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REPORT: ‘Duplicitous’ Campaign Of Insurers To Charm The Public While Secretly Killing Reform

NOTE: This is the third installment of our series — Meet Your Insurance Company Executive: An Interview with Wendell Potter.

This week, ThinkProgress spoke with Wendell Potter, a former VP of communications at health insurance giant CIGNA, about exactly how insurance companies derail reform and preserve the status quo. Working in public relations for CIGNA, Potter had a direct role in multiple campaigns in the past to minimize public outrage at insurance company abuses, defeat legislation aimed at regulating insurers, and the massive effort to discredit Michael Moore and his movie SiCKO. In addition to enormous amounts of money spent in direct lobbying and campaign contributions, Potter spelled out exactly how insurance companies have prepared to defeat meaningful reform.

Planned well before this year, insurance company CEOs, like Potter’s former boss at CIGNA (H. Edward Hadway), formed a group called the Strategic Communications Committee to develop effective messages and strategy for the industry. Organized through AHIP, the lobbying front for insurance companies, the committee would work with large public relations companies to devise a two-pronged, “duplicitous campaign.” Because insurance companies suffer from low public approval, Potter said, the industry would present itself as “for reform” to the public, yet at the same time label proponents of meaningful reform as “extreme.” The public campaign is for the most part positive, and largely delivered by industry representatives like AHIP chief lobbyist Karen Ignagni. Potter noted:

It’s really a duplicitous PR campaign. They will talk about, in broad terms, how supportive they are of health care reform, but they will be working behind the scenes to kill very, very crucial parts of reform legislation like the public option.

Potter then explained how insurers would use a variety of front groups, set up by PR companies like APCO, to advance a hidden attack campaign. The “dirty” campaign involved feeding talking points to right-wing media, like Rush Limbaugh and Fox News. It also includes the creation of front groups to run negative advertisements about reform and mobilize anti-reform “grassroots” groups. Finally, insurers would coordinate with, and sometimes fund, conservative think-tanks to produce academic-appearing reports to advance their cause. Leaked memos from the insurance companies — regarding the campaign against Moore’s SiCKO movie — not only support Potter’s assertions, but specifically describe every step of this process.

Watch Potter explain how insurers control the debate to defeat reform:

To better illustrate the insurers’ two-faced campaign to kill reform, we have produced this chart. Click more to continue continue reading and to view the chart. Read more

Yglesias

Endgame

I want a revolution, you want to make your mark:

— The pyschology of poverty and temptation.

— A soda tax could raise most of the money necessary to bring the Baucus bill subsidies up to House bill levels.

— Ron Wyden explains what he’s trying to do.

— Apparently Harry Reid can fix many of the problems with the Baucus bill as he merges it with the Senate HELP text.

— Reihan Salam offers a very modest proposal on health reform; it’s a good idea, but there’s no reason to think that small.

— Probably time for the President to hold a health care town hall somewhere in Maine; in fact, not sure why he didn’t go in August at the high tourist season.

Song of the day, Julie Ruin (i.e., Kathleen Hannah) “The Punk Singer”.

Yglesias

Thursday Dinosaur Blogging

Exciting developments in the dinosaur world as researchers discover a creature that’s a lot like Tyrannosaurus Rex, but much smaller:

_46397104_raptorex

Apparently this upends our understanding of how T Rex evolved:

But this scaled-down version, which was about nine feet long and weighed only 150 pounds, lived 125 million years ago, about 35 million years before giant Tyrannosaurs roamed the earth. So the discovery calls into question theories about the evolution of T. rex, which was about 5 times longer and almost 100 times heavier.

The thought was these signature Tyrannosaur features evolved as a consequence of large body size,” Stephen L. Brusatte of the American Museum of National History, an author of a paper describing the dinosaur published online by the journal Science, said at a news conference. “They needed to modify their entire skeleton so they could function as a predator at such colossal size.”

Naturally, this demonstrates that dinosaurs are fun all my political opinions are correct.

Climate Progress

Supposedly ‘Green’ Printing Company Sponsoring Oil Front Group Conference

In October, corporate front group Americans for Prosperity is hosting its annual “Defending the American Dream” conference. The get-together will feature right-wing notables such as Rep. Michele Bachmann (R-MN), CNBC’s Larry Kudlow, and Sen. Jim DeMint (R-SC). The keynote address will be given by Newt Gingrich, who was propelled back into the media spotlight last year with his “Drill Here, Drill Now” pro-oil campaign.

One of the “Gold Sponsors” of AFP’s global warming denying conference is the “green” print and paper company TrayPML. TrayPML markets itself as a company that makes “active strides to protect the planet.” On its website, TrayPML also boasts about its ability to help companies “go green.” The company touts its environmental credentials by publicizing the World Wildlife Fund as an esteemed client. AFP, of course, mocks the protection of endangered wildlife, and argues for increased drilling in Alaska’s preserved lands.

