IBJNews

Corporations bet on insiders to bend reform

Back to TopCommentsE-mailPrint

Health care investors have breathed a sigh of relief that the Senate health reform bill contains no government-run insurance plan but still dumps billions of dollars of subsidies into the health care sector.

For those corporate-friendly victories, some say, they have the lobbyists to thank.

Local health care heavyweights such as Eli Lilly and Co., Roche Diagnostics Corp., WellPoint Inc.  and their peers nationwide relied on a bevy of former congressional staffers and even some former legislators to turn the bill as favorably their way as possible.

That was the conclusion of an exhaustive analysis of public lobbying reports by the Chicago Tribune and Medill School of Journalism at Northwestern University. They tallied 166 lobbyists for health care companies who used to be aides for the nine congressional leadership offices or the five committees involved in writing health reform legislation.

The lobbyists’ clients spent $635 million on lobbying over the past two years, the Dec. 20 story reported.

Liberals have seized on the corporate lobbying bonanza in their criticism of the bill as a sellout to corporate interests.

“From start to finish, the insurance and drug industries—and their army of lobbyists—had control over the process that resulted in a bill that is reform in name only,” wrote liberal blogger Arianna Huffington after the key vote in the Senate.

The biggest spenders were drug industry groups, such as PhRMA and the Biotechnology Industry Organization. But individual companies did their part, too.

Lilly hired eight former legislative staffers from those key offices and committees, according to the Tribune’s database. In all, Lilly has 56 lobbyists working in Washington and spent $9 million on lobbying through the first nine months of this year, according to the Center for Responsive Politics.

"The numbers shouldn't surprise anyone," Ken Johnson, a senior vice president for PhRMA, the drug industry group, told the newspaper. "Former staffers have a unique understanding of how the legislative process works. And when you are trying to advocate on behalf of smart public policies, you want smart people on your team."

Roche Diagnostics lobbyists included three former staff members from the key offices and committees, as well as one ex-lawmaker—former Indiana Sen. Dan Coats.  Roche Diagnostics spent only $180,000 on lobbying through September, but its parent organization, Hoffmann-La Roche, racked up a $4 million bill.

WellPoint Inc. spent $3.6 million on lobbying through September, using two former staff members from the key committees and lawmakers. Its biggest goal has been to shoot down the public option, or a government-run insurance plan that would compete with WellPoint’s private health plans. So far, it’s succeeding.

But Andrew Rosenberg, a Roche Diagnostics lobbyist and a former staffer for the late Sen. Edward Kennedy, told the Tribune that political conditions, not the inside connections of lobbyists, killed the public option.

"You could see this coming from a long way off,” he said. "It was going to have to be something that appeals to moderates" opposed to expanding government-run health insurance.

One other Indiana company, Bloomington-based Cook Group Inc., used as a lobbyist a former staff member of the House Ways and Means Committee. The company spent $240,000 on lobbying through the first nine months of the year.

Other Indiana health care companies lobbying this year included Batesville-based hospital bed maker Hill-Rom Holdings Inc. ($190,000), Warsaw-based orthopedic implant makers Zimmer Holdings Inc. ($165,000) and Biomet Inc. ($150,000), Indianapolis hospital systems Clarian Health ($160,000) and Community Health Network ($50,000), and life sciences industry group BioCrossroads ($65,000).


ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Half of these comments make no sense really; Carmel (rolls eyes; everyone has this high regard but honestly I think people in Carmel are blind) IUPUI- shouldn't receive any accolades for parking garages (location and design wise) Indianapolis with a deteriorating circle center mall doesn't need another complex with the hope of retailers to come, we don't need twenty more CVS's and Starbucks'; I can fly to New York City and find a couple dead blocks; they exist so what...Indianapolis needs an actual downtown population to achieve more...that 120 million pay raise Mr Simon wants; maybe he should re-invest it in downtown Indianapolis..he is sure investing the company funds in Boston...

  2. Zionsville/Eagle Creek is a lovely area however there is one thing that it is severely lacking and that is mountain bike trails. The east side of the city has two wonderful trails available (Ft. Ben and Town Run) and both of these areas are undoubtedly better because of these two trails. Not only do these trails give these parks even more use (more money for the parks) but the people that use these trails are helping to preserve the park through trash pick-up, trail maintenance, and public education. Eagle Creek, it's time to catch up!

  3. DRT...

    Sorry for the confusion and poor wording on my part. There's no official indication that One America opposes retail.

    I was expressing my difficulty in imagining a reason for One America to oppose a more attractive mixed-use structure.

  4. this is an easy one, gambling casinos in all large hotels in the state. Invite in Donald Trump and all the casino owners from Las Vegas. Also, legalize the Indian tribes in Indiana to open casinos tax free. Rivers are a natural for this, the Wabash, the Tippecanoe, and the Ohio Rivers as gambling highways and Lake Michigan from Gary, Indiana. If this is an industry, which it is not, because it makes nothing, it redistributes wealth, instate and out of state. Maybe casinos attached to all shopping malls, Greenwood, Castleton, Keystone at the Crossing.

  5. The state can solve this easily, riverboat gambling in the Ohio River Indiana side, also, Indianapolis converts Union Station to a casino, that way central Indiana residents will not leave the state to gamble. Also, riverboat gambling in Gary , Indiana, Terre Haute, and all along the Wabash River from Lafayette to Terre Haute, to Vincennes. Riverboat tours and vacations as well.

ADVERTISEMENT