Health Insurers Are Now Obama's Enemy

Washington Post: What Was a Tenuous Truce has Quickly Turned into an All-Out Battle

(Washingtonpost.com)  This story was written by Ceci Connolly.

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Now they have an enemy.

For months, President Obama and his administration waged their fight for a health-care overhaul without a clear opponent, even courting the industry executives and interest groups that helped kill reform efforts 15 years ago.

But attacks on the leading Democratic reform plan this week by the insurance lobby left little doubt that two of the most powerful institutions involved in the debate -- the White House and the nation's insurance companies -- have abandoned any real hope of forging a compromise. What was a tenuous truce has turned quickly into an all-out battle, with both sides ratcheting up the hostilities.

As the Senate Finance Committee on Tuesday approved a 10-year, $829 billion bill to remake the health-care system, Obama's top advisers and the insurers moved into a more intense stage of conflict.

"The insurance industry has decided to lead the charge against health reform, and everyone recognizes their motives: profits," said White House deputy communications director Dan Pfeiffer. "We are going to make sure they can't sink this effort at the last minute."

Pfeiffer castigated the industry for releasing a report Monday that concluded that the finance panel's bill would increase costs for consumers. "They made themselves a very good foil," he said.

The insurers, however, showed no sign of being chastened. America's Health Insurance Plans, an industry trade group, opened a fresh line of attack with a multistate advertising campaign warning that senior citizens enrolled in private Medicare plans could lose benefits under the legislation.

"Is it right to ask 10 million seniors on Medicare Advantage for more than their fair share?" the television spot asks. "Congress is proposing $100 billion in cuts to Medicare Advantage. The nonpartisan Congressional Budget Office says many seniors will see cuts in benefits."

The Finance Committee's bill would reduce spending on the plans AHIP cites by $113 billion over the next decade, which could mean reduced insurer profits, higher co-payments by beneficiaries or fewer extra benefits such as eyeglasses and gym memberships.

"We want to begin to build an awareness of the potential implications to seniors," said AHIP President Karen Ignagni.

She declined to say how much money would be spent on the commercials airing in six states, but one advertising analyst said the industry has enough cash to pose a serious threat. "They can spend whatever they feel they need to influence this," said Evan Tracey, president of the Campaign Media Analysis Group. "Seniors are a very important group politically."

The insurance sector and health maintenance organizations spent more than $116 million on lobbying in the first six months of this year, according to an analysis by the nonpartisan Center for Responsive Politics.

After Health Care Win, Debate Continues
Health Care Progress Report: Oct. 13
CBSNews.com Special Report: Health Care Reform

"It's pretty clear now, they intend at the eleventh hour to launch a very expensive and misleading campaign against reform," Pfeiffer said.

From the earliest days of his presidency, Obama approached the health-care debate determined to not repeat the mistakes of President Bill Clinton. Obama invited business leaders to the White House for brainstorming sessions and negotiated deals with several industries, including hospitals and drugmakers. The insurance industry had a seat at the table.

"We had no public face of opposition," Pfeiffer said. Yet all the while, the insurers were "milling around in the background," unable to reach an accord but muted in their objections, he said.

Since Labor Day, the industry has been on the receiving end of more than $25 million in critical advertising, Tracey estimated.

Ignagni complained of a "major effort to discredit and silence" the industry and its allies. "That's just wrong in a democracy."

She stood by the report her group commissioned and said she expects other analyses to reach similar conclusions that the bills now before Congress would not constrain rising medical bills.

As the report has come under fire, PricewaterhouseCoopers has distanced itself somewhat from it. The firm said Monday that AHIP had instructed it to focus on only some features of the bill, while not taking into account other major features such as the effect of subsidies for those buying insurance.

"America's Health Insurance Plans engaged PricewaterhouseCoopers to prepare a report that focused on four components of the Senate Finance Committee proposal," the company said in a statement. "As the report itself acknowledges, other provisions that are part of health reform proposals were not included in the PwC analysis."

