Articles Tagged ‘PhRMA’

Senate Committee on Finance Examines Health Care Legislation Impact on Seniors

Friday, September 25th, 2009

The Senate Committee on Finance voted down an amendment from Sen. Ben Nelson (D-FL) Thursday that would have slashed prescription drug prices for low-income seniors. 

According to the Wall Street Journal, the measure would have allowed for these low-income seniors to purchase their medication at the Medicaid rate charged by impoverished Americans of all income levels. The non-partisan Congressional Budget Office (CBO) has assessed a profit loss of $106 billion during the next decade for pharmaceutical companies if the amendment were implemented in a passed bill.

Florida Democratic Sen. Ben Nelson wanted to use the money to close the Medicare prescription coverage gap. But it would have been on top of $80 billion in reduced fees that the industry already had agreed to.

Committee chairman Sen. Max Baucus (D., Mont.) cited the agreement in voting against the amendment. The amendment was rejected by a 13-10 vote. All of the panel’s Republicans voted against it, as did three Democrats.

It is reasonable to presume why Sen. Baucus would vote against any legislation that would impede the profits of PhRMA. After all, the group has spent millions of dollars endorsing Obamacare, as they would quite enjoy a monopoly on the pharmaceuticals market if a government overhaul of health care occurred. In fact, Sen. Tom Carper (D-DE) admitted to a backroom PhRMA deal earlier this week, as reported on healthcarehorserace.com. This $106 billion in profit loss for PhRMA would be only a 3 percent revenue drop out of the $3.6 trillion in new profits they stand to gain in the next decade if Obamacare passes.

But, why would the Republicans oppose such a measure if PhRMA has run millions of dollars worth of media buys attacking the GOP’s stance on health care reform? It appears they have provided their own mechanisms for improving seniors’ care.

Republicans sought to bring proposed cuts to privately run Medicare plans, known as Medicare Advantage plans, to the forefront.

The committee voted along party lines to reject an amendment by Sen. Orrin Hatch (R., Utah) that would have delayed coverage for the uninsured if a million or more people who now have insurance wound up having to pay higher premiums as a result of the legislation.

Mr. Hatch said his amendment was intended to protect seniors who signed up for private insurance plans through Medicare and could lose some benefits as a result of cuts to the commercial plans. About 10 million seniors are now signed up through the private plans, about one-fourth of Medicare recipients. The “Medicare Advantage” plans can offer enhanced benefits because the government pays them more than it costs to care for seniors in traditional Medicare.

Seniors remain a vital voting bloc for both political parties, and as such, many have united to vocalize their opposition to the cuts proposed by the Obama Administration to pay for a sweeping government overhaul of the health care industry. They are known as some of the most “chronic voters,” a term political consultants use to describe the frequency and reliability of a demographic participating in an election.

The American Association of Retired Persons (AARP) has previously stood with President Obama, despite the billions in proposed cuts to Medicare, and even sponsored a town hall for him and ran commercials like this one, on the health care issue. After the cancellation of memberships by thousands upon thousands of retirees, the AARP has been forced to backstep and take a “no vote” stance on the matter. They have recently begun running ads that attempt to portray the senior group as being open to bipartisanship, arguing that one side wants the “status quo” and the other wants a “government takeover.” 

The conservative seniors group 60 Plus, led by Jim Martin, has long stood for the kind of reforms that make health care cheaper and more accessible to seniors, and thus, have been under-fire by lefitst groups like Media Matters. 60 Plus argues that under Obamacare, seniors would be subject to desires of special interests of groups like PhRMA, which would ultimately compromise their right to choose their physician and the kind of care and coverage they receive. 

Hurt most in this charade will be low-income seniors, particularly and ironically, African-American and Hispanic retirees. Cutting Medicare payments will take a dangerous toll on these retirees. You see, 1 in 5 retirees are now enrolled in a Medicare Advantage private plan, including 40% of African-American and 50% of Hispanic seniors.

This government engineered healthcare plan leads to price controls which in turn leads to reduction in services and produces long lines waiting for these reduced services. Rationing then results and with government provided care private coverage will plummet as more and more seek the so call ‘free lunch.’

