WHITE HOUSE THREATENED TO PUSH PHARMACEUTICAL IMPORTATION/MOST TRANSPARENT ADMINISTRATION STRONG-ARMED SECRET DEALS

WASHINGTON, JUNE 15, 2012 – “Although candidate Obama promised the most transparent Administration in history, our investigation of the dealings of the White House and the pharmaceuticals industry has uncovered threats and secret deals to strong-arm support for Obamacare,” said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.

Specifically, as part of its agreement with the White House, the Pharmaceutical Research and Manufacturers of America (PhARMA) agreed to commit $150 million in advertising for a public campaign in support of the Patient Protection and Affordable Care Act (PPACA).  During earlier negotiations when PhARMA lobbyists indicated that they would not launch an advertising campaign until the legislation was more developed, White House officials reminded them of the agreement reach on the White House drug importation policy.  Later, the chief lobbyist for PhARMA reported that Rahm Emmanuel, the White House Chief of Staff, on July 7, 2009, requested the “ads thru a third party” to avoid full disclosure, and the ads started airing the next week.

In addition, during these secret meetings the Obama Administration also sought $100 billion in savings from the industry in future health care costs.  The White House again resorted to threats, including the possibility of requiring industry to provide full drug rebates for Medicare Part D beneficiaries.  In the end, PhARMA agreed to $80 billion in savings over 10 years.

“Over and over again, we are seeing that the White House was engaged in secret deals with lobbyists on numerous issues, including the health care law,” added Stearns.  “All of this strong-arming and deal making occurred far from public sight in what was promised to be the most open, transparent Administration.  It brings up the question of what else has been hidden from the American people by this White House.”