September 23, 2009
Posted: September 23rd, 2009 08:20 AM ET

From
One of the leading critics of some of the more liberal elements of the House Democrats health reform bill is answering questions about his ties to a company with a stake in the debate.
One of the leading critics of some of the more liberal elements of the House Democrats health reform bill is answering questions about his ties to a company with a stake in the debate.

WASHINGTON (CNN) - One of the leading critics of some of the more liberal elements of the House Democrats health reform bill is answering questions about his ties to a company with a stake in the debate.

Rep. Mike Ross, D-Arkansas, is a leader of the Blue Dog Coalition in the House of Representatives who pressed the congressional leadership to include more cost savings than originally proposed. Last month he came out against the idea of a government-run insurance plan that is included in the bills already passed by 3 House committees.

Ross' 2007 sale of his pharmacy in his hometown of Prescott, Arkansas to a company that operates several drug store chains, Stephen LaFrance Pharmacy Inc., is raising new questions. In the past LaFrance has been a critic of universal health care telling the Arkansas Democrat-Gazette it would lead to "...long lines, they won't be able to get treated, potential doctors will be afraid to go into medical school."

Ross did very well as a result of the transaction. He and his wife, who jointly owned the pharmacy, were paid $420,000 – about 40% more than the most recent appraisal of the property. An independent real estate tracking service shows the prices in the community during that time did not escalate very much.

In a statement, Ross dismisses the idea of his ties influencing his views on health care reform saying he has always supported it, but it must reduce costs, increase access and include insurance reform

"I welcome any debate and review on my voting record and my positions on the issue."

The congressman adds there was nothing improper regarding the transaction saying it was reported and disclosed as required by House ethics reporting requirements.

"I sold it for the amount that I have indicated it was worth on every personal financial statement since 1999. I spent $316,000 in 1998 constructing the building that houses the pharmacy and sold it for $420,000 in 2007 – the annual return on investment is less than four percent. I would have made more during that time period if I had invested in a certificate of deposit (CD)," he says.

This all came to light because of a report by the independent investigative news service ProPublica.

On top of the sale of the building, congressional financial disclosure forms filed by Ross show he and his wife made at least $500,000 by selling the pharmacy's other assets to LaFrance. His office says that was the sale of the "business," which includes inventory, prescription/customer files and says it is "common practice" when selling such a business.

"I have never done a favor for the buyer, who I have only met a few times in my life. The buyer did not just buy brick and mortar; he bought a successful, trusted, centrally-located and profitable pharmacy in my hometown. In two of my closest races, the buyer supported my Republican opponent in both of them. He has since supported my campaign," Ross says in the statement.

LaFrance, who donated $2,800 to Ross according to center for responsive politics, did not return calls to CNN seeking comment.

Filed under: Health care


Terri   September 23rd, 2009 10:53 am ET

No wonder he's anti-public option! He wants to protect his pharmaceutical ventures.

www.ActBlue.com   September 23rd, 2009 10:49 am ET

Mike Ross (D-Arkansas) is WORSE than John Ensign (R-NV), Larry Craig (R-Iowa), David Vitter (R-LA), and Mark Sanford (R-SC) COMBINED! And that's saying a lot.

At least those sleazy Republicans tried to keep their hypocrisy secret and only make a mess of things in private.

After decades of letting private sector interests create huge problems in our health care system, we need real reform. THIS REFORM – OR FAILURE OF REFORM – WILL AFFECT US FOR DECADES TO COME.

Go to ActBlue and contribute to telling Arkansas Sen. Blanche Lincoln and Rep. Mike Ross to stop doing the bidding of the insurance industry by blocking the public health insurance option.

ActBlue has almost reached the $78,000 they need to send these turncoat Democrats the message!

Jeff in Virginia   September 23rd, 2009 10:47 am ET

Mike Ross: corrupt to the core.

Thanks CNN for not letting this one slip under the radar.

al in memphis   September 23rd, 2009 10:41 am ET

Doctors won't go to medical school because health care will become a little more affordable. Most people who spend the amount of time it takes to get trained as a doctor have a greater passion than just how much money they can make.
He must be confusing doctors with lawyers.
These politicans are really starting to degrade what its like to be a proud American.

