
House Republicans are turning to old friends on K Street to lead their legislative attempts to repeal the new health care law.
Three recently hired Republican aides -- two set to work in senior positions on the powerful Energy and Commerce Committee, and one for soon-to-be Speaker John Boehner -- spent the past years lobbying on behalf of insurance companies, pharmaceutical manufacturers, and other corporate interest groups with a vested interest in weakening or repealing the law.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)In 2009, a single $86.2 million contribution from the health insurance industry's largest trade association, AHIP, accounted for almost half of the Chamber of Commerce's total contributions. Much of that money was dedicated to the Chamber's then-escalating campaign against the health care reform bill -- a campaign the Chamber characterized as an advocacy effort on behalf of the broader business community.
In the below ad, for instance, the Chamber warned of "increasing health care costs for businesses and working families.
In his State of American Business Address earlier this year, Chamber CEO Tom Donohue bemoaned the plight of business owners.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The nation's health insurance companies have agreed to speed up a critical element of the new health care reform law to ban the practice of canceling coverage when you get sick known as rescissions. America's Health Insurance Plans this afternoon sent Congressional leaders a letter announcing that insurers will put the change in place in May, instead of September as called for in the law.
As we reported yesterday, Democrats had been urging early action, and WellPoint agreed to make the change. But with the full AHIP backing outlined in the letter, Democrats can showcase swift action they can campaign on in advance of the midterm elections. Read the letter in full here.
"While many health plans already abide by the standards outlined in the new law, our community is committed to implementing the new standard in May 2010 to ensure that individuals and families will have greater peace of mind when purchasing coverage on their own," wrote AHIP president Karen Ignagni.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)AHIP, the health insurance companies' professional organization, is out with a full-page ad today in the Wall Street Journal which claims, in part, that "Health insurers make health care more affordable."
The ad will also run tomorrow in USA Today, according to Politico.
Here are the line-ups for the Sunday talk shows this weekend:
• ABC, This Week: White House Senior Adviser David Axelrod, Sen. Lindsey Graham (R-SC).
• CBS, Face The Nation: White House Press Secretary Robert Gibbs, Sen. Lamar Alexander (R-TN), Rep. Debbie Wasserman Schultz (D-FL), America's Health Insurance Plans President Karen Ignagni.
• CNN, State Of The Union: House Minority Leader John Boehner (R-OH), White House Senior Adviser David Axelrod.
• Fox News Sunday: White House Press Secretary Robert Gibbs, Rep. Chris Van Hollen (D-MD), House Minority Whip Eric Cantor (R-VA), former Bush White House Senior Adviser Karl Rove.
• NBC, Meet The Press: White House Senior Adviser David Axelrod, House Majority Whip James Clyburn (D-SC), Senate Majority Whip Dick Durbin (D-IL), former Bush White House Senior Adviser Karl Rove.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)They were like yin and yang, oil and water. Health and Human Services Secretary Kathleen Sebelius and America's Health Insurance Plans CEO Karen Ignagni couldn't agree on much today when they debated health care reform at AHIP's conference in downtown Washington, D.C.
Sebelius challenged to insurers to embrace the Obama administration's health care reform efforts before it's too late. Directly after she finished speaking, Ignagni took to the mics to challenge the administration to abandon its efforts to reform the way health insurance works in America -- before it's too late.
The lines appeared to be drawn.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)After a cooling off period when health care reform legislation seemed nearly dead, television ad spending is now spiking. Interest groups attempting to swap public opinion and votes in Washington on both sides of the debate are funneling cash into health care ads that experts predict won't let up until after the midterm elections.
"We're going to see a fairly intense couple of weeks as health care reaches the endgame, but advertising related to this issue will only continue," Evan Tracey, president of the Campaign Media Analysis group which tracks ad spending, told me in an interview this morning.
America's Health Insurance Plans and Health Care for America Now sparred yesterday on the air over high costs of insurance and the massive rate hikes we've been tracking at TPMDC.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)America's Heath Insurance Plans, the lobbying arm of the nation's health insurance industry, is stepping back into the health care reform debate with more than $1 million in TV ads over the next few days, an AHIP official tells TPMDC. The ads, which will run on cable, will focus on "setting the record straight about rising health care costs" as the Obama administration goes after big insurers for raising insurance rates.
