Pay Close Attention To The Insurers Behind Rep Paul Ryan’s Curtain
Democrats who think Paul Ryan and his Republican colleagues have foolishly wrapped their arms around the third rail of American politics by proposing to hand the Medicare program to private insurers will themselves look foolish if they take for granted that the public will always be on their side.
Rep. Ryan’s budget proposal would radically reshape both the Medicare and Medicaid programs. It would turn Medicaid into a block grant, which would give states more discretion over benefits and eligibility. And it would radically redesign Medicare, changing it from what is essentially a government-run, single-payer health plan to one in which people would choose coverage from competing private insurance firms, many of them for-profit.
Poll numbers would seem to give the Democrats the edge in what will undoubtedly be a ferocious debate over the coming months and during the 2012 campaigns. An NBC/Wall Street Journal poll (pdf) conducted February 27-28 showed that 76 percent of Americans considered cuts to Medicare unacceptable. The public is almost as resistant to cutting Medicaid, at least for now: 67 percent of Americans said they found cutting that program unacceptable as well.
According to a story in Politico this week, Democrats “with close ties to the White House” think Ryan has handed them a gift that will keep on giving. They believe the Ryan blueprint will enable them to portray Republicans as both irresponsible and heartless, hellbent on unraveling the social safety net that has protected millions of Americans for decades. That message will be the centerpiece of the Democrats’ advertising and fundraising efforts, unnamed party strategists told Politico.
Perhaps. But know this: Ryan et al would never propose such a fundamental reshaping of those programs unless they were confident that corporate America stands ready to help them sell their ideas to the public. Like big business CEOs, Congressional Republicans wouldn’t think of rolling out Ryan’s budget plan without a carefully-crafted political and communications strategy and the assurance that adequate funding would be available to carry it out.
Republicans know they can rely on health insurance companies — which would attract trillions of taxpayer dollars if Ryan’s dream comes true — to help bankroll a massive campaign to sell the privatization of Medicare to the public.
The Secret Meeting, and the Secret PR Plot
Four years ago, in a secret insurance industry meeting in Philadelphia, I saw numbers that were similar to those in the NBC/Wall Street Journal poll. The industry’s pollster, Bill McInturff of Public Opinion Strategies, told insurance company executives, who had assembled to begin planning a campaign to shape the health care reform debate, that Americans were rapidly losing confidence in the private health insurance market.
For the first time ever, he said, more than 50 percent of Americans believed that the government should do more to solve the many problems that plagued the U.S. health care system. In fact, he said, a fast-growing percentage of Americans were embracing the idea of a government run “Medicare-for-All” type program to replace private insurers.
The executives came to realize at the meeting that the industry’s very survival depended upon the successful execution of a comprehensive campaign to change public attitudes toward private insurers. They needed to convince Americans they “added value” to the health care system, and that what the public should fear would be more government control.
Knowing that a campaign publicly identified with the industry would have little credibility, the executives endorsed a strategy that would use their business and political allies — and front groups — as messengers.
The main front group was Health Care America. It was set up and operated out of the Washington PR firm APCO Worldwide. The first objective was to discredit Michael Moore’s documentary, Sicko, which was about to hit movie screens nationwide. Moore’s film compared the U.S. health care system to those in countries that had “Medicare-for-All” type programs run by governments. The American system, dominated by private insurers, did not fare well in Moore’s cinematic interpretation.
The front group painted Moore as a socialist but also went about the larger task of scaring the public away from “a government takeover of the health care system.” Part of that work involved persuading Americans that any reform bill expanding Medicare or including a “public option” would represent a government takeover.
The industry knew it had to enlist the support of longtime allies such as the U.S. Chamber of Commerce, the National Federation of Independent Business and the National Association of Health Underwriters to repeat the term “government takeover” like a mantra. It also had to get conservative talk show hosts, pundits and politicians to play along. And play along they did. In the debate preceding one key House vote involving a public option, a parade of Republicans took to the floor to repeat the industry’s favorite term: government takeover.
