Fact Check: PhRMA Opposes Prescription Drugs for Seniors

Over the years, the Pharmaceutical Research and Manufacturers of America, a lobbying group that represents big drug companies, has spent millions of dollars to torpedo Democratic efforts to enact a Medicare prescription drug benefit and they have been very clear about their opposition of such a program. Now PhRMA is claiming to support drug coverage for seniors. However much PhRMA may have altered its rhetorical approach, its actions speak louder than words.

PhRMA Rhetoric: Drug Companies Support Medicare Prescription Drug Benefit

PhRMA Called On Congress to Pass “Meaningful Prescription Drug Coverage Under Medicare.” The Pharmaceutical Research and Manufacturers of America (PhRMA) website boasts a video of its President, Alan F. Holmer, pledging to support a prescription drug coverage for seniors. “Now, we're working on another challenge: getting these lifesaving medicines into the hands of seniors that need them. I hope you'll join me in calling on Congress to pass meaningful prescription drug coverage under Medicare,” Holmer says. [http://www.phrma.org]

Reality: PhRMA Has Long History of Opposing Prescription Drug Coverage for Seniors, Is Working Again With GOP to Block Passage

FACT: PhRMA Said Prescription Drug Coverage Should Come through Private Sector.

• In January 1999, when President Clinton proposed a Medicare prescription drug benefit, PhRMA criticized the plan. “Any expansion of prescription drug coverage for Medicare beneficiaries should come through the private sector and not through the traditional fee-for-service Medicare program,” PhRMA president Holmer said. [New York Times, 1/24/99]

FACT: $30 Million Dollar Ad Campaign Opposed Clinton Prescription Drug Plan, PhRMA was “Putting Up Most of the Money.”

• In 1999, Citizens for Better Medicine, a group representing PhRMA and other business leaders, ran a television campaign against the Clinton administration Medicare prescription drug plan. It was reported to cost $30 million and was financed by PhRMA. “Pharmaceutical Research and Manufacturers of America, a trade association for more than 100 drug companies, said it was putting up most of the money, but refused to say how much,” reported the New York Times. [New York Times, 7/29/99]

FACT: Current Ad Campaign Touting GOP Prescription Drug Plan Is Financed by PhRMA.

• The United Seniors Association (USA) launched a $3 million ad campaign touting the House GOP prescription drug plan, which is based on private insurers offering prescription drug coverage to Medicare recipients. USA president Charles Jarvis lied about the ads’ funding. “This is not a PhRMA buy. It is a national grass-roots buy,” Jarvis claimed. However, PhRMA spokeswoman Jackie Cottrell, admitted they had recently given USA an “unrestricted educational grant.” According to the Associated Press, “Several Republican officials, speaking on condition of anonymity, said they understood that the Pharmaceutical Research and Manufacturers of America (PhRMA) had provided the funds for the commercials.” [Associated Press, 5/9/02; Families USA Special Report, 05/02, http://www.familiesusa.org/]

FACT: GOP Prescription Drug Plan Motivated By Election Year Politics.

• The Congressional Republicans’ pledge to pass a prescription drug benefit is solely based on the recommendations by their pollsters, who tell them it is the only way to win elections in November. “Right now, voters perceive the parties as headed toward a match-up of Republicans on taxes and terrorism versus Democrats on economy, education, and the elderly. We need more than just taxes/terrorism to win. … Republicans passing a prescription drug benefit would go a long way to leaving Democrats with very little on the table to try to use against us,” a GOP polling memo states. [Public Opinion Strategies (R), Hill Briefing, 4/25/02]