Under The Influence

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

(CBS)  It certainly wasn't ugly for the drug lobby which invested more than $10 million in campaign contributions during the last election and has been a source of lucrative employment opportunities for congressmen when they leave office.

Former senators Dennis Deconcini, D-Ariz., and Steve Symms, R-Idaho, and former congressmen like Tom Downey, D-N.Y.; Vic Fazio, D-Calif.; Bill Paxon, R-N.Y., and former House Minority Leader Robert Michel, R-Ill., all registered as lobbyists for the drug industry and worked on the prescription drug bill.

"I can tell you that when the bill passed, there were better than 1,000 pharmaceutical lobbyists working on this," says Rep. John Dingell, D-Mich.

Dingell has been in Congress for 52 years and is the chairman of the House Energy and Commerce Committee, which shares jurisdiction over Medicare. He says the bill would not have passed without the efforts of the drug lobby.

"There is probably a lotta truth in it that the bill was stacked in their benefit. And it's probably also true that it was written by their lobbyists," he says.

Says Jones: "You couldn't even walk to the steps of the Capitol without having somebody, maybe one or two, coming up to you to say, 'Can't you change your vote? Can't you vote for this bill?' "

Why was the drug lobby was so interested in this bill and what did it have to gain? Ron Pollack, the executive director of Families USA, a nonpartisan health care watchdog group, says it all boiled down to a key provision in the legislation.

It prohibited Medicare and the federal government from using its vast purchasing power to negotiate lower prices directly from the drug companies.

"The key goal was to make sure there'd be no interference in the drug companies' abilities to charge high prices and to continue to increase those prices," says Pollack.

Pollack says there's no question that this was prompted by the pharmaceutical lobby.

"They were the ones who wanted to make sure Medicare could charge high prices and to continue to increase those prices," he says.

The drug industry says that competition among private insurance plans that service the Medicare program help keep prices low. But Families USA reported in a January study that Medicare patients are being charged nearly 60 percent more for the top 20 drugs than veterans pay under a program run by the U.S. Department of Veterans Affairs.

For example, Lipitor, a popular cholesterol drug, the cheapest Medicare price is $785 for a year's supply — 50 percent more than the VA's price of $520.

For Zocor, another 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.

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Read the full Families USA report

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Pollack says the VA successfully negotiates with the drug companies on price.

"Medicare could do the same thing," he says, "but Medicare is prohibited from doing that as a result of this new Medicare legislation."

"What was the logic? Or what was the idea, the rationale behind not giving the government the ability to negotiate drug prices?" Kroft asks Rep. Dan Burton.

Burton says it was simply that the drug companies didn't want it. "They wanted to make as much as money as possible. And if there's negotiation, like there is in other countries around the world, then they're gonna have their profit margin reduced," he says.

Before the vote, Congress was told the program would cost a whopping $395 billion over the first 10 years. In fact, Medicare officials already knew it was going to cost a lot more.

Burton said he and others were misled. "Within two weeks after the bill was passed, everybody knew it was gonna cost well over $500 billion," he says. "And many members of the Congress [who] had voted for it said, 'I would never have voted for it had I known that.' "

Medicare Chief Actuary Richard Foster later told Congress that he revised the cost estimate to $534 billion before the vote, but was told to withhold the new numbers if he wanted to keep his job.

During a Congressional hearing, Foster stated: "It struck me there was a political basis for making that decision. I considered that inappropriate and, in fact, unethical."

Foster said the person who told him to withhold Congress from getting the revised estimates was Medicare boss Tom Scully.

[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