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Do Baucus' Ties To Health Care Industry Compromise His Reform Efforts?

If you're a long-time politico, you may have seen it coming: Standing between progressives and fundamental health care reform is a 30-year Senate veteran with a reputation cemented long ago as a deal-maker -- or less charitably, as a sellout. Montana's Max Baucus is exactly the sort of centrist often embraced by Washington insiders for "getting things done"--but whose record of acquiescing to special interests makes progressives cringe. As chairman of the Finance Committee he's weathered his share of controversies. There's no bypassing Baucus entirely. And he's enjoying his position at the nexus of the reform battle.

"It's a parade of lobbyists going in and out of that office every day," says a Senate aide. "Everyone involved has strong ties back to the industry. And anyone who understands Baucus' record understands that neither he nor his staffers want to make them unhappy."

The Senate returns from a brief recess this week to round out--or try to round out--a tough task: finalize, and merge, two substantially different health care bills, and then vote on a final product. All along, the key sticking point in that process has been the question of the public option--but now that every other committee of jurisdiction has settled upon a version of a public option, all eyes are on Baucus and Finance.

The Washington Post touched on this dynamic in a widely cited Monday article detailing the tremendous resources--over a million dollars a day--the health care industry is aiming at reform efforts.

According to the Post--now taking heat for its own questionable connections to lobbyists--"The nation's largest insurers, hospitals and medical groups have hired more than 350 former government staff members and retired members of Congress in hopes of influencing their old bosses and colleagues, according to an analysis of lobbying disclosures and other records."

Nearly half of the insiders previously worked for the key committees and lawmakers, including Sens. Max Baucus (D-Mont.) and Charles E. Grassley (R-Iowa), debating whether to adopt a public insurance option opposed by major industry groups.

As the article details, the lobbying is widespread, but at this point in the process, only a handful of senators have any real power over the direction reform will take--and of them, Max Baucus may have both the most clout and the greatest number of ties to industry.

Take a quick glance at the website Open Secrets and you can find over a half dozen insurance and pharmaceutical industry lobbyists who were once Baucus staffers.

To name just a few:

  • Roger Blauwet, Baucus' tax counsel, who now lobbies for Merck, Wyeth, and other pharmaceutical interests
  • Jeff Forbes, Baucus' former chief of staff, who represents the interests of several pharmaceutical companies
  • Scott Olsen, a one-time Baucus policy adviser, has been a lobbyist for Amgen since 2004.
  • Melissa Wier, Baucus' former chief trade counsel, who lobbies for Assurant and Ace Limited insurance companies

One particularly noteworthy Baucus alum--a powerful former Baucus chief of staff named David Castagnetti--is now a lobbyists for America's Health Insurance Plans--the health insurance industry's enormous and powerful professional association.

None of this will come as a shock to students of politics in Washington, or to Baucus' many critics on the left, who've long criticized him for being too close to moneyed interests.

Unless the legislative reform efforts fail entirely, then Baucus' Senate Finance Committee is now the last, best hope for the insurance industry, which hopes to avoid a number potential regulations, and desperately hopes to avoid the creation of a government-run health insurance option. Finance is the lone committee on the Hill with jurisdiction over health care not to have announced if it will propose creating such an entity. And it's the panel where proposals to delay or circumvent the public option (the trigger mechanism, and the co-op proposal) just won't seem to die.

How much of that is attributable to meetings and favors traded with industry reps is hard to say--but the circumstantial case suggests quite a bit. For instance, Castagnetti also served as director of congressional operations for Sen. John Kerry's 2004 presidential campaigns. According to his bio on his firm's website, he was Kerry's chief liaison to leaders of the House and Senate and he "sensitively determined Members' speaking rolls at the [2004 Democratic National] convention." Five years later, Kerry, a Finance Committee member himself, came under fire from reformers for speaking up in support of the public option trigger mechanism.

I've asked Baucus' staff for comment and will pass it along as soon as it's available.

