BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS

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BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
THE

 BIG
 MONEY
 CLUB

Revealing the Players and Their Campaign to Stop Pharmacare

                                           Sharon Batt, PhD

                                                M ARC H 2019
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
CANADIAN FEDERATION OF
NURSES UNIONS (CFNU)
WE ARE CANADA’S NURSES.
We represent close to 200,000 frontline care providers and nursing students working in hos-
pitals, long-term care facilities, community health care and our homes. We speak to all levels
of government, other health care stakeholders and the public about evidence-based policy
options to improve patient care, working conditions and our public health care system.

Published by:                     Project team:                     ISBN:
Canadian Federation of            Sebastian                         978-1-7753845-2-6
Nurses Unions                     Ronderos-Morgan
2841 Riverside Drive              Carol Reichert                    Printed & Bound:
Ottawa, ON K1V 8X7                Oxana Genina                      Imprimerie Plantagenet
613-526-4661                                                        Printing
                                  Layout and Graphics:
www.nursesunions.ca               Alyster Mahoney

© 2019 Canadian Federation of Nurses Unions
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any
means without the permission of the publisher.
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
CONTENTS

MESSAGE FROM LINDA SILAS                                 I

INTRODUCTION                                             1

WHY CANADA NEEDS UNIVERSAL SINGLE-PAYER PHARMACARE       3

OPPOSING VOICES: BIG PHARMA, BIG INSURANCE, BIG MONEY    4

SUPPORTING VOICES: ORGANIZED LABOUR                      5

HIDDEN PUPPET-MASTERS: THE BILLIONAIRES                  9

BIG MONEY’S THREE-PRONGED STRATEGY TO STOP PHARMACARE   10

CONCLUSION                                              22

REFERENCES		                                            24

APPENDIX A: MESSAGE FROM LINDA SILAS (FRANÇAIS)         30

APPENDIX B: INTRODUCTION (FRANÇAIS)                     33

APPENDIX C: CONCLUSION (FRANÇAIS)                       35

AUTHOR’S BIO                                            36
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
MESSAGE FROM
LINDA SILAS

    Lin d a Sila s s p e a k i n g a t c o n f e r e n c e , 2018 .

WE CAN DO BETTER!
The Big Money Club tells the                     implementation of a national   minute of every day without
story of the outsized influ-                     universal public pharmacare    pharmacare, and up to 640
ence of ultra-rich actors in                     program in Canada: a pro-      Canadians die prematurely
the pharmacare debate in                         gram that covers everyone,     each year from one illness
Canada. These actors see                         regardless of circumstance,    alone because of financial
dollar signs in the preserva-                    and that saves money and       barriers to prescriptions. We
tion of the current system                       eliminates inefficiencies      can and must do better. But
and are funding a campaign                       through joint purchasing       powerful actors are working
to protect their profits.                        and streamlined administra-    to stop change for the bet-
                                                 tion. According to previous    ter. These actors are the Big
For over 20 years, the                           expert reports commis-         Pharma and Big Insurance
Canadian Federation of                           sioned by the CFNU, Cana-      lobbies, as well as Billion-
Nurses Unions (CFNU)                             da wastes up to $14,000        aires, from Canada and the
has advocated for the                            health care dollars per        U.S.

I    BIG MONEY CLUB
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
As prescription drug expen-     Pharmacare (ACINP) in Feb-       will you defend? Will the
                                            diture rises with every year,   ruary 2018, the Big Money        Canadian government cave
                                            and new high-priced medi-       Club actors have ramped          to the interests of the ultra-
                                            cines come on the market,       up their campaign to stop        rich or do the right thing
                                            pharmaceutical giants are       pharmacare. Flush with           and establish pharmacare
                                            living in a golden age of       resources, they are buying       for everyone?
                                            profits (over 20% per year).    influence through lobbying       Despite the resources mobi-
                                            Health insurance compa-         and advertising, enlisting a     lized by Big Money, Cana-
                                            nies in Canada, deregulated     suite of industry-linked think   dians are unwavering in
                                            in the 1990s, are enjoying      tanks and commentators           their support for universal
                                            billions in profits from the    to create an echo-chamber        pharmacare. Even though
                                            lucrative health benefits       of validators, and calling       about two-thirds of Canadi-
                                            market. Billionaire philan-     on the U.S. administration       ans have workplace health
                                            thropists, with ties to these   for help. They are doubling      insurance plans, a new
                                            profitable sectors, also        down on their campaign to        national poll from Environics
                                            bankroll campaigns to stop      keep Canadians from bene-        Research, commissioned by
                                            pharmacare.                     fiting from a system that        the CFNU, shows that 88%
                                                                            would save lives and save        of Canadians prefer a sim-
                                            Since the launch of the         money.                           ple cost-effective prescrip-
                                            Advisory Council for the        Canadians need to ask our        tion drug coverage program
                                            Implementation of National      government: whose interests      that covers everyone in the

                                                   INCREASE IN PRICES, PROFITS & LOBBYING                          104
                                                                                                                   MEETINGS
AVE. POST TAX PROFIT MARGIN (dashed line)

                                                                                                                    in 2018

                                                                                      49
                                                                                   AVE. over
     SHARE OF SALES (solid line)

                                                                                    11 YRS.

                                                        15
                                                                                                                        Number of
                                                                                                                        Pharma Group
                                                    MEETINGS                                                            lobby meetings
                                                     in 2008
                                                                                                                        High-cost patent-
                                                                                                                        ed medicine

                                                                                                                        Profit margin
                                                                                                                        for 25 top drug
                                                                                                                        companies

                                                                                          YEAR

                                            U.S. General Accounting Office analysis of Bloomberg data, Nov. 2018, PMPRB Annual Report,
                                            2017 - July 24, 2018, Records of the Office of the Commissioner of Lobbying of Canada

                                                                                    CANADIAN FEDERATION OF NURSES UNIONS                  II
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
$
      14,000                           per minute
                                       in health care dollars
                                       wasted without
                                       pharmacare

country rather than another            For 20 years, the CFNU has       universal public pharmacare
patchwork plan. A similar              documented the results of        program is the common
proportion (84%) believe               Canada’s failure to imple-       sense solution. Experts and
that governments should                ment a national pharmacare       evidence, as well as the
invest in our public health            program as part of Medicare:     experience of other coun-
care system, covering pre-             unnecessary deaths and           tries, show that a program
scription drugs the same way           premature health declines,       that covers everyone saves
that hospitals and doctors             along with significant costs     money by eliminating ineffi-
are covered. After all, why            to Canada’s health system.       ciencies through joint pur-
should coverage of pre-                As patient advocates who         chasing and streamlined
scribed drugs end when you             see the health impacts of the    administration.
leave the hospital?                    lack of access to prescription
                                       drugs firsthand, the CFNU
                                       recognizes that a national       SINCERELY,

