|
WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL) issued today’s “Bush Administration’s
Misstatement of the Day” on integrity.
During
the 2000 Presidential campaign, then Governor George W. Bush said:
“Our
first priority will be to restore honor and dignity to the White House.”
However,
according to published reports, President Bush’s top official in charge
of Medicare, Tom Scully, was issued a waiver to pursue employment in the
health care industry while he continued to serve as the Administrator of
the Centers for Medicare and Medicaid Services. This waiver
was issued while Congress was working on a major overhaul of Medicare.
Schakowsky
and U.S. Representative Pete Stark today, wrote in a letter to Secretary
of Health and Human Services Tommy G. Thompson, “For seven months, Members
of Congress who relied on Mr. Scully for information were kept in the dark
about the fact that he was actively engaged in looking for employment with
firms that have significant interests in the issues at stake. Financial
conflicts of interest rules are designed to assure Members of Congress,
entities with interests pending before CMS, and the public that federal
executive branch employees are independent and unbiased in their behavior.
While we strongly believe that this waiver should never have been granted,
at a bare minimum knowledge of it would have been valuable to us in weighing
the advice provided by Mr. Scully.”
Below
is the full letter to Secretary Thompson:
CONGRESS
OF THE UNITED STATES
HOUSE
OF REPRESENTATIVES
WASHINGTON,
DC 20515
The
Honorable Tommy G. Thompson
Secretary
Department
of Health and Human Services
200
Independence Avenue, SW
Washington,
DC 20201
Dear
Secretary Thompson:
Like
many others, we were concerned to learn that CMS Administrator Tom Scully
had received a waiver from the Ethics Office of the Department of Health
and Human Services to pursue employment in the health care industry while
he continued to serve as the Administrator of the Centers for Medicare
and Medicaid Services. The timing of the waiver is of particular concern
because it was granted during a time when Mr. Scully was intimately involved
in the negotiation and drafting of the broadest overhaul of Medicare since
the program's inception.
We
recently received a copy of the waiver granted to Mr. Scully (attached)
and are absolutely shocked that it could pass muster.
First
is the issue of timing. This waiver was granted on May 12, 2003.
That means Mr. Scully has clearly been talking to prospective employers
in the health field since before the House or Senate passed their independent
versions of Medicare legislation and has carried his negotiations through
the entire legislative process, including the bill signing ceremony.
For
seven months, Members of Congress who relied on Mr. Scully for information
were kept in the dark about the fact that he was actively engaged in looking
for employment with firms that have significant interests in the issues
at stake. Financial conflicts of interest rules are designed to assure
Members of Congress, entities with interests pending before CMS, and the
public that federal executive branch employees are independent and unbiased
in their behavior. While we strongly believe that this waiver should never
have been granted, at a bare minimum knowledge of it would have been valuable
to us in weighing the advice provided by Mr. Scully.
More
disturbing is the construction of the waiver. The idea that the only
real conflict with a prospective employer would be one which would have
"a special or distinct effect on the firms with which he is negotiating
for employment" is frankly absurd.
As
CMS Administrator, Mr. Scully has direct influence over regulations issued
by CMS, policies enforced by the agency, and legislative pursuits by the
agency as well. These actions typically do not have a "special" effect
on a law firm representing a wide array of health care clients. Its
effect on those clients might be very direct, but it affects clients at
a myriad of other law firms as well. Therefore, this waiver granted
him essentially free rein to negotiate with firms with whom his decisions
as CMS Administrator directly (and substantially) impacted.
We
think the real reason for this waiver is stated in the text of the waiver
itself: "It is neither practicable, nor in the interest of the Department,
for Mr. Scully to remain disqualified from such a large number of important
and broadly applicable matters while he is seeking future employment."
Mr.
Secretary, with all due respect, the very reason that laws exist to prevent
financial conflicts of interest are because they are vitally necessary
to protect the integrity of government work. It is not intended that
high-ranking government officials be actively trolling for work in the
very industry they are being entrusted to regulate and oversee on behalf
of the public.
At
best, this waiver is unseemly. At worst, it may well have lead to
enactment into law of provisions to benefit particular special interests
rather than the public good. We urge that your Department learn from
this experience and never grant a waiver like this again. In the
meantime, we would appreciate being informed of any similar waivers that
have been provided to currently-employed officials at the Department of
Health and Human Services.
Sincerely,
Pete
Stark
Jan Schakowsky
Member
of Congress
Member of Congress
|
|
