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Context of 'June 2007: Health Care Executive Shocked at Sight of Americans Being Treated in Livestock Stalls, Tents'

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Betsy McCaughey.Betsy McCaughey. [Source: Newsday / Gawker (.com)]Elizabeth “Betsy” McCaughey (R-NY), a lawyer and future lieutenant governor of New York, writes a scathing analysis of the Clinton administration’s health care reform plan. The article, “No Exit,” is published in the New Republic, and sparks not only a detailed rebuttal from the Clinton administration, but numerous editorials and responses praising the article and joining in the attack. Echoing McCaughey’s arguments, Newsweek writes, “The plan would reduce the quantity and quality of health care and medical technologies by vastly expanding government’s coercive role.” McCaughey and Newsweek question the proposed creation of a seven-member “National Health Board” which will, she claims, “guess the nation’s health care needs and decree how much the nation may spend meeting them.” According to Newsweek: “Everyone would be locked into one system of low-budget health plans picked by the government. Fifteen presidential appointees, the National Quality Management Council, not you and your doctor, would define the ‘medically necessary’ and ‘appropriate’ care a doctor could give you. Escaping government control to choose your doctor or buy other care would be virtually impossible. Doctors could be paid only by the government-approved plans, at rates set by the government. It would be illegal for doctors to accept money directly from patients, and there would be 15-year jail terms for people driven to bribery for care they feel they need but the government does not deem ‘necessary.’ Government would define a minimum level of care and herd people in particular regions into dependence on the lowest-cost organization able to deliver that level. Doctors would be driven into organizations in which they would be punished financially for giving more treatment than the organizations’ budget targets permit. The primary care physician assigned to you would be, McCaughey notes, a gatekeeper with an incentive to limit your access to specialists and high-tech medicine. The premise of the Clintons’ plan is not just that government knows best, but that government knows everything relevant, including how many specialists there should be no more than 45 percent of all doctors [sic]. McCaughey says many medical students will be told that the specialties they prefer are closed, or closed to them because they are not the right race or ethnicity. Yes, the plan subordinates medical values to ‘diversity.’” Prescription drug prices would be controlled through the Department of Health and Human Services, and, McCaughey and Newsweek claim, would “certainly suppress research” that might benefit patients of incurable diseases and disorders. [Newsweek, 2/7/1994]
Refuting McCaughey - The Clinton administration details the “numerous factual inaccuracies and misleading statements” contained in McCaughey’s article. The administration’s response says that doctors and patients, not “government bureaucrats” or a board of governors, will decide what treatments are “necessary and appropriate.” The government will not decide what treatments are, and are not, provided: “If anything, the ‘necessary and appropriate’ care provision in the bill delegates authority to the medical profession—rather than imposing further government bureaucracy between the patient and the doctor.” The plan will not block Americans from opting into private health care plans just as they do now, nor will it block doctors and hospitals from accepting payments from “non-approved” health care plans. Nor does the plan require doctors and hospitals “to report your visit to a national data bank containing the medical histories of all Americans,” as McCaughey writes. And the so-called “National Health Board” will not “decide how much the nation can spend on health care beginning in 1996,” as McCaughey claims. The plan will not seek to reduce quality of care in the interest of saving money, and it does not contain price controls. [White House, 1/31/1994] A year later, author and columnist James Fallows will call the article “a triumph of misinformation,” and refutes McCaughey’s (and others’) claims point by point. [Atlantic Monthly, 1/1995]
Instrumental in Derailing Reform - The article will later be cited by House Speaker Newt Gingrich (R-GA) as “the first decisive breaking point” in the plan’s initial support; the plan will never be implemented. The article itself will spark tremendous controversy, winning the National Magazine Award while being attacked for being fundamentally inaccurate. (In 2006, the new editor of the New Republic, Franklin Foer, will apologize for his magazine having run the article.) In 2009 McCaughey will be a fellow at the conservative Manhattan Institute and will soon join the equally conservative Hudson Institute. Both are heavily funded by health care corporations. [Daily Beast, 5/15/2009]

Entity Tags: Newt Gingrich, Franklin Foer, Elizabeth (“Betsy”) McCaughey, Clinton administration, James Fallows, US Department of Health and Human Services, Hudson Institute, Manhattan Institute