Linda Silas
President
Canadian Federation of Nurses Unions

III   BIG MONEY CLUB
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
INTRODUCTION
Canadian households,              to a recent national sur-      research, that prove the
employers and govern-             vey said they or someone       benefits of a system of sin-
ments spent $34 billion on        in their household failed to   gle-payer coverage for all
prescription drugs in 2018. ¹     take prescriptions as needed   Canadians?
That’s more per capita than       because of cost. 3 In 2016
virtually any other country       over 700,000 Canadians         This report reveals the ele-
with universal health cov-        had to forego spending on      phants in the room: the
erage in the Organization         food because of the price of   pharmaceutical and insur-
for Economic Cooperation          drugs. 4                       ance industries. Both profit
and Development (OECD).                                          substantially from the cur-
The reason for Canada’s           For numerous reasons that      rent system and are deploy-
outlier status is no mys-         will be detailed below,        ing considerable resources
tery: prescription drugs are      implementing a single-payer    to block meaningful change.
not part of the universal         public pharmacare plan for     This report also reveals
system of health insurance        all in Canada is undeniably    other actors hiding behind
that promotes quality and         a common sense option that     the curtains: Canadian and
equality of care while con-       will improve Canada and        foreign billionaires who
trolling costs. Instead, we       help Canadians.                invest heavily to maintain
have a patchwork of public                                       the current system where
plans with eligibility require-   The question so often over-    over one hundred thousand
ments and restrictions that       looked is, who opposes the     public and private plans
vary from one province or         plan? Who benefits from the    provide Canadians with
territory to the next, and        current fractured system,      unequal, inefficient and
employer-based private            and who wants to stop its      unfair coverage. Our frag-
plans that vary by employer,      overdue transformation into    mented system also props
level of pay, age and other       a fairer and more efficient    up the artificially high drug
factors unrelated to medical      system? Moreover, who has      prices in Canada that cause
need. At least 20% of Cana-       the power to effectively       waste and suffering.
dians have insufficient or no     undermine the mountains
drug coverage at all, ² which     of evidence, from more
is why 23% of respondents         than five decades of policy

                                         CANADIAN FEDERATION OF NURSES UNIONS                   1
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
IN THIS REPORT WE ASK:
    What is the face of Big Money in the
    pharmacare debate?

    How do Big Pharma and Big Insurance benefit
    from the status quo?

    What is the Big Money strategy to stop a national
    drug plan for Canadians?

2   BIG MONEY CLUB
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
WHY CANADA NEEDS UNIVERSAL
SINGLE-PAYER PHARMACARE
Decades of expert policy               and based on value for                  and territorial organizations
reports, from the 1964                 money. The single-payer                 representing academics,
Royal Commission on Health             (government) plan would                 health care workers, patients
Services to a report by                be billed for the cost of               and others recently signed
the House of Commons                   prescribed drugs in the                 a document of Consensus
Standing Committee                     same way that physician                 Principles, outlining a model
on Health from 2018, 5                 visits and hospital stays are           of a universal, single-payer
have reached the same                  now covered. Patient access             and public pharmacare
conclusion: pharmaceutical             to covered medications                  program for Canada. 10 The
drugs should be part of                would be ensured without                reasons for this strong
the universal and publicly             financial barriers or other             support are simple: the
funded national health                 impediments.                            potential benefits of
care system. Countries                 Those currently backing                 such a program include
such as the Netherlands,               such a plan include                     improved public health, a
Sweden, the UK, Australia              health policy experts and               more efficient and effective
and New Zealand all enjoy              economists, who study                   health system, 11 a stronger
an effective and efficient             prescription drug coverage, 6           economy, 12 13 14 a more equal
prescription drug plan                 nurses and many physicians,             and fair society, 15 16 and a
for everyone. Such a plan              who see the consequences                more robust, transparent
would provide coverage for             of our patchwork system in              democracy. 17 18 As The
a single, national formulary           their daily work, 7 8 and 91%           Globe and Mail writes: “The
(or list) of drugs that are            of Canadians, according to              bottom line is that Canada
judged safe and effective              an Angus Reid poll. 9 As well,          outspends most of the world
by scientific evidence                 over 80 national, provincial            on prescription medicines,

2019 POLLING DATA
Prescription drugs should be covered as part of our public health care system,
the same way that hospitals and doctors are covered.

                                                                                                                E
                                           EE                              E   E                    A     GRE
                                       AGR                             AGR                      DIS                     E
                                 GLY                             HAT                     HAT                  A   GRE
                         TRO
                             N                             MEW               SO    MEW                    DIS
                     S                                SO                                             LY
               43%                              41%                    13%                  O   NG
                                                                                        STR
                                                                                   3%

             43%                                41%                13%                  84% AGREE

CFNU-commissioned Environics poll, January 2019.

                                                CANADIAN FEDERATION OF NURSES UNIONS                                        3
BIG MONEY CLUB THE - REVEALING THE PLAYERS AND THEIR CAMPAIGN TO STOP PHARMACARE SHARON BATT, PHD - CANADIAN FEDERATION OF NURSES UNIONS
700,000
Canadians reduced spending on
food to pay for prescriptions.
This is equivalent to the
population of Winnipeg.

even while leaving many           biosimilars (the generic-       One simple line sums up the
Canadians without                 like substitutes for the new    economics underlying the
coverage.” 19                     high-priced biologic drugs      case for a universal sin-
                                  that are rapidly gaining        gle-payer pharmacare pro-
Built right, a universal,         market share). Altogether,      gram: “The bigger the buyer,
single-payer pharmacare           these measures would            the bigger the bargaining
plan in Canada would              lower spending on drugs by      power!” Under the current
reduce prices through             about 30%, saving billions      system, that potential bar-
bulk purchasing, reduce           and aligning prices in          gaining power is fragmented
wasteful and inappropriate        Canada more closely with        into many thousands of drug
prescribing, and favour less      those in other high-income      plan payers.
expensive generics and            countries. 20

OPPOSING VOICES: BIG PHARMA,
BIG INSURANCE, BIG MONEY
Considering the evidence          coalition of deep-pocketed      private insurance industry
and the momentum, it’s hard       interests with the enor-        stand to lose billions if uni-
to imagine why a universal        mous capacity to marshal        versal public pharmacare
single-payer pharmacare           resources is mounting a         becomes a reality. 22 23 Not
plan wouldn’t be a shoo-in        campaign to stop phar-          surprisingly, they both
for Canada. However, efforts      macare in its tracks. Why       oppose the plan.
to make drug coverage fair        the opposition? The mul-
and economical have failed        tinational pharmaceutical       Innovative Medicines
before and could fail again. 21   industry – enjoying substan-    Canada (IMC), the Cana-
On the opponent’s side, a         tial profit margins – and the   dian lobby group for the

4   BIG MONEY CLUB
pharmaceutical industry,         gaps” plan. 24 “Fill the gaps”   little to change the current
and the Canadian Life and        means yet another targeted       dysfunctional patchwork
Health Insurance Association     public plan that would only      system of coverage. To para-
(CLHIA), which represents        cover segments of the popu-      phrase a prominent Cana-
private health insurance         lation who currently have no     dian health policy expert, “a
companies, both advocate         coverage or whose coverage       patchwork system doesn’t
for a piecemeal “fill the        falls short. 25 This would do    need more patches.”

