San Francisco’s two competing LGBT Democratic groups — the leftist Harvey Milk Democratic Club and the centrist Alice B. Toklas Democratic Club — rarely agree on contentious economic issues. But both groups announced in September that they would be opposing Proposition 61, the high-profile initiative to lower drug prices.
A letter from the two groups claimed that Proposition 61 “will not lower prescription drug costs” and that the decision to jointly campaign against the initiative was reached after “careful consideration.”
Unknown to many activists in the city, this act of political camaraderie appears to have been rewarded by the pharmaceutical industry, which cut each club a $5,000 check from a fund set up to defeat the drug price initiative.
Neither LGBT group, both of which have sent voter guides to city residents, revealed the donation on their website, and neither responded to a request for comment. [Update 1:25PM ET: Peter Gallotta, the president of the Harvey Milk LGBT Democratic Club, wrote to The Intercept after publication to say that the No on 61 money was “earmarked specifically for our slate mailer and their contribution represents less than 6% of total contributions to our program,” adding that “it is typical for the Club to receive money from its endorsed candidates and measures.”]
The money was disclosed in filings made on Thursday that showed 19 different civic organizations, from the Foreign Legion to a bilingual voter guide organization, taking drug industry funds and endorsing No on Prop 61.
Proposition 61 is designed to allow California state agencies that pay for prescription drugs, such as the state Medicaid program and the state prison system, to pay the same or lower prices as listed by the federal Department of Veterans Affairs, which uses its collective bargaining power negotiate for better rates. While experts are divided over the actual cost savings that could be achieved through Prop 61, given the opaque pricing structure for state and federal agencies, many argue that the state could win significant discounts, given that the VA pays up to 42 percent less than Medicare, according a recent analysis.
The drug industry, led by its lobbying giant the Pharmaceutical Research and Manufacturers of America (PhRMA), is furiously attempting to defeat Prop 61, fearing that if the measure succeeds in California, the largest Medicaid market, similar ideas could spread to other states and embolden politicians already facing pressure to act on the national level.
To snuff out the drug price revolt, PhRMA has raised an astounding $109 million from its member companies, including Pfizer, Merck, Purdue Pharma, Johnson & Johnson, and other drug firms. That’s more than has been raised by both the Republican and Democratic candidates for U.S. Senate races in New Hampshire, Pennsylvania, and Nevada combined — and those are among the most costly races in the country.
In contrast, the proponents of the initiative — primarily the AIDS Healthcare Foundation, which operates a number of nonprofit healthcare clinics — have raised just over $14 million.
The No on Prop 61 war chest has been used to buy a seemingly endless stream of digital and broadcast advertisements across the state. A portion of the drug industry fund has been used to influence critical endorsements.
Several Republican groups opposing Prop 61, including the Save Proposition 13 Segregated Fund, the Small Business Action Committee, and the National Tax Limitation Committee received drug industry money.
Over half a million dollars flowed to groups sending out a variety of voter guides urging a vote against Prop 61.
The COPS Voter Guide, a voter guide that says it endorses candidates that “have pledged to make public safety a top priority,” and opposes Prop 61, received $210,000 from the PhRMA fund. Other organizations, including the Latino Voter Guide, the California Senior Advocates League Voter Guide, the Coalition for Literacy, the California Voter Guide, and a group called Voter Guide Slate Cards, similarly received drug industry money.
The practice of selling voter guide endorsements, though shunned by many consultants, is a common trick for interest groups seeking to buy the appearance of widespread support.
The new disclosures also reveal more information about drug industry money to veterans groups, a controversial element of the campaign. No on Prop 61 hired Anthony Principi, the former secretary of veterans affairs during President George W. Bush’s administration, and Sacramento lobbyist Pete Conaty, to round up support from veterans on behalf of the campaign. An archive of Conaty’s now-deleted website advertises “Veterans Lobbying Services” and the ability to organize local groups on behalf of clients.