To help make sure the term stuck, America’s Health Insurance Plans (AHIP), the insurers’ lobbying group, funneled $86 million to the Chamber of Commerce to help finance its advertising and PR campaign against any reform legislation that included the public option. It worked like a charm. Polls showed during the course of the debate that public opinion was increasingly turning against the Democrats’ vision of reform. By the time the bill reached President Obama in March 2010, the public option had been stripped out, and public support for reform was well below 50 percent.
“Government Takeover of Health Care”: 2010’s Lie of the Year, Courtesy of Insurers
As a testament to the success of the industry’s campaign, PolitiFact, the St. Petersburg Times’ independent fact-checking website, chose “a government takeover of health care” as its Lie of the Year in 2010. (The 2009 Lie of the Year was the fabrication that the Democrats’ reform bill would create Medicare “death panels.”)
While they were leading the effort to torpedo the public option, the insurers were lobbying hard for a provision in the bill requiring all of us to buy coverage from them if we’re not eligible for a public program like Medicare or Medicaid. They won that round, too. That provision alone will guarantee billions of dollars in revenue the insurers would never have seen had it not been for the bill the president signed.
But even that is not enough for the insurers. For many years, they’ve lobbied quietly for privatization of Medicare, with significant success. They were behind the change in the Medicare program in the 1980s that allowed insurers to offer what are now called “Medicare Advantage” plans. The federal government not only pays private insurers to market and operate these plans, it pays them an 11 percent bonus. That’s right: People enrolled in Medicare Advantage plans cost the taxpayers 11 percent more than people enrolled in the basic Medicare program.
During the Bush administration, the insurers persuaded lawmakers to allow them to administer the new Medicare Part D prescription drug program. That has been a major source of new income for the many big for-profit insurers that participate in the program.
Rest assured that insurers have promised Ryan and his colleagues a massive, industry-financed PR and advertising campaign to support his proposed corporate takeover of Medicare. If Democratic strategists really believe that Ryan has all but guaranteed the GOP’s demise by proposing to shred the social safety net for some of our most vulnerable citizens, they will soon be rudely disabused of that notion. The insurers and their allies have demonstrated time and again that they can persuade Americans to think and act — and vote — against their own best interests.
By: Wendell Potter, Center for Media and Democracy, April 7, 2011
A Minimum Wage Increase Will Not Kill Jobs
As the nation grapples with a jobs crisis and unemployment hovers near 9 percent, it is easy for policy makers to forget the plight of those who work but earn very little. There are about 4.4 million workers earning the minimum wage or less, according to government statistics. This amounts to about 6 percent of workers paid by the hour. They need a raise.
Today, a worker laboring 40 hours a week nonstop throughout the year for the federal minimum wage could barely keep a family of two above the federal poverty line. Though it rose to $7.25 an hour in 2009, up $2.10 since 2006, the minimum wage is still lower than it was 30 years ago, after accounting for inflation. It amounts to about $1.50 an hour less, in today’s money, than it did in 1968, when Martin Luther King Jr. and Robert Kennedy were killed, Richard Nixon was elected president and the economy was less than a third of its present size.
The minimum wage has many opponents among big business and Congressional Republicans. In Nevada, the Las Vegas Chamber of Commerce is pushing to repeal the state’s minimum wage, a whopping $8.25 an hour. Representative Darrell Issa, the California Republican, has proposed a bill in the House that would effectively cut the minimum wage in states where it was higher than the federal threshold by allowing employers to count health benefits toward wages.
Opponents argue that raising the minimum wage would inevitably lead to higher unemployment, prompting companies to cut jobs and decamp to cheaper labor markets. It is particularly bad, the argument goes, to raise it in a weak labor market. Yet with unemployment likely to remain painfully high for years to come, this argument amounts to a promise that the working poor will remain poor for a long time.
What’s more, we know now that the argument is grossly overstated. Over the past 15 years, states and cities around the country have rushed ahead of the federal government to impose higher minimum wages. Economists analyzing the impact of the increases on jobs have concluded that moderate increases have no discernible impact on joblessness. Employers did not rush off to cheaper labor markets in the suburbs or across state lines for a simple reason: that costs money too.