SUPPORTING VOICES:
ORGANIZED LABOUR
On the proponents side           a public pharmacare plan         2017. While these entities
there are also some well-re-     for all Canadians. 26 Simi-      have resources to spend on
sourced actors, in partic-       larly, the Canadian Labour       advocacy, there are some
ular organized labour. The       Congress, representing over      crucial differences between
Canadian Federation of           3 million unionized work-        them and Big Corporate
Nurses Unions (CFNU) has,        ers in Canada, made phar-        Money – namely motivation
for decades, advocated for       macare a core campaign in        and spending power. On

PROFIT MARGIN FOR TOP 25 DRUG COMPANIES 2010-2015
Average After-Tax Profit Margin
  AVE. AFTER-TAX PROFIT MARGIN

                                                                                20%    PROFIT

                                                      BIG PHARMA
                                                      PROFIT
                                                      MARGINS
                                                      RISING

                                   YEAR

U.S. General Accounting Office analysis of Bloomberg data, Nov. 2017

                                         CANADIAN FEDERATION OF NURSES UNIONS                   5
9           %         of Quebecers don’t
                      fill prescriptions because
                      of cost

pharmacare, neither profits        larger than those of labour.       has failed to control costs
nor the interests of share-        Statistics on lobbying             and is a system that is nei-
holders (or members) are           spending in Canada aren’t          ther equitable nor sustain-
motivating factors for the         publicly available, however,       able. 31
labour movement. That’s            the US provides us with
because unionized workers          some illustrative compari-         The Quebec model has been
generally enjoy much better        sons. South of the border,         lucrative for the pharmaceu-
extended health benefits           the US Chamber of Com-             tical and insurance indus-
than non-unionized work-           merce alone spent six times        tries. The private insurance
ers 27 by virtue of collective     more on lobbying in 2018           plans that continue to be
bargaining. On the other           than all the U.S. public sec-      abundant in Quebec make
hand, corporations view a          tor unions put together. 28 29     money with every prescrip-
potential pharmacare plan                                             tion, resulting in higher
through the prism of profits                                          costs with little focus on
and shareholder dividends.         QUEBEC’S PLAN:                     health outcomes.
The labour movement’s              A MODEL TO AVOID
concern is for the sustain-        A “fill the gaps” system           Health consequences
ability of public medicare,        could take many forms,             Private plans often provide
a program that it has sup-         including the one used in          an open formulary, I which
ported since its inception.        Quebec over the past two           amounts to coverage for
This includes the expansion        decades. Under this pro-           whatever a physician or
of important services such         gram, all large employers          other health provider pre-
as home care and mental            must include drug coverage         scribes. This can undermine
health. The CFNU, Canada’s         in their employee insurance        patient health since pre-
largest organization repre-        packages, and all employees        scribing choices are often
senting nurses, represents         must participate, including        based on marketing by the
the perspectives of frontline      purchasing coverage for            pharmaceutical industry
nurse members who witness          their dependants. The pub-         of newer – more expen-
the daily tragedies of a lack      lic plans pick up the rest. In     sive – drugs rather than
of adequate drug coverage          theory, everyone is insured        clinical evidence. 32 Indeed,
in Canada. On spending             either publicly or privately. 30   a recent report found that
power, the lobbying coffers        The evidence proves, how-          91% of new patented drugs
of the corporate sector are        ever, that the Quebec model        that entered the Canadian

I   Open formularies also distort the economic incentives for drug manufacturers. If we accept to
    pay for drugs with no additional proven therapeutic value, drug manufacturers have less eco-
    nomic incentive to focus their resources on producing drugs that add therapeutic value.

6     BIG MONEY CLUB
RAPID RISE IN MARKET SHARE OF HIGH-PRICED DRUGS
                  50%
SHARE OF SALES

                  40%                                                                   Under 10% in
                                                                                        2006 and over
                  30%
                                                                                        40% in 2017
                  20%

                  10%
                                                                                        OVER 40%
                   0%
                        2006 2007 2008 2009 2010 2011   2012 2013 2014 2015 2016 2017
                                                                                        & INCREASING
                                                YEAR
                  Patented medicine in Canada with an annual average cost of at least $10,000.
                  PMPRB Annual Report, 2017 - July 24, 2018

                 market did not provide                  a drug listed on the Beers         cost of private plans aver-
                 a significant therapeutic               list, a list of drugs deemed       ages at 18%, compared
                 80
                 improvement over existing               potentially inappropriate          to under 2% in the public
                 products. 33                            for seniors because the risk       plan. 41 The result: Quebec
                 70                                      of serious adverse events          spends yearly around $200
                  The current deadly opioid              (e.g., falls, cognitive decline,   more per person than the
                  epidemic sweeping North                dizziness and stroke) out-         rest of Canada 42 on pre-
                 60
                  America is evidence of the             weighs the benefits. Thir-         scriptions, making Quebec’s
                  damage that inappropriate              ty-one percent of seniors          system one of the most
                  prescribing can have on                were chronic users of these        expensive in the world. The
                 50
                  patients. Years of allegedly           drugs. 38                          evidence shows the big
                  inaccurate marketing by                                                   winners in Quebec drug
                 40
                  Purdue Pharma, 34 combined             Finally, drug co-payments          coverage model are industry
                  with liberal prescribing               and deductibles in the Que-        stakeholders. 43
                  practices and open formu-              bec public system pose
                 30
                  laries, contributed to a crisis        additional access barriers     Opposition to the Quebec
                  of opioid addiction involving          for patients. 39 Almost 9% of  model has emerged from
                 20
                  millions of North Americans            Quebeckers don’t fill pre-     within Quebec in recent
                  and resulted in over 50,000            scriptions because of cost. 40 years. Workers’ organiza-
                  deaths in 2017 alone. 35 36 In                                        tions like the Fédération
                 10
                  Europe, where pharmaceuti-                                            des travailleurs et travail-
                                                         High prices
                  cal regulation is tighter and                                         leuses du Quebec and oth-
                  open   formularies much less           The Quebec model also          ers, including consumer
                   0
                  common, 2014
                             the rate of addic-2015      maintains an   inefficient
                                                                     2016           2017advocacy groups,
                                                                                                      2018 are pub-
                  tion is less significant. 37           multi-payer system that fails licly opposed because of
                                                         to leverage its potential      the waste it creates and its
                 Overprescribing goes                    bargaining power to lower      failure to resolve barriers to
                 beyond opioids. In 2016 just            prices. It also duplicates     accessing medications. 44
                 under half of all seniors in            administrative costs. In
                 Canada were prescribed                  Quebec, the administrative

                                                                  CANADIAN FEDERATION OF NURSES UNIONS                7
HEALTH INSURANCE PROFITS GROWING

     DOLLARS, BILLIONS
                                                                            PROFITS
                                                                            INCREASING
                                                                            Source: Law, M., Kratzer, J.,
                                                                            Dhalla, I. (2014). The increasing
                                                                            inefficiency of private health
                                                                            insurance in Canada. CMAJ. 186,
                                                                            12: E470-E474
                            YEAR | MEDICAL LOSS RATIO (% of premiums paid as benefits for group plans)

