Doctors In The House: Two MDs Join Congress In 2005

The incoming freshmen class of Representatives in the 109 Congress will include Republican physicians from Georgia and Michigan.

John Schwarz, the sole freshman congressman hailing from Michigan, will represent the state's 7 district. The district is bounded on the east by Ann Arbor, where Pfizer has a major R&D facility, and on the west by Kalamazoo, home of the former Upjohn campus, and now a satellite Pfizer office.

Schwarz has maintained a medical practice in Battle Creek while representing the area in a series of local government positions over the past 16 years: as city commissioner, mayor and state senator.

The moderate Republican holds a medical degree from Wayne State University; he also attended University of Michigan.

Schwarz defeated Democrat Sharon Renier 58% to 36% to succeed retiring Rep. Nick Smith.

Schwarz faced a bigger challenge in the primary where he won a hard fought victory over Smith's son Brad.

The primary contest gained notoriety in the wake of the Medicare Modernization Act debate at the end of 2003. Smith alleged that House Majority Leader Tom DeLay (R-Texas) offered to support his son's bid for the seat if he changed his vote to support the bill.

DeLay was recently admonished by the House Ethics Committee for the episode.

Advocate Of Price Negotiations

Schwarz comes to Congress with reservations of his own about the Medicare Rx law. His campaign website suggests that the law does not adequately address the problems with prescription drug prices. "It is unacceptable that the price of prescription drugs has increased so much," the website declares.

Schwarz supports repeal of the so-called "non-interference" clause, to allow HHS to engage in direct price negotiations with manufacturers.

However, he does not advocate unilateral, punitive measures. "We need pharmaceutical companies, consumer groups, doctors, patients, and legislators to work out a plan to keep health care costs reasonable, ensure universal access, but that will not cripple the pharmaceutical industry, doctors or hospitals," the website states.

The chamber's other incoming physician, Tom Price, will represent the 6 district in Georgia - the same district previously represented by Newt Gingrich.

Gingrich's successor, Rep. Johnny Isakson (R-Ga.), vacated the seat in a successful bid to move up to the Senate.

Pfizer Supports Georgia Rep.

An orthopedist trained at the University of Michigan, Price is currently the medical director of the orthopedic clinic at Grady Memorial Hospital in Atlanta. He has been a member of the Georgia Senate since 1996.

Price was unopposed in the general election. According to the Center for Responsive Politics, he received a donation of $8,750 from Pfizer.

Another incoming freshman Republican, Louisiana's Bobby Jindal, is also likely to take an interest in health care issues.

Jindal served in the Bush Administration as HHS Assistant Secretary for Planning & Evaluation; he left that post in 2003 to pursue an unsuccessful bid for governor.

Jindal previously served as executive director of the Breaux-Thomas commission on Medicare reform, whose work served as a blueprint for the Medicare Rx legislation.

He was a key advisor for the Administration's initial proposals for a Medicare prescription drug benefit (¹ (Also see "HHS Assistant Secretary Jindal Will Work On Medicare Reform" - Pink Sheet, 12 Mar, 2001.), p. 17).

The Rhodes scholar previously ran a state Medicaid program as secretary of the Louisiana Department of Health & Hospitals; many credit Jindal with saving a program on track to bankruptcy.

A Prominent Role For A Freshman

Jindel's policy experience and Republican credentials are likely to yield an unusually prominent role on health care work in the House.

Fellow Louisiana Rep. Jim McCrery (R) is understood to have already begun lobbying for Jindal to receive a seat on the House Energy & Commerce Committee and a spot on the health subcommittee - a plum assignment for an incoming member.

A role for Jindal on Energy & Commerce, which shares jurisdiction over Medicare in the lower chamber, would ensure that Louisiana retains representation on the panel despite the retirement of former chairman Billy Tauzin (R-La.).

Tauzin resigned his position at the Energy & Commerce helm just a few months after the Medicare bill passed; the reins were passed to Rep. Joe Barton (R-Texas) (² (Also see "PhRMA Close To Deal With Tauzin; Changes In Reg Affairs, PR Line Up" - Pink Sheet, 16 Feb, 2004.), p. 5).

At the time, Tauzin was in discussions with the Pharmaceutical Research & Manufacturers of America to take over as CEO.

With election season over, PhRMA appears close to sealing an agreement with Tauzin.

Another Tauzin In The House?

Tauzin's son, Billy Tauzin III, finished in first place on Election Day in the race to fill the Louisiana 3 district vacancy, but he failed to garner a majority of votes. Under the state's open primary system, a runoff will be held Dec. 4.

That round of voting will also determine whether a third physician joins the incoming freshman class.

Republican cardiovascular surgeon Charles Boustany will compete in a runoff to represent the 7district.

Boustany will face Democrat Willie Mount. Although Boustany finished first in the Nov. 2 race with 39% of the vote compared to Mount's 25%, the combined vote for the three Democratic candidates in the field was 52%.

Republicans also held onto the seat being vacated by Rep. Jim Greenwood (R-Pa.), who is departing Congress to become president of the Biotechnology Industry Organization (³ , p. 3).

BIO won a legislative victory when California passed a ballot initiative to fund stem cell research.

Republicans Retain Greenwood's Seat

Attorney Mike Fitzpatrick won the race to succeed Greenwood in Pennsylvania's 8 district, which lies just north of Philadelphia. The area is home to employees of a number of pharmaceutical companies. Teva also has an office in the district.

A nearby Pennsylvania district - the 13 - will also have new representation in the upcoming session.

Democrat Allyson Schwartz will succeed Rep. Joe Hoeffel (D-Penn.), who launched an unsuccessful bid to unseat Sen. Arlen Specter (R-Penn.).

Schwartz is a four-term state senator with a longstanding history with health care issues.

She helped establish the nonprofit Philadelphia Health Plan as well as the city's first women's health center, and served as the First Deputy Commissioner at the Philadelphia Health & Human Services Department. Schwartz also held leadership positions in the National Conference of State Legislators.

Rx Firms Supported Opponent

The race for Hoeffel's seat caught the attention of a number of drug companies. According to the Center for Responsive Politics, Merck contributed over $9,000 to the campaign of Schwarz' Republican opponent, Melissa Brown. Pfizer gave Brown $7,000.

In North Carolina, Republican college professor and nursery owner Virginia Foxx will succeed Rep. Richard Burr (R-N.C.). Burr won the Senate seat abandoned by Sen. John Edwards (D-N.C.).

The Republicans' extension of their majority in the House should ensure that there are no major changes in direction on legislative issues.

Most important for the pharmaceutical industry, the Medicare Rx implementation process should be able to proceed uninterrupted (see ⁴ (Also see "Medicare Rx Course Is Clearer Following Bush Victory" - Pink Sheet, 8 Nov, 2004.)).