In an interview with the Wall Street Journal, Big Pharma CEOs admit what AHIP’s Karen Ignagni have only implied: they’re willing to support health care reform so long as it increases their profits. As the Wall Street Journal observes, “extending health-insurance coverage to millions of uninsured Americans is likely to benefit drug makers,” increasing their “$291 billion in annual U.S. sales” by $15 to $18 billion, according to some estimates.

But that pay increase my be threatened by the introduction of a new public option — that could negotiate drug prices — and comparative effectiveness research that isn’t guided by an industry hand. As the Wall Street Journal reports, “to help accomplish their goals, the drug makers spent $47.4 million on lobbying in the first quarter, up 36% from a year earlier, according to company-disclosure reports filed with Congress and analyzed by the nonpartisan Center for Responsive Politics. Pfizer Inc. more than doubled its spending on lobbying in the period to $6.1 million”:

The pharmaceutical executives are using their new access to try to steer lawmakers away from measures that could reduce drug margins, pressing instead for cost reductions by hospitals and insurers.

In their meetings at the White House and on Capitol Hill, as well as in speeches and op-ed articles, industry executives and lobbyists have backed such steps as shifting insurance coverage toward prevention, which could increase sales for heart, diabetes and other drugs that patients take long term….Pfizer Inc. Chief Executive Jeffrey Kindler says he backs “comprehensive health-care reform in this country” and is willing to make compromises. But he opposes a public insurance plan except for the poor who otherwise can’t afford insurance, saying it would crowd out private insurers and take “the form of price controls” that fail to reward companies for their expensive and risky investments in drug development.

Indeed, the threat of a robust CER effort and a muscular public option have brought the pharmaceuticals industry to the table and it’s terrified of losing it’s seat. The industry heavily lobbied for input over what’s researched and how, and is now afraid that despite it’s best efforts, some of the CER money will still be spent without its input:

Thornhill, whose firm represents the Partnership to Improve Patient Care–an association funded by BIO and PhRMA and other organizations to lobby on CER–puts the chances of getting the Baucus proposal into health care reform at just 50/50. But even it if is included and signed into law this fall, he notes, a new institute won’t be set up until the end of 2010 at the earliest, with research projects beginning no earlier than 2011.

So “you have this gap between when the [stimulus] funding gets handed out until you have new framework even established,” Thornhill noted. “So its hard for us to go out and lobby to have this Conrad-Baucus entity just control the funding. The pushback is ‘What are we are going to do for two and a half years? Just sit on our hands?’”

Several weeks ago, the health care industry visited the White House and pledged to “work together” with President Obama and Congress “to provide quality, affordable coverage and access for every American” and lower health care spending by $2 trillion. But New York Times’ Robert Pear is reporting that the nation’s anti antitrust laws may prevent the health care industry from voluntarily reducing costs:

Anti-trust lawyers say doctors, hospitals, insurance companies and drug makers will be running huge legal risks if they get together and agree on a strategy to hold down prices and reduce the growth of health spending. Robert F. Leibenluft, a former official at the Federal Trade Commission, said, “Any agreement among competitors with regard to prices or price increases — even if they set a maximum — would raise legal concerns.’”

Some anti-trust lawyers argue that this interpretation may be relying on antiquated view of anti-trust law. In fact, they suggest that the industry’s ‘voluntary effort’ to reduce health care spending is predicated on an interpretation that prohibits “any agreement among competitors.” In other words, while the pledge casts the industry in the glowing light of cooperating with a popular President, anti-trust law serves a cover, legally protecting the industry from having to implement their pledge.

In an interview with The Wonk Room, David Balto, a Senior Fellow at the Center for American Progress explained, “The antitrust laws permit a broad range of collaboration to cut costs and bring lower prices to consumers. Firms have been able to adopt standards and share information that have led to improved cost control. These companies would like to pretend that they want to collaborate to reduce costs, but antitrust is the obstacle. They are simply wrong.”