HOW ‘FILL THE                               gargantuan price differences    government to opt for a
GAPS’ BENEFITS                              between medicines with          “fill the gaps” mix of pub-
                                            near equivalent therapeutic     lic and private insurance.
BIG PHARMA
                                            benefits. Recently it was       They promote the notion
Turning the flawed Quebec                   revealed in Canada that a       that improved drug “access”
model, or something resem-                  drug company was charging       through an open formulary
bling it, into a national pro-              over 6000% more for its         is good for patients.
gram would be a gift to the                 newly patented drug than
pharmaceutical industry. No                 the retail price of the pre-    Private insurance companies
improved bargaining power                   existing equivalent. The only   cover more than $10 billion
would be achieved to bring                  difference offered by the       in prescription drug costs
down the price of phar-                     new therapy was a longer        in Canada today, 48 much of
maceuticals to Canadians.                   timed-release of the active     which is profit for them. This
Overprescribing and inap-                   ingredients. 47 Without the     wasn’t always the case. In
propriate prescribing, which                effective regulation and        1997 Canada changed a law
industry marketing facili-                  discipline of a single-payer    that required insurance com-
tates, would continue. And,                 system, price inflation         panies to be owned by, and
the industry would have the                 such as this will continue      accountable to, insurance
additional bonus of more                    to exist to the benefit of      policy-holders. II By 2011,
than 50 million prescriptions               pharmaceutical company          the gap between premiums
per year 45 – drugs that many               revenues.                       and payouts had grown
currently can’t afford – with                                               three fold over 1991 figures.
the public plan picking up                                                  This translated into billions
the cost. 46                                HOW ‘FILL THE                   in increased profits and
                                            GAPS’ BENEFITS                  administrative costs for the
The economics of our                        BIG INSURANCE                   insurance industry. 49 Public
multi-payer system, with                                                    pharmacare would threaten
                                            The Canadian insurance
its abundance of open                                                       a significant share of that
                                            industry also wants the
formularies, can permit

II The new law allowed large insurers to become for-profit companies owned by shareholders.
   Providing a return on investment to shareholders became the priority, rather than benefiting the
   interests of plan members. In fact, the proportion of premium income that insured group plans
   spent on benefits dropped from a previous 92% in 1991 to 74% in 2011.

8   BIG MONEY CLUB
revenue.                        patient may pay 10% to 40%        Overall, administrative costs
Even for Canadians with pri-    of the cost, meaning finan-       rise considerably in a sys-
vate plans, access to drugs     cial barriers persist. As drug    tem with many thousands 51
can be troublesome since        prices continue to rise, plans    of private plans, and these
most private plans don’t        will continue to reduce their     costs are passed on to work-
provide full coverage: a        share of coverage. 50             ers and employers. 52

HIDDEN PUPPET-MASTERS:
THE BILLIONAIRES
The multinational phar-           the Koch brothers have          that serve the interests of
maceutical and private            assiduously nurtured            the wealthy. Billionaires
insurance companies are           a right-wing intellec-          bankroll many think tanks in
not the only powerful and         tual ecosystem of think         Canada, such as the Fraser
wealthy interests invest-         tanks and journals that         Institute and the Macdon-
ing in the campaign to stop       has had a powerful              ald-Laurier Institute, 58 which
pharmacare. There is also         impact on electoral pol-        consistently produce lop-
a global network of billion-      itics and the legislative       sided papers without peer
aires who are connected           agenda of the United            review that oppose phar-
to efforts to prevent drugs       States and beyond.” 54          macare.
from becoming part of
Canada’s public health care       - Chrystia Freeland             A lack of transparency
system. 53                                                        keeps the public mostly in
                                Since the early 1970s, net-       the dark about the amount
According to current Liberal    works of the ultra-rich           of funding the ultra-rich
Minister of Foreign Affairs,    have bankrolled campaigns         contribute to anti-phar-
Chrystia Freeland, in her       designed to protect the           macare campaigns. However,
2012 book, plutocrats           drug patent system 55 56 and      as powerful shareholders in
(another word for the ultra-    to keep prescription drugs        the most profitable sectors
rich) use their money to        priced as if they were pre-       of the economy, billionaires
finance a political agenda      cious commodities rather          have a major financial stake
that brings increased profits   than the prescribed medical       in preserving the lucrative
to themselves and their         necessities that they are.        multi-payer “fill the gaps”
enterprises:                                                      system of coverage. More-
                                Strategies from a playbook        over, since the vast majority
  “Some farsighted plu-         for changing society, 57 devel-   of private financing for pre-
  tocrats try to use their      oped by one of the Ameri-         scription drugs comes from
  money not merely to           can billionaire Koch family’s     premiums, which represent
  buy public office for         “charitable” foundations, are     a greater share of household
  themselves but to             currently being deployed in       income for modest and low-
  redirect the reigning         Canada’s drug policy sphere.      er-income households, the
  ideology of a nation,         The goal is to influence the      current system is markedly
  a region, or even the         public, media and decision        rich-friendly.
  world... billionaires like    makers to support policies

                                       CANADIAN FEDERATION OF NURSES UNIONS                    9
A                       B                      C
                                  CREATE               CALL ON
  BUY INFLUENCE
                               ECHO-CHAMBERS       FOREIGN BACK-UP

BIG MONEY’S THREE-PRONGED
STRATEGY TO STOP PHARMACARE
To oppose a common
sense pharmacare plan in       A) BUY INFLUENCE
Canada and protect their
profit margins, billionaires     with politicians and policymakers
and big-moneyed inter-           through lobbying and advertising;
ests are using a multi-fac-
eted strategy of influ-
encing decision makers.
These include the follow-
                               B) CREATE ECHO-CHAMBERS
ing three prongs:                that distort information and promote a
                                 baseless fear of change;

                               C) CALL ON FOREIGN BACK-UP
                                 by appealing to the Trump Administra-
                                 tion to apply pressure on Canada.

