States Get a Big Dose Of Drugmakers' Cash

Because the federal government makes most of the important regulatory and legislative decisions affecting prescription drugs, their manufacturers have concentrated considerable lobbying efforts -- and campaign contributions -- on Washington.

But as more states pass laws to force prescription costs down or otherwise change how drugmakers do business, the industry has substantially increased its political spending in state capitals.

In an extensive analysis of lobbying records, the nonpartisan Center for Public Integrity reports that the drug industry spent more than $44 million on lobbying state governments in 2003 and 2004, and $8 million on candidates for state offices.

The Pharmaceutical Research and Manufacturers of America (PhRMA) was the most active lobbyist, spending more than $4.5 million in the states. Four other major companies, Eli Lilly and Co., GlaxoSmithKline Inc., Pfizer Inc., and Johnson & Johnson, each spent more than $3 million in the period. The trade association and 14 major drug companies together accounted for 80 percent of the state capital lobbying on drug issues.

Why has Big Pharma suddenly found state capitals so interesting? Because states directly or indirectly pay for 16 percent of the drugs purchased each year. And as reported by the National Conference of State Legislatures, 33 states have enacted more than 66 bills since 2003 that aim to cut the cost of drugs.

And, virtually every state has tried to implement cost-saving pharmacy programs in their Medicaid and employee benefits programs. The industry is unhappy about many of these efforts and is willing to pay lobbyists and support candidates who will work against their passage.

-- Marc Kaufman