Drug Companies Employ
"Astroturf Lobbying" in the States |
A furious battle is being fought in state legislatures between advocates for lower prescription drug prices and drug manufacturers. And in many states,
the drug companies are fighting dirty.
According to an ethics complaint filed in
Maryland, PhRMA, the drug industry trade association,
has "employed blatantly deceptive tactics – in the guise of
a consumer-based organization – to do the bidding of
the pharmaceutical industry." The drug industry has
used similar tactics to battle legislation in Florida,
Georgia, Indiana, Minnesota, New Mexico, North
Carolina, Virginia and Washington state. In 2002, more than 20 states have considered legislation
to lower the cost of prescription drugs purchased through
the Medicaid system. Drug prices are busting Medicaid
budgets, threatening substantial cuts in health benefits for the poor.
The battle is over legislation that pressures manufacturers
to negotiate supplemental drug rebates with the states, the
same way the manufacturers currently negotiate with insurance
companies, HMOs and the federal government. Much of
this legislation is based on CPA’s policy model.
The drug companies favor the current
federally-established rebates and want to avoid price competition with
each other. So PhRMA is lobbying furiously in every state
to defend their lucrative drug pricing system.
But instead of making its arguments in a
straightforward manner, PhRMA has hidden behind
front groups that pretend to have grassroots support.
The effort is coordinated by Bonner & Associates,
a Washington, DC-based PR firm hired by the drug industry to drum up opposition to the
prescription drug legislation using a tactic known as
"Astroturf lobbying."
Here’s how it works: Telemarketers at the
Bonner & Associates office call individuals and
local organizations within a state, posing as a group
that safeguards consumers or seniors, or Medicaid
patients. These telemarketers ask residents to sign
a resolution or call state lawmakers, using an
appeal that sounds like it comes from advocates for
the poor. But it is actually an attack on the
prescription drug legislation opposed by PhRMA.
Most often, Bonner telemarketers have impersonated "The Consumer Alliance," an organization
with one employee whose office is located within Bonner
& Associates. Using the Consumer Alliance name, Bonner set up
a February 13 press conference of a small number of doctors
in Tallahassee, as well as a larger press conference on March 5
in Atlanta.
Bonner telemarketers have called New Mexico and Minnesota residents under
the name of the 60 Plus Association, urging them to ask
their governors to veto prescription drug pricing legislation.
What the Bonner employees don’t mention is that the 60
Plus Association is an extreme right-wing group in Northern Virginia. The drug industry also hired
a different PR firm to lobby against similar
legislation under the name of the "Maryland
Partnership for Quality Healthcare."
"It really is revolting to me," said
Adam Searing, project director of the North
Carolina Health Access Coalition, an advocacy group
for the poor. "I deal with the tactics of big business
all the time. But to pretend to care about the
poor when you just care about lining your own
pockets I think is just deceitful."
 Drug prices are busting Medicaid
budgets, threatening substantial cuts in health benefits
to the poor. |
PhRMA’s tactics were successful
in killing a far-reaching prescription drug discount proposal in Washington state. But legislation for supplemental Medicaid drug rebates passed over industry objections
in Kentucky, Minnesota, Mississippi, New Mexico and West Virginia. These states
join Florida, Louisiana and Michigan, which enacted similar laws last year, as well
as California, which has received such rebates for years.
See the related article "Unmasking Drug Company Front Groups" in this newsletter.