10   BIG MONEY CLUB
The following examples                                                 recommendations at a
show this strategy in action.                                          Lobby Day event on Parlia-
                                                                       ment Hill. A press release
A) BUY INFLUENCE                                                       stated that the Standing
                                                                       Committee’s recommen-
Since the announcement of
                                                                       dations would “reduce the
the federal Advisory Coun-
                                                                       quality of health benefit
cil on the Implementation
                                                                       plans for millions of people.”
of National Pharmacare
                                                                       Further, the release claimed,
(ACINP) in federal Budget
                                                                       the proposed plan would
2018, the pharmaceutical
                                                                       cost taxpayers an extra
and insurance industries
                                                                       $20 billion. 59 (This figure
have embarked on a lobby-
                                                                       doesn’t factor in the nearly
ing frenzy in Ottawa. Lob-
                                                                       $15 billion 60 in existing and
bying and advertising are
                                   The Hill Times, June 4, 2018        poorly controlled public
two ways that industries use
                                                                       spending. Any net cost of a
their money to buy influ-
                                                                       pharmacare program would
ence. In this case, the goal       Big Insurance and billion-
                                                                       be more than offset by
is to advocate for a “fill the     aires are funnelling into the
                                                                       revenues capturing some of
gaps” system, which is more        anti-pharmacare campaigns.
                                                                       the estimated $11 billion in
lucrative to them and worse        No mechanism exists in Can-
                                                                       savings to Canadians that
for Canadians.                     ada to ensure that level of
                                                                       would result. 61 Furthermore,
                                   transparency. However, it is
                                                                       these figures don’t take into
No one knows exactly how           possible to gather fragments
                                                                       account the public cost of
much money Big Pharma,             of evidence that suggest a
                                                                       tax subsidies for private
                                   complex tapestry of lobby-
                                                                       health benefit plans and the
                                   ing and advertising activity
                                                                       private coverage bought for
                                   being deployed by these
                                                                       public employees.)
                                   actors to protect their inter-
                                   ests.
                                                                       This was followed by a
                                                                       series of three half-page ads
                                   CLHIA and the Health
                                                                       in the The Hill Times III in May,
                                   Insurance Industry
                                                                       June and November 2018.
                                   Shortly after the House of          With the headline “Better
                                   Commons Standing Com-               Health Benefits for Every-
                                   mittee on Health issued its         one,” the CLHIA ads reiter-
                                   report endorsing publicly           ated the industry’s key posi-
                                   funded pharmacare in April          tion: that a program, which
                                   2018, members of CLHIA              preserves the private insur-
CLHIA Twitter Campaign,            challenged the Committee’s          ance industry’s market share
June 18-20, 2018
                                                                       (essentially “fill the gaps”),

III At a time when digital advertising predominates, it is nearly impossible to gather records of
   online advertising. Though not a household name, we use The Hill Times as a proxy for the
   broader media advertising campaign deployed by the opponents of pharmacare. We chose The
   Hill Times for two reasons. First, it is a bi-weekly print newspaper that is a go-to publication for
   politicians and senior bureaucrats in Ottawa on political and public policy news. If your goal is
   to put your message in front of the eyes of key decision makers, The Hill Times is a good place to
   start. Second, as a print publication, subscribers can easily access its publication archives.

                                           CANADIAN FEDERATION OF NURSES UNIONS                       11
RESEARCH & DEVELOPMENT SPENDING VS. DRUG SALES 67
     Growing gap between R&D Spending and Sales by Patented Drug Industry
                                                                                         REVENUE

                                                                          Revenue UP
                                                                          R&D Spending DOWN

                                                                                         R&D

                                            YEAR

Patented Medicine Prices Review Board - CBC News

is the best policy option for     for 2 million Canadians. Gov-     Innovative Medicines
Canada. Any government            ernments should help those        Canada and the Pharma
changes to coverage ought         people while protecting the       Industry
simply to add another layer       workplace health benefits         Considering the growing
of targeted public coverage       that others enjoy.” The clear     potential profits on
to the existing public-pri-       objective of the ads was to       the horizon from high-
vate mix, the ads suggested.      target Canada’s premiers          cost medications, the
                                  and senior staff with a mes-      pharmaceutical industry has
CLHIA also turned to Twit-        sage opposing universal           a lot to lose from a strong
ter to spread its core mes-       single-payer pharmacare.          single-payer bargainer
sage from July 18-20, 2018,                                         for Canada. According to
when provincial premiers          CLHIA’s lobbying efforts          the latest report from the
met for their annual sum-         with Canadian decision            Patented Medicine Prices
mit in St. Andrew’s by-the-       makers also rose consid-          Review Board (PMPRB), IV
Sea, New Brunswick. During        erably with the launch of         within a decade the number
the days of the premiers’         the ACINP in Budget 2018.         of patented medicines in
summit, CLHIA-promoted            From 2017 to 2018, CLHIA’s        Canada with an annual
ads appeared regularly on         non-trade-related lobby-          cost of at least $10,000
Twitter feeds geo-located         ing activity rose by roughly      more than tripled. They
to that hamlet with a popu-       61%. 62 The evidence suggests     now account for over 40%
lation of 1,500 people. Using     a ramping-up of efforts by        of patented medicine sales,
the guise of a micro-site         the Big Insurance to stop         rising from 7.6% in 2006.
called betterhealthbenefits.      pharmacare from being             Despite this escalation
ca, CLHIA’s ads read: “Cost       delivered to Canadians.           in the share of costs, the
of medicines are a problem                                          number of people using

IV The PMPRB is an arms-length, quasi-judicial body established in 1987 to ensure that the price of
  patented drugs is not excessive. It has raised concerns about rising prices of these medications.

12    BIG MONEY CLUB
500                              %                 increase
                                                                  in lobbying
                                                                  activity
R&D SPENDING
% GROWTH OF

                                                                  in one year

 these medicines is less than    investment in Canada.”           year – the same year
 1% of the population. 63 This   In fact, history proves false    the Trudeau government
 high-priced pharmaceutical      claims linking revenue to        announced the ACINP. This
 market is, to a large degree,   R&D investments in life sci-     figure is even more excep-
 preserved by Canada’s           ences. Indeed since 2000,        tional comparing it to the
 current multi-payer system      industry revenues have           numbers from 2015 and 2016
 of drug coverage.               soared while R&D invest-         – an election and post-elec-
                                 ments have stagnated. 64 The     tion year. In both years, IMC
 In 2018, corresponding          industry’s research invest-      took 54 non-trade-related
 with the launch of the          ments in Canada fell in 2017     lobbying meetings, just over
 ACINP, Innovative Medicines     to a paltry 4.1 % (from 4.4%     half the number in 2018.
 Canada (IMC) increased its      in 2016) of Canadian sales       The pharmaceutical indus-
 lobbying and advertising        (4.6% for members of Inno-       try sees the implementation
 efforts substantially. They     vative Medicines Canada,         of pharmacare as worthy of
 bought fifteen full-colour      down from 4.9% in 2016). 65      the deployment of unprece-
 ads in The Hill Times in 2018   Merck, AstraZeneca, Sano-        dented lobbying resources.
 alone. The ads included         fi-Aventis and Johnson &
 claims that pharmacare          Johnson have either closed       Pharma Influence over
 could result in patients        or scaled down their Cana-       Patient Groups
 being forced to go without      dian research facilities, lay-   In the past two decades,
 medications: “Far-reaching      ing off staff. 66                drug companies in Canada
 changes to Canada’s                                              and abroad have poured mil-
 patented drug regime will       The IMC and Canada’s             lions of dollars into funding
 lead to job losses, a cutback   pharmaceutical giants also       patient advocacy groups,
 in R&D investment and           increased lobbying efforts       which now have a formal
 reduced access to the latest    in 2018. In fact, IMC’s non-     role in many drug policy
 therapies,” stated one ad.      trade-related lobbying           structures. 68 Many of these
 Another cautioned, “Far-        meetings rose from 18 in         patient groups are tiny
 reaching Health Canada          2017 to 104 in 2018. This        organizations that valiantly
 reforms could undermine         was a 500% increase in lob-      fight for the well-being of
 life sciences research and      bying activity in one