The exact content of the ads is not known, but AHIP and the White House have tangled before. Last year, an AHIP "audit" of a Senate health care reform plan led to a war of words between Obama administration officials and insurers, who started out 2009 supposedly on the same side of the debate.
President Obama and Health and Human Services Secretary Kathleen Sebelius today summoned the nation's four largest health insurers responsible for rate increases the administration calls "jaw-dropping." They demanded the insurers - WellPoint, Cigna, Aetna and United Health Group - start disclosing their rate increases on the Internet.
Everyone involved called the talks "constructive," but shortly after the meeting a report surfaced showing the nation's largest insurer would stand to profit substantially if reform fails.
The Washington Post's Ezra Klein got his hands on a report from a consulting firm which evaluated Wellpoint stock and concluded, "Of course, healthcare reform is a double-edged sword for Wellpoint shares. Should reform fail, Wellpoint would be a primary beneficiary."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)America's Health Insurance Plans CEO Karen Ignagni is speaking today about health care at the Detroit Economic Club and says the bills being debated do not sufficiently address cost containment.
"As far as cost containment is concerned, it's as though the house is on fire and the strategy is to rush to the scene with an eight-ounce glass of water," she said.
Readers will recall that in October AHIP commissioned PriceWaterhouse Coopers to do a report showing that insurance premiums would rise under the bills being considered on Capitol Hill.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The biggest players in the health care reform debate often blur together into a swirl of acronyms and policy jargon. But they're also key to understanding how health care reform has been shaped, and how it's come as far as it has.
At this point in the health care debate, pro-reform groups have spent more money on health care ads than have well-heeled health care opponents. That's a testament to just how important the issue is to the liberal base, but it's also the precise effect President Obama was seeking when he partnered with the health care industry's most powerful stakeholders.
What sets the following six players apart is how they've defied the usual expectations and taken positions that don't easily fit into the usual left vs. right or corporate vs. consumer paradigm.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)The health insurance lobby says it's worried about the health care bill proposed by Nancy Pelosi this morning, but says it's willing to work with Democrats to find a solution the industry says "will cover all Americans, make coverage more affordable, and improve quality."
AHIP CEO Karen Ignagni offered the industry's take on the House bill shortly after it was announced by Pelosi on the steps of the Capitol.
"The promise of health care reform has been that if you like your current coverage, you can keep it," she said. "We are concerned that this proposal will break this promise by increasing health care costs for families and employers across the country and significantly disrupting the quality coverage on which millions of Americans rely today."
AHIP, the lobbying arm of the nation's health insurance companies, took a hard line against the public option after Senate Maj. Leader Harry Reid said last night one would be included in a final health care reform bill.
"A new government-run plan would underpay doctors and hospitals rather than driving real reforms that bring down costs and improve quality," the group said in statement posted to the AHIP website. "The American people want health care reform that will reduce costs and this plan doesn't do that."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Apparently there's no room left for subtlety in the fight against AHIP. Meet Patriot Baby, the new hero of health insurance industry opponents:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)About 400 union activists gathered outside the Capitol Hilton in downtown D.C. this afternoon and called on AHIP CEO Karen Ignagni to take a break from the health insurance industry convention going on inside to meet with seven insurance company customers who say they've each lived through (some of them barely) a nightmare that started when they tried to get their insurer to pay their medical bills.
Ignagni didn't show.
Health Care For America Now!, and organized labor-funded lobbying group, hosted the protest and brought the seven families to DC to meet with Igagni. Executive Director Richard Kirsch told the crowd outside the bad news.
"They're all scared of you," he said of insurance company executives. "They don't want to face us."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Health Care for America Now is up with a new television ad blasting America's Health Insurance Providers (AHIP) for dropping a report suggesting insurance premiums would increase under the Senate Finance Committee.
It says AHIP's report is filled with "lies" and criticizes industry profits and insurer CEO pay. It closes with a call to action: "Tell Congress. We need good health care we can afford. With the choice of a public health insurance option."
The ad is tied to an afternoon press conference with families who have suffered due to problems with insurers. They plan to challenge AHIP officials today during the industry lobbying group's conference in at the Capital Hilton.
TPMDC will be on hand for the HCAN protest, where activists plan to carry signs reading, "It's a crime to deny care."