TrayPML

AFP is supported largely by money derived from the Koch Industries polluter empire. David Koch, the billionaire VP of Koch Industries, sits on the board of the AFP Foundation and helped found its predecessor, Citizens for a Sound Economy. Koch Industries has an abysmal environmental record that includes both major oil spills and several instances where Koch pipelines leaked millions of gallons of toxic crude into ponds, lakes and streams across the country. Supporting Koch’s polluter agenda, AFP runs various organizing efforts to discredit global warming science, and mobilizes opposition to clean energy legislation. Not only that, but AFP’s Phil Kerpen, as ThinkProgress has noted, is waging an all out war against the concept of green jobs.

By sponsoring AFP’s anti-environmental conference, TrayPML wipes out any possible credibility that the firm is a friend of the “green” movement.

Politics

Grassley ‘resents’ White House calling him out for things he said.

grassleyisnothealthreform

In an impromptu news conference with reporters today, Sen. Chuck Grassley (R-IA) lashed out at President Obama and the White House, saying that he “resents” the administration “associating” him with “extreme” claims about “the end-of-life situation.” Obama “gave some speeches during August in which he was associating me with efforts to make this a political document and efforts that other people in the country were making to give extremes, like on the end-of-life situation and associating me with things — I [never] used the words he said,” Grassley told the reporters. But as FirstRead points out, Grassley did “lend credence” to the outrageous “death panel” attacks:

And on death panels last month, Grassley did lend credence to the idea that the government would “determine if you’re going to pull the plug on grandma.”

“There is some fear because in the House bill, there is counseling for end-of-life,” Grassley said at an Iowa town hall after fielding a question about it from a town hall attendee. “And from that standpoint, you have every right to fear. You shouldn’t have counseling at the end of life. You ought to have counseling 20 years before you’re going to die. You ought to plan these things out. And I don’t have any problem with things like living wills. But they ought to be done within the family. We should not have a government program that determines if you’re going to pull the plug on grandma.”

This isn’t the first time Grassley has attacked Obama for calling him out on his endorsement of some the worst lies about health care reform. In August, he told CBS News that “the specific language I used was language that the president had used at Portsmouth, and I thought that it was — if he used the language , then if I responded exactly the same way, that I had an opposite concern about not using end-of-life counseling for saving money, then I was answering.”

Yglesias

The Age Ratio Thing

(cc photo by Randy son of Robert)

(cc photo by Randy son of Robert)

One difference between the House and Baucus versions of health reform that hasn’t gotten much play is the way they treat age differently. In both cases, Exchange insurers will be able to charge different premiums according to how old you are. But in the House this will be restricted to a 2:1 ratio whereas Baucus would leave a larger 5:1 ratio. Baucus’ approach is better for young people and the House approach, which would basically force young people to offer a larger subsidy to our elders, is better for older people. Since this should balance out over the lifecycle, I don’t think there’s a huge fairness question either way. But I’m not very clear on what policy objective doing it the House’s way achieves.

You might say that the problem with Baucus’ bill is that it may cause financial hardship for some people aged 50-64. And, indeed, it might. But the issue here is the relatively stingy subsidies. Taking the Baucus framework and adding the House’s age provisions just pushes the financial hardship off the fiftysomethings and onto twentysomethings. Conversely, if you took the House framework and added Baucus’ treatment of age you’d just wind up with fewer young people needing subsidies and more subsidies going to older people. The net distributive impact is all going to be located among non-subsidized people in the top 60 percent or so of the income distribution, so I don’t see what problem shifting funds from young prosperous people to old prosperous people is supposed to solve.

I do think, however, that it might create a new problem, namely that having such a flat premium schedule is going to create weird incentives for insurers. The way the House is doing it, if for some reason lots of old people want to buy your firm’s insurance policy you’re going to lose a ton of money. Conversely, if lots of young people want to buy your firm’s insurance policy you’re going to earn a fortune. That means it would be in your interests to cultivate a reputation as offering poor services to older people; something that can probably be most easily achieved by actually offering poor services to older people. Allowing insurers to have a steeper price gradient reduces their incentive to try to actively manage the age compensation of their risk pool. I think the House leadership may think they’ve solved this problem by including a public option that won’t have the same profit incentives as for-profit insurers. But in reality this might lead for-profit insurers to just market very heavily to the young and hope to dump all the older unprofitable clients onto the public option, which would then go broke (it’s not eligible for taxpayer subsidies) leading to some kind of crisis.

Politics

O’Reilly endorses the public option, which he previously called ‘socialism.’