Three of the veterans groups that endorsed No on Prop 61 and appeared in a television advertisement against the measure — the American Legion of California, Veterans of Foreign Wars of California, and the Vietnam Veterans of America CA State Council — all received direct payments from the PhRMA fund, the filings reveal. Other veterans groups that have campaigned against the initiative, including the American GI Forum, also received drug industry money.
The No on 61 veterans ad claims that the measure will make healthcare more expensive for veterans, an allegation denied by proponents, who say that the VA will not allow drug firms to hike prices.
“There also is no truth to the suggestion the measure increases the cost of a veteran’s copay,” the Sacramento Bee noted this week. “VA recipients have fixed co-pays, while some qualify for free health care altogether.”
The backers of the measure responded through another veterans organization, VoteVets Action Fund, which aired an advertisement supporting the initiative. Notably, VoteVets has received funding from the Yes on Prop 61 campaign.
The filings also provide more information about other consultants tied to the civic groups opposing Prop 61. The NAACP of California announced its opposition to Prop 61 this year. The disclosures show that AC Public Affairs, a consulting firm run by Alice Huffman, the president of the California NAACP, received $80,000 in consulting fees and $38,500 for print ads from the drug industry’s No on Prop 61 fund.
The U.S. pays far more for pharmaceuticals than any industrialized country in the world. Bloomberg found that Roche Holding AG’s Herceptin breast cancer drug, for example, “cost about 85 percent more in the U.S. than in other high-income countries.”
One driver of the higher costs is a provision of the Medicare Part D law, essentially authored by PhRMA, which prevents Medicare from using its collective bargaining power to negotiate for better drug prices. (Congressman Billy Tauzin, R-La., the lawmaker who helped usher in the PhRMA legislation, later became a PhRMA lobbyist earning $11.6 million in annual salary.) A recent study found that $16 billion could be saved annually by simply allowing Medicare to negotiate for lower rates.
Eli Lilly chief executive John Lechleiter, during on a conference call on Tuesday, sought to reassure investors by pledging that he is doing everything in his power to stop Proposition 61.
His company has been in the news recently for price gouging, especially for its Humulin R U-500 insulin medicine, a very profitable product for the firm that Eli Lilly hiked in price by 325 percent from 2010 to 2015.
“Prop 61, we’re fighting that tooth and nail in California,” Lechleiter said. “We have a pretty big campaign underway,” he added, noting that his company hoped to “shift voters toward a position of being against it for a whole variety of reasons.”
Big Pharma has been bribing doctors for decades. Pharmaceutical reps give gifts, vacations, and even pay doctors to attend “continuing education” classes and give brief presentations for their new drugs. Now Big Pharma dominates the media as well, by paying billions in advertising, especially in medical journals, where about half the pages are ads for drug companies. I have long suspected that Big Pharma influences AIDS groups by giving them donations as well. And of course our “hoes” in Washington, DC, who are supposed to represent us and our best interests, sold out long ago to Big Pharma and every other special interest group that gives them cash.
Billy Tauzin has represented Louisiana in the House of Representatives as both a Democrat and a Republican, but not since 2005, as this article implies. He’s exhibit A in the case against (or for, depending on your perspective) bipartisanship.
We should be able to recognize the pattern by now. When a slick, well-produced ad campaign saturates the airwaves in the weeks before the election, VOTE AGAINST IT.
Those ads are paid for with what used to be OUR MONEY by Huuge corporations. DON’T believe what they say. Just vote against them.
VOTE AGAINST THE MONEY!!
Has Pharma also bought the California Democratic Party? I’ve received brochures from them and they take “No official position taken by the California Party.” Hence, the position is to not promote or encourage a vote for Prop 61, but to subtly encourage a “No vote.”
I know of at least one CA Dem Party Chair who receives money from big pharma. I’m sure that has something to do with it.