Watch the ad after the jump.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)A lobbyist for the American health insurance companies told an audience this morning that the the bipartisan journey to health care reform President Obama began earlier this year has reached its end.
AHIP lobbyist Steve Champlin spoke at the opening session of the health insurance trade group's "State Issues Conference" in Washington last night. His message? The GOP should stay away from any bill put forward by the Democratic majorities in the House and Senate.
Champlin, reported by the Huffington Post:
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"There is absolutely no interest, no reason Republicans should ever vote for this thing. They have gone from a party that got killed 11 months ago to a party that is rising today. And they are rising up on the turmoil of health care. So when they vote for a health care reform bill, whatever it is, they are giving comfort to the enemy who is down."
Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), has penned something a wee bit shy of a mea culpa, explaining away last week's much-derided industry study finding that health care reforms will cause people's premiums to skyrocket.
According to Ignagni, AHIP never meant to hide the ball from anybody:
The study clearly states that its analysis covers only these provisions and specifically notes that it did not factor in the impact of proposed premium subsidies. Nevertheless, critics have charged that the study nefariously hid the fact that it omitted provisions designed to enhance affordability, such as the subsidies and a grandfathering clause.
Elided here is the fact that AHIP asked PricewaterhouseCoopers specifically not to include the mitigating factors of subsidies and other affordability measures, in an attempt to make it seem as if Congress was on the verge of passing legislation that would cause everyone's insurance premiums to skyrocket.
Also elided is that, as has been widely reported, AHIP misled the White House about the existence of the study, despite being a nominal partner in the White House's reform efforts.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)This may not get the same amount of press attention as the damning--though ultimately flawed--AHIP/PricewaterhouseCoopers report on the impact of reform measures on the price of premiums. But White House officials are already decrying a new insurance company report alleging that health care reform will cause premiums to spike.
BlueCross BlueShield has sent an analysis to members of Congress--along with a letter, which you can read here--that reaches a similar conclusion to the PwC analysis: The provisions of the health care reform proposals on Capitol Hill that BlueCross don't like will cause people's premiums to skyrocket.
An administration official scoffed at the findings: "This report isn't quite as egregious as the AHIP report...if the AHIP report was a $3.50 bill, this one's a $3.00 bill."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)A health insurance agent and TPM reader sends along this set of health care reform talking points the agent says AHIP is distributing to local insurance offices across the country. Our agent got the talking points from the password-protected agent-only website of a major insurer.
"I was surprised to see AHIP is against any kind of public option at any time," the source told TPMDC when asked why he was forwarding the information our way.
The AHIP talking points offer several arguments against what the documents call a "government-run plan." Chief among them is that passing a public plan amounts to "turning back the clock on quality, care coordination and disease management." The AHIP memo also says that under a public plan "patients' choices and access to health care will suffer."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)It's been called a "bombshell," but Democrats are saying the America's Health Insurance Plans report has helped unify the party around the health care bill(s). They say it's much easier to fight the big, bad insurance lobby that burned the White House than, for example, a Congressional Budget Office report showing increased costs and insurmountable debt as the American people are wary of skyrocketing deficits.
However, a key Democratic Senate leadership aide told TPMDC that while the report angered Democrats, it is highly unlikely to move any votes for the final bill. Another Democrat agreed the report "should" galvanize the party but doubted Democrats would take full advantage of the report, which left out some key elements in its analysis.
Responding to that news, the DNC's Brad Woodhouse referred to it as the "AHIP Hatchet Job" and warned that anyone using the "phony" report will be subject to one of the party's "Call you out" campaigns.
"This should lay to rest any notion that the AHIP report has any credibility whatsoever or that it should be used by members of Congress in their deliberations over health insurance reform," Woodhouse said.
Organizing for America, the spinoff of the Obama campaign housed at the DNC, hasn't planned any formal pushback yet but is making sure volunteers have the talking points so they can shoot the report down if they are asked while knocking on doors and making calls.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Accounting giant PricewaterhouseCoopers has issued a statement about the audit it performed for America's Health Insurance Plans (AHIP) that we have been following closely.
Most notable about the statement, issued late last night, is an acknowledgment the cost savings from the bill weren't included, though PWC points out that is noted on page one of the report.
