Mr. President, I came to the floor to discuss another issue. But since my friend from Illinois, with whom I share many of his comments, I have to comment. The fact is that the irony of the Supreme Court decision today said it is a Federal…
Mr. President, I came to the floor to discuss another issue. But since my friend from Illinois, with whom I share many of his comments, I have to comment. The fact is that the irony of the Supreme Court decision today said it is a Federal responsibility to ensure our borders and not the States' responsibility. The State of Arizona acted because the Federal Government wouldn't act, because our borders were broken, because the people in the southern part of our State were living in fear, because a rancher was killed by someone who had crossed our border illegally, because people are on mountaintops today guiding drug runners across our border into Arizona with drugs ending up in Phoenix, AZ, and distributed all over this Nation, $887 million wasted on a contract for a virtual fence.
Coyotes bring these people across and then treat them in the most abominable fashion, where they are put into drop houses and kept in the worst kinds of conditions and held for ransom.
Because the Federal Government would not secure our borders, the State of Arizona believed they had to act because people in the southern part of our State and even other parts of our State were living in fear. They are living in fear because of the drug dealers who are coming across, because of the coyotes who are mistreating the people they were bringing.
Of course we want to address the issue of children who weren't born here. But we also have an obligation to have our borders secured. I repeat--today, I say to my friend from Illinois--there are people sitting on mountaintops hired by the drug cartels who are guiding the drug runners across our borders and up to Phoenix. You can ask the DEA. These drugs are then distributed throughout the country from Phoenix, AZ. People are murdered, and the violence on the other side of the border threatens every day to spill over to our side of the border. So I hope, as a result of this decision, the administration will get serious about actually securing our border. Every expert agrees that because of the work that has been done in California and Texas it has funneled through the State of Arizona.
Have there been improvements? Of course there have been improvements. Is it still going on? As long as we have guides sitting on mountaintops guiding drug dealers, we haven't got a secure border. That is what the people of Arizona not only want but they also deserve.
By the way, Mitt Romney agrees that we have to address this issue in a comprehensive fashion as well as concern about the plight of the children who are brought here illegally. But I would also point out to my friend that part of the DREAM Act, as proposed by the Senator from Illinois, is 2 years' service in the military. We don't sign people up for 2 years. Average citizens, in order to get on a path to a green card and citizenship, sign up for 4 years. That is just one of the areas that need to be worked out.
So there will be a lot of conversation about this. But I believe people who live inside of our country--no matter whether it is in Arizona or Illinois--deserve the right to live in a safe environment. The people who live in the southern part of our State do not have that.
So I hope we can get our borders secure and we can move forward with comprehensive immigration.
By the way, then-Senator Obama was one of the key reasons it failed because he wanted to sunset the guest worker program. That is a fact, and you can look it up, I say to my friend from Illinois. Although it was killed by people on this side, it was also a broken promise on the part of then-Senator Obama who assured Senator Kennedy and me that he wouldn't vote for an amendment that would impair the progress of comprehensive reform at that time.
I look forward to having further discussions with the Senator from Illinois as we move forward--sooner or later--with comprehensive immigration reform, which is absolutely needed. But we also have to ensure the security of all of our citizens and stop the flow of drugs across our southern border, which is killing our young Americans.
By the way, I would say to the Senator from Illinois, the price of an ounce of cocaine on the streets of Chicago today is not one less penny higher than it was 10 years ago, which means we are not restricting the flow of drugs coming into our country. As we all know, the majority of it comes across from our southern border.
Finally, I would remind my friend from Illinois that then-Senator Obama promised in the campaign of 2008 that immigration reform would be his first priority. The Senator had 60 votes over here and an overwhelming majority in the House of Representatives in the first 2 years of the Obama administration. I never saw a proposal come to the Senate for comprehensive immigration reform. Now, the DREAM Act did. Comprehensive immigration reform? No. That is what then-Senator Obama promised.
Mr. President, I ask unanimous consent for a colloquy between myself and the Senator from Illinois.
I don't dispute that point, I say to my friend from Illinois. There was no comprehensive immigration reform proposal that came over from the White House or from the Democrats, as was promised by then-Senator Obama when running for the Presidency. That is a fact.