Unknown to many activists in the city, this act of political camaraderie appears to have been rewarded by the pharmaceutical industry, which cut each club a $5,000 check from a fund set up to defeat the drug price initiative.
Didn’t know one could be so pathetic as to take lobbying money from big pharma companies.
Mainstream gay groups sold out decades, ago, fuck them. Once gays got accepted into mainstream society, they became just as bad as everyone else, and in San Francisco they allied with the right wing (what Fang and others out here “centrist,” a term that ignores local context) faction of the City. So fuck them, they’re no better than any other group of assholes.
I’m really disappointed in the Harvey Milk club, they used to be cool.
Money talks and minces, it seems, whilst Bullshit does the proper walking. Gay people selling out the Healthcare industry – whatever next? A black or female president that oppresses minorities and murders innocents? Quick, America, put your heads back in your arseholes and pretend none of it is happening and it wouldn’t be your responsibility even if it was.
This is why I hate all these pointless liberal social justice groups. When are people going to realize that the LESS politics/government there is there BETTER.
All your silly little LGBT club does is give corporations more influence. Money corrupts
They won’t let me read your tweets Lee
Big Pharma has been buying off Congress (with campaign donations), doctors (with gifts, trips, and payments for attending and participating in “continuing education” classes which are really sales pitches for drugs), the news media (by heavy advertising in medical journals, TV, and print media), and various activist groups (charitable contributions) for decades. At a single dinner in Washington, DC, hosted by the President-CEO of GlaxoSmithKline, Bob Ingram, $39 million was donated to the Republican Senatorial Campaign Committee and to the individual campaigns of various Senators, as reported in the Raleigh News and Observer. The next year, the Prescription Drug Act was passed by Congress.
if you are willing to sell out your $5,000,000 position for $5,000 then you are willing to sell out your position for “FIF…TY-BUCKS”.
Are you going to investigate Pain Managment doctors that prescribe these drugs?
California has 17 propositions on the ballot; local communities like SF have more.
Since most people don’t seem to read the information printed in the voter’s pamphlet, the state could save money by eliminating it altogether. Voters could just choose which TV/ internet /mailer ad appeals/frightens/angers them the most and vote accordingly. Streamlined (democracy?)!
And how much corrupt funding did Hillary and like sycophants of big pharma collect to craftily ignore single payer options for Obamacare?
“Obamacare is better than nothing”
This is the same accept the lesser of two evils propaganda the American masses have been inculcated with throughout our corporatist history.
“Obamacare at least put the brakes on the insanity.”
The insane should be treated if not institutionalized, rather than placed in charge of the asylum.
“Obamacare was upright in doing away with pre-existing conditions.”
Well that could have been accomplished by not entering in a compromise that immorally funded the program by filling the coffers of the likes of big pharma at the expense of reducing the Social Security checks of the already financially unstable elderly. What in the hell do Social Security funds have to do with healthcare as they are the funds of the working class taken directly for retirement, which have already been looted in the range of $2.7 trillion to supply tax breaks for the rich, and finance unnecessary wars for profit.
“Now we can go to work on Hillary fixing Obamacare or Trump abolishing it.”
Well since Trump was put up as a distraction rather than a choice to hold up the façade of an actual democratic Presidential Election we only need to consider what Hilary will do.
Hillary will serve her corporate masters so whatever merger crumbs she will offer up to the masses will be paid for by the “Dark Trojan Horse of Compromise” buried in bills with altruistic names that sell out the people in their fine print. What we can be most sure of is that Hillary will most craftily ignore a single payer option, thus validating a healthcare system that functions like a vampire off the blood of our sick and elderly.
As her supposed efforts will fall far short of true service to humanity she will use the excuse I do not have the legislative votes to do anything more, even though her commitment was to serve the campaign funders in the likes of big pharma from the onset.