The statement in full after the jump.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)On a conference call a few minutes ago, a finance committee aide said the AHIP report critical of the committee's health care reform bill will actually serve to help the legislation's chances of final passage.
"Instead of creating doubts, the report is actually having the opposite effect and has drawn a lot of ire from those who support reforms," the aide said. "Frankly, it will create a lot of momentum in the Senate to pass reform."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)The Columbus Day holiday hasn't kept politically powerful organizations from slamming AHIP today over the group's new report criticizing the health reform bill up for a final vote in the Senate Finance Committee tomorrow. In the past hour, powerful lobbying groups representing nurses, seniors and progressives have put out statements blasting the AHIP report.
From the California Nurses Assoc., the largest nurses union in the country: "Our legislators should respond to this bullying and stop coddling a useless industry whose sole function is to make enormous profits from the pain and suffering of patients while providing little in return."
From the AARP: The AHIP report
is not "worth the paper it's written on."
From Americans United For Change: "The bottom line is that the insurance industry wants to kill health insurance reform so they can continue to be free to exclude people with pre-existing conditions, free to rescind policies when people get sick, free to use their exemption from the anti-trust laws to monopolize markets, free to continue increasing profits for Wall Street -- and free to give their CEO's tens of millions in compensation. "
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)AHIP president Karen Ignagni says her group's new report criticizing the Baucus health care bill is "very consistent" with the insurance industry's support for reform.
On a conference call with reporters this afternoon, Igagni said the report was part of that supportive effort and did not suggest a shift in rhetoric on reform on the part of the nation's health insurers. She said the industry supports reform that "levels out" what she called "the cost curve" of health care -- reforms that Ignangi said include insuring everyone.
"We've said from the beginning that members of Congress need to take on the cost curve," she told reporters. "We've been nothing but consistent about those points."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)On a conference call with reporters a few minutes ago, AHIP president and CEO Karen Ignagni addressed skeptics of the new PriceWaterhouseCoopers report her group commissioned and released last night.
"This is a world-class firm with a stellar reputation," she said.
Ignagni said AHIP had its own "sophisticated modeling capability" in-house, and contracted with PWC for a second opinion on the numbers AHIP has been projected "for months" during the creation of the Baucus health care bill.
The PWC audit "confirms what we were seeing in our own analyses," she said.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The White House is tempering its reaction to the new health insurance industry report we've been writing about today since the administration questions its legitimacy.
A senior administration official said they weren't yet sure if America's Health Insurance Plans was launching an offensive to try and defeat health care before tomorrow's Senate Finance Committee vote, but was skeptical of AHIP's motivations.
"Given how they behaved in the past, it's very likely they could be up to their old tricks," the official told TPMDC.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)AHIP spokesperson Robert Zirkelbach went on Fox News this morning to discuss what the network has been calling his group's "bombshell" report on the Senate Finance Committee's health care reform bill. AHIP released the report just a day before the Finance Committee is expected to take its final vote on the bill, but Zirkelbach told Fox News' Bill Hemmer the timing was just luck, saying the group had a "responsibility" to put its audit out as quickly as possible.
Though the report was highly critical of the bill, Zirkelbach said there are some things his group and Finance Committee Democrats agree on when it comes to health care reform -- namely, the parts of the bill that would result in millions of more customers for insurance companies. Zirkelbach said the industry supports plans to eliminate pre-existing condition screening from insurance applications as well as plans to mandate all Americans buy coverage.
"We strongly support the insurance market reforms so that everybody has guaranteed access to coverage," he said. "To make it work, everybody needs to be required to participate."
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We've been keeping a close eye today on Republicans using the new AHIP report to talk about the health care bill leading to rising insurance costs.
Spokesman Kurt Bardella of Rep. Darrell Issa's (R-CA) office told TPMDC that Republicans are sure to use the report as justification for opposing the plan. But he cautioned the minority party must "strike the right balance" between the report showing premiums would rise and "trying to avoid the perception they are doing the insurance industry's bidding."
"Any Republican that uses the report should double-check to see how much money they've received from the industry as that'll be a very easy rebuttal for Dems to hit back," Bardella said.
He views the report as "ample ammunition" for critics of the health care bill and said that it can be used by Republicans as I-told-you-so proof once a bill passes if premiums do rise over the next decade.