I wish that when then-Senator Obama was running for President he would have said: But first I am coming over with the DREAM Act. He didn't. He said: My first act will be comprehensive immigration reform.
I was invited over to the White House in 2009. We talked about comprehensive immigration reform and I said: I will await a proposal from the administration on comprehensive immigration reform. My phone never rang.
I look forward to it, and I want to say there has been no more passionate advocate in the Senate than the Senator from Illinois. I respect him and admire him for his compassion and his concern about young people whose lives, as he very well described, need to have some kind of assurance for their future since it is clearly a compelling humanitarian situation. I thank my friend from Illinois.
Health Care Ruling
Mr. President, later this week the Supreme Court will issue its ruling on the health care bill, designed and negotiated by the White House and rammed through Congress during President Obama's first year in office when the economy was near its weakest.
Instead of focusing on recovery and persistent unemployment, the President and the Democratic majorities controlling Congress squandered the opportunity and forced the unpopular and potentially unconstitutional legislation on the American people.
Today we are voting on final passage on the reconciled FDA user fee bill. During Senate consideration of this bill I offered an amendment to allow safe drug importation from legitimate
Canadian pharmacies. But the pharmaceutical industry spread misleading and inaccurate information about the amendment, as they have done time and a time again. As I said then, there is no greater example of the influence of special interests on this body than the failure to enact an amendment that would have allowed drugs from legitimate Canadian pharmacies so people could purchase their much needed medication at sometimes half the cost of what it is in the United States of America. I am embarrassed to this day that nine of my Republican colleagues also voted against it.
I don't know if there was a sweetheart deal to protect PhRMA at the expense of American patients from the vote on my amendment. But we do know that PhRMA was protected by the White House and Senate Democrats from provisions they didn't like in ObamaCare only after they offered up advertising in exchange for more accommodating policies.
From a recent House Energy and Commerce Committee investigation, it is now confirmed that PhRMA orchestrated a grand deal with the White House and Senate Democrats to oppose importation and other policies. I might point out then-Senator Obama supported drug importation.
This is how the New York Times described the deal that was done in exchange for reportedly $150 million in advertising to support ObamaCare, June 8, 2012:
After weeks of quiet talks, drug industry lobbyists were
growing nervous. If they were to cut a deal with the White
House on overhauling health care, they needed to be sure
President Obama would stop a proposal by his liberal allies
intended to bring down medicine prices.
On June 3, 2009, one of the lobbyists e-mailed Nancy-Ann
DeParle, the president's top health care adviser. Ms. DeParle
sent a message back reassuring the lobbyists. Although Mr.
Obama was overseas, she wrote, she and other top officials
had ``made a decision, based on how constructive you guys
have been, to oppose importation on the bill.'' Just like
that, Mr. Obama's staff abandoned his support for the
reimportation of prescription medicines at lower prices and
with it solidified a growing compact with an industry he had
vilified on the campaign trail the year before.
A president who had promised to air negotiations on C-SPAN
cut a closed-door deal with the powerful pharmaceutical
lobby, signifying to some disillusioned liberal supporters a
loss of innocence, or perhaps even the triumph of cynicism.
Still, what distinguishes the Obama-industry deal is that
he had so strongly rejected that very sort of business as
usual.
Ironically, candidate Obama sang a very different tune on the campaign trail in 2008:
You know, I don't want to learn how to play the game
better. I want to put an end to the game playing.
Now, PhRMA is the lobbying group for the pharmaceutical industry. The New York Times article continued:
The e-mails, which the House committee obtained from PhRMA
and other groups, document a tumultuous negotiation, at times
transactional. . . .
In the end, the White House got the support it needed to
pass its broader priority, but industry emerged satisfied as
well. ``We got a deal,'' wrote Bryant Hall, then senior vice
president of the pharmaceutical group.
In July, the White House made clear that it wanted
supportive ads using the same characters the industry used to
defeat Mr. Clinton's proposal 15 years earlier. ``Rahm asked
for Harry and Louise ads thru third party,'' Mr. Hall
wrote.''
