Pharma lobby poured millions into ‘dark money’ groups influencing 2020 election

Pharmaceutical companies’ top lobbying group funneled millions of dollars to prominent “dark money” groups that pushed industry friendly messages to lawmakers and 2020 voters. 

The Pharmaceutical Research and Manufacturers of America raised nearly $527 million last year and spent roughly $506 million, new tax returns obtained by OpenSecrets reveal. That’s a record haul for the organization, which is funded by the world’s most powerful pharmaceutical companies.

The trade association made its largest political donation of 2019 — $4.5 million — to the American Action Network, a dark money group that backs House Republicans. The conservative nonprofit and its pharmaceutical industry donor share disdain for proposals to regulate the price of prescription drugs. 

The same year it received PhRMA’s donation, the American Action Network launched several multi-million dollar ad campaigns opposing President Donald Trump’s proposal to let Medicare negotiate drug prices. This year, the group launched multi-million dollar ad campaigns opposing House Democrats’ bill to lower drug prices and ads boosting vulnerable Republicans who supported an alternative bill considered much friendlier to drugmakers. 

The alliance between drugmakers and GOP groups isn’t new. PhRMA has given $14.6 million to the American Action Network since 2016. In that time, the American Action Network became a major contributor to GOP causes. During the 2020 election cycle, it gave $26.4 million to the Congressional Leadership Fund, the House Republicans’ top super PAC that helped unseat several freshman Democrats.

In several key 2020 races, the American Action Network battled with a Democratic group that also received funding from drugmakers. PhRMA gave nearly $1.6 million to Center Forward, a dark money group aligned with moderate Blue Dog Democrats, last year. That nonprofit provided most of the funding for an allied super PAC that spent $3.3 million supporting House Democrats. The pharma-backed GOP and Democratic groups went head-to-head in several key House races, including a tightly contested New York race that has come down to a handful of votes.

Late last year, as Congress debated drug pricing bills, Center Forward flew House staffers to San Francisco to meet with drug company executives. The nonprofit’s board members have also lobbied for pharmaceutical interests. Republicans in Congress are the most vocal opponents of efforts to have the government regulate drug prices — a measure that would damage drugmakers’ profits — but Blue Dog Democrats also pushed back on more aggressive proposals to lower drug prices.

Drugmakers bankroll groups pushing industry talking points to Trump

Prominent drugmakers have spent much of 2020 developing vaccines to fight COVID-19, and the threat of drug pricing legislation in Congress has died down amid the pandemic. But Trump has continued to push forward with executive actions on prescription drugs opposed by the pharmaceutical industry. 

PhRMA deployed creative tactics in an attempt to persuade Trump against following through on his campaign promise to aggressively lower drug prices. During the Trump era, the trade association has bankrolled conservative groups that have access to the president. 

The American Conservative Union, which hosts the annual Conservative Political Action Conference, received $150,000 from PhRMA in 2019. Led by Trump ally and corporate lobbyist Matt Schlapp, the conservative nonprofit launched the Coalition Against Socialized Medicine late last year to oppose efforts to regulate drug prices and enact single-payer health care proposals. 

Nearly all of the coalition’s members received funding from drugmakers within the last two years. Big pharma’s trade group gave $505,000 to American Commitment, $78,500 to Americans for a Balanced Budget and $60,000 to the Taxpayers Protection Alliance last year alone, according to new tax returns. The Taxpayers Protection Alliance launched a six-figure ad campaign last month aimed at killing “surprise” medical billing legislation and calling it a “handout” to big insurance companies.

New tax returns also show that pharmaceutical manufacturers’ trade group gave $200,000 to the National Sheriffs Association, a nonprofit representing thousands of law enforcement officials. The group launched a six-figure ad campaign last year warning against Trump’s proposal to import drugs from foreign countries, a measure bitterly opposed by drugmakers. Those ads specifically targeted Trump, airing in Washington, D.C., on his favorite Fox News programs.

Trump ultimately approved a plan to import drugs from Canada in September, but its scope was limited. He also moved ahead with a rule that would allow Medicare to negotiate the cost of drugs based on the price foreign governments pay, another measure strongly opposed by drugmakers. 

Still, while Trump has moved ahead with industry-opposed measures, his GOP allies in Congress have not made drug pricing legislation a priority. Republican lawmakers and their aides are consistently fed opinion pieces and ad campaigns from conservative groups urging them to reject “socialist price controls.”

Republicans ran political ads in 2020 that mirrored talking points from major healthcare industry players. Super PACs aligned with Senate Majority Leader Mitch McConnell (R-Ky.) attacked Democrats’ over their support for a public health insurance option, a proposal that could hurt drugmakers’ profits. Those ads cited a study from the Partnership For America’s Health Care Future, a conglomerate of insurers, hospitals and pharmaceutical companies that received $300,000 from PhRMA last year.

Longtime pharmaceutical ally gets seven-figure gift in retirement 

One of PhRMA’s largest 2019 gifts was a $2 million donation to the Orrin Hatch Foundation, a think tank and research library launched by former Sen. Orrin Hatch (R-Utah). The trade group gave $140,000 to the foundation between 2017 and 2018. 

Hatch, who retired in January 2019, was known as the pharmaceutical industry’s “man on the Hill” by the end of his 42-year tenure. Hatch helped shape current laws that regulate generic drugs and opposed measures to limit drugmakers’ monopoly protections. As chairman of the Senate Finance Committee, Hatch was considered the major roadblock to drug pricing changes proposed by Democrats and Trump. 

The pharmaceuticals and health products industry gave $2.8 million to Hatch’s campaign committee since 1998, more than any member of Congress who didn’t run for president. When Hatch faced a primary challenge in 2012, PhRMA gave $750,000 to a super PAC boosting his reelection campaign. 

During Hatch’s final years in office, his allies reportedly asked pharmaceutical companies and K Street lobbyists for donations to fund the Orrin Hatch Foundation. In 2018, the foundation invited major corporations, including pharmaceutical giant Merck, to a luxury mountain resort for a fundraiser.

While the foundation will serve as a library to catalogue Hatch’s government service and provide civic education, it has also put out policy reports on pressing issues. Its most recent report delves into how lawmakers can craft “sensible solutions to both foster innovative biologics and curb skyrocketing drug prices.”