Hillary’s phony presentation of a noble healthcare agenda is just like when Ronald Reagan had no intention of fighting for school prayer to gain the conservative vote when he ran for office as he quickly ignored his commitment once elected using the “I do not have the votes out”. Not that school prayer might aide the plight of the masses as our youth would be more likely lead into prayers calling for the praise and blessing of our most corrupt political states people guiding us behind the scenes into indentured servitude, endless war, and environmental catastrophe.
maybe your memory does go back that far but during the Clinton first term Hillary spearheaded the introduction of a the Universal Health Care Act in 1993. She fought long and hard and she took a good beating from the pharmaceutical and insurance industries. So that may have tempered her belief about the reality of getting into a fight with those industries again. The US has the most expensive health care in the world and a majority of citizen want a single payer system and the reason we don’t get it is the power of those two industries to influence the law makers.
“Influence the law makers”
Yes, and her being one of them constantly presented as the lesser of two evils, which is the logic of the insane.
To patricia mcneal
“Influence the law makers”
Yes, and she is one of them constantly presented as the lesser of two evils which is the logic of the insane.
If she was so altruistic would her conscience not have to refuse the corrupting campaign contributions of big Pharma and the like?
It would be great if “Correct The Record” trolls could list how they are paid for their social media work. Is it on a flat rate or per post basis?
fought long and hard for an insanely complicated bill, knowing full well it couldn’t pass.
The money is probably part of this, but i think some of the groups involved actually believe the Pharma threat that they’ll just raise VA prices to the same level as California Medicaid’s current prices rather than lower California Medicaid prices to the VA’s current price.
The effort to peel class & econ out of leftist critique dates back quite a few decades now, with plenty of phony left involved. Using the reasonable point that Marxist critique had gotten stale, the Cultural Studies folks dumbed it down to an identity politics that strenuously avoided discussing money in any way shape or form.
I suspected for ages that identity politics minus class identity politics = neoliberal enabling in practice.
2016 has given us more proof than ever that this is the case.
Happily, more people recognize it than ever before.
I feel less alone.
This might not be good news for society though.
I agree with you on this point. It’s always a class issue. Identity politics is a distraction. Classic divide and rule.
I agree with you. It is always a class issue. Identity politics has obscured this fact for far too long, which is why I hate it.
I fully agree: identity politics is idiotic, and has been used for reactionary purposes to support right wing assholes like Uncle (Clarence) Thomas. Voting for someone based on their color, religion, ethnicity, or in this case sexual identity/preference only makes sense where all else is equal, which is almost never the case.
who said on friday that “washington is broken”.
There is no doubt that big pharma is trying to purchase influence, but if you look at the actual proposition, there’s plenty of room for unintended consequences. It’s not the healthcare cost reducer we need it to be. There are legitimate reasons to oppose it, outside of a few thousand dollars to a couple politicians.
wow. Selling out for a lousy $5000. i mean whoa, talk about bad negotiators, they left $495,000 sitting on the table. 5k is not a win. What do you do with a lousy $5k? buy a new sign? If either of those 2 groups read this message, know this –
Those who paid you 5k are laffing so hard they cant breathe. And the next time you see them if ever, and see them smiling? That’s not a smile, it’s an effort to hold back busting out laffing again. And i dont know what kind of sex you would call it, but you got royally screwed and done branded yourself as something other than LGBT.
Perhaps they will receive 5k every month for a year. A corruption subscription.
Not to worry! They’ll get plenty of corporate perks from the now-mainstream “San Francisco Gay Pride Parade (TM)”, sponsored by all of those companies who used to help keep Mom in the kitchen, and are now happy to let Dad out of the closet.
If these organizations were truly principled, they would have held out for a lot more than 5 grand. Once you establish such a low selling point it makes it harder to raise your price the next time a similar proposition is on the ballot. So they are doing a disservice not only to their present members, but to future ones as well.
Put another way, the pharmaceutical industry budgeted a $169M to fight this initiative and the $5,000.00 represents just 0.003% of that amount. Mr. Trump will soon have some free time on his hands, and the Harvey Milk Democratic Club would do well to hire him as their president so they stop doing such ‘stupid deals’. Mr. Trump would welcome the opportunity to be president of something, so it seems like a perfect match.
