citizen's Congress Watch and lead author of the report.