Ally   September 23rd, 2009 10:35 am ET

Making sure his own wealth is protected......

Jaxson   September 23rd, 2009 10:33 am ET

Mike Ross is well-backed from insurance and pharamacy companies. He'll win re-election, millions of $$$ will buy his seat.

John   September 23rd, 2009 10:33 am ET

I'm not surprised at all.

Maria - Proud Democrat   September 23rd, 2009 10:33 am ET

Democrats attacking Democrats.......if this keeps up we are never going to get anything accomplished.

Sometimes we are our own worst enemy.

MARK   September 23rd, 2009 10:31 am ET

Mike Ross has $$$ signs in his eyes....he'll defend the drug and insurance companies no matter what........

Janice   September 23rd, 2009 10:29 am ET

This idiot sure knows which side his bread is buttered. He's just protecting his own ill-gotten gains. He needs to be voted out now!!

Tom   September 23rd, 2009 10:28 am ET

Rock on, Blue Dog Dems. You're almost as helpful as the GOP itself. Won't you feel proud telling your grandkids you worked so hard against health care that would help them!

Bugl3t | Ruth, CA   September 23rd, 2009 10:24 am ET

Yeah, sure, nothing fishy going on here... Can you say kickbacks and lobbyists?

Oh, come on... do you REALLY think we are all THAT stupid? The $2300 they may have donated to any Republican candidate is simply CYA and if not just that, covering BOTH BASES.

Follow the money.

John, Brooklyn, New York   September 23rd, 2009 10:21 am ET

The Blue Dog Democrats are just as much in bed with the health care power brokers as the Republicans. Its sad that the party that advocates improvements in health care for average Americans tolerates shills for the rich, powerful, connected, and greedy among its ranks.

JOHN   September 23rd, 2009 10:21 am ET

Sounds like a repug to me....

Debra R   September 23rd, 2009 10:20 am ET

It does not matter....it is UNCONSTITUTIONAL for the federal government to take over health care...this issue should be left to the states.....

Edna   September 23rd, 2009 10:19 am ET

Another crooked politician. I don't care if they are Democrat or Republican, they need to stop taking money and claiming it is honest money. The American people are sick and tired of politicians making money off of them while we suffer the consequences. If the people of Arkansas want a public option, what is Ross' problem? He is supposed to do what his constituency wants, not what he wants. If not, then he needs to be voted out.

Tony Bickert   September 23rd, 2009 10:19 am ET

Ross had better realize his political future is on the line here. Vote for a plan with a public option or face a landslide defeat in his reelection bid.

katiec   September 23rd, 2009 10:19 am ET

Hmmm, Ross.
Your strong stance against Public Option is finally showing your true colors.
Your fighting against Health Care Reform, sacrificing the American people for your health care entities has been exposed.
You have tried to show yourself concern for our country and us but all it has been is for your campaign funding, personal gains and interests.
Gee, you act like a republican.

Jim   September 23rd, 2009 10:08 am ET

A "Blue Dog" Democrat is nothing but a closet conservative Republican with a different color than red. Tell the Blue Dogs to switch parties and let's get it on among moderates, liberals and conservatives.

gino   September 23rd, 2009 10:07 am ET

Big crook. Now we know why he is sabotaging health care.

Tony in Maine   September 23rd, 2009 10:07 am ET

He's a pharmacist? That explains the conservative view of the world. Most pharmacists I've worked with are afraid that any change might cut into their six figure salaries.

Biased   September 23rd, 2009 10:06 am ET

Poor Mr. Ross will now find out that since he isn't falling into line with the prescribed Democratic platform and urging some restraint or second look instead, will find out that his worst critics continuing to bring this to the forefront will probably be those from his own party who in most cases don't like the bluedog democrats.

SayWhat   September 23rd, 2009 10:04 am ET

CNN you may be reading too much into this matter. His conduct might just as easily be explained by the fact that he is from Arkansas.

