Senators Request Information on Agreements between Pfizer, Drug Benefit Companies, and Insurance Companies Pertaining to Promotion of Heart-Disease Drug Lipitor

Washington, DC - Senate Finance Committee Chairman Max Baucus (D-Mont.), senior Finance Committee member Chuck Grassley (R-Iowa) and Special Committee on Aging Chairman Herb Kohl (D-Wisc.) sent letters today to Pfizer, three companies that manage pharmaceutical benefits and two insurance companies asking for information about agreements aimed at limiting the sale of Atorvastatin, the generic equivalent of Pfizer's drug Lipitor.  The letters were sent after a news report alleged Pfizer agreed to provide discounts to pharmaceutical benefit management companies (PBMs) and insurance companies if the PBMs and the insurers would block prescriptions for Lipitor's generic equivalent.  In letters sent to Pfizer, PBMs Medco, Express Scripts, and Catalyst RX and insurance companies Coventry Health Care and UnitedHealth, the Senators expressed concern these arrangements will hinder access to generic drugs today and in the future.

"We need to do all we can to preserve access to the generic drugs that so are critical to seniors and millions of Americans across the country.  Patients and their families depend on generic drugs and they can't afford to see these generics pushed out of the market," Baucus said. "By working with manufacturers to push brand-name drugs, drug benefit companies may be abusing Medicare to boost their profits and denying generic alternatives to patients - a practice that needs to end immediately.  We need to take a close look to ensure we're protecting both taxpayer dollars and access to the medicine patients need."

"In what's been reported, just about everyone wins except consumers and taxpayers.  That's cause for scrutiny, and these letters reflect a commitment to looking at how to prevent the system from being manipulated so that access to generic drugs is restricted and taxpayers are forced to unnecessarily pay brand-name drug prices." Grassley said.

"Consumers and taxpayers foot the bill when drug benefit companies and insurers manipulate the marketplace to prevent access to generic drugs for millions of Americans.  We hope that scrutiny into these business practices will restore fairness and open the gates to affordable prescription drug choices and tremendous cost savings," Kohl said.

The news report indicated Pfizer and PBMs Medco Health Solutions and Catalyst RX have entered into agreements aimed at undercutting Atorvastatin sales.  Letters sent from the PBMs to pharmacies show the agreements will prevent customers enrolled in certain prescription drug plans from receiving the generic alternative to Lipitor.  While these letters indicate that a plan member's co-pay for Lipitor would be discounted and equal to the cost of a less-expensive generic prescription, the Senators are concerned the PBMs and insurance companies may charge health plan sponsors, including employers and Medicare Part D, full price for brand-name Lipitor from December 1, 2011 through May 31, 2012, while pocketing the discount from Pfizer.  The senators asked for a detailed list of all of all agreements which block generics or favor brand-name drugs and for documents related to the Lipitor deal.

Spending on the Medicare Part D program providing drug coverage for seniors will total $65 billion in the current fiscal year.  In the next four years, brand-name drugs with approximately $100 billion in sales in the U.S. have patents that will expire.  Without the prospect of true competition, generic drug manufacturers will be hesitant to invest the time and resources required to bring low-cost generic drugs to the market.  This heightens the concern that these types of arrangements will become a trend, ultimately compromising access to generic drugs and increasing costs to Medicare.

The United States Senate Committee on Finance has jurisdiction over the Medicare and Medicaid programs.  More than 100 million Americans receive health care and have access to affordable prescription drugs under those programs.

Senate Judiciary Committee Subcommittee on Crime and Terrorism Hearing with Assistant Attorney General Lanny Breuer, Nov. 1, 2011

Connection Between Wide Receiver and Fast and Furious

 

Assistant Attorney General Breuer to Senator Grassley: "I regret that in April of 2010 that I did not draw the connection between Wide Receiver and Fast and Furious."

FACT

In the spring of 2010, Criminal Division staff considered Operation Wide Receiver and Operation Fast and Furious related components of the same case.

On February 22, 2010, Gang Unit prosecutors Laura Gwinn and Joe Cooley, assigned respectively to Wide Receiver and Fast and Furious, emailed back and forth with each other about the connection between the two cases when some of the guns being trafficked in Fast and Furious were tracked to a stash house of one of the targets in Wide Receiver.

Because of those overlapping targets, Wide Receiver and Fast and Furious were considered associated cases.  When the ATF Phoenix Field Division assembled a PowerPoint presentation on Fast and Furious in March 2010, one of the slides listing "Associated Cases" with Fast and Furious listed Operation Wide Receiver.  This same PowerPoint was presented at ATF headquarters on March 5, 2010.  According to a March 11, 2010, memo from Gang Unit Chief Kevin Carwile, Gang Unit member Joe Cooley attended that briefing.