The government needs to shore up Medicare, not slash payments. Seniors deserve better.

Sen. Tom Carper (D-DE) Admits to Backroom Obama-PhRMA Deal

Wednesday, September 23rd, 2009

It appears as though the senior senator from Delaware, Tom Carper, in the midst of the Senate Finance Committee markup of Montana Senator Max Baucus’s America’s Health Future Act of 2009, let the proverbial cat out of the bag. While discussing an amendment to be included as part of the president’s health care reform legislation that would have drug companies pay more toward the federal government, he let slip the fact that the Obama administration did indeed make a backroom deal with the pharmaceutical industry, something the White House has long since denied but has been speculated upon within political circles across the country.

Here is the video, provided by the liberal blog, FireDogLake, as well as a transcript of what Senator Carper said:

I’ll tell you — if someone negotiated a deal with me and I agreed to put up say, 80 dollars or 80 million dollars or 80 billion dollars and then you came back and said to me a couple of weeks later — no no, I know you agreed to do 80 billion and I know you were willing to help support through an advertising campaign this particular — not even this particular bill, just the idea of generic health care reform? No, we’re going to double — we’re going to double what you agreed in those negotiations to do. That’s not the way — that’s not what I consider treating people the way I’d want to be treated.

The backroom deal being referred to, of course, was the one made between President Obama and Billy Tauzin, President and CEO of PhRMA, an industry-lobbying group representing the pharmaceutical research and biotechnology companies within the United States. Under the deal the drug industry consented to give Americans a future savings of $80 billion on the condition that President Obama agreed not to negotiate for lower drug prices. The kicker in all of this, however, as Air America, of all political organizations, revealed, was that Obama’s own administration announced that over the next ten years Americans would spend roughly $3.6 trillion for prescription drugs. This made the $80 billion in future savings pretty much a drop in the bucket.

As Jim Geraghty of National Review Online (NRO) points out, FireDogLake is seriously misdirecting their outrage. Are they floored by the fact that a senior senator basically admitted that a man who campaigned as president on the promise that he would not secretly negotiate with lobbying groups behind closed doors went back on his word? Is their anger directed as the fact that he brokered a deal on legislation in exchange for millions of dollars in television advertisement for freshmen Democratic legislators, a clear-cut violation of campaign finance laws? Of course not. They are mad that Senator Carper wants to keep the cost for the drug companies at $80 billion as was agreed upon in secret negotiations; the liberal blog, however, wants to be able to hit them up for much more.

That’s it, liberal blogosphere! Keep you eye on the ball!

Oh, How Sweet It Is… to be David Axelrod

Saturday, August 22nd, 2009

In the cruel world of American politics, a dutiful staffer will toil long into the night mulling over phone banking lists and reviewing profiles of high-power donors. He exchanges his personal life for 6 a.m. conference calls and his car becomes a billboard in transit. His diet consists of stale coffee and an endless supply of nicotine. An unenviable existence, to say the least, but one that is endured in hopes of seeing his boss declared victorious on election night and of seizing the resulting opportunities that lay ahead.

For David Axelrod, those opportunities were beyond imagine. As Barack Obama’s top campaign adviser, Axelrod carefully formulated the strategy and framing that ultimately earned the far Left U.S. Senator from Illinois the Democratic Party’s nomination and eventually, the White House. Such a feat was to be rewarded even more handsomely than previous campaign managers, who typically cram themselves into strategic, though often unwelcome, roles in the new administration.

President Obama bestowed upon Axelrod the title of “Senior Adviser” for his fledgling administration. After all, the president certainly made no secret of his plans to fill the White House with his Chicago-based allies. Axelrod joined the ranks of Windy City natives, such as then-Congressman Rahm Emanuel, who later became the White House Chief of Staff, and his brother, Dr. Ezekiel “Zeke” Emanuel, who was tasked with crafting health care reform legislation for the Administration. As if hanging out with his hometown buddies wasn’t enough of an incentive, Axelrod was encouraged by his national agenda-setting role and a $200,000 annual salary.

