Capital Insiders Help Amgen

President Obama gave a ringing defense of progressive government and the good it can do for the nation and the people. But a little-noticed addition to the fiscal-cliff bill was a reminder of how politics can work to the advantage of corporate special interests, say Bill Moyers and Michael Winship.

By Bill Moyers and Michael Winship

The inauguration of a president is one of those spectacles of democracy that can make us remember we’re part of something big and enduring. So for a few hours this past Monday the pomp and circumstance inspired us to think that government of, by, and for the people really is just that, despite the predatory threats that stalk it.

But the mood didn’t last. Every now and then, as the cameras panned upward, the Capitol dome towering over the ceremony was a reminder of something the good feeling of the moment couldn’t erase. It’s the journalist’s curse to have a good time spoiled by the reality beyond the pageantry. Just a couple of days before the inaugural festivities, The New York Times published some superb investigative reportingby the team of Eric Lipton and Kevin Sack, and their revelations were hard to forget, even at a time of celebration.

Amgen Chairman and Chief Executive Robert A. Bradway.

The story told us of a pharmaceutical giant called Amgen and three senators so close to it they might be entries on its balance sheet: Republican Minority Leader Mitch McConnell, Democratic Senator Max Baucus, chair of the Senate Finance Committee, and that powerful committee’s ranking Republican, Orrin Hatch. A trio of perpetrators who treat the United States Treasury as if it were a cash-and-carry annex of corporate America.

The Times story described how Amgen got a huge hidden gift from unnamed members of Congress and their staffers. They slipped an eleventh hour loophole into the New Year’s Eve deal that kept the government from going over the fiscal cliff. When the sun rose in the morning, there it was, a richly embroidered loophole for Amgen that will cost taxpayers a cool half a billion dollars.

Amgen is the world’s largest biotechnology firm, a drug maker that sells a variety of medications. The little clause secretly sneaked into the fiscal cliff bill gives the company two more years of relief from Medicare cost controls for certain drugs used by patients who are on kidney dialysis, including a pill called Sensipar, manufactured by Amgen.

The provision didn’t mention Amgen by name, but according to reporters Lipton and Sack, the news that it had been tucked into the fiscal cliff deal “was so welcome, that the company’s chief executive quickly relayed it to investment analysts.” Tipping them off, it would seem, to a jackpot in the making.

Amgen has 74 lobbyists on its team in Washington and lobbied hard for that loophole, currying favor with friends at the White House and on Capitol Hill. The Times reporters traced its “deep financial and political ties” to Baucus, McConnell and Hatch, “who hold heavy sway over Medicare payment policy.”

All three have received hefty campaign donations from the company whose bottom line mysteriously just got padded at taxpayer expense. Since 2007, Amgen employees and its political action committee have contributed nearly $68,000 to Senator Baucus, $73,000 to Senator McConnell’s campaigns, and $59,000 to Senator Hatch.

And lo and behold, among those 74 Amgen lobbyists are the former chief of staff to Senator Baucus and the former chief of staff to Senator McConnell. You get the picture: Two guys nurtured at public expense, paid as public servants, disappear through the gold-plated revolving door of Congress and presto, return as money changers in the temple of crony capitalism.

Inside to welcome them is a current top aide to Senator Hatch, one who helped weave this lucrative loophole. He used to work as a health policy analyst for — you guessed it — Amgen.

So the trail winds deeper into the sordid swamp beneath that great Capitol dome, a sinkhole where shame has all but disappeared. As reporters Lipton and Sack remind us, just weeks before this backroom betrayal of the public interest by elected officials and the mercenaries they have mentored, Amgen pleaded guilty to fraud. Look it up: fraud means trickery, cheating and duplicity. Amgen agreed to pay $762 million in criminal and civil penalties; the company had been caught illegally marketing another one of its drugs.

The fact that their puppet master had been the subject of fines and a massive federal investigation mattered not to its servile pawns in the Senate, where pomp and circumstance are but masks for the brute power of money.

Peter Welch, Vermont’s Democratic congressman, has just introduced bipartisan legislation to repeal the half billion-dollar giveaway to Amgen. Its co-sponsors include Republican Richard Hanna of New York and Democrats Jim Cooper of Tennessee and Bruce Braley of Iowa.

The Amgen deal “confirms the American public’s worst suspicions of how Congress operates,” Representative Welch told us this week. “As the nation’s economy teetered on the edge of a Congressional-created fiscal cliff, lobbyists for a private, for-profit company seized an opportunity to feed at the public trough. It’s no wonder cockroaches and root canals are more popular than Congress.”

In his inaugural address, Barack Obama said the commitments we make to each other through Medicare, Medicaid, and Social Security don’t make us a nation of takers. But the actions of Amgen and its cronies under the dome on Capitol Hill show who the real takers are — not those who look to government for support in old age and hard times but the ones at the top whose avarice and lust for profit compel them to take as much as they can from that government at the expense of everyone else.

Bill Moyers is managing editor and Michael Winship, senior writing fellow at the think tank Demos, is senior writer of the weekly public affairs program, Moyers & Company, airing on public television. Check local airtimes or comment at www.BillMoyers.com.

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4 comments on “Capital Insiders Help Amgen

  1. Besides Amgen, another fraud everyone should be aware of is the Amway Tool Scam. Google “Stop The Amway Tool Scam WordPress” for more information, and forward this information to every non-Distributor/IBO you know, so they don’t get ripped off.

  2. Jacob Gabel on said:

    I was tortured for almost 3 years by the FBI and their friends only
    because 85 years old man, Roland Sibens(chicago) convinced them that I
    am a terrorist. I was tortured for working on my prosthetic legs in
    the basement. I done absolutely nothing illegal or wrong. They thought
    that in theory it is possible to hide bomb in them. They saw an
    opportunity to get famous, so they were trying to torture me till I
    sign their insane story. They tortured me using more than 100
    different torturing methods and trust to me waterboarding is not how
    they torture nowadays. I dont know where to find justice.

    I think that after 9/11 things got out of control. Freedom fighters
    became tyrants. In 1945, most Germans had an opportunity to learn about Nazis death
    camps. I hope that one day American citizens will get chance to learn about people
    like me, who were tortured with no reason for years.

  3. So Amgen was convicted of outright fraud and fined three quarters of a $billion. McConnell and Hatch, Republicans who are all over Obama for increased spending and raising the debt, have no problem raising the debt to protect their clients. The health care lobby owns Democrat Baucus. But the gall these guys show by using us taxpayers to pay off two thirds of the criminal fine is just breathtaking. In any court of real justice, this would be criminal collaboration. Only the powerful can write laws to legalize the illegal. But their constituents will re-elect them.

  4. F. G. Sanford on said:

    Hey, it’s fun to do the math! Baucus, McConnel and Hatch got $73K, $59K and $68K. That adds up to $200k. That investment got Amgen a return of $1 Billion over two years. but they had that little fraud matter to settle. That cost them $762M, leaving a $238M profit. That’s a return of $1,189 dollars for every dollar they paid the Three Stooges in congress. You could look at that a lot of ways. They got paid by the U. S. Government for committing fraud…or the Three Stooges drove a piss-poor bargain, or, they made more money on fraud than they did on drugs (I wonder if the pushers have thought of this yet?)…or, Las Vegas doesn’t pay as well as political bribery, or, you can steal from the government, but don’t rob a 7-11, or crime doesn’t just pay, it’ll make you rich!