Gus   September 23rd, 2009 10:04 am ET

What is the big deal – HE SOLD THE PHARMACY in 2007! He is not like Rangel who cheats on his taxes and still heads the committee that writes the tax bills!!

victim of republican greed   September 23rd, 2009 10:00 am ET

So now we see why Ross is against any reform, and won't represent the wishes of the people of his district.

We Won Get Over It   September 23rd, 2009 9:59 am ET

Why do they keep calling those people Blue Dog Democrats...they are and always were REPUBLICANS. Who knew they couldn't get elected as republicans and hid who they were....I think this goes to show the type of people they are...kick em out in 2010.

I Support President Obama!   September 23rd, 2009 9:57 am ET

Vote out all blue dogs and republicans!

Terry, TX   September 23rd, 2009 9:56 am ET

SO.....what about the lobbyist Obama has.....and your point is.....well my point is .....you don't takeover the medical industry for 20 million who need help....not freebies....help.....because the rest if 280 million are quite happy with our insurance. ...not a cost of trillion.

Try doing things that don't cost any money....open insurance nationwide ....no tax money there....remove pre-conditions and the drop clause if you are diagnosed with a disease or condition...no tax money there....Tort Refom....to stop these bogus lawsuits....you know the ones.....my butt hurts, give me millions.....no tax money there....they talking about cutting Medicare a half a trillion dollars of fraud and waste.....well if fraud and waste are there....go after it now...sic em....do your attorney general thing....get it. You can use that money for tax insurance credits....no tax money there.

Eugene, Tampa   September 23rd, 2009 9:56 am ET

...and this is surprising how? Not like it's the first time we've seen a congressman acting in his own interest.

Just goes to show the old joke is true..."what's the difference between a democrat and a cannibal...cannibal's don't eat their own."

This demonstrates the need for a viable 3rd party in America because at this rate the dem's will continue to implode and give the republicans another 4 yrs drive us deeper in debt.

Lorene Slack   September 23rd, 2009 9:54 am ET

You just said that while you were in PA interviewing people about what is wrong with our political leaders that you also asked them "Who is the moral authority in this country?" I have the correct answer for you, the answer is "God." Everyone should know this. We all answer to God's authority. God has all authority. God has authority over our country and I hope and pray that we will have leaders in homes, school, businesses and politics who will recognize His authority and proclaim that God does indeed have the moral authority in this country and in our world. Thank you for asking this question. Please continue to ask until we get the correct answer from everyone.

Mississippi Miss   September 23rd, 2009 9:46 am ET

Mike Ross is not Charlie Rangel or even Timothy Geitner for that matter. He is one of many who has been slandered because he is
simply trying to get better goods and services for the American taxpayer. It is predictable that this administrations supporters
try to discredit the witness for the prosecution, because they have no
real defense to offer. Mike Ross is very much for Health Care reform.
I am a Republican and he is very much respected and appreciated by me. Thank you Mike Ross for great great leadership.

Larry - Hazleton, pa   September 23rd, 2009 9:43 am ET

I am a card carrying Democrat have been and always will be – time for this bum to go – period – this whole thing stinks to high heaven. It seems to me that when someone wants to pretend to be holy than thou – they are most often the ones to be wary of.

AK   September 23rd, 2009 9:41 am ET

Ross is a despot! He rather sell his sole to the Pharm companies than do the right thing which is to respresent his constituents who, most of them cant afford health care insurance.

GI Joe   September 23rd, 2009 9:37 am ET

He's obviously a DINO. Why do these blue dogs shame our party? Why not go ahead and admit they are republicans?

JP   September 23rd, 2009 9:32 am ET

This seems like a nonstory. If CNN is interested corruption, abuse and fraud it could fill its entire website with stories about Charle Rangel or ACORN.

Stacy from Leesburg, VA   September 23rd, 2009 9:32 am ET

Blue Dog=Hands out to insurance/big pharm money.

annie s   September 23rd, 2009 9:32 am ET

And P.S. – stop calling him a Democrat. He's one in name only.

annie s   September 23rd, 2009 9:31 am ET

I am so very tired of these self serving politicians who care more about their own self interests than of what is right for the American people. Ross is a snake – I'm willing to bet that when he's out of public office, he'll end up with a cushy lobbyist position for the pharmaceutical industry.