"Democrats won't be able to feign surprise or cast it as an unintended consequence - they've been warned and if their health care reform plan - which, right or wrong, seeks to minimize private insurers, results in a defacto tax increase for middle-class Americans - it could prove to be politically devastating," Bardella said.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The spokesman for the Democratic majority on the Senate Finance Committee pulled no punches in his response to a new health insurance lobby study that's critical of the reform bill drawn up by the committee.
"This report is untrue, disingenuous and bought and paid for by the same health insurance companies that have been gouging too many consumers for too long as they stand in the way of reform yet again," Scott Mulhauser said. "It's a health insurance company hatchet job, plain and simple."
Read his full comment after the jump.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)The White House is pushing back on the new study commissioned by America's Health Insurance Plans suggesting health care costs would increase under the bill the Senate Finance Committee is voting on this week.
White House spokeswoman Linda Douglass called the report a "self-serving analysis" from an opponent of any kind of health insurance reform.
"It comes on the eve of a vote that will reduce the industry's profits," Douglass told TPMDC. "It is hard to take it seriously. The analysis completely ignores critical policies will lower costs for those who have insurance, expand coverage and provide affordable health insurance options to millions of Americans who are priced out of today's health insurance market or are locked out by unfair insurance company practices."
AHIP is a D.C.-based association representing more than 1,000 insurance companies and has been fighting the administration's efforts all year.
We'll have more on this throughout the day - if you hear members of Congress citing the report, let us know.
Late update: Evan has the Senate Finance Committee Dems' response here.
Later update: An AHIP spokesman responded on Fox this morning and we have the clip.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)The insurance industry has weighed in on Sen. Max Baucus' health care reform proposal, and (not surprisingly) the reviews are pretty positive. In a 13-page letter to Baucus, Karen Ignagni, president of America's Health Insurance Plans--the industry's largest professional association--outlines "recommendations for strengthening" the bill and "concerns with key aspects of the proposal."
So what does she like and what doesn't she like? Well there's a lot in there, but two fairly unsurprising objections stand out.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Sen. Jay Rockefeller (D-WV) has a proposition: If the government is going to mandate that Americans buy health insurance from private companies, they should know how much of that money actually goes to paying health insurance costs. And insurers aren't happy about it.
On Friday, Rockefeller sent letters to executives at the 15 largest health insurance companies in the country, asking them to compile data on this question for the Senate Commerce Committee by September 8.
"It's another page out of the same playbook," says Robert Zirkelbach, spokesman for America's Health Insurance Plans. "There's an effort to shift the focus to the health insurance industry rather than on the bills in Congress."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Reps. Henry Waxman (D-CA) and Bart Stupak (D-MI) won headlines last week for kicking off an investigation into health insurance company excesses, and executive compensation in particular. But Sen. Jay Rockefeller has similar questions, and he's firing off some missives of his own.
"I am writing to request information about how your company spends the health insurance premiums it collects from consumers and businesses," read letters Rockefeller sent Friday to the chief executives of the nation's 15 top insurance companies. "I am particularly interested in determining the percentage of policyholders' premium dollars that your company uses to pay actual health care claims as compared to administrative costs and profits."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The Pharmaceutical Research and Manufacturers of America (PhRMA) was an early White House health care ally, and, despite a recent controversy, has teamed with some unlikely interest groups to spend millions advertising in support of reform. But according to a report in Politico, they also have produced an ad--in the can, ready to go-- attacking one of the key Democratic proposals emerging on Capitol Hill.
PhRMA senior Vice President Ken Johnson denies the report unequivocally, saying the notion that there's any such ad is "absolutely false."
"We have two plans for health care reform," he told TPM, "'a' and '1a' and they both stress the importance of passing health care reform this year."
Whether or not such an ad exists, the controversy over it goes to the heart of the highly tactical game the major health care industry stake holders have played as nominal supporters of the White House's push for reform. Early in 2009, pharmaceutical manufacturers, insurers and other trade groups aligned themselves with the White House figuring reform was unstoppable and that their best play was to influence its scope from the inside--that they needed the White House more than the White House needed them. But that balance is changing. And the groups now show a greater willingness to jump ship if it becomes clear the final deal is not sufficiently in their interests or, more tellingly, if the political climate suggests there's more to be gained by going into outright opposition.
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