Despite all the perks of living a politico’s dream of further expanding his sphere of influence, Axelrod appeared dissatisfied by the substantial pay cut of shifting from the private to public service sector. According to a November 2008 Politico report, the political strategist’s firm collected more than $35 million in profits since 1998 for their extensive lobbying and consulting work, $2.5 million of which came from Obama’s presidential campaign, and Axelrod would be forced to decide whether to take a leadership role in the most liberal White House in American history, or to stick with his firm in Chicago.

Luckily for David Axelrod, he never actually had to make that choice. Axelrod began his work in the White House, but did not entirely abandon his booming consulting company. Certainly, this seems like a bit of a dilemma of ethics, with one man receiving a taxpayer-funded salary, while also maintaining private sector-based income in the same field. But in typical Obama Administration fashion, this sort of moral conundrum would not deter the President’s senior adviser, who sought to capitalize on the country’s current hot button issue: health care reform.

While Axelrod worked behind the scenes to craft policy that would lead to a government overhaul of the medical industry, his firm in Chicago lobbied special interest groups to earn massive media contracts that would help dictate political discourse during the debate. According to an August 19, 2009 Associated Press report, President Obama’s efforts to push his health care reform agenda have created a “financial windfall in the election offseason to Democratic consulting firms that are closely connected” to the President and Axelrod.

These coalition groups are currently running “at least $24 million in pro-overhaul ads” with the help of GMMB, a consulting group led by a “top Obama campaign strategist” and AKPD Message and Media, the firm owned by none other than David Axelrod. Michael Axelrod, David’s son, now manages the day-to-day affairs of his father’s AKPD Message and Media, aided in part by his employee, David Plouffe, Obama’s presidential campaign manager.

One of their biggest clients, Americans for Stable Quality Care, is comprised of political and financial heavyweights like the Service Employees International Union (SEIU), American Medical Association (AMA), FamiliesUSA and PhRMA, the last promising to pony up $150 million to promote the President’s health care reform agenda.

While the Associated Press concedes that there is “no evidence that Axelrod directly profited from the group’s ads,” they also admit that he will draw $2 million from the firm over the next four years. The larger issue, Sheila Krumholz, executive director of the Center for Responsive Politics, contends, is a “network of relationships and overlapping interests” that could become a “problem as Obama tries to win the public over on health care and fulfill his promise to change the way Washington works.”

Indeed, candidate Obama repeatedly condemned such “inside baseball” dealings, lamenting that this sort of behavior leads to the American people distrusting lawmakers to govern responsibly. Even if Axelrod is not, as he claims, directly profiting from these contracts, is it not political patronage for his firm, and really, his son, to enjoy profitable deals with longtime Obama cohorts, like the SEIU? 

And even despite attempts of both David Axelrod and AKPD to distance themselves from each other, AKDP and GMBB, a partner firm in the health care reform media blitz, both “proudly proclaim their connections to Obama on their Web sites.”

AKPD has a full page on Axelrod that includes pictures of Obama. In one photo, Obama hugs Plouffe on election night.

“We are deeply honored to have been part of Barack Obama’s historic campaign to change America and the world,” GMMB says on its Web site. GMMB’s partners include Jim Margolis, a senior strategist for Obama’s presidential campaign.

Fox News reports that  leading lobbying law expert Kenneth Gross is not at all shocked by this relationship, finding it to be only natural for such a profitable favor to be given to AKPD and GMMB. 

“To victor go the spoils. The health care message is very much like a campaign message and it’s not surprising they would use the same vendor that knows the substance of the administration’s issues,” Gross said.

It seems that the two consulting groups have even more explaining to do, as it is apparent they have profited tremendously from David Axelrod’s political affiliations on a national level (Associated Press).

Both GMMB and AKPD also have worked for Democrats this year. The Democratic National Committee paid AKPD at least $106,000 for polling, media production, communication consulting and travel costs from February through April. The Democratic Congressional Campaign Committee paid GMMB roughly $75,000 from February through June for ads. And GMMB took in at least $9,000 this year from Senate leader Reid’s political action committee for communications consulting.