Emmanuel Goldstein   September 23rd, 2009 9:31 am ET

Actually, for a going concern business, with inventory and goodwill, that is a very low figure. Considering also that the real estate is only a portion of the business, and valuations are typically "low to allow for an equalization factor, he could not have made very much money on this transaction (or so this tax lawyer says).

But the mere fact that he made any profit at all, by selling at the top of the market, one year before it imploded, is surely evidence of dirty dealing in the minds of some. After all, how dare he make money?

4% profit at the top of a bull bubble market? That's a joke.

Michael   September 23rd, 2009 9:31 am ET

Good job on this story, Jessica. About time someone calls out this two-faced congressman who claims that he did not sell his soul to these people who are trying to weaken health care reform.

ran   September 23rd, 2009 9:29 am ET

The truth is coming out. Again theses blue dogs like nearly all Republicans are more concerned with special interest groups and keeping political power then doing right by the people.

Now is the time to end it all by going to:single payer non-profit universal health care.

Our health should not be for profit.

DOC   September 23rd, 2009 9:29 am ET

So glad the rest of the world can see the corruption.

Roger   September 23rd, 2009 9:28 am ET

As a democrat I am just happy that the truth has come out about this blue dog.....I figured from the start there was a reason for him acting like a right wing conservative republican...so he really is not a blue dog just another bought off politican...

Centrist   September 23rd, 2009 9:27 am ET

If the health/insurance industry is truly not influencing Congressman Ross, then he should back the public option supported by the majority in his district and the majority in our country, as his representation was elected to do in office.

Americans need health reform choices now and better competition for improved coverage overall.

Seattle Sue   September 23rd, 2009 9:22 am ET

Another politician sell us out.

mjm   September 23rd, 2009 9:21 am ET

Oh NO! Somebody man a profit by selling a business!

This has to end!

This seems like a cheap attempt to dig up dirt on anyone but Obama.

John Sorrenson   September 23rd, 2009 9:21 am ET

CNN, you are trying to criminalize everyone who does not agree with Obamacare. There are many legitimate reasons for a thinking person to disagree with government-run control of health issues, and one of them just happens to be the junking of Americans who have a different idea than what is popular with the media at the moment and the possible dire healthcare consequences that can cause.

Profiteers from Tears   September 23rd, 2009 9:21 am ET

Spoken like a true Bagman for the Deathcare Companies.Im sure he doesnt care if he gets reelected or not because he probably has a great job waiting for him with Humana or one of the other profiteers from tears.The guy is one of the lowest lifeforms on the planet,and should be treated as such.

demwit   September 23rd, 2009 9:19 am ET

Attack dog mentality for the blue dogs.. Go get'm CNN..

justin Seine   September 23rd, 2009 9:18 am ET

Once again, a representative from a state with a pathetic health care system comes out in favor of big Pharma!

Just another PSP (Pocket Stuffing Politician). -

James   September 23rd, 2009 9:17 am ET

I don't see the problem here. He sold this pharmacy several years ago. He does not make money on it now, and did not own it when the liberals started their push to try to socialize healthcare.

Mike   September 23rd, 2009 9:16 am ET

Why is this news, he sold the company two years ago and has no stake in it. Why not report on barney frank overseeing a company that his live in boy friend worked at and ran a gay prostitution house out of their home, or chris dodd on his sweet heart deals with lenders and charles rangel with his tax evasion and unreported income's from rental homes overseas plus a $700,000.00 checking account he conveniently forgot about. This is why the liberal media is folding because people realize they are getting only those news events that furthers the liberals agendas.

Anonymous   September 23rd, 2009 9:16 am ET

Ross is a lackey for the insurance and drug companies. Loyal and dedicated Democrats should not expect any help with passing this much needed health care reform from this greedy individual.
Harold C.