                                       CANADIAN FEDERATION OF NURSES UNIONS                  13
FEDERAL LOBBYING BY PHARMA LOBBY GROUP: NUMBER OF MEETINGS
(Trade-related meetings excluded) V

  Number of meetings
  increases as Ottawa                          104                WHY SO
  considers Pharmacare
                                                                  MANY
                                                                  MEETINGS
                            49                                    LAST YEAR?
          15
         2008            Average                2018
                        over 11 yrs.
Records of the Office of the Commissioner of Lobbying of Canada

their often vulnerable            patients were “strongly           With few other funding
patients, yet they are ham-       opposed” to switching from        options available to them,
strung by a lack of funding       their brand name drug to a        cases like this suggest that
sources.                          cheaper biosimilar. The two       many patient groups are
                                  companies that paid for the       given little choice but to
As one Canadian patient           report, Janssen and AbbVie,       take the conditions placed
group recently discov-            are two with a lot to lose        on them by Big Pharma
ered, to its dismay, funding      from biosimilar competition.      funders, or face closure.
arrangements with patient         Feeling manipulated, the
groups often come with            group’s president e-mailed        It is not easy to know the
strings attached. 69              members of his board and          scale of pharmaceutical
                                  recommended the group             funding of patient groups,
In October 2018, The Globe        take its name off the report.     since few companies pub-
and Mail broke a story illus-     Board members agreed,             licly disclose such contri-
trating this phenomenon.          despite the fact that Jans-       butions. To their credit,
In 2016 the president of          sen and AbbVie had pro-           GlaxoSmithKline is a rare
the Canadian Spondylitis          vided 90% of the group’s          example of a company that
Association, which rep-           budget the previous year.         effectively discloses its
resents patients with a type      Janssen then rejected the         patient group funding to the
of arthritis that affects the     group’s requests for funding      public. Here is their data for
spine, attended a focus           in 2017 and 2018 (AbbVie          2017 – likely only a drop in
group project which ended         continued its funding). 70        the bucket of all funding for
with groups being asked to                                          patient groups:
sign a report (destined for
Health Canada) that said

V Meetings explicitly relating to international trade were excluded from our count because of the
  importance of the NAFTA renegotiations in 2018.

14   BIG MONEY CLUB
GLAXOSMITHKLINE VI 2017 FUNDING OF PATIENT GROUPS & GSK’S % 71
                                                                    Total $ to group           % of group’s
Group
                                                                        in 2017               2017 revenues

Asthma Society of Canada                                                  101,560                   10.2%

BC Lung Association                                                       20,000                    < 1%

Best Medicines Coalition                                                  35,000                    13.5%

Canadian Lung Association                                                 50,000                    < 1%

Canadian Organization for Rare Disorders                                  5,000                     1.3%

Chronic Obstructive Pulmonary Disease Canada                              25,000                    8.1%

Gastrointestinal Society                                                  25,000                    2.6%

Immunize Canada                                                           30,000                    16.9%

L’Association Pulmonaire du Quebec                                        65,000                    2.3%

Lung Association of AB & NWT                                              12,500
public disclosure practices,
                                                                 it is challenging to uncover
                                                                 who the donors are and how
                                                                 much they contribute. Nev-
                                                                 ertheless, some examples
                                                                 can be traced that show
                                                                 part of the overall picture.

                                                                 From Canada
                                                                 One deep-pocketed Cana-
                                                                 dian funder is the Aurea
                                                                 Foundation, a registered
                                                                 charitable organization
                                                                 founded by the late Cana-
                                                                 dian billionaire Peter Munk.
                                                                 From 2011 to 2017, Aurea
                                                                 gave $1,675,568 to the Fra-
                                                                 ser Institute, $1,255,000
              The Hill Times, February 12, 2018
                                                                 to the Macdonald-Laurier
                                                                 Institute, and $968,000
                                                                 to the Montreal Economic
therapies under private drug     interests. Information is
                                                                 Institute, 75 three think tanks
plans than those who rely        generated and disseminated
                                                                 that oppose pharmacare.
solely on a public plan. 73      to the public via think tanks
                                                                 Additional funding included
Innovative Medicines Canada      and other policy outfits
                                                                 $5 million in donations by
bought a Hill Times ad two       funded by wealthy donors
                                                                 the Munk family in 2016 to
months earlier with a similar    and corporations with a
                                                                 establish the Peter Munk
message to the patient           vested interest in stopping
                                                                 Centre for Free Enterprise
group. 74                        pharmacare from emerg-
                                 ing in Canada. A revolving      Education at the Fraser
                                                                 Institute. 76
These examples suggest           door connects the cast of
that pharmaceutical giants       characters at the Canadian
                                                                 One of Canada’s wealthiest
are sometimes able to buy        think tanks to the pharma-
                                                                 families, the Westons, who
additional lobbying influ-       ceutical industry and larger
                                                                 own Shoppers Drug Mart –
ence through their condi-        U.S.-based conservative
                                                                 Canada’s largest pharmacy
tional funding of under-re-      and business-friendly insti-
                                                                 chain – also frequently
sourced patient groups.          tutions. What emerges is a
                                                                 supports the Fraser Insti-
                                 media campaign involving
                                                                 tute. Their charitable fam-
                                 many industry-linked orga-
B) CREATE ECHO                   nizations singing from the      ily foundation has a history
CHAMBERS                         same song book.                 of collaboration 77 with the
                                                                 Institute, including reports
The second prong in the                                          of $22 million in funding. 78
strategy to stop phar-           Following the money
macare is the creation of        trail
                                                                 From the U.S.
echo-chambers of informa-        Think tanks that oppose
tion designed to convince                                        Foreign billionaires and Big
                                 pharmacare draw funds from
the public and media to                                          Pharma lobbies are also
                                 the ultra-rich and large cor-
favour policies that ulti-                                       generous donors to Cana-
                                 porations both from Canada
mately serve commercial                                          dian think tanks that oppose
                                 and abroad. Due to murky

16   BIG MONEY CLUB
$               Millions   in funding from
                   U.S. Pharma lobby to change
                   Canadian health care

