Drug industry spends millions lobbying US states
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The pharmaceutical industry spent $44 million lobbying U.S. state officials during a two-year period with much of the money going to fight proposals that would have reduced prescription drug costs, according to report released on Thursday.
The Center for Public Integrity said industry representatives spent the money in 2003 and 2004, a time when more than half of all states were considering proposals to reduce the cost of medicines. Prescription medicines are one of the fastest-growing expenses for state governments, which are among the pharmaceutical industry’s biggest customers, the report said.
The investigative research center analyzed lobbyist disclosure documents and records from the Pharmaceutical Research and Manufacturers of America (PhRMA) as well as conducted interviews with current and former state representatives.
PhRMA, the drug industry’s main trade group, spent more than $4.5 million during 2003 and 2004. Four major drugmakers - Eli Lilly and Co., GlaxoSmithKline Plc., Pfizer Inc. and Johnson & Johnson - each spent $3 million.
Overall, more than 40 percent of the $44 million was spent in three large states that spend the most on prescription medicines - California, New York and Texas, according to the report funded by The Nathan Cummings Foundation, the Joyce Foundation and the Ford Foundation.
About 16 percent of all prescription drugs sold in the United States are purchased by states under the Medicaid program for the poor and other assistance initiatives, the center said. States also cover drugs for their employees and prison inmates.
As many states face a continuing budget crunch, some have turned to drug costs as an area to trim spending. Center researchers said 33 states have passed 66 pieces of legislation since 2003 aimed at cutting drug spending.
Although federal officials have said importing drugs from abroad is risky and unsafe, several states now allow residents to buy 90 days’ worth of prescription medicines from other countries offering cheaper prices.
Others have begun promoting use of cheaper generic drugs, buying medicines in bulk and pushing for use of drugs they consider to be most cost-effective. Massachusetts, New Jersey, Indiana and other states where several drugmakers are based also were heavily targeted.
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