Concerns about those overlapping targets also led to delay in unsealing the indictments in Wide Receiver, as the U.S. Attorney's Office in Arizona had concerns that when the Wide Receiver indictments were unsealed it would tip off targets in Fast and Furious.  As the department wrote in its October 31, 2011, letter to Senator Leahy:

The documents produced today reflect that the Gang Unit prosecutor was ready to indict the Wide Receiver cases and unseal them beginning in the spring of 2010, but that the Assistant U.S. Attorney in the U.S. Attorney's Office in Arizona handling Fast and Furious believed that if the Wide Receiver indictments became public at that time they would negatively impact his case.  The Assistant U.S. Attorney therefore requested that the indictments and/or the unsealing of the indictments in Wide Receiver be delayed.  As a result of that request, Wide Receiver 1 was indicted under seal in May 2010, Wide Receiver 2 was indicted under seal in October 2010, and both cases were unsealed in November 2010.

In a July 1, 2010, memo to DAAG Weinstein and others, Gang Unit Chief Kevin Carwile described Fast and Furious as "a gun trafficking case with apparent ties to the Tucson case already indicted by [the Gang Unit]," which was a reference to Wide Receiver.

Finally, an October 18, 2010, memo under Assistant Attorney General Breuer's name that is addressed to the Attorney General and Acting Deputy Attorney General reads: "On October 27, the Organized Crime and Gang Section (OCGS) plans to indict eight individuals under seal relating to the trafficking of hundreds of firearms into Mexico.  The sealing will likely last until another investigation, Phoenix-based 'Operation Fast and Furious,' is ready for takedown."

Given all this evidence that the cases were seen as related by Criminal Division staff, Breuer's claim that he failed to "draw the connection" between the cases is not credible.  Since Breuer knew of gunwalking in Wide Receiver, if he knew that the cases were related then it's difficult to understand why he would not have prevented gunwalking in Fast and Furious.

Documents supporting the FACTS.

Encourages People of Illinois to Support Our Veterans and Servicemembers at Holiday Tree Lighting Ceremony

CHICAGO - December 1, 2011. Governor Pat Quinn today was joined by local schoolchildren to light the state of Illinois' annual holiday tree and launch the Illinois Heroes holiday card drive. Governor Quinn encouraged schoolchildren from across the state to take part in the annual drive by making holiday cards for servicemembers at the Landstuhl Regional Medical Center (LRMC) in Germany. Governor Quinn will personally deliver the cards during a visit to troops at LRMC later this year.

"We want our servicemembers who are spending the holidays away from home to know how much the people of Illinois care and appreciate their courage and selflessness," Governor Quinn said. "This holiday season is the perfect time to show our support and give thanks for our Veterans and servicemembers."

This year will mark the seventh time that Governor Quinn has visited Illinois troops and their families at LRMC. The center is the largest American hospital outside of the United States. For more information on how to participate in the Illinois Heroes holiday card drive, please visit OperationHomefront.org.

Illinois Department of Veterans' Affairs (IDVA) Director Erica Borggren and servicemembers from across the state also joined the governor at the tree lighting ceremony.

"During the holidays, it is especially important to remember those who sacrifice their all to protect us," Director Borggren said. "As we gather with our loved ones to celebrate the holiday season, we encourage the people of Illinois to keep our servicemembers in their thoughts and prayers."

Also in attendance were members of the Gold Star Families, who hung ornaments in memory of their sons and daughters on the tree. Choirs of students and parents from LaSalle II Magnet School performed during the tree lighting ceremony and presented cards to Landstuhl.

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WASHINGTON – The Coast Guard announced Thursday the interdiction of more than 2,470 pounds of cocaine, and the detention of 12 suspects, during three separate missions in the Eastern Pacific the week of Nov. 21.

The Coast Guard Cutter Bertholf, a national security cutter, and the Coast Guard Cutter Boutwell, a Secretary Class high endurance cutter, were on counter-drug patrols in  the Eastern Pacific Ocean.  Boutwell's crew intercepted a drug-laden fishing vessel more than 200 miles west of Ecuador while Bertholf's crew recovered cocaine jettisoned from a speed boat they were pursuing near the coast of Panama.

Of the 771 metric tons of cocaine known to be bound for the U.S. in 2011, more than 85 percent was transported on the high seas.  In 2010 the U.S. Coast Guard kept 73.9 metric tons of cocaine, interdicted in the maritime transit zone between South America and Central and North America, from reaching our shores, nearly double the amount seized by one million federal, state, local and tribal officials located on our land borders and in communities across the U.S.

"The pervasive threat of maritime drug smuggling that we witnessed in fiscal year 2011 is a good example of why we need modern capabilities like the national security cutter to protect our nation, "  said Coast Guard commandant Adm. Bob Papp.  "Dollar for dollar, the best investment of taxpayer money for ensuring U.S. security, defending our borders from threats, enforcing sovereignty, and guarding marine resources is in capabilities that enable Coast Guard persistent presence at sea where we can meet threats before they reach our shores.  With counterdrug operations, this strategy has enabled us to seize bulk quantities of narcotics at sea before they are offloaded ashore, separated between dealers, and then broken down for sale on our streets and in our neighborhoods."

