Ouch #129 Health Care Paybacks

In December 2003, a cow infected with mad cow disease was discovered in Washington State. President George W. Bush's Agriculture Secretary, Ann Veneman, assured Americans that the beef supply was safe, and that she planned to serve her family beef for Christmas. In the months before the discovery of the sick cow, her agency had opposed a congressional amendment to the annual agriculture spending bill to ban the consumption of "downer" cows. Downer cows are those that are too sick to walk and, therefore, are suspect for carrying the deadly disease, which attacks the nervous system. Despite Veneman's holiday meal plans, the discovery of the sick cow on U.S. soil made the agency change its tune and the sale of downer cows was banned.

Even with the new ban, consumer advocates argued that the public was still at risk, and that the White House and Congress were doing too little, too late. What explains the behavior of elected officials? Perhaps it had something to do with the more than $47 million that meat and food processing industries have poured into federal campaigns and party committees since 1999, 75% of that to the GOP. President Bush alone has collected $1.7 million from these industries for his 2004 campaign. "I love those cattlemen," he told the president of the National Cattlemen’s Beef Association at a 2003 White House Christmas Party. The group has opposed strong food safety laws.

These and many other examples of policy paybacks that are harmful to public health are contained in a new investigative report by Public Campaign, "Paybacks: How the White House and Congress are Neglecting our Health Care Because of Their Corporate Contributors." Thanks to the interference of special interest campaign contributors, who have poured more than $163 million in to federal campaigns and party committees since 1999, the number of Americans without health insurance continues to climb, prescription drugs remain too expensive, tobacco addiction remains an enormous problem, and the safety of the food supply is questionable. Relying on detailed analyses of campaign finance data, the report shows how health care-related interests have strategically directed contributions to the Bush Administration and the Members of Congress who have the most power over health care issues; as well as pushing for industry-friendly appointments in key agency positions. Read how:

  • At a time when nearly 44 million people lack health insurance, Rep. Bill Thomas (R-CA), who ranks third among his colleagues for campaign contributions from the health sector, championed a provision in the new Medicare law to expand Health Savings Accounts, which health policy experts predict will increase the number of uninsured Americans;
  • Several of President Bush’s fundraising Pioneers and Rangers are profiting handsomely from the new Medicare law, including William McGuire, CEO of UnitedHealth Group, which markets the Health Savings Accounts that were expanded under the bill.
  • The 220 House Members who voted in favor of the $534 billion Medicare bill approved by Congress in 2003, received more than twice as much campaign cash, on average, from pharmaceutical manufacturers, as those who voted against it. The bill is larded with giveaways for these companies.
  • Health care-related interests have severely shifted their support toward the GOP since 1992. For example, pharmaceutical manufacturers increased their contributions to Republicans nearly 600% over the ten-year period, while contributions to Democrats increased 79%.

Each case study in the report includes several examples of how these industries get what they want out of Washington, from higher prices for prescription drugs to lax regulation of the meat processing industry in the face of mad cow disease. There are pullouts on the connections between Bush Administration fundraisers and personnel; charts showing contributions to Members of Congress and actions they have taken on behalf of industry; and charts showing the correlation of campaign contributions with votes in Congress. Be informed: download a copy of "Paybacks" today.

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And if you want the whole picture of how big money operates in our nation's capitol, pick up our new book, "Is that a Politician in Your Pocket? Washington on $2 Million a Day."

OUCH! is a regular e-mail bulletin on how private money in politics hurts average citizens, published by Public Campaign, a non-partisan, non-profit organization devoted to comprehensive campaign finance reform. Every day, we pay more as consumers and taxpayers for special interest subsidies and boondoggles because of our system of privately financed elections. It's time for a change.

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