Under The Influence

(CBS)  This segment was originally broadcast on April 1, 2007. It was updated on July 23, 2007.

If you have ever wondered why the cost of prescription drugs in the United States are the highest in the world or why it's illegal to import cheaper drugs from Canada or Mexico, you need look no further than the pharmaceutical lobby and its influence in Washington, D.C.

According to a report by the Center for Public Integrity, congressmen are outnumbered two to one by lobbyists for an industry that spends roughly $100 million a year in campaign contributions and lobbying expenses to protect its profits.

One reason those profits have exceeded Wall Street expectations is the Medicare prescription drug bill. It was passed more than three-and-a-half years ago, but as 60 Minutes correspondent Steve Kroft reports, its effects are still reverberating through the halls of Congress, providing a window into how the lobby works.

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The unorthodox roll call on one of the most expensive bills ever placed before the House of Representatives began in the middle of the night, long after most people in Washington had switched off C-SPAN and gone to sleep.

The only witnesses were congressional staffers, hundreds of lobbyists, and U.S. representatives, like Dan Burton, R-Ind., and Walter Jones, R-N.C.

"The pharmaceutical lobbyists wrote the bill," says Jones. "The bill was over 1,000 pages. And it got to the members of the House that morning, and we voted for it at about 3 a.m. in the morning," remembers Jones.

Why did the vote finally take place at 3 a.m.?

"Well, I think a lot of the shenanigans that were going on that night, they didn't want on national television in primetime," according to Burton.

"I've been in politics for 22 years," says Jones, "and it was the ugliest night I have ever seen in 22 years."

The legislation was the cornerstone of Republican's domestic agenda and would extend limited prescription drugs coverage under Medicare to 41 million Americans, including 13 million who had never been covered before.

At an estimated cost of just under $400 billion over 10 years, it was the largest entitlement program in more than 40 years, and the debate broke down along party lines.

But when it came time to cast ballots, the Republican leadership discovered that a number of key Republican congressmen had defected and joined the Democrats, arguing that the bill was too expensive and a sellout to the drug companies. Burton and Jones were among them.

"They're suppose to have 15 minutes to leave the voting machines open and it was open for almost three hours," Burton explains. "The votes were there to defeat the bill for two hours and 45 minutes and we had leaders going around and gathering around individuals, trying to twist their arms to get them to change their votes."

Jones says the arm-twisting was horrible.

"We had a good friend from Michigan, Nick Smith, and they threatened to work against his son who wanted to run for his seat when he retired," he recalls. "I saw a woman, a member of the House, a lady, crying when they came around her, trying to get her to change her votes. It was ugly."

When the prescription drug bill finally passed shortly before dawn, in the longest roll call in the history of the House of Representatives, much of the credit went to former Congressman Billy Tauzin, R-La., who steered it through the house.

"It's just a messy process," Tauzin says. "I mean, the old adage about if you like sausage or laws, you should not watch either one of them being made is true. It's a messy process."

Tauzin says that the voting machines were open for three hours "because the vote wasn't finished."

As for arms being twisted? "People were being talked to," he says.

And of Walter Jones' comment that it was the "ugliest night" he had "ever seen in politics in 22 years?"

"Well, he's a young member," counters Tauzin with a laugh. "Had he been around for 25 years, he'd have seen some uglier nights."

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[gauri01]

Can you do a re-broadcast of this story. With the elections coming up, I think it would be very appropriate.
Thanks

[nmcginni]

Steve Kroft's 60 minutes expose, Under the Influence, needs to be revisited for today's battles. Please focus on healthcare reform, not repeal. Some things need to be revised, certainly. There are many revisions that will save us, corporations and the US government money. We need to focus on the electorate, not the insurance and drug lobbyist's money this time. Expose the travesty of Freedom Works!

According to the NY Times:

In a draft of a confidential memo to be distributed to all incoming House Republican lawmakers, Dick Armey, a former Republican majority leader who is chairman of the conservative group Freedom Works, and Matt Kibbe, its president, told lawmakers that a repeal of the Democrats? health care law was ?nonnegotiable? and warned that they would face a severe backlash from voters if they did not succeed in reversing the law.

?Politically speaking, your only choice is to get on offense and start moving boldly ahead to repeal, replace and defund Obamacare in 2011, or risk rejection by the voters in 2012,? Mr. Armey and Mr. Kibbe wrote.

From 60 minutes: If you have ever wondered why the cost of prescription drugs in the United States are the highest in the world or why it's illegal to import cheaper drugs from Canada or Mexico, you need look no further than the pharmaceutical lobby and its influence in Washington, D.C. during the medicare prescription drug reform vote. Congressmen were outnumbered two to one by lobbyists for an
industry that spends roughly $100 million a year in campaign contributions and lobbying expenses to protect its profits. One reason those profits have exceeded Wall Street expectations is the Medicare prescription drug bill. It was passed more than three-and-a-half years ago. Zocor, a cholesterol drug, the best Medicare price is $1,485 for a year's supply. The same drug only costs $127 a year under the VA's plan.

Today's battlelines: Dick Armey, who is ranked as one of DC?s top hired guns, is a corporate lobbyist with a history of directing FreedomWorks to support the goals of his lobbying clients. For example:

1. Armey?s FreedomWorks is actively organizing against health care reform. Indeed, Armey?s lobbying firm represents pharmaceutical companies that oppose comparative effectiveness research in the health reform plan because such a program may cut into revenue for branded drugs.