Last night on Fox News, Bill O’Reilly actually told a Heritage Foundation scholar who was fear-mongering government-backed health care that he favors a public option:

NINA OWCHARENKO: Well, it has massive new federal regulation. So you don’t necessarily need a public option if the federal government is going to control and regulate the type of health insurance that Americans can buy.

O’REILLY: But you know, I want that, Ms. Owcharenko. I want that. I want, not for personally for me, but for working Americans, to have a option, that if they don’t like their health insurance, if it’s too expensive, they can’t afford it, if the government can cobble together a cheaper insurance policy that gives the same benefits, I see that as a plus for the folks.

Watch it:

As recently as last month, O’Reilly was still saying that progressives want “the government to run the nation’s health care system. That’s because the Feds can then redistribute income much easier, shifting resources to the poor and away from corporations and the affluent. … It’s not really about health care. It’s about socialism.”

Yglesias

Get Carter

Greg Sargent comments on a Rasmussen poll about former presidents:

ex-presidents

Carter edges both Bushes by double-digits. The poll was taken last month, well before Carter’s race remark the other day. But the numbers are noteworthy, because even before this week, Carter has generally been assumed by some Dems to be terrifyingly controversial, largely because of his writings on the Middle East.

With the focus on the Mideast heating up again, Carter will likely be making more news, and the Obama administration will likely be distancing itself from him again, as it did yesterday. Worth recalling that the public doesn’t take all that dim a view of the stuff he’s done since leaving the White House.

Yes and no. The problem is that this poll result is perfectly consistent with 55 percent of the public thinking that Carter is history’s greatest monster. He’s clearly done more—and more controversial—stuff than any other ex-president. So it’s easy to imagine him being both the most liked and the most disliked. What’s more, there’s the whole question of preference intensity. Most Americans, according to surveys I’ve seen, have perfectly reasonable views about the Middle East. But the people who care most about the Israeli-Arab conflict tend to be the people with the least-reasonable views—Christian Zionists and the Jewish right.

Politics

Crowd boos Baucus plan, cheers public option at Obama health care rally.

Today, President Obama delivered a speech on health care before a raucous and boisterous crowd at the University of Maryland, College Park campus. But, the supportive, “solidly young, liberal audience” offered audible boos when Obama mentioned the health care plan that was introduced yesterday by Sen. Max Baucus (D-MT):

OBAMA: After debating this issue for the better part of a year, there’s now agreement in Congress on about 80 percent of what needs to be done. Four out of five committees in Congress have completed their work. Yesterday, the Finance Committee, under the leadership of Max Baucus, put out its own bill. [Scattered boos]

Jed Lewinson notes that minutes later, when Obama reiterated his call for a public health insurance option, the crowd cheered wildly. Watch a compilation:

As Sen. John Rockefeller (D-WV) has argued, the Baucus plan is insufficient because, among other things, co-ops won’t work, employers are not required to provide coverage, children could lose benefits, coverage may not be affordable for too many, and insurers could pass on higher costs to beneficiaries. Despite having compromised on many elements of reform that Republicans demanded, Baucus was still unable to muster any bipartisan support.

Yglesias

Trek and the Issues

"We have eliminated hunger, want, the need for possessions"

I think this is a pretty foolish Defamer post:

Remember when sci-fi movies were about blowing up aliens and attacking Godzilla? Those days are gone, my friend. Thanks to Battlestar Galactica and District 9, the genre now exists to please the intelligentsia. The latest victim, the Star Trek sequel. [...]

Just as Battlestar used a bunch of humans wandering through space to tell a story about the Iraq war and religion and D9 shed a new light on apartheid, racism, and awesome alien space suits, Star Trek now wants in on the contemporary allegory racket. We must say that is pretty rad. We love to blow shit up, but when you blow shit up with purpose, you get the thrill of blowing shit up, but don’t have the residual guilt of watching something totally idiotic. The way aliens heads explode when you run over them with a warthog in Halo can be like, a metaphor for the way people’s head explode when they are run over by a tank in the Middle East. Or something like that.

STLastBattle

The idea that the Trek franchise needed to rip off the idea of “issues” oriented science fiction from BSG borders on the absurd. Taking on the issues has always been a core element. Original Series episodes like “Let That Be Your Last Battlefield” about a planet torn apart by race hatred between people who are white on the left and black on the right and people who are black on the left and white on the right are all a good deal more heavy-handed and didactic than anything you’ll find in these more modern episodes. And yet part of the genius of Gene Roddenberry’s quasi-utopian vision is precisely that it attempts to offer us a plausible vision of a better tomorrow in order to better illustrate the issues of today.

And, obviously, Star Trek IV is about environmental degradation, Star Trek VI is about the end of the Cold War and a lot of the basic premises of TNG are about the end of the Cold War. The idea of the Federation itself is an embrace of semi-pacifism and world federalism, and the various shows are chock-a-block with critiques of capitalism and advocacy of democratic socialism.

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