Talks came close to breaking down several times. In May,
the White House was upset that the industry had not signed
onto a joint statement. One industry official wrote that they
should sign: ``Rahm is already furious. The ire will be
turned on us.''
The e-mails also detail extensive and direct negotiations with PhRMA, its drug company members, the American Medical Association, AARP, the American Hospital Association, unions, and many more. Members of the alliance all participated because they thought they were getting something more valuable--revenue to their organization or membership because the Federal Government was going to force everyone into some form of government-designed health insurance coverage--than what they were going to have to spend on advertising to support the legislation. Some reports have the PhRMA advertising commitment as high as $150 million, spread out through direct advertising in certain important States and among groups created to sound like they were looking out for patients or to tout the economic benefits of ObamaCare.
On June 11, 2012, the Wall Street Journal described the e-mails about the 2009 negotiations:
The joint venture was forged in secret in spring of 2009
amid an uneasy mix of menace and opportunism. The drug makers
worried that health-care reform would revert to the liberal
default of price controls and drug re-importation that Mr.
Obama campaigned on, but they also understood that a new
entitlement could be a windfall as taxpayers bought more of
their products. . . .
Initially, the Obamateers and Senate Finance Chairman Max
Baucus asked for $100 billion, 90% of it from mandatory
``rebates'' through the Medicare prescription drug benefit
like those that are imposed in Medicaid. The drug makers
wheedled them down to $80 billion by offsetting cost-sharing
for seniors on Medicare, in an explicit quid pro quo for
protection against such rebates and re-importation.
``Terms were reached in June. . .lead PhRMA negotiator
Bryant Hall wrote on June 12 that Mr. Obama ``knows
personally about our deal and is pushing no agenda.''
But Energy and Commerce Chairman Henry Waxman then
announced that he was pocketing PhRMA's concessions and
demanding more, including re-importation. We wrote about the
double-cross in a July 16, 2009 editorial called ``Big Pharma
Gets Played,'' noting that Mr. Tauzin's ``corporate clients
and their shareholders may soon pay for his attempt to get
cozy with ObamaCare.''
Mr. Hall forwarded the piece to Ms. DeParle with the
subject line, ``This sucks.'' The White House rode to the
rescue. In September Mr. Hall informed Mr. Kindler that
deputy White House chief of staff Jim Messina ``is working on
some very explicit language on importation to kill it in
health care reform. This has to stay quiet.''
``PhRMA more than repaid the favor, with a $150 million
advertising campaign coordinated with the White House
political shop. As one of Mr. Hall's deputies put it earlier
in the minutes of a meeting when the deal was being
negotiated, ``The WHdesignated folks . . . would like us to
start to define what 'consensus health care reform' means,
and what it might include. . . . They definitely want us in
the game and on the same side.''
More on the ``WH-designated folks . . .'' in a moment. The June 11 WSJ editorial continued:
In particular, the drug lobby would spend $70 million on
two 501(c)(4) front groups called Healthy Economy Now and
Americans for Stable Quality Care. In July, Mr. Hall wrote
that ``Rahm asked for Harry and Louise ads thru third party.
We've already contacted the agent.
Other groups like the AMA were also willing to commit their membership dollars to advertising in support of the legislation in exchange for their policy priorities. According to the Wall Street Journal:
``At least PhRM/I deserves backhanded credit for the
competence of its political operatives--unlike, say, the
American Medical Association. A thread running through the
emails is a hapless AMA lobbyist importuning Ms. DeParle and
Mr. Messina for face-to-face meetings to discuss reforming
the Medicare physician payment formula. The AMA supported
ObamaCare in return for this ``doc fix,'' which it never got.
``We are running out of time,'' this lobbyist, Richard
Deem, writes in October 2009. How can he ``tell my colleagues
at AMA headquarters to proceed with $2m TV buy'' without a
permanent fix? The question answers itself: It was only $2
million.''
