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Healthcare Lobbyists Fund Johnson PAC

Healthcare Lobbyists Fund Johnson PAC

Don Michak, Journal Inquirer, Manchester

January 28, 2004

 

Health care lobbyists have been quietly salting the coffers of a new political action committee they reportedly created for U.S. Rep. Nancy L. Johnson, R-5th District.

 

The Leadership Encouraging Excellence PAC, also known as LEE PAC, has collected more than $65,000 in contributions from health care and insurance company representatives since it was established three months ago by Ron Lafrancois, a lobbyist in New York Life Insurance Co.'s Washington, D.C., office, Federal Election Commission records show. Lafrancois set up the group, the acronym of which matches the 11-term congresswoman's maiden name, as a "leadership" PAC to be controlled by Johnson, according to the Internet-based PoliticalMoneyLine, a non-partisan campaign finance information service co-founded by a former FEC analyst. Johnson, who is expected to seek a 12th term in November, is the fourth-ranking Republican on the powerful House Ways and Means Committee and chairwoman of its health care subcommittee.   Her press secretary, Brian S. Schubert, did not return a telephone call seeking comment Tuesday.  FEC rules allow a member of Congress to establish at least one PAC and raise money separately from the official's federal campaign account. Critics say the practice allows lawmakers both to hide contributions and to "double up" on donors. Moreover, a contributor is legally permitted to give a "leadership" PAC as much as $10,000 per election cycle, considerably more than the $4,000 per cycle limit on the amount a donor is allowed to give a candidate's campaign committee. Steve Weiss, a spokesman for the Center for Responsive Politics, a Washington-based watchdog group, said Tuesday that lawmakers use "leadership" PACs to boost their own standing within their party by using the cash collected by the group to pay for speaking tours or to personally direct contributions to other candidates and PACs. Among the interests whose PACs have made $5,000 donations to LEE PAC, according to FEC records, is AAHP/HIAA, a national trade association "representing the private sector in health care," as well as the American Hospital Association, Pfizer Inc., and three major health insurers -- Aetna Inc., Hartford Financial Services Group Inc., and New York Life. The records also reveal that LEE PAC has made only two disbursements since its inception. It paid for a $967 tab run up at Signatures Restaurant in Washington, and it sent a $500 contribution to the KY-06 Republican General Election Fund, a campaign committee for the district currently represented by Ernie Fletcher, who was a Republican congressman from Kentucky until elected that state's governor last fall. Reports filed by Johnson's own federal candidate committee show she has raised $1,008,580 so far in the 2003-04 election cycle, while spending $216,988, leaving her with $897,432 in cash on hand at the end of last month. Her committee's disbursements included $18,000 in contributions to other candidates. The Center for Responsive Politics says 72 percent of Johnson's campaign contributions have come from corporate PACs. The center also says health professionals have given her $109,399, while contributors associated with the insurance industry have given $82,500, pharmaceutical and health products companies $64,250, health services businesses and health maintenance organizations $62,000, and hospitals and nursing homes $36,499. The group identified Johnson as the top House recipient of contributions from the health services industry and the second-ranked recipient of contributions from nurses and from companies that manufacture and sell medical supplies.