The Coast Guard executed 120 drug interdiction cases in fiscal year 2011, keeping 75.6 metric tons of cocaine and 17.3 metric tons of marijuana from reaching U.S. shores.  More than 23 metric tons of cocaine have been seized since Aug. 29.  The Coast Guard also seized 40 vessels and detained 191 suspects in fiscal year 2011, which ended Sept. 30.

"The nation relies on the Coast Guard to protect against seaborne threats," Papp said.  "Our cutters are stationed in waters vital to U.S. interests and provide the law enforcement and military capability to respond to, interdict and deal with these threats."

The primary method of maritime drug smuggling remains the "go-fast" boat, which accounted for 58 percent of interdiction cases.  Self-propelled, semi-submersible vessels, commonly referred to as drug subs, accounted for 19 percent, while fishing vessels accounted for four percent of maritime drug smuggling activity.

Boutwell's interdiction began Nov. 23 when the cutter approached the Ecuadorian-flagged fishing vessel El Soberano, approximately 230 miles west of Ecuador.  The Coast Guard crew observed suspicious packages on board, saw there was no fishing gear on the deck and noted the El Soberano was towing a smaller launch.  The Boutwell's boarding team conducted a search of the fishing vessel, discovering 40 bales of cocaine weighing between 50 to 56 pounds each.  The boarding team detained all nine individuals aboard the two vessels and brought them aboard Boutwell.

"I couldn't be prouder of my crew for their vigilance and decisive actions during this interdiction," said Capt. Matthew J. Gimple, commanding officer of the Coast Guard Cutter Boutwell.  "For more than 42 years, the U.S. Coast Guard Cutter Boutwell has safeguarded America's maritime interests - at home and around the world - saving those in peril, defending our maritime border, and protecting the maritime transportation system, natural resources and the marine environment.  We've had three interdictions this month, all of which were 200 miles or more offshore;  the ability to operate multiple, over-the-horizon boats and aircraft from our cutter for sustained periods is key to success."

Bertholf's action began five nautical miles west of Punta Caracoles, Panama, while the cutter was on patrol in Panamanian waters under the authority of an embarked Panamanian shiprider.  Bertholf was alerted by a maritime patrol airplane that a "go-fast" drug smuggling speedboat was in the area.  The crew of the Bertholf located the "go-fast" using the ship's Forward Looking Infrared sensor and radar.  The cutter's over-the-horizon boat was launched and its crew intercepted the suspect boat.  The "go-fast" fled, jettisoning about nine bales, one of which was recovered by the crew of the pursuing Bertholf over-the horizon boat.  The suspect boat eluded law enforcement using the cover of coves and islands in the area of the chase.  The pursuit ended as the chase neared the territorial seas of Colombia.  The marine patrol airplane identified a debris field from which seven bales and one kilo of cocaine were subsequently recovered.

Two nights prior, the crew of the Bertholf intercepted another "go-fast," netting two bales of cocaine and three suspects who were turned over to SENAN, the Panamanian Maritime service.

"My crew's response was exceptional during the prosecution of this case, and I'm proud to report we foiled these drug smugglers and kept the narcotics from reaching their ultimate destination - the United States," said Capt. Thomas E. Crabbs, commanding officer of the Coast Guard Cutter Bertholf.  "The Bertholf is one of the Coast Guard's newest cutters, unique to the United States and uniquely equipped to respond to all threats; it served the nation well during this case."

The Coast Guard Cutter Bertholf is on a 70-day patrol conducting counter-narcotics operations in the Eastern Pacific.  Cutters like the Bertholf routinely conduct operations from South America to the Bering Sea where their unmatched combination of range, speed, and ability to operate in extreme weather provides the mission flexibility necessary to conduct alien migrant interdiction operations, domestic fisheries protection, search and rescue, counter-narcotics and homeland security operations at great distances from shore keeping threats far from the U.S. mainland.

The Coast Guard Cutter Boutwell is on a 60-day deployment for counter-drug operations in the Eastern Pacific.  So far in this patrol they have been involved in three law enforcement cases resulting in the seizure or jettison of 3,800 pounds of cocaine worth $40 million.  The Boutwell and the Coast Guard's current fleet of cutters is from 30 to 45 years old, constituting one of the oldest fleets in the world while being one of the busiest.

The Boutwell and the 11 other original Secretary-class, high endurance cutters, are being replaced by eight Legend-class, national security cutters like the cutter Bertholf. The NCSs are faster, better equipped, more durable, safer and more efficient than their predecessor, and will allow the Coast Guard to continue and build on the proud history of service provided by their predecessor class, delivering a unique blend of military capability, law enforcement authority and lifesaving expertise wherever needed to protect American interests, today and for decades to come.