The emails uncovered by the House committee also describe potentially serious conflicts of interest for senior White House staff, their former businesses, who was really writing the legislation--the White House, Congress or affected industries--and questions about the appearance of the White House staff orchestrating the outside advertising campaign. On June 21, 2012 the Wall Street Journal further reported on the 2009 secret deals:
Strassel: Axelrod's ObamaCare Dollars
(By Kimberly A. Strassel)
Rewind to 2009. The fight over ObamaCare is raging, and a
few news outlets report that something looks ethically rotten
in the White House. An outside group funded by industry is
paying the former firm of senior presidential adviser David
Axelrod to run ads in favor of the bill. That firm, AKPD
Message and Media, still owes Mr. Axelrod money and employs
his son.
The story quickly died, but emails recently released by the
House Energy and Commerce Committee ought to resurrect it.
The emails suggest the White House was intimately involved
both in creating this lobby and hiring Mr. Axelrod's firm--
which is as big an ethical no-no as it gets.
Mr. Axelrod--who left the White House last year--started
AKPD in 1985. Mr. Axelrod moved to the White House in 2009
and agreed to have AKPD buy him out for $2 million. But AKPD
chose to pay Mr. Axelrod in annual installments--even as he
worked in the West Wing.
The White House and industry were working hand-in-glove to
pass ObamaCare in 2009, and among the vehicles supplying ad
support was an outfit named Healthy Economy Now (HEN).
House emails show HEN was in fact born at an April 15, 2009
meeting arranged by then-White House aide Jim Messina and a
chief of staff for Democratic Sen. Max Baucus. The
two politicos met at the Democratic Senatorial Campaign
Committee (DSCC) and invited representatives of business and
labor.
The call was from Nick Baldick, a Democratic consultant who
had worked on the Obama campaign and for the DSCC. Mr.
Baldick started HEN. The only job of PhRMA and others was to
fund it.
Meanwhile, Mr. Axelrod's old firm was hired to run the ads
promoting ObamaCare. At the time, a HEN spokesman said HEN
had done the hiring. But the emails suggest otherwise. In
email after email, the contributors to HEN refer to four men
as the ``White House'' team running health care.
In one email, PhRMA consultant Steve McMahon calls these
four the ``WH-designated folks.'' He explains to colleagues
that Messrs. Grossman, Grisolano and Del Cecato ``are very
close to Axelrod,'' and that ``they have been put in charge
of the campaign to pass health reform.''
A 2009 PhRMA memo also makes clear that AKPD had been
chosen before PhRMA joined HEN. It's also clear that some
contributors didn't like the conflict of interest. When, in
July 2009, a media outlet prepared to report AKPD's hiring, a
PhRMA participant said: ``This is a big problem.'' Mr.
Baldick advises: ``just say, AKPD is not working for PhRMA.''
AKPD and another firm, GMMB, would handle $12 million in ad
business from HEN and work for a successor 501(c)4.
A basic rule of White House ethics is to avoid even the
appearance of self-dealing or nepotism. Could you imagine the
press frenzy if Karl Rove had done the same after he joined
the White House?
Until the White House explains all this, voters can fairly
conclude that the President's political team took their
Chicago brand of ethics into the White House.''
Mr. President, I ask unanimous consent to have printed in the Record a New York Times article, June 8, 2012; a Wall Street Journal article, June 11, 2012; and June 21 Wall Street Journal editorial, and the memos about the e-mails associated with this report.
Mr. President, I know my other colleagues are waiting to speak, but last month when we voted down this amendment to allow drug reimportation from pharmacies that are accredited by both the Canadian and American Governments, my statement was, and I will repeat it:
In a normal world, this would probably require a voice
vote. But what we are about to see is the incredible
influence of the special interests, particularly PhRMA, here
in Washington.
What you are about to see [as I predicted just before the
vote] is the reason for the cynicism the American people have
about the way we do business in Washington. PhRMA--one of the
most powerful lobbies in Washington--will exert its influence
again at the expense of average low-income Americans who
will, again, have to choose between medication and eating.
In response the Senator from New Jersey said, in opposition to my amendment:
It is not the special interests that have caused the Senate
countless times to reject this policy. . . . .
This is about the health and security of the American
people. That is why time after time the Senate has rejected
it. It is why it should be rejected once again.
He was correct. It was rejected. The American people were rejected in favor of one of the most powerful special interest lobbies in Washington and it is a shame.
I suggest the absence of a quorum.