July 11, 2012

Vitter: White House, PhRMA Made Deals to Kill Prescription Drug Reimportation

Recently released emails show White House promising to kill reimportation in exchange for PhRMA support of Obamacare in 2009

(Washington, D.C.) – U.S. Senator David Vitter spoke on the Senate floor today criticizing the recently discovered deal the White House made with the Pharmaceutical Research and Manufacturers of America (PhRMA) to kill any prescription drug reimportation legislation. Vitter’s remarks come in response to emails recently released that reveal communication between the White House and the pharmaceutical industry during the 2009 healthcare debate. The White House ultimately agreed to block proposals that would allow importation of cheaper prescription drugs from abroad at the request of PhRMA. PhRMA is the lobbying arm of the big pharmaceutical industry and of has long viewed reimportation of cheaper drugs as a threat.

“These emails are proof that there was clearly a deal between the White House and big PhRMA to kill reimportation,” Vitter said. “Reimportation would allow Americans, especially our seniors, to get cheaper prescription drugs, but President Obama agreed to block it just to gain PhRMA’s financial support for Obamacare. This is an outrage and exactly the type of backroom deal-making that gave us this disastrous healthcare law. Worse, then-Sen. Obama co-sponsored a reimportation bill in 2006 and voted for my legislation in 2007 and 2008.”

 Click here to watch a video of Vitter’s floor statement.

Vitter, who has been the leader in the Senate for reimportation, successfully helped pass bipartisan legislation in 2007 that made it easier for Americans to bring legal prescription drugs into the United States. Then in 2008, Vitter secured a vote demanding the need for comprehensive reimportation legislation. In 2009, Vitter secured provisions in the Senate to an appropriations bill allowing U.S. citizens to import FDA-approved drugs at a lower cost from Canada. In October 2011, Vitter introduced legislation, almost identical to the 2009 amendment that previously passed the Senate, and 14 Democrats switched their votes from their position before the Obamacare debate. Vitter listed the Democrats here.

In Case You Missed It: Emails reveal Obama administration deal on drug reimportation (Times Picayune)

Times Picayune
Emails reveal Obama adminstration deal on drug reimportation
Tuesday, June 12, 2012
Bruce Alpert

WASHINGTON -- Newly released emails from the 2009-2010 health-care debate reveal how the White House won pharmaceutical industry support by agreeing to help scuttle proposals to expand reimportation of less expensive foreign drugs.

Sen. David Vitter, R-La., who has pushed for reimportation since first winning election to the Senate in 2004, said he isn't surprised.

The emails, released by the House Energy and Commerce Committee, show the great lengths the Pharmaceutical Research and Manufacturers of America went to kill drug reimportation as a potential hit on drug industry profits.

"The bottom line is there was clearly a deal between the White House and PhRMA and first and biggest was a demand to kill reimportation for good," Vitter said Tuesday.

During the health-care debate, PhRMA was headed by former Rep. Billy Tauzin, R-Chackbay, who was the lead industry negotiator with the White House over health reform.

More than100 pages of emails and memos, many from officials at PhRMA, show that the drug lobbying association provided money to run ads, including $70 million for two non-profit third parties, Americans for Stable Quality Care and Healthy Economic Now.

In one email, PhRMA lobbyist Bryant Hall wrote that "Rahm (then White House Chief of Staff Rahm Emanuel) asked for Harry and Louise ads thru third party. We've already contacted the agent."

As part of the deal, PhRMA agreed to cut drug costs by $80 billion, but insisted that the administration kill proposals to allow more drugs to be imported from abroad.

Vitter and others in 2007 helped passed pass a bill to allow people visiting Canada to personally carry through Customs prescription drugs purchased in the country for personal use. But legislation to allow many more Americans to buy such drugs on Canadian drug company websites has not made it through both houses of Congress.

On June 3, 2009, Nancy Ann DeParle, then director of the White House Office of Health Reform, wrote to a PhRMA official to assure him that while President Barack Obama was traveling, the White House had "made decision, based on how constructive you guys have been, to oppose" reimportation.

As a senator, Obama had supported reimportation.

On Sept. 17, 2009, PhRMA lobbyist Hall sent an email to colleagues, saying "Confidential. (White House) is working on some very explicit language on importation to kill in health care reform." He urged the colleagues to keep that information private.

Not everything went smoothly.

On Aug. 9, 2009, Hall expressed concern that ads supporting the health-care law financed by PhRMA were drawing condemnation by both supporters and opponents of the legislation.

"I ask: Do we get hammered by doing the ads?" Hall wrote. "This is the sentiment I fear. They now have the deal exposed."

Vitter said that proposals to allow Americans to buy less expensive prescription drugs from abroad are still hampered by that agreement between PhRMA, the Obama administration and some congressional supporters of the president's health overhaul bill. He noted that in October, when he tried to get the Senate to approve a measure to allow Americans to buy cheaper Canadian prescription drugs online, 14 Democratic senators who voted for the proposal in 2009 voted no.

PhRMA Spokesman Matt Bennett said in a statement that the association determined the debate over health reform would produce major changes in American health policy and therefore decided to "engage fully in the debate."

"The debate featured many policy proposals that would have weakened medical innovation and ultimately harmed patients' ability to assess life-saving medicines, which PhRMA actively opposed," Bennett said.

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