The most recent research, by John Schmitt and David Rosnick at the Center for Economic and Policy Research, found that San Francisco’s minimum wage jump to $8.50 in 2004 — well above the state minimum of $6.75 — improved low-wage workers’ incomes and did not kill jobs. An even bigger jump in Santa Fe, N.M., the same year — from $5.15 to $8.50 — had a similar effect.
Despite evidence to the contrary, businesses and Republicans may keep pushing against the minimum wage — using the jobs crisis now to clinch their argument. They should be disregarded, because their argument is wrong and the United States is too rich to tolerate such an underclass.
By: Editorial, The New York Times, March 25, 2011
The US Chamber of Commerce: Reliably, Irredeemably Wrong
What if I told you I’d found a political group that for a hundred years had managed to be absolutely right on every crucial political issue? A political lodestone, reliably pointing toward true policy north at every moment.
Sorry. But I have something almost as good: a group that manages to always get it wrong. The ultimate pie-in-the-face brigade, the gang that couldn’t lobby straight.
From the outside, you’d think the US Chamber of Commerce must know what it’s doing. It’s got a huge building right next to the White House. It spends more money on political campaigning than the Republican and Democratic National Committees combined. It spends more money on lobbying that the next five biggest lobbyists combined. And yet it has an unbroken record of error stretching back almost to its founding.
Take the New Deal, which historians have long since credited as saving capitalism in the U.S. FDR was dealing with a nation ruined by Wall Street excess—a quarter of the country unemployed, Americans starving and hopeless. He gave his first fireside chat of 1935 on April 28, and outlined a legislative program that included Social Security. The next morning , a prominent official of the Chamber of Commerce accused Roosevelt of attempting to ‘Sovietize’ America; the chamber adopted a resolution “opposing the president’s entire legislative package.”
Fast forward to the next great challenge for America. FDR, having brought America through the Depression, was trying to deal with Hitler’s rise. In the winter of 1941, with the British hard-pressed to hold off the Germans, FDR proposed what came to be called the Lend-Lease program, a way of supplying the allies with materiel they desperately needed.
Only 22% of Americans opposed the Lend Lease program—they could see who Hitler was—but that sorry number included the Chamber of Commerce. The lead story in the New York Times for February 6, 1941 began with the ringing statement from the Chamber’s president James S . Kemper that “American business men oppose American involvement in any foreign war.”
It’s not just that this was unpatriotic; it was also plain stupid, since our eventual involvement in that “foreign war” triggered the greatest boom in America’s economic history. But it’s precisely the kind of blinkered short-sightedness that has led the US Chamber of Commerce astray over and over and over again. They spent the 1950s helping Joe McCarthy root out communists in the trade unions; in the 1960s they urged the Senate to “reject as unnecessary” the idea of Medicare; in the 1980s they campaigned against a “terrible 20” burdensome rules on business, including new licensing requirements for nuclear plants and “various mine safety rules.”
As Brad Johnson, at the Center for American Progress, has detailed recently, the US Chamber has opposed virtually every attempt to rein in pollution, from stronger smog standards to a ban on the dumping of hazardous waste. (They’re hard at work as well trying to relax restrictions on US corporations bribing foreign governments, not to mention opposing the Lily Leadbetter Fair Pay Act). If there’s a modern equivalent of World War II, of course, it’s the fight against global warming. Again a majority of Americans want firm action, because they understand the planet has never faced a bigger challenge—but that action’s been completely blocked in Washington, and the US Chamber is a major reason why. They’ve lobbied against every effort to cut carbon, going so far as to insist that the EPA should stay out of the fight because, if the planet warmed, “populations can acclimatize via a range of range of behavioral, physiological, and technological adaptations.” That is to say, don’t ask a handful of coal companies to adapt their business plans, ask all species everywhere to adapt their physiologies. Grow gills, I guess.