Lawmakers were divided on the issue, largely along party lines, with many Democrats suggesting that the industry actions will serve only to further aggravate many voters.

"The insurance industry ought to be ashamed of this report," Sen. John F. Kerry (D-Mass.) said during committee debate.

Sen. Robert Menendez (D-N.J.) said the last-minute attacks by the industry "are one more indicator we're on the right track."

Harvard University pollster Robert Blendon said public opinion remains mixed.

"Most people are afraid these bills are going to raise their costs, so this could raise public anxiety," he said. "At the same time, the health insurance industry is at the bottom of the scale of people's trust."

Sen. Joseph I. Lieberman (I-Conn.) said Tuesday that he would not support the finance panel's bill because of cost concerns.

"I'm afraid that in the end the Baucus bill is actually going to raise the price of insurance for most of the people in the country," he said on Fox Business Network's "Imus in the Morning" program, referring to Finance Chairman Max Baucus (D-Mont.).

In committee debate, Republicans pressed CBO chief Douglas W. Elmendorf on the impact of the bill on total health spending nationwide and on insurance premiums, but he did not take a side in the debate.

"We can't assess the effects on national health expenditures," he said. "There are so many conflicting forces we have not been able to assess the effect on premiums."

Staff writers Dan Eggen and Alec MacGillis contributed to this report

[babooph]

I can only speak for myself-3 dental crowns at 60$ each-over the counter anti-biotics,head of opthalmics at major hospital visit 3$-all by Drs who are trained equal to most in the States-children treated by pediatritian 3$......etc all done for my family & myself overseas.Endless full flights to Cuba with people from all over the world getting healthcare there-Philippine offices processing US ins claims,being paid a % of what they DENY-after seeing this & contrasting with US ins scams......

[ianlou]

Health Insurers Are Now Obama's Enemy

Congrats President Obama, They're America's enemy too.
You're in good company.

[rhs648]

correction

Hey folks with all of the answers. When my father had a stroke and had to go into a nursing home, Medicare allowed three physical therapy sessions. My private health insurance allows thirty sessions. If you can add and subject, tell us which insurance plan offers better coverage. If you choose to follow the pied piper, you will get what you deserve.

[rhs648]

Hey folks with all of the answers. When my father had a stroke and had to go into a nursing home, Medicare allowed three physical therapy sessions. My private health insurance allow 30 sessions. If you can add and subject, tell us which insurance plan offers better coverage. If you choose to follow the pied piper, you will get what you deserve.

[doc_holliday76]

by brian1920:
"The US has the best medical care in the world without exception. Nobody is traveling to any other places for care."
-------------------------------------------




The LIES and DECEPTIONS of the foxnewsus propagandus network are catching-up to you seniors on that socialized Medicare!


Lower costs lure U.S. patients abroad for treatment
Experts say the trend in global health care has just begun. Next year alone, an estimated 6 million Americans will travel abroad for surgery, according to a ...
www.cnn.com/2009/HEALTH/03/27/india...travel/index.html

[ianlou]

As you watch the upcoming storm of TV ads from the Health Insurance Industry ask yourself where they got all the money to pay for these ads.
Then look in the mirror for the answer.

[chonder2]

Someone throw out the stop sticks...use the tazers...and cuff Stevenapoli7 and DaVicar.

Charge:Posting while impared.

[hungry1968-16]

by brian1920 October 14, 2009 3:05 PM EDT
this is completely fabricated data . It is populist nonsense without any basis in truth.






I'll take a Harvard sponsored study over your unsubstantiated denial, any time.

[brian1920]

what Harvard study? Either show the website or admit you made it up.

[pubsrtoast]

y brian1920 October 14, 2009 2:53 PM EDT
When the people find that they can vote themselves money, that will herald the end of the republic. Ben Franklin. Voting themselves money is called entitlements.

