The Hill: Some Republicans Seeking Distance From Drug Industry

7/28/2003

From: Mary Lynn F. Jones, 703-244-2368 Bob Cusack, 202-628-8350 Jonathan E. Kaplan, 202-628-8529 all of The Hill

WASHINGTON, July 28 -- Although the GOP has long been considered friendly to drug companies, some Republicans now distancing themselves from the much-criticized industry -- a trend seen in the passage last week of reimportation legislation opposed by drug companies, the House GOP leadership and the Bush administration. Bob Cusack and Jonathan E. Kaplan report in the July 29, 2003, issue of The Hill that a number of Republican lawmakers have become uncomfortable with a close relationship with the industry. "Drug companies used to be my friends. They contributed to me," said Rep. Anne Northup (R-Ky.). "But now, there's no talking to these guys. ... They're totally inflexible."

Republicans distance themselves from drug industry

By Bob Cusack and Jonathan E. Kaplan

A growing faction of the Republican Party, which has long been viewed as a friend of pharmaceutical companies, is attempting to distance itself from the heavily criticized industry sector.

This was clearly reflected in the stunning vote on the House floor late last week on reimportation legislation. The vote, which was portrayed by some as the drug industry versus the nation's seniors, was expected to be close.

But it was a rout with the drug industry, and the House Republican leaders, on the losing end.

Even though the reimportation bill crafted by Rep. Gil Gutknecht (R-Minn.) was opposed by the Bush administration, pharmaceutical companies and House GOP leaders, the measure passed, 243-186.

Eighty-seven Republicans voted for the Gutknecht bill, which would allow for the reimportation of prescription drugs from other countries. Proponents say the measure will lower the prices seniors will pay for their prescription drugs.

For weeks leading up to the vote, some House Republicans sounded like Democrats in their criticism of the drug industry. Lawmakers from both parties arranged press conferences to refute the pharmaceutical industry's argument that reimportation would not be safe.

Several years ago, Republicans did not publicly criticize the drug industry. Pharmaceutical companies are big GOP donors and most legislators adopted the industry's argument against price controls.

They echoed the industry's claim that price controls would stifle research and development.

Some Republicans adamantly say they are not repeating the drug industry's arguments because of campaign contributions. In a Rules Committee hearing last week, Rep. John Linder (R-Ga.) scolded Rep. Jo Ann Emerson (R-Mo.) for drawing a connection between opposition for reimportation and political contributions from the drug industry.

"I said something I should not have said," Emerson added, referring to her unhappiness with the way the Rules Committee structured the rule, which allowed the opposition to control debate. "What am I supposed to say, 'I rise in opposition to the opposition.'"

Sen. Orrin Hatch (R-Utah) said that if the House's reimportation bill becomes law, research and development in the United States would move to Switzerland and other countries.

Over the past several years, some Republican lawmakers have grown increasingly uncomfortable as being closely aligned with the drug industry.

Rep. Rahm Emanuel (D-Ill.) said the drug industry and Republicans have been viewed as being "co-dependent."

Rep. Anne Northup (R-Ky.), who voted for the Gutknecht bill, said, "Drug companies used to be my friends. They contributed to me...But now, there's no talking to these guys...They're totally inflexible."

Gutknecht said the coupling of Republicans and the drug industry has been overstated. But he agreed with Northup, claiming that the tactics of pharmaceutical companies have changed for the worse.

"Six years ago, they didn't do television advertising," he said, adding that now, more Republicans are not shy in telling the drug companies, "'You're wrong.'"

Reimportation proponents said part of the reason the drug industry lost the vote was because its strong-arm lobbying techniques backfired. Realizing that the safety argument was failing, the drug industry worked with the Traditional Values Coalition (TVC), a conservative religious group, arguing that the reimportation bill would allow an infusion of abortion-inducing drugs to enter the country.

Gutknecht said the industry's lobbying "bordered on unethical."

Added Walter Jones (R-N.C.), "I was so enraged by the pharmaceutical companies that paid and bought the TVC to work against my pro-life colleagues." Jones said that their tactics probably lost 50 to 55 Republican votes.

During the House debate, conservative Republicans took shots at the industry.

Rep. John Shadegg (R-Ariz.) said, "I want our pharmaceutical companies to be profitable... I just do not want them to take that money from Americans and only Americans and to impose the burden of (research and development) on our seniors only."

Rep. J.D. Hayworth (R-Ariz.) said, "We already subsidize many of those (research and development) costs. We also have a research and development tax credit that exists currently in the tax code."

At a press conference on Friday, Rep. Dan Burton (R-Ind.) said the vote sent a strong message to the drug industry. He added the industry will have to reevaluate its position because "this issue isn't going away."

It is unclear whether the Gutknecht bill will survive in the House-Senate Medicare reform conference. But reimportation proponents like Burton and Northup said they won't support an agreement that does not have the Gutknecht language in it.

Burton called the reimportation measure another impediment to getting a final Medicare reform bill signed into law this year.

Many legislators credited Emerson for securing a deal with House GOP leaders on reimportation. Emerson last month changed her vote on the GOP Medicare bill in exchange for a promised vote on Gutknecht's measure.

President Bush, House Speaker J. Dennis Hastert (R-Ill.) and Senate Majority Leader Bill Frist (R-Tenn.) oppose the Gutknecht language.

Asked if the issue could become a liability for Republicans, Northup said she is hopeful that Hastert and others will reconsider their positions.

The drug industry was one of many health care entities that opposed the Gutknecht bill. Pharmacy groups and the American Medical Association also spoke out against H.R. 2427.

Citing safety concerns, 45 Democrats opposed the bill. However, some Republican lawmakers said that Rep. John Dingell (D-Mich.), who led the Democratic opposition, promised Republican leaders that he could deliver 70 votes.

Another Republican lawmaker said some House conservatives not only voted against the drug industry, but against what they viewed as high-handed tactics of House leaders, as well.

But some claimed this was a defining vote for both parties. Rep. Neil Abercrombie (D-Hawaii) said, "If you are a Democrat...and do not vote for this bill, there is not any Democrat in the country that is not going to say you sold out."

He added that a vote against the bill would defy "everything that makes us Democrats. If you are a Republican, then they are going to say you are in the pocket of the big pharmaceuticals again..."

Rep. Peter Hoekstra (R-Mich.), who followed Abercrombie in defending the bill during the floor debate, said, "Amen, brother."