Under The Influence

60 Minutes' Steve Kroft Reports On Drug Lobbyists' Role in Passing Bill That Keeps Drug Prices High

(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."

[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?

[gpbnorman]

The G. W. Bush administration has proven that you certainly don%u2019t need intelligence, a conscience, or any other honorable qualities in order to get elected and stay in office. All you need is money ---and then you can make more money, and more money, and so ad infitum. If there is an elected official having the slightest sense of integrity (s)he doesn%u2019t stand a chance. In my opinion, being a lobbyist is akin to being a %u201Cbag man%u201D, and should be criminally prosecuted as such. And, those who interact with these %u201Cbag men%u201D (either by providing the resources or by accepting these resources) should be prosecuted as well. How can anyone in the U.S. point an accusing finger at any other country and cry %u201Cshame%u201D when our own government is this corrupt and completely oblivious with regard to the welfare of its citizens? We can only hope that it%u2019s not far too late to turn this country around and regain some self-respect.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[dmollaun4]

Nothing will change without campaign finance reform. Find a polictician who will keep this subject on the radar screen.

[gjncnj]

Time for a BIG CHANGE. But who can be trusted to keep their promises? 60 Minutes did a great job in letting us know what is going on. Now people what are we all going to do to change this? Voting may help. BUT, speaking out, emails to everyone and writing our reps.flooding them with words to make them do something. This prescription drug plan is a joke. Thanks to all of you who have the best benefits. They were laughing in our faces last night on that program. And they didn't care. $2million dollars to sell us short. Disgraceful. We need to unite and start and speak out against these horrible things that our reps. are doing to us. gjncnj

[deerregan]

There's no wonder there's so many 'Fake Drugs'and so-called 'Generic' drugs coming into America from all foreign countries. In the past few decades the Politicians have been selling America out to foreign countries, lobbyists, insurance company and drug makers all for a few million in banks. Instead of giving the politicians 'room and board' in a Federal Country Club, Taxpayers need to see that all of them get a 'one time boat ride'to an undesirable foreign country with just the shirt on their back, no money and no bank accounts, with absolutely no return to America!

[steelhorse77]

This is just another example of the scum that we elect to political office in this country. The politicans make false promises to get elected while taking enormous amounts of campaign money from lobbyists and others that influence their votes in congress and then after the scum take care of their lobbyist friends they collect for themselves by taking jobs from the lobbyists making millions of dollars. We need to somehow get the laws changed that prevent politicans from being able to accept campaign money from lobbyists and other special interest groups and also prevent elected officals from going to jobs that lobbyists promise them. These special interest groups are ruining America in all areas of government. Any congressmen that accepts money, perks or job promises need to be put in jail for treason because they are selling out America to the highest bidder.

[deberry21]

It's curious that no where in the segment was any mention of the millions of dollars of FREE prescriptions the Pharmaceutical industry routinely GIVES away to needy customers, for years. Where is the balanced reporting? Why is enormous good pro bono work done by this industry never reported by this network? Check out RXASSIST among other PRIVATELY funded prescription assistance programs available to consumers: http://www.rxassist.org/default.cfm