----------------------------------------------------
Gee, you must have been asleep at the end of last year/beginning of this year. The only ones I saw voting themselves entitlements (money) was Goldman Sachs, Citicorp, AIG and Bank of America. The free spending American public that you are worried about, well they re in the process of exhausting their unemployment benefits (which they and their former employers paid for).

[hungry1968-16]

Health Insurers Are Now Obama's Enemy





Why not?

They've been enemies of America for generations - why should Obama be exempt?

[txlakeside]

The GOP will pay for their continued lieing, fear mongering and then sleeping with the Insurance lobby! Vote the republiCONS out in 2010! Vote any politician out that does not support a fair universal health care plan for all Americans! These do nothing republiCONS have their coverage paid for by you and I yet they have the nerve to lie because they do not want to pay their fair share in taxs! Vote the sorry SOBS out!

[pubsrtoast]

They can spend whatever they feel they need to influence this," said Evan Tracey, president of the Campaign Media Analysis Group. "Seniors are a very important group politically."

The insurance sector and health maintenance organizations spent more than $116 million on lobbying in the first six months of this year, according to an analysis by the nonpartisan Center for Responsive Politics.
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Meanwhile, my employer is getting ready to hold open enrollment. We have been informed that premiums, CoPays, and deductibles are going up. I hope these companies lose everything in the end.

[louiville2_5]

Be careful what you ask for because once gone then who will the single payer plan compete with. Going from multiple choices to none is not much of an option.

[pubsrtoast]

If that one choice gives me quality, affordable healthcare then I have no problem with it. I can't help but notice that the insurance industry apologists claim that costs can't be reduced yet there is apparently hundreds of millions to lobby congress while they are turning around and raising premiums. Perhaps there should be a way for those of us that don't want to lobby for the status quo to opt out so that our premiums are not supporting this garbage.

[endurorob_5]

notsouthern October 14, 2009 11:51 AM EDT
Health insurers and Republicons are in bed together, trying everything they can to maintain status quo for the most expensive and one of the worst health care systems in the industrialized world.



The health insurers had to get in bed with somebody and Obama's was already filled the Big Pharma, SEIU,....

[jab232]

The health insurers are also the enemies of ordinary people. We had eight years when big corporations and their rich CEOs ran the government, caused a depression, and made it so that millions were left without jobs, health insurance, retirement funds and homes. President Obama was elected to redress the balance, to make it so that ordinary people (we vote, you know!) are given a fair shake again.

[brian1920]

the governemnt is the enemy of ordinary people. You don't think that the fat cat Democrats in their limos care one thing about anything but power do you? They specialize in enslavement by creating entitlement programs which buy votes. They never want you to really get ahead because you won't need them anymore. Think about it. Who benefits by keeping millions in poverty?

[sjc_1]

Capitalist benefit by keeping people in poverty. If there are hundreds of people standing in line for the small chance of one low paying job, they have all the power and that is just the way that they want it to stay. Private sector capitalists have caused all the unemployment, they used to employ most of the people until they decided to hoard their ill gotten gains.

[actornaught]

I have to laugh every time one of the 'conned does yet another phony outrage thing about insurance companies losing non-productive jobs. Wouldn't protecting such jobs for their own sake be SOCIALIST?

And where was this phony ideology when our steel mills and truly productive manufacturing jobs were flowing out of the country?

Neocon entertainers are all about playing on the feelings of their audience, and never about fully formed thoughts.

[brian1920]

actornaught- in case you didn't notice, every industry leaving was heavily unionized. Electronics manufacturing, TVs, appliances, clothes, ships, steel, all were big industries here until the unions drove them away. Airlines and railroads have been bankrupt by union work rules and Cadillac health benefits. Millions and millions of jobs left the country. I wish the Republicans hadn't been a slave to the unions and had stood up to them. Oh, wait..sorry that was the Democrats.

[actornaught]

by brian1920 October 14, 2009 1:54 PM EDT
actornaught- in case you didn't notice, every industry leaving was heavily unionized...
...

