http://nytimes.com/2004/12/16/politics/16drug.html?hp&ex=1103259600&en=3cf5c800c58d0497&ei=5094&partner=homepage
December 16, 2004
House's Author of Drug Benefit Joins
Lobbyists
By ROBERT PEAR
WASHINGTON, Dec. 15 - Representative Billy
Tauzin, a principal author of the new
Medicare drug law, will become president of
the Pharmaceutical Research and
Manufacturers of America, the chief lobby
for brand-name drug companies, the trade
group announced Wednesday.
"This industry understands that it's got a
problem," Mr. Tauzin, a Louisiana lawmaker
who is retiring from Congress, said in an
interview. "It has to earn the trust and
confidence of consumers again."
Miles D. White, chairman of Abbott
Laboratories and of the trade association,
sitting next to Mr. Tauzin, said he agreed
that the industry had lost the trust of
millions of Americans.
Mr. Tauzin, a onetime Democrat who became a
Republican in 1995, has a wealth of
connections in Congress, where he has served
for 24 years.
Drug makers said that the job was not a
reward for Mr. Tauzin's work on the Medicare
bill, which followed the industry's
specifications in many respects. The law was
signed by President Bush on Dec. 8, 2003, a
few weeks before a lawyer for Mr. Tauzin
began talks with the drug trade group.
Mr. Tauzin, 61, is the latest policy maker
to move from government to industry. "It's a
classic example of the revolving door," said
Lawrence M. Noble, executive director of the
Center for Responsive Politics, a watchdog
group that tracks the influence of money on
politics and government policy.
Thomas A. Scully, the administration's main
negotiator with Congress on the drug bill,
got a waiver of federal ethics rules that
permitted him to negotiate with potential
employers while he was still running the
Medicare program. Since he joined a law firm
last December, Mr. Scully has registered as
a lobbyist for drug companies, including
Abbott and Aventis.
Mr. Tauzin (pronounced TOE-zan) and Mr.
White refused to discuss Mr. Tauzin's new
salary, except to say it was comparable to
the pay at other large trade associations.
People at other trade groups said they
believed that Mr. Tauzin would receive $2
million a year or more.
Representative Pete Stark of California, the
senior Democrat on the House Ways and Means
Subcommittee on Health, said: "As a member
of Congress, Billy negotiated a large payout
to the pharmaceutical industry by the
federal government. He's now about to
receive one of the largest salaries ever
paid to any advocate by an industry."
Mr. Tauzin wrote large parts of the new
Medicare law as chairman of the Energy and
Commerce Committee and as a member of the
conference committee that hashed out
differences between the House and the Senate
in four months of intense negotiations last
year.
The law steers clear of price controls and
price regulation, which are anathema to drug
companies. The law forbids the government to
negotiate with drug manufacturers to secure
lower prices for Medicare beneficiaries.
Federal law prohibits a former member of
Congress from lobbying the House or the
Senate for one year after the lawmaker
leaves office. In that "cooling off period,"
Mr. Tauzin cannot directly lobby Congress
himself, but can legally tell other people
how to lobby. In addition, he can make
campaign contributions, attend fund-raisers
and "interact socially" with people in
Congress.
Representative Henry A. Waxman, a California
Democrat who has focused on health policy
for 30 years, did not question the legality
of Mr. Tauzin's move. But Mr. Waxman said:
"The appearance is terrible. A chief
architect of the Medicare prescription drug
legislation is now going to represent the
chief beneficiary of the bill. This will
only reinforce the public's disillusionment
with Congress."
President Bush and Republicans in Congress
say the law's main beneficiaries are
Medicare recipients, not the industry.
Mr. Tauzin faces a paradox. Millions of
Americans love the benefits of prescription
drugs, but are outraged over drug prices and
dislike drug makers. On the Senate floor two
years ago, Senator Orrin G. Hatch,
Republican of Utah, a supporter of the
industry, said it was regularly portrayed as
a "satanic" force, "a bunch of greedy,
money-grubbing companies."
The industry is resisting a groundswell of
support for proposals to legalize the import
of lower-cost medicines from Canada and
other countries.
Wilbert Joseph Tauzin, a colorful Cajun with
the gift of gab, will take over on Jan. 3
from Alan F. Holmer, a trade lawyer who
often appeared shy and awkward in public
appearances.
The congressman waged a battle this year
with intestinal cancer and said his life had
been saved by Avastin, a biotechnology
product made by Genentech and approved in
February by the Food and Drug
Administration. The drug works by choking
off the blood vessels that provide a tumor
with oxygen and nutrients.
Mr. Tauzin lost 45 pounds as he went through
cancer surgery, chemotherapy and radiation
treatments. "I will look at things, for the
first time in my life, from a patient's
perspective, in a new way," he said.
Avastin illustrates the promise and the high
cost of some new drugs. It costs about
$4,400 a month, and a patient typically uses
it for 10 or 11 months.
Mr. Tauzin broke off talks with the trade
association in February when his cancer was
detected.
In his last election campaign, Mr. Tauzin
received $174,000 in contributions from
health professionals and $119,750 from
makers of drugs and other health products.
On his official Web site, Mr. Tauzin
describes himself as an amateur actor and
the "Cajun ambassador to Congress." In his
south Louisiana district, he says, "the joie
de vie - joy of life - is celebrated with a
gusto that is envied across the nation." His
son, Billy Tauzin III, just lost a bid to
replace him in the House.
Another prominent member of the House
Commerce Committee, Representative James C.
Greenwood, Republican of Pennsylvania, will
become president of the Biotechnology
Industry Organization when he retires from
Congress next month.
In January, Mr. Tauzin turned down an offer
to succeed Jack Valenti as president of the
Motion Picture Association of America. Dan
Glickman, a House member from 1977 to 1995,
took the job.