HEALTH CARE
Health Insurer's Practices Revealed

In an interview with PBS's Bill Moyers last Friday, former health insurance executive Wendell Potter spoke out against the practices of health insurance companies, stating that "it became really clear to me that the industry is resorting to the same tactics they've used over the years, and particularly back in the early '90s, when they were leading the effort to kill the Clinton [health care] plan." Potter said insurers seek to "drive down" costs by refusing to insure "unhealthy people," a tactic borne out by the fact that 47 million Americans currently lack health insurance. The "insurance industry has been one of the most successful, in beating back any kinds of legislation that would hinder or affect the profitability of the companies," said Potter, the former head of Corporate Communications at health insurance giant CIGNA. Last month, Potter told the Senate Committee on Commerce, Science, and Transportation that the industry, which once employed him regularly, drops sick policyholders so they can meet "Wall Street's relentless profit expectations."

BACK TO THE CLINTON PLAYBOOK: In 1993, right-wing pundit Bill Kristol urged Republicans to block any health care proposal in order to prevent the Democrats from being seen as the "generous protector of the middle class." Potter says similar tactics are being used this time around. In the spring, a memo by Republican strategist Frank Luntz outlined the script for opponents of health care reform. Luntz argued that a politician had to first pretend to support it, but should then use phrases like "government takeover," "delayed care is denied care," "consequences of rationing," and "bureaucrats, not doctors prescribing medicine." That jargon is now routinely heard by Republicans arguing against reform. Republican consultant Alex Castellanos recently authored a memo that urged conservatives to co-opt the cause of "bringing down health care cost[s]" in an effort to "slow this sausage-making process down" and "defeat" it. Potter told Moyers that conservative politicians "want to believe that the free market system can and should work in this country, like it does in other industries. ... They parrot those comments, without really realizing what the real situation is."

HOW INSURERS VIEW THE PUBLIC OPTION: Critics have charged that Obama's proposal to enact a new public health insurance plan to compete directly with private insurers would lead to a "government takeover" of the health care system. Progressives have long argued that a public health insurance option is essential to controlling skyrocketing health care costs and achieving affordable coverage for all. Potter agrees, and argued that health care companies' "biggest concern" is that the U.S. might adopt "a broader program like our Medicare program" which "could potentially reduce the profits of these big companies." "The industry doesn't want to have any competitor," said Potter. "They certainly don't want it from a government plan that might be operating more efficiently than they are." He added that "we shouldn't fear government involvement in our health care system. That there is an appropriate role for government, and it's been proven." Potter said that he doesn't expect the public option to rid the health care system of financial incentive, but he does think it would keep insurers "honest" by offering a "standard benefit plan" that provides comprehensive coverage.

SMEARING MICHAEL MOORE: In his documentary SiCKO, filmmaker Michael Moore exposed the deplorable practices of the major health insurance and pharmaceutical companies in working to deny coverage to insured individuals. Armed with the deep pockets of the health care industry, a number of front groups -- like Freedom Works, the Galen Institute, and the Heritage Foundation -- lobbed personal insults against Moore (such as perpetuating the false idea that "healthy individuals" would "wind up subsidizing people like Moore") in an effort to maintain the status quo. During the interview with Moyers, Potter said that health insurance companies developed a concerted strategy to radicalize Moore by labeling him a "Hollywood entertainer" while pushing to discredit SiCKO as pure "fantasy." But Potter said that he thought Moore "hit the nail on the head with his movie," which advocated that the government-run systems of other western democracies produce better health care outcomes. The health insurance companies "don't want you to think that it was a documentary that had some truth," Potter said. To push back on politicians, Potter said the industry routinely worked to defeat anyone who opposed their interests. The strategy included running ads, especially commercials in an elected official's home district, making contributions to a competitor, and using "lobbyists and their own staff to go onto Capitol Hill and say, 'Look, you don't want to believe this movie. You don't want to talk about it. You don't want to endorse it. And if you do, we can make things tough for you." Potter said the plan "worked beautifully" with politicians mouthing the "talking points that had been circulated by the industry."