Absolutely NOT true. But to follow up on my post, you must've felt really bad about when only some of those union people made a good living. So you're okay ruining all those jobs, and whatever collateral damage that followed.

So you feel better now those productive jobs are gone, good for you...

[brian1920]

No I am not happy about it. Who is going to stand up to the unions and explain to them that there is a world market and they have to be competitive? Who is going to tell them that their absurd work rules have to be abolished if they ever want to compete. Who? The Democrats? Don't kid yourself, the Dems want the union workers in poverty so they can keep voting in the hopes that the world will change. After all, if the workers got ahead in life, they wouldn't need the Democrats would they? Absolute suckers.

[sjc_1]

Those jobs would have left, union or not. You can not compete with $1 per hour wages unless you want all your people living in card board boxes. Unions got people decent wages and benefits and created a middle class where people could own homes and give their kids and education. Reaganomics melted everything down to a dog eat dog world where the rich get richer off the backs of the working poor.

[troutfishyman]

by louiville2_5 October 14, 2009 1:32 PM EDT
What's the matter with buggy whips? That threw out thousands of workers into the streets.


The only thing that never changes is change. But you poor cons will never understand that.

[louiville2_5]

Kind of cynical aren't you?

But what if the insurance companies are right and cost do go up, not down as promised. What then try to blow life back into the industry, or just grin and bare it?

[doc_holliday76]

by louiville2_5:
"But what if the insurance companies are right and cost do go up, not down as promised."
--------------------------------------




Ah....back to the old username I see, or at least close, james......

Of course, without a public OPTION, the for-profit insurance bozos will indeed raise premiums like the 130% in increases since 2000.

Why wouldn't we believe that they will keep increasing their profits at our expense, until NOBODY can afford health care except the wealthy?

[troutfishyman]

May the health insurance industry go the way of buggy whip factories.

[louiville2_5]

What's the matter with buggy whips? That threw out thousands of workers into the streets.

[sjc_1]

No, those workers went on to build cars in Detroit. There are lots of cases of substitution in economies. We could all dig ditches with shovels, but equipment does it more efficiently. Protecting obsolescence is not progress and I think most people know that.

[actornaught]

by sharncedar October 14, 2009 12:58 PM EDT
...This is really silly....
...

Yeah, just like this string of non-logical, unrelated sentences and fear slogans. e.g.: What does the money spent in DC by lobbyists have to do with money spent on a social program? They're both money? What does ANYthing going in DC have to do with the USSR?

Nothing. Nada. Zip.

[louiville2_5]

Hmmm well at least they both put their best foot forward.

[sharncedar]

"The insurance sector and health maintenance organizations spent more than $116 million on lobbying in the first six months of this year, according to an analysis by the nonpartisan Center for Responsive Politics."

And how much has the federal government spent promoting itself to make the public trust its health care takeover? How about some $780 billion in one bill - that was just one bill. If you don't like the concentrated power and greed of a few insurance companies, you really aren't going to like the new improved and enormous federal government. This is really silly. There is no criticism leveled against the "insurance companies" here that doesn't apply ten times or 100 times or 1000 times worse for the federal government. It is a testimony to the sheer power of the central regime that the debate is being framed as if these few small insurance companies were the bad guys somehow preventing the benevolent central government from seizing their industry. Oh well, hope all you folks aren't going to complain when you find out how bad Soviet-style health care really is. You will deserve it.

[doc_holliday76]

by sharncedar:
"...the debate is being framed as if these few small insurance companies were the bad guys..."
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HA!...HA!...HA!...ROTFLMFAO!!!....."few small insurance companies..."

I guess you have no idea of just how absolutely hilarious that is!!

These huge and very profitable corporations have been enjoying collusion, price-fixing and doing end-runs around the anti-trust laws since 1945. They have enjoyed a 500% increase in profits while raising premiums 130% since just 2000, all the while denying claims to their insured to protect their bottom lines.