Friday, December 18, 2009

The WaPo nails it on drug reimportation

On the campaign trail, Barack Obama vowed to take on the drug industry by allowing Americans to import cheaper prescription medicine. "We'll tell the pharmaceutical companies 'thanks, but no, thanks' for the overpriced drugs -- drugs that cost twice as much here as they do in Europe and Canada," he said back then.

On Tuesday, the matter came to the Senate floor -- and President Obama forgot the "no, thanks" part. Siding with the pharmaceutical lobby, the administration successfully fought against the very idea Obama had championed.

"It's got to be a little awkward," said Sen. Tom Carper (D-Del.).

It's even more awkward for millions of Americans who are forced to pay up to 10 times the prices Canadians and Europeans pay for identical medication, often produced in the same facilities by the same manufacturers, simply because the U.S. government refuses to rein in drug prices.

Those favoring cheaper prescriptions amassed an impressive ideological coalition, from socialist Sen. Bernie Sanders (I-Vt.) to conservative Sen. David Vitter (R-La.). But they were no match for industry-friendly senators backed by the administration, who on Tuesday night easily voted down "reimportation," as it is called.

No surprise here: Lawmakers, and the White House, are addicted to drug money. The industry has pumped upwards of $130 million into federal elections over the past decade and is now among the top 10 donors, according to the Center for Responsive Politics. At the same time, the White House needed the industry to spend its millions of dollars in advertising money on support of the health-care legislation, not against it.

The drug-money addiction could explain why the administration struck a sweetheart deal with the industry, which offered to give up $80 billion in revenue in exchange for an understanding that the government would not push for deeper concessions. The White House was determined not to go back on the deal -- even though the industry had demonstrated bad faith by raising prescription prices nearly 10 percent this year. So when Sen. Byron Dorgan (D-N.D.) brought his reimportation proposal to the floor, the administration pushed back with a letter from Food and Drug Administration chief Margaret Hamburg warning of "significant safety concerns."

One after the other, the drug industry's friends from pharmaceutical-manufacturing states New Jersey, Delaware and North Carolina went to the floor Tuesday to cite the FDA letter.

Sen. Robert Menendez (D-Bristol-Myers Squibb) warned that "you may have a heart attack" because of counterfeit medicine from abroad.

"This is a matter of life or death," agreed Sen. Frank Lautenberg (D-Merck).

Carper (D-AstraZeneca) cited "remaining safety and soundness and health concerns," while Sen. Kay Hagan (D-GlaxoSmithKline) voiced "serious doubts that we can adequately ensure the safety of the drug supply."

These arguments don't hold up well, considering that 40 percent of the active ingredients in American prescription drugs come from India and China, and that the latter slipped tainted heparin past the FDA. But fright was about the best argument opponents could use to defeat a popular proposal that would save the federal government $19 billion over 10 years, according to the Congressional Budget Office. Consumers would save many times that.

That's why the drug industry has been fighting for a decade against congressional efforts to allow reimportation. Obama co-sponsored one such proposal in the Senate. He also said during his presidential campaign that he wanted to "let Medicare negotiate for lower prices" for drugs. White House Chief of Staff Rahm Emanuel, when he was in Congress, also championed reimportation. Yet now, after their successful battle against it, the two are expected to fight off a similar legislative effort to allow Medicare to negotiate for lower drug prices.

Even before the vote came, it had become clear that President Obama's aides had the votes to kill the proposal Senator Obama once co-sponsored. This, said Sen. John McCain (R-Ariz.), "contributes to the enormous cynicism on the part of the American people about the way we do business here." To Dorgan, he pledged: "I will be by his side as we go back and back and back again on this issue until justice and fairness is done and we defeat the special interests of the pharmaceutical industry which have taken over the White House and will take over this vote."

Dorgan, on the verge of losing another reimportation battle, raised his voice as he pleaded with colleagues. "The pharmaceutical industry has a lot of clout. I know that," he said. "I hope the American people have the ability to expect some clout on their behalf in the chamber of the United States Senate."

Tuesday's final clout tally wasn't even close. The drug companies won with nine votes to spare.

Campaign Contributions to Senators from Pharmaceutical Manufacturing Interests, January 1, 2003 - August 12, 2009