2. Armey?s lobbying firm represents the trade group for the life insurance industry. Indeed, FreedomWorks mobilizes its members for deregulated life insurance reform.

[aikanae]

This story should be amended to include the healthcare reform debate currently underway. Nate Silver did an interesting model that predicts how any congressperson will vote accurately 87% of the time. Public opinion is not a variable. The amount of healthcare spending in the state, amount of PAC money (lobbyists) and party/ideology - with the first two being most important. The key players have history's of accepting high sums from healthcare industries.

The fact that mandated health insurance could be required when the private health care industry has experienced a HUGE reduction in marketshare over the course of the last ten years - amounts to a windfall, bail-out or an insurers wet-dream come true.

Their enemy is public opinion who wants either single-payer or public option (even ill-defined, saying just how fed up they are with private healthcare insurers). Most people are happy with their doctors. Private insurers do not practice medicine though. They are administrators.

"Healthcare insurance firms have become investment firms that happen to approve medical care once in awhile".

Nothing illustrates what is happening in Wa DC now like the MMA did. It's the same 'ol, same 'ol. Sixty Minutes would do well to update this story to the current reform process underway.

[raven1943-2009]

"UNDER THE INCLUENCE" IS THE BEST DAMNED REPORT 60 MINUTES EVER DID!!! NO EXCEPTIONS! OUTSTANDING!! SUPERBERB!! BRAVO! YOU SHOWED THE ENTIRE COUNTRY OF "SHEEPLE" HOW CONGRESS REALLY WORKS IN FACT, HIDING THEIR "CRIMES" WITH SNEAKY
WORK BEING DONE BETWEEN MIDNIGHT AND 6 A.M. THE HONORABLE ROBERT BYRD MADE EXACTLY THE SAME POINTS IN HIS OUTSTANDING BOOK ENTITLED "LOSING AMERICA". SENATOR BYRD'S EXCELLENT BOOK WAS A REALLY BIG REVELATION ABOUT EXACT METHODS LOBBYISTS USE TO GET LEGISLATION, WRITTEN BY THEM (THE LOBBIES), PASSED BY "BRIBING" MEMBERS OF CONGRESS (WITH JOBS OR JUNKETS TO NICE PLACES). YOUR EXPOSE WAS RIGHT UP THERE WITH SENATOR BYRD'S. KEEP IT UP! YOU MAY SAVE OUR DEMOCRACY YET FROM THE FASCIST TENDENCIES OF KING GEORGE (BUSH).

[miami1950]

In my book, all congress people are ******! Now when I vote, I don't review their qualifications or platform - I just try to figure out who is the lesser crook!

[hoak120]

I'm still fuming over Sunday night's program. I would rather watch the making of sausage than Billy Tauzin's in your face snide remarks to Steve! "Just talking to people" and "the vote wasn't done" indeed! How stupid does he think we are. When are we going to do something about the lobbyists? I hope those who got lucrative jobs after leaving the Government can sleep nights, especially if they have parents who are affected by a flawed Rx program.

[carsim835]

I was sick watching Under the Influence. It should be illegal for congress people to vote then go work for the pharmaceutical companies. I was outaged. My Mother-in-law just passed away from diabets because she couldn't afford the medications. The American public has been sold out. The congress people don't care they'll have all their money to pay for medications when their old or they'll have thier goverment medical plan pay it,NICE real NICE. Carolyn, Roger and Ann Simmons who died on July 27, 2007 as a direct result of someone who cries when their pressured by lobbiest, oh please, When is America going to WAKE-UP? Do we have any one STRONG enough to stand up I thought this was America still.

[ttommy31]

To Senators, Representatives and various other political ******: WHERE DOES THIS STOP??? If we communicate our distaste at your actions we are rebuffed by some aide who didn't read our correspondence or totally ignored.
How do we regain control of our gorvernment? Do we need a revolution? I voted for Bush twice and I will vote no more!!!

[l8c6]

What really needs to happen ASAP to begin to restore a degree of faith and trust in our society is a secret task force carefully formulated to locate and precisely identify those responsible for this malfeasance and bring them to Texas style justice. Billy Tauzin, the little traitorous weasel wouldn't become the fall guy either but he would pay for his crimes against the american people. Justice of this order must come to pass on several other issues as well or it will become a debate on what destroys this nation first, peak oil, or robber barons.

[lbutts1]

My blood boiled when I first saw this story in April. The results were the same when I saw it again on July 29. I was appalled as the roll call continued on and on for those people who guided the Medicare legislation through Congress, only to exit days or weeks later to take high-paying jobs with the pharmaceutical companies. All of them sold out the lives of countless older Americans who will not be able to afford medications at the prices charged. Hundreds of billions of dollars will be squandered to line the pockets of the pharmaceutical industry. All of this for the price of personal gain by congressmen, staffers and members of the Bush Administration.

The most disgusting character of all was former Congressman Billy Tauzin, R-La. I find it ironic that he gets to live because his government-provided insurance covered the medication he needed to save his life while he crafted legislation that will deny that to opportunity to others.

Who needs to worry about al-Qaeda when we have al-Congress?