All the news that is fit to omit   September 23rd, 2009 9:14 am ET

I am no Democrat by any stretch, but what did this guy do wrong here?

This is just more along the lines of those dirty "chi-town" politics by digging up ANYTHING to make the opponents of the messiah look bad.

CNN, how about reporting on real news, where the LIAR in chief says that the Doctors are onboard with his healthcare "plan", when the facts are that 65 PERCENT said they are against it and almost 50 PERCENT said they would get out of medicine if it is passed.

How about the where 60 PERCENT of DOCTORS say that taxing the pharmacy folks to oblivion will lead to less research on life saving drugs as the money would instead go to the "gubment".

Keep the populace uninformed CNN and as payback Barry will come back on your low rated network?

I used to respect you folks, no more.

Dominican mama 4 Obama   September 23rd, 2009 9:13 am ET

Again to my point that BOTH Rethugs and Democraps are deep in the pocket of the pharmaceutical companies. The one Party spreads lies about healthcare reform, the other does not repudiate such lies as it behooves BOTH parties to kill the reform.$$$$$$$$$$

JB   September 23rd, 2009 9:12 am ET

CNN, if you are going to highlight one Congressmens "conflict of interest", is it not ONLY FAIR to highlight all Congressmens conflcts of interest. Maybe look at how much money Baucus has received, or Hoyer etc. . . .This type of journalism is unfair and slanted. Keep it up, and you will have the viewership of MSNBC.

Aspen Professor   September 23rd, 2009 9:11 am ET

Rep. Mike Ross, D-Arkansas, is a leader ?????
A leader of Insurance Company protectors? A leader in maintaining the status quo on Health Care? A leader of the right-wing extremists who control the Repub Party? Maybe?

Jeff Brown in Jersey   September 23rd, 2009 9:10 am ET

Bye, Bye Mike...you sealed your fate when you decided to be Big Pharma's water boy!

KAREN   September 23rd, 2009 9:09 am ET

Oh please this is a non story. CNN is trying to dig really really deep on this one. What if you did a survey into every person in Congress that has stock in any pharmaceutical company? I bet the majority have something invested in pharmaceuticals,medical research, medical equipment etc. Why don't u spend more time investigating Charlie Rangel and the tax cheats.

Ren from Baltimore   September 23rd, 2009 9:06 am ET

I'm afraid this does not help the case or cause for the Blue Dogs. If it stinks like a fish, it's probably a fish--hard to miss that one.

Looks like Rep Ross is indeed on the industry's side, not on the side of his constituents. That's not the de facto position of Maryland's own Blue Dog, Frank Kratovil, who sets a much more balanced aura.

Kevin in Ohio   September 23rd, 2009 9:06 am ET

THIS is a democrat who understands the most basic principles of first-year economics..... unlike his liberal colleagues, whose grasp of economics is zero.

Wally   September 23rd, 2009 9:06 am ET

The only relevant piece of information in this story is the fact that LaFrance donated to Ross. Everything else is blabber and is CNN appearant trying to create controversy over a business transaction that happened well before any discussion of Obama's health plan existed. As someone who has run a pharmacy, Ross may have an insight that aligns with LaFrance's perspective, which makes it reasonable for them to want him to stay in office.

TCM   September 23rd, 2009 9:00 am ET

This is another liberal ruse, folks. CNN trying to support the Obama liberal agenda by going after a blue dog.....yawn.....

Enough   September 23rd, 2009 8:57 am ET

Isn't it interesting how far the far left will go to investigate anyone that isn't committed to "their" agenda? Heavy investigating of Sarah Palin, Joe the Plumber and now even a Democrat, but a Blue dog. Too bad there was ZERO effort into investigating OBAMA and his ties before or even after we elected him. If we REALLY KNEW the truth, he NEVER would have been elected.

Lorene Slack   September 23rd, 2009 8:55 am ET

You just said that while you were in PA interviewing people about what is wrong with our political leaders that you also asked them "Who is the moral authority in this country?" I have the correct answer for you, the answer is "God." Everyone should know this. We all answer to God's authority. God has all authority. God has authority over our country and I hope and pray that we will have leaders in homes, schoold, businesses and politics who will recognize His authority and proclaim that God does indeed have the moral authority in this country and in our world. Thank you for asking this question. Please continue to ask until we get the correct answer from everyone.