Yes,I’ve noticed all the presidents,past and future,have lot of time on their hands,and play a lot of golf,and invite interns in for sex romps.
President Trump will fit right in.
Which state election authorities does Mr. Trump control? My impression is it was nowhere near enough to be declared the winner.
Typical CrookdClinton Democrats DOUBLECROSS– BOYCOTT ALL. Save your money.
These people just lie and DOUBLECROSS, you would think the blacks, rhe poor, the women would have LEARNED BY NOW? (Alpha order).
Is that an implication that there are no “rich blacks, nor rich women?”
Sadly Proposition 61 will do little to correct the price gouging. Think about it. Why should a public initiative try to fix a problem our legislators could easily fix if they weren’t bought off by the pharmaceutical industry? Our legislators should be charging ahead trying to repeal the “non-compete” provision of Medicare Part D law which prohibits them from negotiating better drug prices. It costs they taxpayers a tremendous amount of money for no good reason.
If Proposition 61 passes those same corrupt politicians will see to it that Big Pharma will write a law (and they will pass) to make it completely ineffective in reducing prices.
In short, you can’t fix corruption by trying to legislate it away without a strong system of justice to punish those that prey on the masses. The laws mean nothing if those that violate them are never brought to justice.
Lee you are a propagandist that just shills for the Democrats and Hillary Clinton. You have zero credibility when you speak of Big Pharma, since they are primary backers of Hillary Clinton. You have enabled Big Pharma with your propaganda to elect Hillary president. You are squarely on their side, whether you know it or not.
Pharmaceuticals/Health Products
Candidate Total:
Hillary Clinton (D) $11,591,465
Donald Trump (R) $150,863
https://www.opensecrets.org/pres16/select-industries?ind=H04
I noticed the worm, Robert Mackey, is not allowing comments below his Hillary propaganda pieces. What a coward. Although I can see why, his garbage is so easy to expose with facts.
The Intercept has set up a whole section, free from comments, to trash Trump and exalt Hillary – the woman who wanted to kill or capture Ed Snowden. What a pathetic rag, astroturfed by its globalist owner who has given at least 100K to Hillary.
The intercept has been in a ditch fight with Hillary the bitch for quite a while. What fluff pieces/ propaganda you looking at?
Hellary is the high price leader among wallstreet whores. Her deals come with iron clad gurantees. Donald, being the champion of money out of politics, guaranteed them a seat at the price negotiating table. The idea of having to compete on pricing scared them.
Explain how this article is shilling for the Democrats? and oh yeah they really LOVE them some Lee Fang over at the DNC…..
Try not to be full of shit, it’s bad for your health Jamie.
This is the same defense any cyber case criminal defense attorney tries to argue to a jury, “You got the information from the internet in that evil place where the viruses live. How do we know this is authentic.” That’s why the prosecution calls on forensics investigators to give expert witness testimony. Or in a case where the defendant is innocent an expert witness is called for the defense. Well, Hillary’s campaign has no forensic investigator to defend her because she is guilty as hell.
That explains the apparent contradiction of groups that I would have expected would support this but who are opposing it instead, and which were the only reason I had not yet decided on this issue.
Thanks for digging this up and making my vote choice easy; again, Bernie is on the right side of an issue.
Too bad there wasn’t any polling information in the article.
Hasn’t there been any polling?
Pharma trying to buy this vote is disgusting, though typical of how they operate at the state and federal level.
The recent announcement about the 25% average increase in health insurance premiums for next year under Obamacare… with some states seeing premiums double… shows how the corporate subsidy scheme to middlemen who provide no care approach is utterly failing.
Pharma is a big contributor to that failure… or rather, success for them and their greedy one percenter owners at everybody else’s expense.
