WASHINGTON - March 26 - The Department of Health and Human Services announced its approval yesterday of 28 companies to provide seniors with Medicare drug discount cards. Individuals and political action committees affiliated with these "private sponsors" and their parent companies have contributed more than $2.5 million to candidates and committees so far in this election cycle. Roughly 71 percent of those contributions went to Republicans, with close to $275,000 going to President Bush's re-election campaign.

The new drug discount card sponsors--responsible for negotiating lower prices from drug manufacturers and setting up networks of pharmacies willing to accept the cards--could benefit substantially from the government's seal of approval. The drug discount card is only temporary; seniors will use another card in its place once the full Medicare benefit goes into effect in 2006. But being able to offer Medicare-approved discount cards now allows these companies to get a jumpstart on competitors in building brand loyalty and collecting medical information on seniors for future marketing purposes.

Some companies on the Health and Human Services list have ties to top Bush fund-raisers.

Card sponsor Blue Cross Blue Shield of Florida employs Michael Hightower--a Bush "Ranger" who already has raised at least $200,000 for the president's re-election campaign--as its vice president of government relations. The Blue Cross and Blue Shield Association and its related companies have given Bush $71,800 in individual and PAC contributions this cycle.

UnitedHealth Group, whose United Health Insurance Co. subsidiary has been approved as a sponsor, is headed by William McGuire. As a Bush "Pioneer," McGuire has raised at least $100,000 for Bush this election cycle. UnitedHealth Group's employees and political action committee have given Bush $77,000 this election cycle. WellPoint Health Networks alone already has given $321,400 in total contributions, $37,000 of it to Bush.

Other top contributors among the parent companies of Medicare-approved card providers include Aetna Inc., which has given a total of $263,900 in individual and PAC contributions this cycle, and First Health Group, with $175,200 in total contributions.

This report is available online at: www.capitaleye.org/inside.asp?ID=124

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