key factors in the 2008 elections

Many political pundits used the term “tsunami” to describe the election of 2006 when Democrats were swept into power in both the House and Senate. While it remains unclear whether 2006 was a lasting political realignment, there are significant challenges Republicans must overcome if they hope to regain a majority in either chamber. The two biggest disadvantages Republicans face in the House and Senate in 2008 are open-seats and money. The following is a brief overview of the political landscape surrounding the 2008 Congressional elections.

House

There currently are 24 Congressional districts in which there is no incumbent seeking reelection. Eighteen are or were occupied by Republicans and six are/were occupied by Democrats. Republicans would need to successfully defend all 18 of their seats and pick up an additional 16 Democrat-held districts to retake the majority.

To further complicate matters for House Republicans, the National Republican Congressional Committee (NRCC), the primary campaign organization for the Republicans, is badly trailing the Democratic Congressional Campaign Committee (DCCC) in funds. The DCCC has nearly $29.2 million, compared to $2.6 million for the NRCC, as of October 2007. It is expected that Republicans will engage in aggressive fundraising efforts this year to narrow the funding gap.

Senate

Of the 33 seats up for election this year, 21 seats are held by Republicans and 12 seats are held by Democrats. Six of the 21 Republican-held seats will not have an incumbent seeking reelection, while all 12 Democrat-held seats have incumbents looking to stay in the Senate. Many of the state elections for the Senate are or have been trending toward Democrats recently.

As of the Third Quarter of 2007, the Democratic Senatorial Campaign Committee (DSCC) holds a $23.4 million to $9.5 million advantage over the National Republican Senatorial Committee (NRSC), giving the Democrats a clear monetary advantage at this point in the election cycle.

Note 1

While party committee funding is a gauge of a party’s health leading up to an election, individual candidates’ fundraising presents a clearer picture of their viability.

Note 2

There will be a special election in Mississippi to fill the remaining term of Senator Trent Lott, who was reelected in 2006, but retired at the end of 2007. Congressman Roger Wicker (R-MS) has been appointed to fill that seat until the special election which he is expected to win. A second special election will be held to fill Wicker’s currently vacant House seat as well. The House seat is expected to remain in Republican control.

KEY HEALTHCARE ISSUES IN THE 110^th CONGRESS

HDMA worked on many priority issues last year throughout the first session of the 110th Congress. Below are highlights of some of the key issues that were addressed in the 110th Congress.

Medicaid/AMP—HDMA put forward a strong advocacy campaign to initiate changes to the Medicaid AMP Final Rule, filing two sets of comments with CMS, organizing Hill briefings, joining pharmacy coalitions urging for reforms and sending dozens of letters to key members of Congress. HDMA also supported the “Fair Medicaid Drug Payment Act” (S 1951/HR 3700), introduced by Senator Baucus (D-MT) and Representative Pallone (D-NJ), respectively. The bill would increase pharmacy reimbursement from 250% to 300% of AMP, prohibit the publishing of AMP data and exclude PBMs from the AMP calculation.

HDMA continues to believe that revisions to the AMP Final Rule are needed in order to ensure that Medicaid reimbursements are fair and accurate. Without changes, HDMA is concerned that payments under AMP may financially harm community retail pharmacies, reduce Medicaid beneficiaries’ access to necessary healthcare products and discourage appropriate utilization of generic medications.

Although Congress did not act on the issue last year, legislative remedies may again be considered this year.

Importation—The Fiscal Year (FY) 2008 appropriations budget for Department of Homeland Security included a provision that would allow individuals to physically import a 90-day supply of prescription drugs from Canada, excluding controlled substances and biologics. This is the identical language that was included in the FY 2007 Homeland Security budget. HDMA drafted and sent letters to Congress, including House and Senate leadership and key committees of jurisdiction, opposing this provision and others that were considered during the appropriations process. On December 26, 2007, the budget was signed into law.

Food and Drug Administration (FDA)— In September 2007, President Bush signed the Food and Drug Administration Amendments Act (PL 110-85), which reauthorized the user fee programs for prescription medicines and medical devices. An important patient safety provision was included that gives the FDA 30 months to develop standards for a numerical identifier to be placed on either the package or pallet.

HDMA issued a press release in support of the legislation, stating that it is critical for manufacturers, distributors and pharmacies to continue to work together and with the government to develop consistent systems that support the unique identification, tracking and tracing of products throughout the supply chain. HDMA continues to believe that such systems have great potential to monitor, protect and further enhance our secure system against increasingly sophisticated criminals who may try to introduce counterfeit or diverted drugs into the legitimate supply chain.

Questions About the HDMA PAC

If you would like more information or have any questions about the HDMA PAC, please contact Kristen Freitas, Associate Director, Federal Government Affairs, at 703-885-0232.

(The HDMA PAC is a federal political action committee registered with the Federal Election Commission. It is a qualified multi-candidate committee. A trade association PAC may not solicit a corporate member’s restricted class without its prior approval. Corporate contributions are not permitted. Contributions are not deductible for federal tax purposes.)