Medicare ads paid by drug industry

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http://news./s/ap/20060825/ap_on_go_ot/medicare_ads

 

 

 

Medicare ads paid by drug industry

 

 

 

 

By DAVID ESPO, AP Special Correspondent Fri Aug 25, 5:23 PM ET

 

WASHINGTON - The pharmaceutical industry quietly footed the bill for

at least part of a recent multimillion-dollar ad campaign praising

lawmakers who support the new Medicare prescription drug benefit,

according to political officials.

 

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U.S. Chamber of Commerce claims credit for the ads, although a

spokesman refused repeatedly to say whether it had received any funds

from the Pharmaceutical Research and Manufacturers of America.

 

Several campaign strategists not involved in the ad campaign said no

legal issues were raised by the pharmaceutical industry's involvement.

 

Democrats seized on the disclosure, though, to renew their charge that

the program amounts to a Republican-engineered windfall for drug

companies.

 

" There's a civics lesson here from the drug companies. They write

checks to protect their GOP friends, and then they write the laws to

benefit themselves, all the while doctors are writing prescriptions

middle-class Americans can't afford, " said Bill Burton, spokesman for

the House Democratic campaign organization.

 

The commercials, airing in 10 states or congressional districts,

generally say the local congressman or senator supports the drug

program, and that hundreds of thousands of Medicare beneficiaries have

saved money since its inception earlier this year.

 

Under the voluntary program, Medicare beneficiaries purchase

prescription drug coverage from among competing plans offered by

private insurance companies. Monthly premiums cover a fraction of the

overall cost of the benefit, and the federal government covers most of

the rest.

 

The insurance companies bargain with drug manufacturers over price,

and the cost to consumers has been considerably lower than initially

estimated. But in drafting the legislation, Republicans rejected

Democratic calls to permit the government to negotiate directly in

hopes of pushing down prices further.

 

The officials who described PhRMA's involvement said they did not know

whether the industry had given the Chamber money to cover the entire

cost of the ads and other elements of an election-year voter

mobilization effort, or merely a portion.

 

Ken Johnson, a senior vice president at PhRMA, issued a statement that

said the organization " works with a variety of groups, including

patient advocacy groups and business organizations like the U.S.

Chamber of Commerce and others, to support policies that improve

patient access to life-saving medicines. "

 

In a follow-up statement, he added that as a result of the program,

" millions of Medicare patients who previously had no prescription drug

coverage are now benefiting from substantial discounts negotiated by

Medicare drug plans. "

 

He declined to elaborate.

 

Bill Miller, political director for the Chamber, did not respond to

numerous requests for an interview. A spokesman, Eric Wohlschlegel,

said, " The Chamber paid for the Medicare ads. " But he declined

repeatedly to say whether his organization had received any money from

PhRMA.

 

In announcing the program earlier this summer, Miller described a $10

million ad campaign but made no mention of PhRMA.

 

The episode is reminiscent of another PhRMA-financed ad campaign, this

one in May 2002.

 

At the time, a little-known conservative group, United Seniors

Association, announced plans for a multimillion-dollar advertising

effort supporting prescription drug legislation that Republicans were

drafting. A USA spokesman denied then that PhRMA had picked up the

cost. But several political officials said it had, and the drug

association confirmed it had made an " unrestricted educational grant "

to the seniors' group.

 

The Chamber's current advertising effort has been marred by errors.

 

An ad on behalf of Republican Rep. Steve Chabot (news, bio, voting

record) of Ohio was pulled from the air after officials realized he

had voted against the legislation creating the prescription drug bill.

 

Commercials backing three other Republicans, Michael Fitzpatrick of

Pennsylvania, Mike Sodrel of Indiana and Dave Reichert of Washington,

were changed after Democrats pointed out they had not been in Congress

the year the legislation passed.

 

At a news conference earlier in the month, Miller initially denied

that either the Pennsylvania or Indiana ads had been changed until

reporters showed the revised wording.