Democratic leaders call medicare drug legislation the product of a "corrupt legislative process," seek investigation into role of scandal-tainted lobbying group.
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At this point, we know:
Key Cost Estimates Were Withheld from Democrats. During the legislative debate, President Bush, Secretary of Health and Human Services Tommy Thompson, and Centers for Medicare and Medicaid Services (CMS) Administrator Tom Scully repeatedly assured Congress and the public that the Medicare drug benefit would not cost more than $400 billion over ten years. <2> In fact, the Medicare actuary, Richard Foster, was correctly predicting that the legislation would cost far more, perhaps as much as $600 billion. <3> Mr. Scully threatened Mr. Foster with the loss of his job if he shared this information with congressional Democrats. <4> According to the Government Accountability Office, this action and the withholding of the cost estimates violated multiple federal laws. <5>
Democrats Were Denied Opportunities to Offer Amendments. On June 26, 2003, the House passed H. Res. 299, the rule for consideration of H.R. 1, the Medicare Prescription Drug Act. In this rule, Democrats were allowed to introduce only one amendment, an amendment in the nature of a substitute. <6> No other amendments were permitted, effectively denying Democratic members the opportunity to address the deficiencies in the bill.
The Vote Was Held Open for Three Hours in the Dead of Night. H.R. 1 was brought before the House for final passage at 3 a.m. on Saturday, November 22, 2003. Instead of the 15 minutes usually reserved for roll call votes, the House Republican leadership held open the vote for an unprecedented three hours while pressuring Republican members to change their votes. <7> During the vote, the Republican leadership abandoned the traditions of the House by permitting a member of the President's cabinet, HHS Secretary Thompson, to be present on the floor to persuade members. <8>
The Lead Administration Negotiator Was Simultaneously Pursuing Job Representing Drug and Insurance Companies. During the time the Medicare bill was being drafted and considered, the Bush Administration's lead negotiator, CMS Administrator Tom Scully, was negotiating possible jobs representing the pharmaceutical and insurance industries. <9> These negotiations were sanctioned by the Administration, which granted Mr. Scully a waiver from the normal ethics rules. <10> After the legislation was signed into law, Mr. Scully left CMS to take a job at Alston & Bird, a firm that represents multiple pharmaceutical companies, where he registered as a lobbyist for these companies. <11>
Key Republican Chairmen Accepted Lucrative Jobs with the Pharmaceutical Industry. Two key Republican chairmen also accepted jobs representing the pharmaceutical industry after passage of the Medicare Prescription Drug Act. Former Rep. Billy Tauzin, who was the Chairman of the House Energy and Commerce Committee and the lead House sponsor of the bill, left Congress to become the president of the Pharmaceutical Research and Manufacturers of America (PhRMA), the drug industry's biggest trade group. <12> Former Rep. James Greenwood, who was the Chairman of the House Energy and Commerce Oversight and Investigations Subcommittee, left Congress to become the president the Biotechnology Industry Organization, the trade association of the biotechnology industry. <13>
A Republican Member Said He Was Offered a Bribe on the House Floor. Former Rep. Nick Smith alleged that during the floor vote, former Majority Leader Tom DeLay offered him a bribe in return for his vote on the bill. According to Mr. Smith, Mr. DeLay offered campaign support for Mr. Smith's son, who planned to run for Rep. Smith's seat upon his retirement. <14> Mr. DeLay was later admonished by the Ethics Committee for his role in this incident. <15>
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