
If House Energy and Commerce Committee Chairman Fred Upton (R-MI) really wants to know what deals were struck between the White House and the health care industry to pass health care reform, he may end up giving health care reform some free advertising.
As part of his quest to publicize all of the dealmaking that characterized the health care reform process, Upton says he'll consider pressing industry leaders for details on their private negotiations with the Obama administration.
"It's something that's not off the table, in terms of what we may do," Upton said at a recent press conference with House leadership.
So far, Upton has directed all of his inquiries at the White House, to no avail. Changing course would give him easier access to the information he seeks (or claims to seek), but might put him behind the eight ball politically. That's because many of the stakeholders in question -- drug manufacturers, hospitals, and other interested parties -- either support the law, or entered a sort of non-aggression pact with the administration.
And if Upton drags those leaders -- many of whom lean Republican -- up to the Hill for a public hearing about their participation in the process, he may hear more about how they think it's a good law, than about how shady the whole process was.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)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)At a roundtable meeting with several health care reporters and bloggers this morning, House Speaker Nancy Pelosi once again predicted final passage of a far-reaching heath care bill by week's end--but she insisted that success will only be possible if she acts quickly, even if that means members and reformers will have to abandon some of their key priorities, and trust the Senate to pass an amending bill through the reconciliation process.
"I have no intention of not passing this bill," Pelosi said in response to a question from TPMDC. "Let me say it in a positive way: I have faith in my members that we will be passing this legislation."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Obama On His First Year: 'A Lot Of Those Promises Have Been Kept'
In an interview with the Washington Post, President Obama said that in his first year in office he has fulfilled or is on the way to completing his stated objectives. "Overall, if you had a checklist of promises made, a lot of those promises have been kept," Obama said. "When those things are complete, and I think they will be, we will have achieved a fundamental shift in health care, energy, education and our financial regulatory system that will put this economy on a firmer footing to grow over the long term."
Obama's Day Ahead
President Obama will be interviewed at 1:45 p.m. ET by NPR's Julie Rovner and Robert Siegel. He will have another interview at 2:15 p.m. ET, with PBS's Jim Lehrer.
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)According to the New York Times, the Pharmaceutical Research and Manufacturers of America will spend $150 million specifically boosting for the health care reform proposal introduced last week by Sen. Max Baucus (D-MT).
PhRMA has already spent millions on ads supporting the idea of reform more generically. But now that Baucus has come forward with an industry friendly proposal of his own--one that's significantly less progressive than the other proposals in Congress--PhRMA's throwing it's weight specifically behind his plan.
Baucus will unveil a draft of his legislation this week, and begin hearings on it next week. His legislation will not include a public health insurance option.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)During a Friday tele-town hall with constituents, Senate Majority Leader Harry Reid said he's not bound by a controversial deal, reportedly reached between the White House and the pharmaceutical industry, to cap drug manufacturers' contributions to the cost of health care reform.
"I have not agreed with anybody to do that," Reid said. "I'm a Democrat in the Senate, and I haven't agreed."
PhRMA was the first major industry group to support the president's health care reform initiative, and even agreed to contribute $80 billion to the upstart cost of overhauling the system. But its support was reportedly linked to a deal, agreed to by the White House, that limits the contribution to $80 billion, and that rewards drug manufacturers with White House support for a number of their key policy preferences. The White House and PhRMA have each tried to walk back reports of the deal, though at times in conflicting ways.
Reid is the latest in a growing list of key members of Congress to insist they weren't party to the deal and aren't bound by it.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)NYT: Dems Seem Set To Go It Alone On Health Bill
The New York Times reports that Democrats are getting closer to working without Republicans on health care reform, in the wake of continued intransigence by the GOP. "Administration officials, who maintain that Republicans are badly mischaracterizing the legislation that has emerged from three House committees and the Senate health committee, said they had hoped to achieve some level of bipartisan support," the Times reports. "But they are becoming increasingly convinced that they will instead have to navigate the complicated politics among varying Democratic factions."
Obama's Day Ahead
President Obama will deliver remarks at 4:30 p.m. ET from the South Portico, honoring 2008 Sprint Cup champion Jimmie Johnson. At 5:30 p.m. ET, he will hold a conference call with faith leaders to discuss health insurance reform.
An angry John Boehner has sent a heat-seeking missive to a former caucus mate: former GOP Rep, and current PhRMA president Billy Tauzin.
In the letter, which Boehner forwarded to the executives of PhRMA's member companies, the House Minority Leader charges that PhRMA's alliance with the White House on health care reform amounts to appeasement. "Appeasement rarely works as a conflict resolution strategy," Boehner writes. "The simple truth is, two wrongs don't make a right. And the short-sighted health care deal PhRMA struck with the Obama Administration at your urging provides confirmation of this time-tested maxim on an epic and tragic scale."