The story of powerful interests using their influence to compromise or delay major reform efforts is one of the oldest in Washington. But right now Baucus finds himself both at the center of the action, and working hand-in-hand with the very people who have the most to lose from it. And his committee's slow pace and resistance to bold measures might best be viewed through that lens.


34 Comments

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I see the perfect merger. Blue Cross and Blue Dogs. Might as well mount the logo on the Capitol now.

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Heh. You'd pretty much be compelled to change your handle if it happened, though.

Hell, you'd probably get a bombastic letter from their lawyers claiming to own exclusive rights to both the word "blue" and the color and demanding that you change it within days of the merger.

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Yes, I have been worrying that a color change may be needed soon.

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Check with John Boehner, he's the go to guy when it comes to color change.

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Thanks, great connection. Kind of pisses me off, though.

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Excellent wrap-up, Brian.

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A million bucks a day to stop us from having affordable health care. Does this not prove the insurance companies make obscene profits?

Just think how many claims they didn't pay, how many people died or live with disabilities so they have a million bucks a day to spend telling lies and buying senators.

We are one sick country.

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If there's any reason for things needing to change NOW, you just nailed it.

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Do No Harm is a new documentary that was filmed in Albany, Georgia, and reveals the tribulations of two whistleblowers who uncovered the actions of a local non-profit hospital system. Profits were hidden in the Cayman Islands. They also learned that many non-profit hospitals across the country have been operating in the same devious way. Sen Grassley chaired the hearing on this case in 2006. He's not taking the same interest nowadays, unfortunately.

My guess is that some of the untaxed millions that formerly went offshore are now funding the lobbyists. Take a look at the website for the film. Try to have this film shown in your community.

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Ok, here's the contact info. How many normal-people-to-rich-lobbyist ratio to make a dent? No idea, but here's to trying:

http://baucus.senate.gov/contact/index.cfm

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Do Baucus' Ties To Health Care Industry Compromise His Reform Efforts?

Short answer: YES!

I would respectfully request that every time an anchor, a reporter, or anyone else who asks a Congressman/woman about their stance on this issue, that they first state how much money they have received from the industry.

Example: "I am Max Baucus of Nevada, and I have accepted x hundreds of thousands of dollars from the insurance industry.

Oh, and I don't believe our citizens want government to come between them and their doctors; also I don't want a government 'takeover of healthcare.

"No, these are not talking points provided by the insurance industry. I have no idea why everyone is saying the exact same words -- it is a mystery to me."

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Don't hold your breath for such a question from the stupid media in this country.

I often wonder why the media never brings up how no one complained about all the money we poured into an illegal war and no one seemed to complain then.

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Do fish smell fishy?

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Only if they aren't too fresh.

These, frankly, smell rancid and rotten.

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ONLY WHEN THEY'VE BEEN AROUND TO LONG

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Pope Catholic?

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Indeed!

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For a number of years, and especially the last eight, I have wondereed what issue will wake up the populace to the otherwise blatant money shower upon our leaders by certain sectors of corporate America, whether it be the military industrial complex, Wall Street and the bankers, or the insurance/healthcare industry.

Lord knows we have had plenty of alarms...the trillions spent Iraq War, economic crisis and its bailouts.

Maybe the revelation of $1.4 million per day spread around the halls of Congress to oppose the common good will do the trick.

If not, what's left??

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People like baucus have no honor, no integrity, in my opinion. They make no bones about what they're doing. They are nothing more than corporate whores. baucus, you must be close to retiring; if you're not, better get used to the idea anyway. You will be thrown out with the rest of the trash if the American people don't get the health care system they need and deserve. Whenever I hear of someone who has died or has been bankrupted or who has otherwise been screwed by the shitheads who send you millions, I will think of you.

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It's a huge pigs' trough and Baucus is trying to save a place in line for his big campaign contributors.

The fight we're seeing among all these interest groups is about keeping your place at the trough: a wise old politician once said, "never get between the pigs and the trough."