There’s a reason the US Chamber always gets it wrong: they stand with whoever gives them the most cash (in 2009, 16 companies provided 55% of their budget). That means that they’re always on the side of short-term interest; they’re clinically, and irremediably, short-sighted. They recently published a list of the states they thought were “best for business,” and the results were almost comical—all their top prospects (Mississippi!) ranked at the very bottom of everything fromn education to life expectancy.
But that doesn’t mean that business is a force for evil. Though the US Chamber claims to represent all of American business, their constituency is really that handful of huge dinosaur companies that would rather lobby than adapt. Around America, the local chambers of commerce are filled with millions of small businesses that in fact do what capitalists are supposed to do: adapt to new conditions, thrive on change, show the nimbleness and dexterity that distinguish them from lumbering monopolies. As Chris Mead, in an excellent history of the local chambers, makes clear, there are a thousand instances where clear-sighted businesspeople understood the future. Who lured the first movie producers to southern California? The LA Chamber, which sent out a promotional brochure in 1907. Why was the Lindbergh’s plane called “The Spirit of St. Louis”? Because the St. Louis Chamber of Commerce raised the money—that was a pretty good call.
That’s why thousands and thousands of American businesses concerned about our energy future have already joined a new campaign, declaring that “The US Chamber Doesn’t Speak for Me.” They want to draw a line between themselves and the hard-right ideological ineptitude that is the US Chamber. Some of those businesses are tiny—insurance brokers in southern California, coffee roasters in Georgia, veterinarians in Oklahoma—and some are enormous. Apple Computer, for instance, which has…a pretty good record of seeing into the future.
There’s only one reason anyone pays attention to the US Chamber, and that’s their gusher of cash. But the Chamber turns 100 next year, and it’s just possible that a century of dumb decisions will outweigh even that pile of money. If you’re trying to figure out the future, study the US Chamber—and go as fast as you can in the opposite direction.
By: Bill McKibben, Commondreams.org, March 22, 2011
Former Attorney General Mukasey Lobbies For U.S. Chamber To Gut Foreign Bribery Law
Bush’s attorney general (not Gonzales, the much less incompetent but equally malevolent) Michael Mukasey has a new gig in which to ply his talents: making it easier for corporations to bribe foreign governments. The Foreign Corrupt Practices Act (FPCA) is intended to stop U.S.-based multinational corporations from bribing foreign governments. Unlike the previous administration’s Department of Justice, under Mukasey, the Obama DOJ is enforcing the law.
Under Obama, the department collected more than $1 billion in fines during fiscal year 2010, the most the government has collected in the law’s 38-year history, and more than ten times the $87 million collected in 2007 by the Bush Administration.
The U.S. Chamber can’t have that, so of course, they’ve hired Mukasey to lobby Congress to amend the law.
Debevoise & Plimpton, where Mukasey is a partner, filed lobbying registration papers on his behalf this month, according to Senate records. The registration is for the Chamber’s Institute for Legal Reform and is effective back to March 3. It covers possible FCPA amendments and other issues “related to criminal law and policies affecting U.S. corporations.”The Chamber has become increasingly critical of the FCPA in recent months. It argues that the law, which allows the U.S. government to seek charges against corporations and individuals for bribes paid to local officials in other countries, is not working well and could be making U.S. companies less competitive.
In October, the Chamber released a policy paper proposing several specific changes to the law. The ideas included adding a “compliance defense,” so that a company could not be held criminally liable when an employee circumvents reasonable internal procedures….
When the Chamber released its proposals, Mukasey attended its annual legal summit and moderated a panel discussion on the FCPA. He noted the sharp rise in the Justice Department’s enforcement of the law during the past decade. “The expansion in prosecutions and investigations of course has brought a great deal of anxiety to companies in the United States,” he said, according to video of the panel.
See, the law “is not working well” when it is actaully enforced, that’s the message from Bush’s attorney general. That’s no great shock, given the Bush administration’s attitude toward the rule of law, but still pretty ironic. From an actual rule of law standpoint, the law seems to be working pretty well as enfroced. But the U.S. Chamber, and Mukasey, certainly can’t have that.
By: Joan McCarter, Daily Kos, March 18, 2011
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