You can read the entire letter here. It comes as the relationship between the White House and PhRMA has soured slightly.
"The Obama Administration tacitly acknowledged last week that the President will not be bound by the $80 billion limit PhRMA and its board of directors were led to believe had been secured in exchange for your organization's support of the Administration's health care takeover," Boehner writes, "and key Democrats...have said explicitly they will not honor the agreement."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Boehner Blasts Ex-Rep. Tauzin For PhRMA Working With "Bully" Obama On Health Care Reform
The Hill reports that House Minority Leader John Boehner (R-OH) has sent a letter to PhRMA president Billy Tauzin, who is a former Republican Congressman from Louisiana, castigating Tauzin and PhRMA for working constructively with President Obama on health care reform. "When a bully asks for your lunch money, you may have no choice but to fork it over," Boehner wrote. "But cutting a deal with the bully is a different story, particularly if the 'deal' means helping him steal others' money as the price of protecting your own."
Obama's Day Ahead
President Obama will met one-on-one with Egyptian President Hosni Mubarak at 11:10 a.m. ET, with an expanded meeting at 11:30 a.m. ET, and a working lunch at 12:30 p.m. ET. Obama will meet with Sec. of State Hillary Clinton at 1:30 p.m. ET, with Vice President Biden at 2:30 p.m. ET, and with former President Bill Clinton at 4 p.m. ET.
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.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The White House denies it on the record, and PhRMA denies it on the record, but below, via Ryan Grim, is an outline of the deal drug manufacturers supposedly struck with the Obama administration early last month.
Commitment of up to $80 billion, but not more than $80 billion.PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)1. Agree to increase of Medicaid rebate from 15.1 - 23.1% ($34 billion)
2. Agree to get [follow on biologics] done (but no agreement on details -- express disagreement on data exclusivity which both sides say does not affect the score of the legislation.) ($9 billion)
3. Sell drugs to patients in the donut hole at 50% discount ($25 billion)
This totals $68 billion4. Companies will be assessed a tax or fee that will score at $12 billion. There was no agreement as to how or on what this tax/fee will be based.
Total: $80 billion
In exchange for these items, the White House agreed to:
1. Oppose importation
2. Oppose rebates in Medicare Part D
3. Oppose repeal of non-interference
4. Oppose opening Medicare Part B
The White House's health care industry coalition may be about to pay off. In spades.
A new coalition called Americans for Stable Quality Care--which includes the American Medical Association, PhRMA, as well as more predictable groups like SEIU and FamiliesUSA--will launch their first pro-reform ad later today as part of an August recess campaign that's expected to cost $12 million.
According to Politico, the ad--which is scheduled to run for two weeks and cost about $6 million on its own--will air in Alaska, Arkansas, Colorado, Indiana, Louisiana, Maine, Montana, Nebraska, Nevada, North Dakota, South Dakota and Virginia, home to a number of key congressional centrists, whose support for reform will be vital to its success.
Though PhRMA has recently been involved in a bit of a dust up with the White House, it will continue to participate in this and other pro-reform activities, and plans to spend as much as $150 million along the way.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)Maybe PhRMA CEO Billy Tauzin should've thought more thoroughly through his scheme to blab to the New York Times about a deal he seemingly struck with President Obama.
As Tauzin tells it, the White House assured him that the pharmaceutical industry would only be on the hook for $80 billion worth of the $1 trillion cost of health care reform--effectively tying Congress' hands if legislators want drug manufacturers to pitch in for more.
But now, White House officials are telling members of Congress that there is no deal. Does this mean PhRMA will drop out of an industry coalition in support of health care reform? Stay tuned.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)In a move that's unlikely to curry much favor with House progressives, the White House has reaffirmed its commitment to a long-standing deal it made with the pharmaceutical industry, that will require them to cover, through industry reforms, no more than $80 billion worth of what's expected to be the approximately $1 trillion cost of health care reform.
President Obama struck a deal with PhRMA early--a move that the administration says was crucial to build momentum within the health care industry for reform. But House health care leaders and progressives insisted that they were party to no deal, and included in their overhaul legislation provisions that would have put drug makers--a key industry stakeholder--on the hook for more than they agreed to.
The White House's insistence on maintaining this bargain means the House legislation will have to be changed before a floor vote, or during conference committee with the Senate, leading some to wonder why Obama--who's been notably averse to drawing lines in the sand over key progressive goals--is putting himself out there for the insurance company.
"It is a pivotal issue not just about health care," Rep. Raul Grijalva (D-AZ), co-chair of the Congressional Progressive Caucus, told the New York Times. "Are industry groups going to be the ones at the table who get the first big piece of the pie and we just fight over the crust?"
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)