Under the Radar

NATIONAL SECURITY -- OBAMA VOWS TO VETO MILITARY SPENDING BILL IF F-22 FUNDING IS NOT REMOVED: President Obama vowed Monday to veto a defense spending bill if the Senate does not remove $1.75 billion in funding for seven additional F-22 fighter jets beyond what the Defense Department requested, reiterating an earlier veto threat issued by the administration last month. Obama's pledge comes as his former presidential opponent, Sen. John McCain (R-AZ), stepped up the fight in Congress with Senator Carl Levin (D-MI) to strip the F-22 funding. The proposed budget presented by Secretary of Defense Robert Gates several months ago did not include funding for the additional F-22 fighters. Opponents of further funding claim that the plane is unnecessary, observing that it was originally built to fight the next generation of Soviet fighter jets that were never built, and that has not been used in either Iraq or Afghanistan. In addition, the F-22 is also incredibly expensive to maintain, costing more than $44,000 an hour to operate, roughly the yearly salary of a platoon leader in Afghanistan. However, over the objections of the Pentagon, members of the House and Senate Armed Services Committees included additional funding to purchase more F-22 fighters from Lockheed Martin. Defenders of the F-22 have cited jobs as a primary concern, something Rep. Barney Frank (D-MA) termed "weaponized Keynesianism."

Think Fast

In day 2 of the Sotomayor confirmation hearings, Republicans have indicated they "plan to confront Supreme Court nominee Sonia Sotomayor with her own words, taken from speeches dating back 15 years, as they try to raise doubts about her ability to judge fairly." "Today will be the true test of how she handles tough questions," Republicans tell Politico. The Wonk Room will be live-blogging.

 

Two former law intelligence officials told CNN that former Vice President Cheney is getting a "bum rap" over reports that he ordered the CIA to withhold information from Congress. While the covert program was reportedly an effort to assassinate al Qaeda leaders, Time reports that "[t]he program could have required the Agency to spy on Americans."

Yesterday, President Obama held a meeting with various Jewish leaders to assuage some lingering concerns that "he is being too tough on Israel and too soft on Iran." Jeremy Ben-Ami, executive director of J Street said, Obama "did a masterful job of pushing while hugging" in the meeting. "He was very clear that this is a moment that has to be seized and he intends to seize it."

President Obama said over the weekend that he would like to tackle the military's Don't Ask Don't Tell policy "sooner rather than later." In an interview with CNN, the president signaled that he would be pushing to "change," rather than "repeal" the ban.

House Democrats are expected to "unveil the details of a sweeping reform measure" today "that would drastically revamp the country's health care system." The introduction of the proposal was delayed last week, but House Speaker Nancy Pelosi (D-CA) said yesterday that "in order for us to be on schedule, we have to roll out our legislation this week."

"In a rare burst of public frustration," Secretary of State Hillary Clinton said yesterday that "she could not announce a new director for the United States Agency for International Development because the candidate was stuck in a lengthy vetting process." "It's frustrating beyond words," Clinton said, adding that the process is a "nightmare" and "ridiculous."

Iraqis were jubilant yesterday as the country's "itinerant national soccer team, displaced for years by war, finally returned to Baghdad on Monday night to play a home match at home." The stadium was "filled past capacity and genuinely festive like nothing Baghdad had experienced in years," as the team won a 4-0 victory over a Palestinian team.

Steve Rattner is stepping down "as President Obama's chief adviser on the troubled automobile industry at a time when an investigation into his former Wall Street firm's role in a scandal involving public pension funds has intensified." But it is unclear if his departure "is directly connected to the inquiry, or whether he felt that it was time to leave because" his role had come to "its natural end."

And finally: With all the important issues facing the country, Sen. Sam Brownback (R-KS) is on a crusade against...mermaids. Late last week, Brownback introduced the "Human-Animal Hybrid Prohibition Act of 2009," banning "part-human, part-animal creatures, which are created in laboratories, and blur the line between species." Chris Harris of Media Matters Action Network responds, "I can confidently say that the potential future existence of mermaids and Minotaurs are not a pressing concern...for anyone."

Blog Watch

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Ralph Reed wants to start a new, hipper, Christian Coalition.

Is the White House waiting for a conference to begin a louder push for health care?

The Philadelphia Inquirer should tell John Yoo to either talk to federal investigators or walk away from his columnist contract.

A look at the spat between Jay Z and The Game through the perspective of international relations.

The Associated Press's Ron Fournier's offensive attempt to read Judge Sonia Sotomayor says more about him than it does about her.

Bush loyalists insist that President Bush deserves credit for Iran's reform movement and defeating al-Qaeda.

Daily Grill

"I will not vote for -- and no senator should vote for -- an individual nominated by any president who believes it is acceptable for a judge to allow their personal background, gender prejudices, or sympathies to sway their decision in favor of, or against, parties before the court."
-- Sen. Jeff Sessions (R-AL), 7/13/09

VERSUS

"When I get a case about discrimination, I have to think about people in my own family who suffered discrimination because of their ethnic background or because of religion or because of gender. And I do take that into account."
-- Judge Samuel Alito, 1/11/06, Sessions voted to confirm Alito as a Supreme Court Justice