New Report Shows Public Health Endangered by Campaign Contributions

Washington, DC -- Washington, DC -- Health care related interests have poured more than $163 million into federal political campaigns and party coffers since 1999 and have reaped huge policy paybacks that are harmful to ordinary people’s health, according to a new investigative report by Public Campaign, PAYBACKS: How the White House and Congress are Neglecting Our Health Care Because of Their Corporate Contributors.

The 47-page report provides the most comprehensive examination to date of how campaign contributors are skewing public policy on a wide range of health care issues, including health insurance coverage, availability and affordability of prescription drugs, safety of the food supply, and tobacco use. Relying on detailed analyses of campaign finance data, the report shows how health care 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.

The report demonstrates how wealthy health care interests shifted their campaign contributions to Republicans ten years ago after defeating health care reform proposed by President Bill Clinton. With the Republican takeover of Congress in 1994, health care interests upped their investments in the GOP; for example, pharmaceutical manufacturers increased their contributions to Republicans nearly 600% from 1992 to 2002, while contributions to Democrats increased just 79%. Late last year, Congress and President Bush approved a $534 billion Medicare law that offers inadequate benefits and is larded with giveaways to campaign contributors.

Numerous Democrats responsive to the industry over public health also reap ample campaign money. For example, Rep. Charles W. Stenholm (D-TX), the lead House recipient of meat and food processing industry contributions, has opposed “country-of-origin” labeling legislation requiring labeling of meat, fish, fruits, vegetables, and peanuts, and has criticized the USDA’s new regulations banning “downer” cattle from the food supply as a way of protecting consumers from mad cow disease.

This clever investment strategy has yielded huge returns for industry in the form of policy giveaways granted by the Administration and by Congress. The report presents four case studies in how health-related campaign contributors are getting policy paybacks at great public cost: 1. health insurance/HMOs; 2. pharmaceutical manufacturers; 3. meat and food processing industries; and 4. the tobacco industry.

“The bottom line is that, thanks to our pay-to-play political system, people are getting hurt. They’re getting sick more often, paying higher prices for prescription drugs, eating unsafe food, and are dying earlier than they otherwise would,” said Nancy Watzman, author of the report and Research and Investigative Projects Director for Public Campaign.

Each case study 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.

“In contrast, in Maine and Arizona, where Clean Money, Clean Elections systems have given candidates the opportunity to win office without the largesse of private donors, we are seeing signs of health,” said Nick Nyhart, Executive Director of Public Campaign. “Lawmakers in both states have approved reforms that are increasing the availability of low-cost prescription drugs.”

“Health care costs are skyrocketing—and it’s no wonder,” said Jeff Blum, Executive Director of USAction. “Our health care policies favor profit over people. How can we achieve health care for all when our elected officials are indebted to giant HMOs, pharmaceutical, and insurance companies?”

The comments were echoed by Roger Hickey, Co-Director of Campaign for America’s Future: “This report shows what is becoming common knowledge across America—HMOs and drug companies invested millions in politicians and got a return worth BILLIONS with the passage of the new Medicare law. Seniors will still pay more for prescriptions while campaign contributors get to cash in.”

Public Campaign is a non-profit, non-partisan organization dedicated to sweeping reform that aims to dramatically reduce the role of special interest money in America's elections and the influence of big contributors in American politics.

Click here to download a PDF version of the full report or email rbielke@publicampaign.org to request a hard copy of the study.