pharmacare.                     dysfunction in their system.       $400,000 from the Searle
                                The industry worried that,         Freedom Trust, a private
In 2004, the U.S. pharma-       as state, federal and foreign      foundation founded with
ceutical industry’s lobbying    governments tried to               wealth from G.D. Searle
arm, the Pharmaceutical         expand access to affordable        pharmaceuticals (now part
Research and Manufac-           drugs, the resulting               of Pfizer, another pharma
turers of America, known        price controls and other           giant). 83
as PhRMA, ramped up its         regulations would tie the
lobbying budget to U.S.         drug makers’ hands. Price          Canadian think tanks also
$150 million to support         control efforts in Canada          receive funding from the
a series of projects that       were seen as particularly          U.S.-based Atlas Network,
would target American           problematic because                which is itself funded by
legislators, but also foreign   they created “politically          billionaires such as the
governments, including          unsustainable cross-border         Koch brothers. 84 Founded
Canada. The plan was ded-       pricing differences…” 80           and initially bankrolled by
icated to funding a stand-                                         British billionaire Antony
ing network of economists,      The Fraser Institute has           Fisher, Atlas Network was
“thought leaders” and think     received $4.3 million in           an extension of Fisher ’s
tanks to act as an intellec-    foreign funding over 10            mission to “litter the
tual echo-chamber sympa-        years from billionaire U.S.        world with free-market
thetic to the industry, and     donors, beginning in the           think tanks.” 85 Among the
to develop strategic alli-      early 2000s. More than half        13 organizations listed as
ances with doctors, patients,   (approximately $2.7 million)       Canadian global partners
universities and influen-       of the total foreign funding       of the Atlas Network are
tial members of minority        came from the Eli Lilly and        the Canadian Taxpayers
groups. The PhRMA bud-          Co. Foundation, a charita-         Federation (CTF), the Fraser
get included $1 million “to     ble arm of pharmaceutical          Institute, the Montreal
change the Canadian health      giant Eli Lilly. 81 82 According   Economic Institute (MIC),
care system.” 79                to the U.S.-based Center for       and the MacDonald-Laurier
                                Media and Democracy – an           Institute for Public Policy. 86
One objective of PhRMA          organization that tracks           By becoming a global
was to keep global drug         corporations’ PR campaigns         partner, these Canadian
prices high – including         and identifies corporate           think tanks become eligible
those north of the border,      front groups – between 1995        for grants, training and
where our lower drug prices     and 2014 the Fraser Insti-         awards throughout the year.
and public health care          tute received over $1 million      To become a partner, think
system constantly remind        from the Charles G. Koch           tanks must share the Atlas
Americans of the level of       Charitable Foundation, and         Network vision of “a free,

                                       CANADIAN FEDERATION OF NURSES UNIONS                     17
INTERNATIONAL                                                      U.S. ATLAS
 BILLIONAIRES                                                      NETWORK

prosperous and peaceful             the pharmaceutical sector      a Washington D.C-based
world where limited                 and larger U.S.-based think    conservative and indus-
governments defend the rule         tanks. Although numerous       try-linked think tank, the
of law, private property and        examples exist, here are       R-Street Institute.
free markets.” 87                   three.
                                                                   Creating the
What little information is avail-   The Canadian Health            echo-chamber
able suggests the Atlas Net-        Policy Institute is another
                                                                   The Fraser Institute in Van-
work is promoting a model           think tank that opposes
                                                                   couver is one of the most
of elaborate mass persuasion        pharmacare and whose ties
                                                                   established conservative
strategies using YouTube,           to deep-pocketed donors
                                                                   think tanks in Canada.
Facebook, WhatsApp and other        run deep. Its’ founder is a
                                                                   Founded in 1974, it has
social media to rebrand public      former CEO and director of
                                                                   maintained a long-stand-
debate and to mobilize low-         Health Policy Studies at the
                                                                   ing campaign to oppose
cost organizing to advance the      Fraser Institute, and was
                                                                   public single-payer health
interests of corporate elites       Executive Director of Health
                                                                   care. As interest in phar-
and profits. The Atlas Network      and Economic Policy at
                                                                   macare picked up in recent
also is actively supporting the     Innovative Medicines Canada
                                                                   years, the Fraser Institute
creation of new think tanks that    for four years. 91 Despite a
                                                                   began contributing to the
support its mission in Canada       staff contingent of three,
                                                                   echo-chamber of opposition.
and abroad.88                       the CHPI bills itself as an
                                                                   In 2018 alone, the Fra-
                                    “evidence-based activist
                                                                   ser Institute published six
According to the Atlas              think tank.”
                                                                   articles opposing universal
Network’s Annual Report
                                                                   single-payer pharmacare
for 2016, Canadian partner          A former federal director of
                                                                   and/or supporting Big Phar-
organizations received over         the CTF for six years subse-
                                                                   ma-friendly “fill the gaps”.
$200,000 in grant funding,          quently moved on to Rx&D
                                                                   Articles included titles such
though it is unclear which          (the precursor to Innovative
                                                                   as “Pharmacare is the wrong
organizations in particular         Medicines Canada) and now
                                                                   solution at the wrong time” 93
benefited. 89 90                    works as a Senior Director
                                                                   and “Before implementing
                                    for Government Relations
                                                                   national pharmacare, look
The revolving door                  with Purdue Pharma. 92
                                                                   at what provinces already
The cast of characters                                             offer.” 94
                                    One of the current senior
who work for these indus-
                                    fellows with the Macdon-
try-funded think tanks                                             Moving further afield,
                                    ald-Laurier Institute is
often have deep ties to                                            the Institute also pitches
                                    also an associate fellow at

18   BIG MONEY CLUB
CAMPAIGN
      CANADIAN
                                                                    TO STOP
     THINK TANKS
                                                                  PHARMACARE

opinion pieces in local          titles such as “Canadians are    “The risks that come with
newspapers in order to           being fooled into thinking       a national pharmacare pro-
access new audiences across      we’ll like pharmacare: we        gram, in the The Globe and
Canada. For example, in          really, really won’t,” “Turns    Mail and “National phar-
an effort to sway public         out nearly all Canadians         macare plan not the answer ”
opinion in just one small        already have drug cover-         in the Ottawa Citizen.
province, the Fraser Institute   age, despite the pharmacare
has published opinion            myths” and “We can make          As a key Atlas Network
pieces with titles such          medicine affordable without      member in Canada, the
as “Prescription Drugs in        the damage pharmacare will       CTF 98 has also put phar-
Canada – target those who        cause Canadians.”                macare in its cross-hairs.
need help,” in the Moncton                                        The CTF recently published
Times, and “Pharmacare –         As recently as January 23,       a piece against pharmacare
be careful what you wish         2019, the Canadian Health        on CBC’s Opinion web-
for ” in the New Brunswick       Policy Institute secured         site in October 2018, titled
Telegraph-Journal. 95            the publication of another       “There will be no such thing
                                 opinion piece in the Finan-      as painless national phar-
Adding to the echo-cham-         cial Post, entitled “Trudeau     macare.” In other publica-
ber, the billionaire-funded      spreads the Big Pharmacare       tions, CTF parrots the lines
Macdonald-Laurier Institute      myth that scores of Canadi-      of big-moneyed interests,
also published five articles     ans can’t afford medicine.” 97   declaring that “there should
in 2018, opposing universal                                       never be a national phar-
single-payer pharmacare.         The Montreal Economic            macare program,” and that
Titles include “Fill in the      Institute (MEI), an Atlas        rather “more participation
gaps to strengthen phar-         partner and recipi-              by the private sector ” is the
macare” and “Single-payer        ent of funding from the          best path forward. 99 Armed
pharmacare is a cure worse       Aurea Foundation, adds           with its base of 140,000
than the system,” the latter     yet another voice to the         supporters across Canada,
of which was published in        anti-public pharmacare echo      the CTF has a powerful
The Hill Times in November       chamber. In additional to        capacity to bolster the Big
2018. 96                         numerous media interviews,       Money echo-chamber in
                                 one of the MEI-based econ-       Canada.
As well, the Macdonald-Lau-      omists has written articles
rier Institute secured pub-      with the titles “Do we need      Domestic and foreign bil-
lication of three opinion        a public drug insurance          lionaires and pharmaceutical
pieces in the Financial Post     monopoly in Canada?” in          giants have long targeted
in 2018 on pharmacare, with      the MEI health care series,      Canada’s public health