Senator Party State Amount from pharma interests Vote on allowing imports
Akaka, Daniel D HI $4,000 No
Alexander, Lamar R TN $108,950 Yes
Barrasso, John R WY $55,500 No
Baucus, Max D MT $261,020 No
Bayh, Evan D IN $144,072 No
Begich, Mark D AK $7,500 Yes
Bennet, Michael D CO $10,750 Yes
Bennett, Robert R UT $124,000 No
Bingaman, Jeff D NM $48,500 Yes
Bond, Christopher R MO $99,003 Yes
Boxer, Barbara D CA $35,900 Yes
Brown, Sherrod D OH $17,300 Yes
Brownback, Samuel R KS $28,250 No
Bunning, Jim R KY $64,250 No
Burr, Richard R NC $301,898 No
Burris, Roland D IL $0 No
Byrd, Robert D WV $32,100 Not voting
Cantwell, Maria D WA $22,400 No
Cardin, Benjamin D MD $40,850 No
Carper, Thomas D DE $135,700 No
Casey, Robert D PA $34,750 No
Chambliss, Saxby R GA $83,949 No
Coburn, Thomas R OK $44,051 Yes
Cochran, Thad R MS $69,000 No
Collins, Susan R ME $70,500 Yes
Conrad, Kent D ND $83,000 Yes
Corker, Bob R TN $65,200 Yes
Cornyn, John R TX $119,700 Yes
Crapo, Michael R ID $64,580 Yes
DeMint, Jim R SC $40,000 Yes
Dodd, Christopher D CT $174,525 No
Dorgan, Byron D ND $12,500 Yes
Durbin, Richard D IL $28,600 No
Ensign, John R NV $89,950 No
Enzi, Michael R WY $146,500 No
Feingold, Russell D WI $6,200 Yes
Feinstein, Dianne D CA $39,500 Yes
Franken, Al D MN $2,500 Yes
Gillibrand, Kirsten D NY $44,400 No
Graham, Lindsey R SC $55,250 Yes
Grassley, Charles R IA $103,700 Yes
Gregg, Judd R NH $122,500 No
Hagan, Kay D NC $4,650 No
Harkin, Thomas D IA $81,800 Yes
Hatch, Orrin R UT $262,950 No
Hutchison, Kay R TX $29,250 Yes
Inhofe, James R OK $20,250 No
Inouye, Daniel D HI $200 No
Isakson, John R GA $126,599 No
Johanns, Mike R NE $43,100 Yes
Johnson, Tim D SD ($1,500) Yes
Kaufman, Edward D DE $0 No
Kerry, John D MA $21,170 No
Kirk, Paul D MA $0 No
Klobuchar, Amy D MN $2,290 Yes
Kohl, Herbert D WI $0 Yes
Kyl, Jon R AZ $117,350 No
Landrieu, Mary D LA $89,550 No
Lautenberg, Frank D NJ $97,550 No
Leahy, Patrick D VT $46,600 Yes
LeMieux, George R FL $0 Yes
Levin, Carl D MI $1,000 No
Lieberman, Joseph I CT $199,540 No
Lincoln, Blanche D AR $100,750 Yes
Lugar, Richard R IN $51,850 No
McCain, John R AZ $7,000 Yes
McCaskill, Claire D MO $6,050 Yes
McConnell, Mitch R KY $225,900 Yes
Menéndez, Robert D NJ $196,452 No
Merkley, Jeff D OR $18,500 Yes
Mikulski, Barbara D MD $70,995 No
Murkowski, Lisa R AK $63,050 Yes
Murray, Patty D WA $144,400 No
Nelson, Ben D NE $138,098 Yes
Nelson, Bill D FL $38,600 Yes
Pryor, Mark D AR $31,000 Yes
Reed, John D RI $34,100 No
Reid, Harry D NV $74,800 No
Risch, James R ID $22,100 Yes
Roberts, Pat R KS $80,650 No
Rockefeller, John D WV $44,000 No
Sanders, Bernard I VT $420 Yes
Schumer, Charles D NY $54,900 No
Sessions, Jefferson R AL $45,000 Yes
Shaheen, Jeanne D NH $2,250 Yes
Shelby, Richard R AL $25,000 Yes
Snowe, Olympia R ME $4,000 Yes
Specter, Arlen D PA $353,550 Yes
Stabenow, Debbie Ann D MI $39,134 Yes
Tester, Jon D MT $14,000 No
Thune, John R SD $45,300 Yes
Udall, Mark D CO $102,275 No
Udall, Tom D NM $15,300 Yes
Vitter, David R LA $17,050 Yes
Voinovich, George R OH $63,750 No
Warner, Mark D VA $84,950 No
Webb, Jim D VA $8,750 Yes
Whitehouse, Sheldon D RI $11,800 No
Wicker, Roger R MS $67,600 Yes
Wyden, Ron D OR $27,800 Yes
Source - chart
Source - WaPo

4 comments:

Anonymous said...

If the US wants to reign in drug prices, they should do it themselves, not let other governments set their drug prices.

Anonymous said...

So why isn't it being done?

Pols in the pocket of Pharma!

John Lott said...

And this relationship between donations and votes proves what? That donors give money to people who agree with them? Of course you argue that there is a payoff that bribed people, but how can you differentiate what you claim is happening from the notion that money is given to those who value the same outcomes.

Anonymous said...

Great, let's ignore the fact that the US subsidizes the rest of the world's research.

Good luck with job creation and innovation, President Obama. Biotech and pharma are done - and your administration provided the coup de grace.