Republicans argue that such patronage is deplorable and should serve as a cause for alarm for the American people (Fox News).

But House Republicans insist PhRMA had a hand in hiring the firms — and continue to question the motives of both the drug lobby and the White House.

“Out of all the firms Pharma could choose to do their media work, they chose David Axelrod’s firm, which still maintains Axelrod’s son on the payroll and owes Axelrod himself $2 million,” House Republican Conference spokesman Mike Lloyd wrote in an e-mail.

“It’s hard to believe the public can be assured that David Axelrod isn’t influenced by any of this in the course of the health care debate. For an administration that promised ‘change’ and to be above even an appearance of impropriety this does not even come close to passing the smell test,” Lloyd wrote.

When President Obama proclaimed that he wanted to bring about “change,” what he really meant was that he wanted more of the same, just with liberals at the helm. He got his wish with David Axelrod.

Air America Calls Obama ‘Fascist Liar’

Friday, August 21st, 2009

Does President Barack Obama have any friends left at all? It seems everyone is taking political pot shots at the guy. And it is not just conservatives and libertarians either. You have comedian Jon Stewart, a member of the mainstream media and an unapologetically staunch liberal, chastising the Obama administration for not pounding home the message of public-option while at the same praising the Bush presidency. Did we slip into some weird parallel dimension or something? Then there’s the far-left blogosphere that went totally unhinged when Kathleen Sebelius said the public option proposal was not ‘essential’ for the president’s health care reform bill, with some, especially at America Blog, calling for Howard Dean to replace Obama as the Democratic presidential candidate in 2012.

But now Air America Media, formerly Air America Radio, is attacking the president for his backroom deal with Billy Tauzin, President and CEO of PhRMA, an industry trade group representing the pharmaceutical research and biotechnology companies in the United States. The deal entails the drug industry agreeing to give Americans a future savings of $80 billion on the condition that President Obama agrees not to negotiate for lower drug prices. The kicker in this (outside the fact that he broke a prominent campaign promise to include the American people in any negotiates made with lobbyists and that there would no longer be any backroom deals in Washington under his reign) is that Obama’s own administration announced that over the next ten years Americans will spend roughly $3.6 trillion for prescription drugs. That $80 billion in future savings covers roughly two percent of that.

The audio showcased in the video below features guest radio host Christiane Brown talking with investigative reporter Greg Palast:

Want to know what the real scary part about this conversation is? Greg Palast poses the question of whether “the people out there screaming and breaking up the discussion at town meetings are correct.” Has the world gone mad? Next thing you know dogs and cats will be living together. Mass Hysteria!

Obamacare Supporters Align to Combat Conservative Coalition-Building

Friday, August 14th, 2009

According to a post this week in Politico, supporters of President Obama’s plans to create a government overhaul of the health care industry have joined to fight the media and grassroots success of conservative coalitions in efforts to redirect public opinion of liberal reform proposals.

 The group, known as Americans for Stable Quality Care, plans to drop more than $12 million in media buys during the remainder of August recess. The advertising campaign began Thursday at 11 a.m., with targeted states that include Alaska, Arkansas, Colorado, Indiana, Louisiana, Maine, Montana, Nebraska, Nevada, North Dakota, South Dakota and Virginia.

Americans for Stable Quality Care attempts to counter the Health Care Freedom Coalition, a free market-inspired group of powerful conservative organizations, including Americans for Tax Reform, Americans for Prosperity, American Association of Physicians and Surgeons, 60 Plus, Medical Society of the District of Columbia, among more than 60 others.

Americans for Stable Quality Care is funded largely by the Pharmaceutical Research and Manufacturers of America (PhRMA), a group that vowed to spend $150 million from their own coffers to promote Obamacare. It is no surprise that PhRMA serves as the head of this coalition, as the successful passage of sweeping health care legislation would mean their monopoly on the pharmaceutical market in America. 