Terry from Texas   September 23rd, 2009 8:53 am ET

This has got to be some kind of bizarre coincidence. I mean, get real. Would an elected official use his public office for his own benefit? I mean, can you actually believe that a man who holds the public welfare in trust would oppose a bill that is good for America because it might cost him or his friends a few bucks?

That seems so ridiculous to me that I can't believe it even gets any press coverage. I mean, get real!

joe m   September 23rd, 2009 8:53 am ET

so let me get this right. this guy sold a bussiness he owned 2 years ago. made money in the process. reported it as required by ethics rules. and today he JUST happens to be one of the democrats who is opposed to government-run insurance. why does this sound like a smear tactic? it has all the hallmarks of digging up dirt on opposition. hey, at least this guy actually reported this transaction, which is something that rangle failed to do and has not yet explained why. so is this where the healthcare debate is going? since republicans appear to be frimly entrenched in their opposition, supporters will now strong arm the democrats who are wary of their own paty's plans?

No Incumbents 2010   September 23rd, 2009 8:53 am ET

Ross has been bought and paid for by the medical-industrial complex. Ross is a living breathing CONFLICT OF INTEREST. Now that he has lined his pockets, he says he is free to vote however he wants. Right!!!!

aneanderthal   September 23rd, 2009 8:51 am ET

I guess I must be dense, but I don't see any sense in this story. He sold a drug store he owns and is against government run health care. Charlie Rangel failed to disclose all of that money and assets to the IRS or his financial disclosure statements and this guy who seems to play by the rules, gets more coverage by CNN then that story. What gives?

Duck Fallas   September 23rd, 2009 8:42 am ET

I call Shenanigans!

Blue Ball democrats are worse than republicans. Sorry, that was unfair. NOTHING is worse than a republican.

Retired US Army Officer-Kansas   September 23rd, 2009 8:42 am ET

I have very good health insurance through my employer, I have recently made an appointment for a physical, the earliest opening is 2 1/2 months. We have a shortage of general care doctors, but we have no shortage of specialist, nor do we have any shortage of individuals wanting to go to medical school. His arguments against universal care do not hold water. However, his ties to the health care industry speech loudly.

Bertina   September 23rd, 2009 8:41 am ET

Ross is the example of what is corrupt with politicians who do what they want for their own benefit regardless of their constituency.

chill   September 23rd, 2009 8:39 am ET

This looks like much ado about nothing.

Steve, Columbia SC   September 23rd, 2009 8:33 am ET

Good grief, the sale happened almost 3 years ago. Anyone who disagrees with Obamacare and the public trough mentality is questioned, called a racist and a fringe extremist.

Please go back and read the Constitution and the Bill of Rights.

lucy from pa   September 23rd, 2009 8:33 am ET

Just goes to show that there are creeps in both parties, doesn't it?

S.B. Stein E.B. NJ   September 23rd, 2009 8:32 am ET

There would be some conflicts there with Ross talking about health care and reform. If there was no disclosure before his speaking, then it could be a cause for concern. If you don't tell people where you are coming from, then how do you know what and why they are saying when they say it? We need everyone to say where their thinking is comming from because, despite what Bill O'Reilly says, there is spin with what everyone says except for simple math (like 2+2=4).

Jerry   September 23rd, 2009 8:29 am ET

Always a deal to be made. Are there any politicians who do things just because it's the right thing to do?

Dutch/Bad Newz, VA   September 23rd, 2009 8:28 am ET

Blue Dogs can jump ship to the republican party.

Norm   September 23rd, 2009 8:27 am ET

"Poential doctors afraid to go into medical school"
Why....because they might not be able to criminally rip us off as they have been doing for decades????
Sounds like black mail to me....

Troubled   September 23rd, 2009 8:23 am ET

Charlie Rangel is in a bigger mess and should end up in prison!

Why don't we hear more about him???

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