If Baucus wants to be re-elected, he can't cross swords with his healthcare contributors; it's a definite conflict of interest to his committee responsibilities!

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more articles like this please! Naming names is always the start

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This is the classic battle of good versus evil; the money changers and those they own versus the American Public.

All of the money these Senators received from the money changers involved in this issue should be published far and wide on a daily basis.

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Baucus and the other blue dogs must be taken up by the short hairs and made to wake up.
Aside from calling his office, and my own senators' offices, what else can the public do to express their opinions? These guys work for US, but they cater to their own self interests.
We can't all vote against Baucus and the rest, but we can donate to their opposition!
Traitors - they are traitors to their supporters, their party and to all Americans. Traitors!

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This is why we need recall elections on a national level. When our senators, and or congresspersons put their own reelection and their corporate donor's greed before the will, wishes and welfare of the American people, then We the People should have the right to vote them out of office before their term is done.

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I read that the lobbyists are spending upwards of $1 million/day in advocating against health care that might cut into their profits. So what if the public wants it, needs it -- all they want is their bonuses. Every claim denial is money in their pockets.
$1 million/day -- how much health care could that buy?

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Give me a carton of eggs and point me towards these health insurance lobbyists and CEO's. I mean, who are these fucking people? Can they be named and exposed?

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Call Baucus even if you don't live in his state. If you have relatives in Montana call them and give them his office phone numbers. Then call his other offices. He's already said he regretted taking single payer off the table at the beginning.
We need this guy quaking in his boots telling his ex-staffers and the big money boys he'll lose his job if he gives them what they want. No amount of campaign cash can save him if he doesn't give us the public option choice and raise Medicaid levels to 500% of the poverty level to cover everyone.

I repeat, call him and then call him again.

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There is only ONE solution for this problem. Public Finance of elections.

How else do we stop the corrupting influence of money in Washington?

Now, the WSJ has a story about how the public option is just another bargaining chip and that a "trigger" for a public option is an acceptable solution.

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let's not forget current WH Deputy Chief of Staff is Jim Messina - who served as long time Chief of Staff for Baucus

oh, and there's this:

Lobbyists and political supporters will get their chance to cast fishing lines and drive golf balls with the Senate’s top tax writer at his Fly-Fishing & Golfing in Big Sky event. The cost is $2,500 per person, $5,000 for a political action committee. And for the same price, more fun lies ahead at Camp Baucus, the summer camp he holds for friends and their families in his home state between July 31 and Aug. 2

http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=news-000003148680

if you read the link, you will find Baucus is now a big time sugar daddy for other Dems - no repercussions there

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This is an interesting test case to watch. It is the main event. And we will see if Obama will lean HARD on Baucus, using all of his clout. Rahm Emmanuel should be all over this. The key will be the Senate compromises, and then of course the House Senate conference committees, should it get that far. There will be a key moment when Obama will have to interject himself into the process. And even play the heavy.

I am waiting to see it.

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Yes. This is the guy who also helped Bush pass his health deforms.

What does Max stand for, really? Or, more importantly, what does he stand in the way of? Single payer, certainly. He's looking out for insurance companies and trying to find a way to protect their interests while pulling the wool over our eyes.

When I saw that he was leading health care reform for the Democrats, I knew we were truly fucked. This is Chuck Grassley's BFF, after all.

Kudos to TPM for highlighting this!

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Baucus must already know that his Montana seat isn't secure. His own staffers agree with callers who want the public option. For all its cowboy image the state has a few cities that can drive issues to the left, and if a lousy plan passes, he'll be gone.

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Without a doubt he is bought and his vote paid for. It is bad enough he says he doesn't agree but he is promoting the side of insurers, pharmaceuticals and hospitals. Will he depart the Senate with millions more than he arrived with?

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Max Baucus, in other words, has solicited and accepted bribes from corporate healthcare interests? And he's not on his way to jail? Mighty peculiar laws you have down there in Backwater (or as we think of it, Whoreshington).

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