NEWSLETTER:: Progress Report: Overlooking Fraud Record

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Tue, 1 Jun 2004 13:07:53 -0400

NEWSLETTER:: Progress Report: Overlooking Fraud

Record

 

 

FREE NEWSLETTER FOR THOSE INTERESTED ..

 

by David Sirota, Christy Harvey, Judd Legum and Jonathan Baskin

 

 

 

June 1, 2004

MEDICAREOverlooking Fraud

 

 

As seniors fear being bilked by the confusing new Medicare discount drug card

program that starts today, the Center for American Progress released a new

report showing that 20 of the 73 companies the White House approved to

participate in the program have been charged at the federal and/or state level

with fraud. The report, entitled " Paying to Play, " shows those 20 companies gave

more than $3 million to the president and conservatives in Congress since the

2000 election cycle. That represents more than 60% of the total contributions

given to the president and conservatives from all 73 approved card companies.

Additionally, seven of the president's " Pioneers " (those who raised $100,000 or

more for him) are linked to companies approved for the program. Three of those

companies have been accused of fraud. See more on Medicare at American

Progress's special Medicare site.

 

" PIONEER " COMPANIES APPROVED DESPITE INVOLVEMENT IN FRAUD CHARGES: According to

AP, Medco president Alan Lotvin recently held a $100,000 fundraiser for the

president after the White House overlooked Medco's fraud record and approved the

company for the drug card program. Medco recently was forced to pay $29 million

in fines in a probe into " unfair and deceptive acts " in 20 states. Similarly,

PacifiCare lobbyist Tom Loeffler raised at least $200,000 for the president. His

company was subsequently approved by the White House for the drug card program,

even though it was recently forced to pay the federal government $87.3 million

to settle alleged violations of the federal False Claims Act. According to the

4/13/02 Orange County Register, the fine was " the largest civil settlement ever

assessed on a company providing health coverage to federal employees. " And Bush

Pioneer Samuel Skinner is a member of the board of Express Scripts, a company

approved by the White House even though its

business practices are currently under investigation by the New York attorney

general.

 

BUSH CRONY'S FIRM APPROVED, DESPITE RESISTING FEDERAL PROBE: AdvancePCS, a

company run by Bush's longtime Texas crony and donor David Halbert, was approved

to participate in the drug card program, even though in 2002 the company

" fiercely resisted attempts by the Justice Department to interview some of its

employees " during a probe into a prescription drug price fixing scheme. During

the 1980s, Bush was an original investor in an early version of AdvancePCS,

which netted him up to $1 million. He rewarded Halbert by allowing AdvancePCS to

help craft the legislation that created the original drug card program. For more

on the Bush-Halbert-AdvancePCS relationship, see American Progress's earlier

report.

 

HERITAGE SPREADS UNTRUTHS FOR DRUG COMPANIES: In a new paper claiming to be " The

Truth About the Medicare Drug Discount Card, " the Heritage Foundation spreads

the drug industry claim that the cards create competition and " transparency in

drug prices. " What Heritage does not say is that the " the drug prices offered by

a given card can change from week to week as can the list of drugs the cards

cover. " In fact, while seniors " are scrambling to find the one card that offers

the best prices for the drugs they take, " the " card sponsors and drug

manufacturers have made that task nearly impossible as prices are changing even

before the program has begun. " Meanwhile, once seniors select a card, they are

locked into it for at least a year, even if drug prices and selection changes

for that card.

 

 

HEALTH CARE – REIMPORTATION REALITY: The Hill reports this morning that

lawmakers may finally have " lined up the 60 votes needed to get a

prescription-drug reimportation bill through the Senate, which some say could

lead the White House to change its position on the controversial issue. "

Reimportation of drugs from Canada has gained massive popular support in recent

months, as Americans have grown increasingly angry at drug prices pushed up by

the powerful pharmaceutical lobby.

 

 

 

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