What’s more alarming is the growing concentration of today’s health insurance markets. “There have been over 400 health care mergers in the last 10 years”; 1 in 6 metropolitan areas is dominated by a single health insurer that controls at least 70% of consumers. As Balto recently pointed out, “In the seven years of the Bush administration, all non-merger enforcement actions have involved health care providers, with no enforcement involving health insurers,” Balto said. This approach has contributed to greater insurer concentration, “more anticonsumer insurance provisions, greater payment delays, less coverage and poorer service.”

After orchestrating and funding the so-called Tea Parties movement, Americans for Prosperity — a nationwide front group founded and funded by the right-wing polluter Koch Industries — is launching an ad campaign characterizing President Obama’s effort to reform the health care system as a government take-over that will ration care and care and deny treatments.

Americans for Prosperity is notorious for its fake grassroots efforts, funneling millions of dollars into conservative campaigns designed to undermine Democratic initiatives. As Lee Fang put it, “AFP is a professional AstroTurf machine”:

- Hosted ‘Drill Baby, Drill’ rallies around the country.

- Financed Joe the Plumber’s tour against the Employees’ Free Choice Act and other anti-EFCA rallies.

- Started NoStimulus.com, “a grassroots website that we hope will be a focal point for the widespread frustration ordinary Americans feel at the runaway government growth that we see during good economic times and bad.”

Now, operating under the name Patients United Now, Americans for Prosperity — which is mostly funded by large multinational corporations — is masquerading as an organic grassroots movement outraged over the Presidents health care proposals:

We are people just like you. We went to D.C. with questions about “reform”— because we all favor policies which keep insurance costs down and help those patients with pre-existing conditions get coverage. Buying “care insurance” should be like buying car insurance: flexible, transparent and simple. We support health care for the poor through Medicaid.

But what we found SHOCKED US: Radical solutions. Discussions behind closed doors. Patients like us NOT included, just big companies, lobbyists, unions and politicians.

For many in D.C. cutting costs means CUTTING CARE—-your care.

The effort provides cover or ‘grassroots clout’ for conservative politicians and activists to oppose the President’s health care initiative. But this collection of trumped-up charges, outright lies and complete fabrications makes little headway in critiquing the President’s actual proposal. Because just like all other peddlers of the “government take-over” critique — Frank Luntz, Conservatives for Patients Rights, Betsy McCaughey, and Sally Pipes — the goal is to define Obama’s proposal in their terms rather than to engage in a debate about health care or offer real solutions to the crisis. As Frank Luntz admitted to the New York Times, “we don’t know what he is proposing. We want to avoid ‘a Washington takeover.’”

A so-called “government-takeover” may be a personal ideological crusade for AFP — whose founders also established the conservative CATO organization — and its AstroTurf movement of corporate clients, but most Americans support greater government involvement in the health care system. A recent poll by Lake Research for Health Care For America Now shows that there is “intense and widespread support” for the choice of a public health insurance plan, with 73% of voters favoring a choice of a public or private plan, including large majorities of Democrats and independents (77% and 79%) but surprisingly, even a high plurality of Republicans (63%).

The cast of health care crisis deniers and stone throwers, whose constituency are only as large as their fund raising outreach efforts, are prominent not for their message, but for their coffers. Frank Luntz represents Blue Cross Blue Shield, CIGNA Dental Health and Pfizer. Conservatives for Patients Rights are funded by ‘undisclosed’ special interests and a $20 million personal investment from CEO Rick Scott, Betsy McCaughey sits on the board of a medical device company and Sally Pipes’ Pacific Research Institute receives money from Altria (formerly known as Philip Morris), Microsoft, Pfizer and ExxonMobil.

So if the question is, why do it? Why lie about the President’s efforts? Then the answer is a mix of ideological conservative zeal, political calculation — denying Democrats a victory on the issue — and businesses interest. Ultimately, these groups are expressing the voices and opinions of their particular backers — large corporations — not the American public.