HOW TO TURN $200,000 INTO $8 BILLION IN JUST SIX MONTHS

For Immediate Release
August 22, 2008

Sununu opposes allowing Medicare to bargain for cheaper drugs, which has boosted pharmaceutical profits by more than $8 billion

(Manchester, NH) - According to yesterday's Nashua Telegraph, John Sununu opposes allowing "government-negotiated contracts with pharmaceutical companies" through Medicare that would bring down the cost of prescription drugs. Though his position puts a financial squeeze on New Hampshire families, Sununu has been a cash cow for the pharmaceutical industry -- he has helped turn their $203,403 in campaign contributions into more than $8 billion in extra profits, according to a 2006 congressional report.

"Sununu had a choice between lower prescription drug prices for New Hampshire families or extra profits for the pharmaceutical industry, and he put big drug companies first," said Alex Reese, press secretary for the NHDP's Coordinated Campaign. "On health care, energy, the economy and more, Sununu marches in lockstep with the Bush agenda that puts corporate profits ahead of middle class families -- and that agenda has gotten us where we are today. We need a new direction, and that means we need a new senator."

Yesterday's Nashua Telegraph reported that Sununu stands against "government-negotiated contracts with pharmaceutical companies" through the Medicare program, even though a recent study reported that allowing such negotiation would mean Medicare could "save approximately $90 billion a year, which could be passed along to the elderly in the form of lower costs or greater benefits." [Center for Economic and Policy Research, January 2006]

Despite the huge cost savings to Medicare and the potential for lower costs for New Hampshire seniors, Sununu has voted four times against allowing Medicare to negotiate lower drug prices. [Senate Vote #132, 4/19/07; Senate Vote #50, 3/15/06; Senate Vote #302, 11/3/05; Senate Vote #60, 3/17/05]

Sununu opposes lowering drug costs for seniors because the pharmaceutical industry has donated generously to his campaigns -- $203,403 in total. [Center for Responsive Politics] But the pharmaceutical industry's investment was well worth it. A 2006 congressional study shows that because Sununu helped block Medicare from negotiating drug prices, the pharmaceutical industry increased prices. In fact, in just six months under the new Medicare drug program, the ten largest pharmaceutical companies increased their profits by more than $8 billion. [U.S. House, Committee on Government Reform Report, September 2006]

It turns out that John Sununu is one of the most profitable investments the pharmaceutical industry ever made -- he helped turn their $203,403 in campaign contributions into more than $8 billion in extra profits in just six months. Unfortunately, it's New Hampshire families who pay the bill.