                                       CANADIAN FEDERATION OF NURSES UNIONS                   19
U.S. DOWNGRADED CANADA’S
                                                 STATUS AS A TRADING PARTNER
                                                  AFTER PROPOSED DRUG PRICE
                                                     CONTROLS ANNOUNCED

system and now want to             and investment and a pub-        implementation of promised
prevent Canada from imple-         lic relations campaign that      stricter price rules for pre-
menting a universal sin-           blames Canada for health         scriptions in Canada passed
gle-payer pharmacare plan          care ills in the U.S.            without action. Reports
that Canadians so badly                                             suggest there are no plans
need. In an effort to head         In 2018 the U.S.                 to meet any future dead-
off public antipathy towards       downgraded Canada’s              line. 101 The single purpose
them, these deep-pocketed          status as a trading partner      of the price ceilings is to
interests have deployed            after Canada announced           prevent corporate gouging
a campaign of mass pub-            our intent to apply stricter     of patients while their med-
lic persuasion, using              price rules for prescriptions    icines are on patent. While
echo-chambers to achieve           medications in the revised       the government’s reasons
their goal.                        PMPRB regulations. Canada        for this delay are unclear,
                                   was already on the U.S.          the powerful weight of U.S.
C) CALL ON                         “Watch List” mainly due          commercial pressure and Big
FOREIGN BACK-UP                    to our pharmaceutical            Pharma lobbying has been
                                   policy designed to defend        applied on this issue. Every
The deep-pocketed cam-             the public interest. A 2018      day, Canadians are paying
paign to influence prescrip-       report switched us to            the price.
tion drug policy and stop          the “Priority Watch List”
pharmacare in Canada has           because of serious concerns      Adding to the pressure,
also called upon the Trump         about Canada’s policies on       President Trump began
Administration for support.        patent protection. 100           blaming Canada in 2018 for
Given the power of the phar-                                        high drug prices in the U.S.
maceutical lobby in U.S. pol-      In Canada credible concern       He argued that Canada gets
itics, it’s little surprise that   is mounting that this kind of    a free ride on U.S. innova-
their attention has turned         Big Pharma lobbying tac-         tion. 102 This is hard to imag-
to Canada. And, it would           tic, possibly assisted by the    ine when we pay the third
appear that the Trump              Trump Administration, is         highest per capita prices in
Administration has obliged         starting to work. The dead-      the Organisation for Eco-
with threats to curtail trade      line (January 1, 2019) for the   nomic Co-operation and

20    BIG MONEY CLUB
North America’s Biggest
  Lobbying Spenders:

  1. Big Pharma
  2. Big Insurance
Development (OECD). 103        amount they spent on lob-      negotiations (NAFTA 2.0).
                               bying in 2018, Big Pharma      The Trump Administration’s
In reality the U.S. govern-    topped the list. The phar-     bluster and threats pres-
ment, under pressure from      maceutical industry spent      sured Canada into agreeing
its powerful pharmaceutical    $280 million, and the insur-   to the extension of data
sector, is the only coun-      ance industry, at $156 mil-    protection for biologic med-
try among rich nations not     lion, ranked second. 106       icines (the highest-priced
to enact price controls on     Lobbying data in Canada        medications on the market)
drugs. These high prices       reflects a similar degree of   from eight years to ten. 107
help make the pharmaceuti-     lobbying influence this side   The prolongation of this
cal industry one of the most   of the border (consider,       period of data protection
profitable industries in the   among other sources, the       amounts to longer market
U.S., with a 2016 net profit   500% increase in lobbying      monopolies for hugely prof-
margin of over 20%. 104        activity by Innovative Medi-   itable pharmaceutical giants
                               cines Canada between 2017      and higher costs to Cana-
Meanwhile, pharmaceutical      and 2018).                     dian patients. It also means
giants put more money into                                    a further fiscal burden on
marketing, paying out cor-     In addition to exerting        Canadian governments, who
porate dividends and buying    investment pressures, the      cover 42.7% of drug spend-
back corporate stock than      U.S. administration also       ing in Canada. 108 Finally, it
they spend in the discov-      demanded concessions           could increase the cost of
ery of new drugs. 105 When     from Canada on drug prices     implementing a national
the U.S. watchdog group        during the recent United       pharmacare program.
OpenSecrets ranked 121         States-Mexico-Canada
industries according to the    trade agreement (USMCA)

                                     CANADIAN FEDERATION OF NURSES UNIONS                 21
CONCLUSION
Though seemingly diverse,        creating echo-chambers            whose over 3 million mem-
virtually all the opposition     to distort the information        bers experience the cost of
to pharmacare can be traced      available to the public and       the current dysfunctional
back to a network of well-       the media, and to promote a       system; a consensus of over
funded interests exerting        fear of change. Finally, they     80 national, provincial and
their influence largely in       are calling for back-up from      territorial organizations of
secret. This Big Money Club      the Trump Administration to       all kinds in all sectors, who
– made up of pharmaceu-          exert international commer-       support a system that is uni-
tical companies, the health      cial pressure on Canada to        versal, single-payer, public,
insurance industry, and          maintain the status quo and       accessible, comprehensive
both Canadian and foreign        reconsider reforms.               and portable; and the grass-
free-market billionaires – are                                     roots of the Liberal, NDP
the only players who stand       As Canadians look to the          and Green parties. Cana-
to lose from pharmacare.         federal election in the fall      dians must demand of our
For the rest of Canadians,       of 2019, we cannot let the        elected officials that they
pharmacare would be a sub-       big-moneyed interests dis-        choose policies that defend
stantial gain.                   tort health policy in Canada      the interests of all Canadi-
                                 to the exclusive benefit of       ans over Big Money. It’s time
With deep pockets and con-       their profit margins. Instead     Canadians enjoyed a com-
siderable resources, the Big     the Canadian government           mon sense pharmacare plan
Money Club is employing an       should be listening to who        built to provide coverage
expansive strategy involving     supports pharmacare and           for everyone, control costs
three key prongs to stop the     why. The supporters include       and keep prices down. It’s
delivery of pharmacare to        nurses and health care work-      time to do what’s right for
Canadians. Tapping into a        ers, who see everyday the         the public’s health and the
deep well of resources and       tragedies of the current          country’s economy.
overlapping networks, they       system; over 200 health
are influencing politicians      policy experts, who signed
and policymakers through         on to Pharmacare2020,
lobbying and inflamma-           based on the evidence 109 ; the
tory advertising. They are       Canadian Labour Congress,

22   BIG MONEY CLUB
IT’S TIME
PRESCRIPTION
DRUGS BE
CONSIDERED
PART OF OUR
PUBLIC HEALTH
CARE SYSTEM

      CANADIAN FEDERATION OF NURSES UNIONS   23
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24    BIG MONEY CLUB
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