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Big Pharma Spending Big Money To Defeat State Issue 2

Ohio Public Radio

The amount of money being spent by drug companies to defeat Issue 2, the Drug Price Relief Act, has broken the state's record for a ballot issue. Backers have brought in 14 million dollars so far, but the drug company-funded campaign to defeat Issue 2 has raised 58 million dollars. Ohio Public Radio's Jo Ingles reports.

Issue 2 would set drug prices for Medicaid and other state-run programs at what the federal Veterans Administration pays. The $58 million raised by the "no on Issue 2" side beats the previous record of $47.1 million set in 2009 when casino supporters convinced Ohio voters to allow gambling in the Buckeye State. That huge amount was raised by six contributions from drug companies. Backers of Issue 2 have raised about $14 million - a quarter of what the drug companies have. University of Cincinnati Political Science Professor David Niven describes the battle this way.


It’s Santa Claus versus the Grinch and the pharmaceutical companies are the Grinch.”


Issue 2's supporters say it will save the state around $400 million, but those who are opposed say the issue is unworkable and could bring price increases. Niven says drug companies are spending record amounts of money to defeat this issue because they want to kill attempts like this in other states in the future.


Why spend $58 million unless this issue will cut into the drug companies’ bottom line. Why spend $58 million unless this represents a threat to the way they do business which is to really set a price at any level they choose and then to raise it from there. I mean this is really a classic vote between the devil you know and the devil you don’t. The devil you know is the pharmaceutical companies and you know what they represent and what they want. The devil you don’t is what are the details and how would this actually work?”


Niven says for most Ohio voters, that’s an uncomfortable and difficult question. Case Western Reserve University Political Science Professor Joe White agrees this issue isn't easily understood by most voters. And he says the message being conveyed in the ads against Issue 2 makes it more challenging to figure out.


The argument is if we cannot charge Medicaid and other state programs as much, we are just going to have to charge you and your insurance or the veterans or the V.A. more and so it’s basically, if you do this to us, we will just take it back out of you. It’s a threat.”


White says money isn’t the only thing drug companies are using in their fight against Issue 2.


The advantage the drug companies have is not just how much money they can spend but is really the amount of endorsements they have from other, somewhat more credible politically organizations like the doctors and the nurses and the veterans. And they’ve spent a lot of money to publicize that support.”


Both White and Niven say the issue itself is confusing. And the campaigns make it more confusing. Conventional wisdom is when voters are confused, they tend to vote “no", or not vote at all. These campaign reports only show money raised and spent through mid-October, so these record amounts raised and spent will only get bigger.


It's interesting to compare this record-setting money with that for Issue 1, the crime victims' right amendment. The group supporting Issue 1 has raised just less than $6 million and has spent close to $5 and a half million. While the issue has critics, it has no organized opposition raising money or running ads.


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