Some of the other member organizations are:

  • Service Employees International Union (SEIU)
    • The SEIU is the only labor union given a coveted seat at the bargaining table in the health care reform debate. With liabilities in excess of $1.5 billion and a dwindling account of only $1 billion assets, the SEIU desperately needs Obamacare to pass to ease up their financial concerns and retain members. They have been one of the most powerful voices on the Left in advocating health care reform, conducting rallies, crashing conservative events, blogging, etc.
  • American Medical Association (AMA)
    • Despite their early, vocal disapproval of President Obama’s health care reform proposals, the AMA submitted to the White House and Congressional Democrats and began supporting their proposals. According to Kathryn Serkes of the American Association of Physicians and Surgeons (AAPS), it was in exchange for a few extra dollars in Medicare reimbursements, even though President Obama ignored their calls for tort reform as a part of health care legislation. The AMA represents a small, diminishing number of doctors, with many leaving the professional organization due to their positions on political issues.
  • FamiliesUSA
    • FamiliesUSA is a self-described “progressive American non-profit consumer health-care advocacy organization” that focuses on grassroots activism, lobbying the Hill and financial development to promote liberal health care agenda. Their new Web site, Stand up for Health Care, includes a blog and activist mobilization page, recruiting new supporters for their cause. FamiliesUSA is certainly an arm of the liberal movement, touting affiliations with powerful Democrats in Congress, including Sen. Chris Dodd, who just so happens to act as ranking member of the Senate’s HELP (Health, Education, Labor and Pensions) Committee and who has been instrumental in the development of health care reform legislation. 

Federation of American Hospitals  

  • The Federation of American Hospitals, representing 1,700 medical institutions in the U.S., spent 71 percent of its campaign contributions in 2008 to support Democrats. Strangely enough, the group is headed by Chip Kahn, one of the masterminds behind the defeat of Hillarycare in 1993.

    Politico reports that member organizations understand the necessity of working together to fight the conservative push:

    The official provides a little more backstory: ‘These groups were part of a looser coalition that started back in January that focused on the links between health reform and the economy. Now that the debate is turning on what health reform means for the individual, they felt the need to launch a new front that addresses some of those particulars while debunking some of the myths that are floating around. Plus, these groups recognize that their collective voice packs more punch than if they were to just speak out individually.’

    Here is the advertisement with which they will blitz the airwaves:

    Independence Day Airwaves and Newspapers to be Bombarded by Political Ads

    Wednesday, July 1st, 2009

    As Congressional Democrats and Republicans retreat to their districts to celebrate the Independence Day holiday, they won’t get very far from the battle over healthcare reform. Special interests and the parties’ respective national committees are expected to bombard the airwaves and newspapers with millions of dollars worth of ads in favor of and in opposition to the controversial public option insurance plan proposed by Democrats as a critical element of healthcare reform.

    “It’s probably the starting gun,” says Evan Tracey of Campaign Media Analysis Group, which tracks political advertising. (As reported by USA Today’s Richard Wolf.)

    In the first six months of this year, more than $22 million has been spent on healthcare reform commercials, according to an analysis conducted by Campaign Media Analysis Group, CNN’s consultant on political television advertising. (From CNN Political Ticker.)

    Ads in favor of the public option plan are anticipated by Families USA and The Pharmaceutical Research and Manufacturers of America (PhRMA).

    “More and more families are being priced out of the health care they used to take for granted,” said Ron Pollack, executive director of Families USA. “This ad campaign, involving real people, shows that there will be a huge cost to America’s families and businesses if we fail to achieve meaningful health care reform this year.”

    Meanwhile, conservative groups, including Conservatives for Patients’ Rights, are preparing an offensive of their own with a strong focus on Senate Finance Chairman Max Baucus’ homestate of Montana. 

    “Our hope is that Montana voters will encourage Senator Baucus and Senator (Jon) Tester to protect the rights of patients to make their own health care choices, and not cede their freedom to politicians and government bureaucrats,” said Rick Scott, chairman of Conservatives for Patients’ Rights. (As reported by The Missoulian’s Mike Dennison.)

    With President Obama’s October deadline for healthcare reform rapidly approaching, both sides of the debate are taking their cases directly to the American people in an effort to force politicians to take a public stand in what has been a back-room process to date.

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