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Appointment of former Bush One Cabinet member indication of how pharmacy benefit managers hope to benefit from  Medicare bill and links to Bush

by Daniel Hines
Publisher
America's Seniors/TodaysSeniorsNetwork.com

Express Scripts, one of the nation's largest pharmacy benefits mangers in the United States, says that it has named former Secretary of Transportation and White House Chief of Staff Samuel Skinner to its board of directors.

Surprise, Surprise!

Now what value does Mr. Skinner bring to Express Scripts, which hopes to grow even more with the implication of the otherwise disastrous Medicare bill?  Is it his experience in transportation?  Doubtful.  Is it the fact that he is now retired as chairman of a trucking company?  Equally doubtful.  But what does that leave?  A connection to the Administration and a direct line to President George W. Bush because of the service Mr. Skinner provided for the first President Bush?  Bingo!

Having served for decades in Corporate PR before striking out on my own, I am well aware of the 'good old boys' club philosophy of adding board members.  The shared directorships go well with the country clubs to which these people belong.

I have a bit more difficult time, however, when public officials move into the private sector and build upon their association with powerful persons such as the former President and now his son. 

In short, this seems to be nothing more than the solidification of influence by a special industry segment hopeful of using such contacts to enhance its own position.  

Am I distrustful?  You had better believe it.  We have been a leader in the fight to stop the abuse of our system and its dreadful impact upon the health and well-being of seniors.  

Too many companies are benefiting from a seemingly benign neglect of the abuse of power, thanks in large part to an administration that tells us to trust the market place and the good intentions of the providers and managers of our health.

The Bush Administration has made possible the passage of legislation that further enriches such people.  I think of the admonition that competitive pressures will ensure that seniors get lower-cost prescriptions under the new Medicare bill.  

And then, I read of Glaxo admitting that is blocked low-cost generic forms of its Relafen arthritis medicine, a violation of U.S. Anti-Trust laws, a transaction that cost them $175 million.  

But, surely this is an isolated case.  Not hardly.  Even Express Scripts has fallen under a cloud of its own.  The following is from a Newsday article:

"Suffolk Comptroller Joseph Sawicki has ordered an expanded audit of Express Scripts Inc., the nation's third-largest prescription drug plan manager, saying he is "extremely concerned" the company may be overbilling the county by pocketing rebates and discounts.

The comptroller ordered the audit in light of recent lawsuits brought against the St. Louis-based company by two New York State unions, a probe by New York's attorney general, as well as litigation and audit findings in other states. Sawicki also noted the county recovered $2 million in overbilling in 1998 from a drug plan manager the county no longer uses
."

Ironically, this appointment to such a Washington insider comes at the same time that Express Scripts is applying for a Medicare endorsement of a prescription drug discount card.  Read on:

"The Pharmacy Care Alliance, a partnership between Express Scripts Inc. and the National Association of Chain Drug Stores, has submitted its application to the federal government seeking Medicare endorsement of a prescription drug discount card."

So, we shall watch as the Medicare debate continues.  And, we shall watch to see what relationships form.

Want another example of how policy makers benefit from 'public' service to a grateful pharmaceutical industry...click here