Price hikes so out of proportion to the inflation rate is literally killing our fellow citizens… and will just keep getting worse every year.
Health care should be a right, not a privilege.
The rich buying the right to screw us over is immoral.
As a Canadian…it is baffling as to why Americans allow their healthcare scandal to continue. I pay $75/month (top insurance rate in BC). I have a personal physician, can visit the hospital whenever I want (no user fee of any kind), & my friends receive HIV drugs for free. Why can’t the richest country in the world (U.S.) do the same?
CAN WE MAKE YOUR POST LOUD AND CLEAR?
How can a country be richest unless it robs people?
thanks for the info
Remember (if you are old enough); the only reason we got medicare is because the Democratic Socialists held the balance of power and forced the “Liberals” to pass it as a price for their support. It would never pass in Canada now when we flip from corporate duopoly 1 to 2 and the NDP (used to be democratic socialists, now, new labor) get majority status with 1Trillion in needless interest since then…you read that right 1Trillion interest. Canada is almost totally sold off and privatized so I wouldn’t be too proud. Personally, if I was young I would try and emigrate to Northern Europe while it’s still a better place.
The rub here is that the sex-phobic Michael Weinstein of the Aids Health Foundation, a massive nonprofit that rakes in significant cash from HIV meds sales, was involved in crafting this measure which exempts nonprofits from price caps.
Weinstein is also supporting Prop 60, the condoms in porn law. Weinstein has been a vocal opponent of PrEP, pre-exposure prophylaxis which is as effective ad condoms at preventing the spread of HIV. So just as there arises meds that can work as well as condoms against HIV, gay Puritan profiteers try to take control.
So in a case of the enemy of my enemy, much LGBT opposition to 61 is opposition to Weinstein and the AHF and Prop 60.
To my mind, the measure is very flawed and the two sides are equally odious. Unlike Prop 64, cannabis, if this fails it would not poison the well for future efforts.
So I am going to leave Prop 61 blank. A pox on both of their houses.
Great point. And ties into what Brian Carroll notes above, the apparent dissonance between which groups we’d expect to be in favor of a certain prop. Add to that a lot of disinformation and this one was very difficult to vote on. I actually voted Yes (on my early mail-in ballot), then read something that made me look back on my list and note “oops should’ve voted No”. But now this article, and now I’m content (??) with my Yes vote.
No such issue on the horrible Prop 60, but this one? Still not sure, maybe I also should’ve left it blank.
I seriously doubt that either club would have taken a position on this measure just to get the relatively small contributions to float their slate mailers.
~ $1500 doesn’t buy much mail.
But if the campaign behind 61 offered to throw some cash at the mailers, every club would take that money to drive communication on the races they really care about, local San Francisco candidate and measures.
The Milk Club, for instance, tries to support candidates who fight gentrification and corporate dominance. They are not very good at it but that’s how the game is played.
Here is an article that compares the prices paid by American consumers for several key pharmaceuticals to the prices paid overseas for the same products:
http://viableopposition.blogspot.ca/2016/05/pfizer-and-its-role-in-americas.html
This is just another example showing how Big Pharma is ruled by greed.
Excellent piece. Thank you.
I’m shocked at how cheap it is to buy off these scum bags to commit treason to the people who support and trust them.
I *know*. 5 grand?
I *know*! 5 grand?!?!?!?! The NAACP one was also a huge constituency sold out cheap. This consistently amazes me about lobbying in general — what corporations get in the millions and billions in return for the thousands and tens of thousands they put in politicians’ war chests.
Big amount for blm? Must thiught obamacare would alwayspay for everything and not outofpocketpay?
Yeah, because nothing’s more important than money and corporate profit$. Once more insuring that the voters will vote against their own
interests while the elites laugh at what fools everyone else is.
There’s certainly corruption, but I find it hard to believe that a large non-profit can be bought for such a paltry sum. If true, they should both consult with the Clinton Foundation and find out how to do corruption properly.