Drug Makers Cash In On Lobbying Efforts (Part of the "Diagnosis: Reform" series) from Capital Eye

http://www.opensecrets.org/news/2009/06/drug-makers-cash-in-on-lobbyin.html

 by Lindsay Renick Mayer

Total to current members of Congress since 1989: $57.7 million (51 percent to Republicans)

Total lobbying expenditures since 1998: $1.6 billion

Pharmaceutical and health product companies, like the insurance industry, strongly oppose any proposal to create a public health insurance option, fearful that private insurers would be marginalized and government price controls would limit what the industry can charge for its products. And with drug companies as the No. 1 all-time spender on lobbying, at $1.6 billion since 1998, Congress is bound to at least entertain their concerns.

As an alternative to the public plan, representatives of the pharmaceutical industry want to see Medicaid, which provides insurance to poor families, expanded to cover more low-income workers. This would mean more people could afford drugs and medical devices, increasing the industry's target market. Similarly, the industry supports the mandate that all Americans purchase health insurance, boosting the industry's customer base by millions.

Lobbying by the Pharmaceutical Industry

At the head of the industry's political efforts is the Pharmaceutical Research and Manufacturers of America (PhRMA), a lobbying powerhouse in its own right. In the first three months of this year, the special interest group spent nearly $7 million on lobbying, setting it on course to beat the $20.2 million it spent last year. PhRMA is again trying to ensure drug companies won't face steep cuts in prescription prices and, instead of reducing drug margins, have proposed cost reductions to hospitals and insurers. (This, of course, angers those service providers). The industry is also trying to thwart measures giving the insurance program for the elderly and disabled--Medicare--the ability to negotiate prices, which would have a similar effect.

The National Community Pharmacists Association has launched a grassroots lobbying campaign, according to the Hill newspaper, that advocates for pharmacists having a greater role in determining the best drugs to treat patients. The NCPA, which spent $210,000 on lobbying in the 1st Quarter of the year, is also up against pharmacy benefit managers, who process and pay prescription drug claims. The benefit managers implement a "byzantine, secretive drug payment system" that should face congressional regulation, the NCPA told the Hill. The Pharmaceutical Care Management Association, which represents America's pharmacy benefit managers, spent $306,500 on lobbying in the first three months of 2009.

Contributions from the Pharmaceutical Industry to Congress

Chart.

Like most other industries in the health sector, pharmaceutical and health product companies increased their contributions to Democrats in the 2008 election cycle. During that period, the industry split its contributions exactly evenly between the two parties for the first time ever. The largest chunk of the total haul that Democrats ever collected was 46 percent--nearly 20 years ago. In the first three months of this year, the industry gave $2.2 million to candidates and party committees. The most it ever donated was $29.7 million in the 2002 election cycle. The last cycle proved close, however, at $29.1 million.

Download a list of contributions from drug makers to current members of Congress (including to their campaign committees and leadership PACs) since 1989: Pharma_Contribs.xls

(Note: If you do use this data, please be sure to credit CRP.)

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