Fat Cats Get A Head Start

Drug companies, airlines, and health insurers got a head start on 1999 by contributing to the political parties at the end of 1998.

At the top of the list: Novartis AG, a major pharmaceutical company that also makes Gerber baby food. The company, which earlier had contributed $340,000 in unregulated soft money to the political parties, gave another $115,000 in December.

"When you see big money dropping into the political parties, those interests always have legislative issues in mind," said Ellen Miller, executive director of Public Campaign, a group supporting campaign finance reform. "In this case, what the pharmaceutical companies want will cost citizens not only in real dollars but in providing basic medical care."

David Drake, Novartis' director of federal government relations, said the December contributions were unrelated to legislation. He said the company simply had extra money in its account, so it made what would have been its 1999 campaign contributions in 1998.

The National Bipartisan Commission on the Future of Medicare is scheduled to issue a report March 1. Its chairman, Sen. John Breaux, D-La., has said the panel may recommend that the healthcare program for the elderly help pay for prescription drugs. President Clinton has proposed that Medicare cover prescriptions.

Drug companies are concerned that the federal government will impose restrictions on how much Medicare will pay for prescription drugs.

"If there is a government-mandated program with mandated price restraints, we've got a problem," said Jeff Trewhitt, a spokesman for the Pharmaceutical Research and Manufacturers of America, an industry group. "Price controls do not take into account the high and growing cost of research and development. You need competitive marketplace incentives to sustain innovation."

Federal Election Commission records show Novartis contributed:

• $50,000 to the Democratic Senatorial Campaign Committee;
  
• $25,000 apiece to the Republican National Committee and the National Republican Senatorial Committee
  
• $15,000 to the Democratic Congressional Campaign Committee.

Several other companies with issues high on the agenda of the 106th Congress also made large contributions to political parties in December, the month after the congressional election: