The big news out of Washington this week was President Biden’s UNEXPECTED WIN with the anticipated passage of several major pieces of legislation following a flip-flop by Sen. Joe Manchin (D-W.V.).
But lost in all the hoopla was a Louisiana connection that goes back 12 years which illustrated in no uncertain terms how big money from corporate lobbies can influence legislation detrimental to Americans, particularly limited-income elderly citizens.
The Washington Post yesterday published a story that said Biden was on the cusp of securing passage of several major pieces of legislation on the climate, extension of the Affordable Care Act (Obamacare), increased minimum corporate taxation, and cost savings through reduced cost of Medicare prescription drugs.
It is that last one – officially the PRESCRIPTION DRUG PRICING REFORM bill – that goes all the way back to the year 2003 and the decision by a Louisiana congressman to exit Congress through the revolving door to a multi-million-dollar lobbying job.
Rep. Billy Tauzin, who in 1995 switched from Democrat to Republican, announced in 2005 that he was leaving Congress after 25 years but it was what he neglected to say that was important.
Before heading out the door, he rammed through Congress the Medicare Prescription Drug Bill which contained a provision that prohibited Medicare from negotiating the price of prescription drugs. Consequently, the cost of drugs under the program fell under the Beltway cliché of “it is what it is,” more bluntly, the price of prescription medication was what the drug companies said it was. Period.
Oh, the bill also prohibited the importation of identical, cheaper drugs from Canada and elsewhere, thereby pretty much locking up a monopoly for American pharmaceutical companies.
What made the pill even more bitter to swallow is what Tauzin did next.
Literally the day after his retirement from Congress, he strolled down to K Street and settled into an $11.6 million job as (wait for it) head of the Pharmaceutical Research and Manufacturers of America, aka Big PhRMA.
That generous five-year contract made him the highest-paid health-law lobbyist in DC and the envy of K Street.
It also prompted Public Citizen President JOAN CLAYBROOK to say at the time, in something of an understatement, “It’s a sad commentary on politics in Washington that a member of Congress who pushed through a major piece of legislation benefiting the drug industry, gets the job leading that industry.”
His role in shepherding the Medicare Prescription Drug Bill came just two months before he resigned as chair of the U.S. House Committee on Energy and Commerce which oversaw the drug industry.
It was not Tauzin’s only questionable flirtation with the healthcare industry. From 2005 to 2020, he served as a board member of LHC GROUP, a provider of in-home healthcare and hospice services, being paid $152,000 in 2006 while in Congress and $263,000 in 2020.
The pharmaceutical industry and Republicans in Congress, needless to say, are almost apocalyptic in their OPPOSITION to the reforms in pricing. Sen. Mitch McConnell (R-Kentucky), in a typical snit over anything Democrats propose, no matter the merit, has threatened to block other pieces of legislation if Democrats proceed with the price reconciliation process.
The 12 years of the prohibition on negotiations has likely cost the federal government (US taxpayers and the country’s elderly Medicare recipients) untold millions – perhaps billions – of dollars in unnecessarily inflated prescription drug prices.
It was not an oversight; it was a deliberate, calculated ploy designed to enrich the pharmaceutical industry – and in the process, a single member of Congress.
We have that former congressman, our very own Billy Tauzin, to thank for that.
And we now have Joe Biden, the subject or relentless attacks from the right, to thank for his efforts to rectify that deliberate maneuver.