Timeline Tags: US Health Care, Domestic Propaganda

Wendell Potter, a senior health care executive with the insurance giant Cigna, visits a “health care exposition” in Wise, Virginia, not far from his home town. Potter is shocked at what he sees at the Wise County Fairgrounds. As he will later recall (see July 10, 2009), he assumed he would see booths set up for people to get their blood pressure checked and so forth. What he actually sees is doctors providing a range of care in livestock stalls and tents. Some patients are treated while lying on gurneys, under a rainy sky. “And I saw people lined up, standing in line or sitting in these long, long lines, waiting to get care,” he will later say. “People drove from South Carolina and Georgia and Kentucky, Tennessee—all over the region, because they knew that this was being done. A lot of them heard about it from word of mouth. There could have been people and probably were people that I had grown up with. They could have been people who grew up at the house down the road, in the house down the road from me. And that made it real to me.… It was absolutely stunning. It was like being hit by lightning. It was almost—what country am I in? I just—it just didn’t seem to be a possibility that I was in the United States. It was like a lightning bolt had hit me.” Potter will describe himself as “insulated” from the harsh reality of American health care before visiting the expo. “I had a great job. And I had a terrific office in a high-rise building in Philadelphia. I was insulated. I didn’t really see what was going on. I saw the data. I knew that 47 million people were uninsured, but I didn’t put faces with that number.… [W]hen you’re in the executive offices, when you’re getting prepared for a call with an analyst, in the financial medium, what you think about are the numbers. You don’t think about individual people. You think about the numbers, and whether or not you’re going to meet Wall Street’s expectations. That’s what you think about, at that level. And it helps to think that way. That’s why you—that enables you to stay there, if you don’t really think that you’re talking about and dealing with real human beings.” Potter finds it difficult to reconcile his executive lifestyle with relatives and neighbors being treated in livestock stalls. He will eventually resign his position with Cigna. [PBS, 7/10/2009]

