Drug Industry Case Study

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This legislation benefits the drug industry because Medicare will have to pay whatever prices the drug industry sets for its drugs instead of being able to negotiate for better prices like other drug purchasers. 3. What strategies of political influence did the drug industry use in seeking passage of this legislation? (You may wish to review pages 187-202 in the textbook before answering this question.) The industry uses information strategy, which, according to the textbook, is “where businesses seek to provide government policymakers with information to influence their actions, such as lobbying.” According to the reading, the pharmaceutical industry has the largest lobby in Washington, employing 675 lobbyists in 2002. The job of these lobbyists is to promote the interests of drug companies to politicians. The industry also uses financial-incentive strategy, which, according to the textbook, is “where businesses provide incentives to influence government policy makers to act in a certain way, such as making a contribution to a political action committee that supports the policymaker.” Drug…show more content…
The group, which had close ties to the pharmaceutical industry, was formed in 1999 and “spent an estimated $65 million in the 1999-2000 election campaign fighting against any form of drug price
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