Entity Tags: Wendell Potter, Cigna

Timeline Tags: US Health Care

FreedomWorks logo.FreedomWorks logo. [Source: FreedomWorks]The progressive news and advocacy site Think Progress profiles FreedomWorks, a conservative lobbying firm that uses the practice of “astroturfing” to press its agenda home. FreedomWorks is one of the organizations behind the anti-tax “tea party” movement (see April 8, 2009). The organization denies that it is “astroturfing”—creating fake “citizens groups” that purport to be spontaneously organized grassroots organizations—and compares its work to that of liberal activism group MoveOn.org. However, Think Progress notes that MoveOn is a citizen-organized group, while FreedomWorks is headed by former Republican activists and corporate officials, and is funded by oil, energy, and tobacco companies. Former House Majority Leader Dick Armey and current Washington lobbyist (R-TX) leads FreedomWorks. [Think Progress, 4/14/2009]
'Amateur-Looking' Astroturfing Sites - Last year, the Wall Street Journal exposed FreedomWorks’ use of “amateur-looking” Web sites for its “astroturf” groups to bolster their credibility as purported “citizen groups” pushing for corporate interests (see May 16, 2008). [Think Progress, 4/14/2009]
Represented by PR Firm with GOP Links - FreedomWorks is represented by the Washington public relations firm Shirley & Banister Public Affairs. Shirley & Banister also represents conservative organizations such as the National Rifle Association, Citizens United, news outlet Human Events, and organizer Richard Viguerie’s direct-mail firm. (It also represents the Bradley Foundation, a conservative funding organization that in 2008 gave $25,000 to both FreedomWorks and Americans for Prosperity [AFP], gave FreedomWorks $75,000 in 2009, and is considering a grant request from AFP.) One of Shirley & Banister’s partners is Craig Shirley, a veteran Republican PR operative who helped develop the overtly racist 1988 “Willie Horton” political ad (see September 21 - October 4, 1988). Progressive MSNBC host Rachel Maddow tells her audience: “This is a perfect system for the Republican Party. It’s a constant feedback loop. The Republican Party activists stir up fear and anger on the Internet… Fearful, angry people go to town hall events and then Republican Party officials say they are just responding to that anger and they have no idea where it came from. It’s [a] perfect cycle. Rile them up with made-up stuff and then sympathize with them that are so riled.” [MSNBC, 8/14/2009; MSNBC, 8/17/2009]
Led by Millionaires - Three of FreedomWorks’ most prominent senior officials are millionaires. Armey makes over $500,000 a year working for the organization, and lives in a Texas home valued at $1.7 million. FreedomWorks president Matthew Kibbe lives on Capitol Hill in Washington, DC, in a home valued at $1.17 million. Board member Steve Forbes, the billionaire publisher of Forbes magazine, lives in a New Jersey home valued at $2.78 million, owns a chateau in France, and recently sold a private island in Fiji and a palace in Morocco. [Wall Street Journal, 5/16/2008]
FreedomWorks Supports Armey's Lobbying Efforts - Armey’s lobbying firm, DLA Piper, represents pharmaceutical firms such as Bristol-Myers Squibb, medical device supplier SleepMed, health care provider Metropolitan Health Networks, and another pharmaceutical firm, Medicines Company. One member of FreedomWorks’s board of directors is Richard Stephenson, the founder and chairman of Cancer Treatment Centers of America. He is also the president of International Capital and Management Company, which runs a hospital consulting company. The president of FreedomWorks is Matt Kibbe, the former senior economist for the Republican National Committee and the former chief of staff for Representative Dan Miller (R-FL). FreedomWorks is organizing protests against health care reform that would cut into pharmaceutical firms’ profits. DLA Piper represents a number of life insurance firms; FreedomWorks has organized support for the deregulation of the insurance industry. DLA Piper represents not only several American oil firms, but also Sheikh Mohammed Bin Rashid Al Maktoum, prime minister of the United Arab Emirates (UAE), on energy related issues such as maintaining the close ties between the US and the UAE. US oil firms are deeply involved in the UAE’s oil industry. [Center for Responsive Politics, 2009; Think Progress, 4/14/2009; MSNBC, 8/12/2009] In August 2009, after reporting on FreedomWorks, MSNBC host Rachel Maddow will tell her audience: “Washington lobbyists and health care executives and former Republican Party officials have just as much a right to shout down the policy debate about health care reform as anyone else does. These folks have just as much a right to try to derail this entire process as anyone else does. But we have a right to know who they are and who is paying them for their efforts. These guys are pros. This is an industry. This is beltway politics being organized and played out in town halls across the country.” [MSNBC, 8/12/2009] DLA Piper has also received $830,000 this year, so far, from the pharmaceutical firm Medicines Company; the same firm paid DLA Piper $1.5 million in 2008. [MSNBC, 8/7/2009]
FreedomWorks Lobbying on Behalf of DLA Piper? - In August 2009, Maddow will ask, “[W]hy are DLA Piper’s clients relevant?” She answers herself, “There appears to be some pretty good evidence that when you pay Dick Armey’s lobbying firm, DLA Piper, you get what Dick Armey’s grassroots organization FreedomWorks does.” In the first half of 2007, the American Council of Life Insurers paid DLA Piper $100,000 to lobby on its behalf. During that time span, FreedomWorks began lobbying Congress on a “grassroots” basis to deregulate the life insurance industry. Maddow will sarcastically ask: “And, of course, perhaps it is just mere coincidence that FreedomWorks happened to have a newfound, ideological, purist grassroots commitment to life insurance deregulation at the same time the American Council of Life Insurers hired Dick Armey’s lobbying firm. It could just be a coincidence. Could be, right?” In 2006, DLA Piper began lobbying for the Senado de Republica, the Mexican Senate, for the purpose of “enhancing US-Mexico relations.” At the same time, FreedomWorks began promoting itself as “one of the few organizations willing to aggressively promote meaningful immigration reform.” In 2004, during the Bush administration’s push to privatize Social Security, a single mom from Iowa was introduced at a White House economic conference as a supporter of privatization. That mom was a FreedomWorks employee. Maddow will say: “This is how FreedomWorks does their work. They try to create the impression that their just regular grassroots Americans without any financial or political interests in the outcome of these policy fights.” [MSNBC, 8/12/2009]

Entity Tags: MoveOn (.org), Steve Forbes, Think Progress (.org), Mohammed bin Rashid Al Maktoum, Wall Street Journal, Matt Kibbe, Bristol-Myers Squibb, DLA Piper, Medicines Company, FreedomWorks, Dick Armey

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

The Center for American Progress (CAP), a progressive think tank and lobbying organization, releases a report that says the “tea party” movement protesting the various policies of the Obama administration (see April 8, 2009) is not, as purported, entirely a grassroots movement of ordinary citizens, but an “astroturf” movement created, organized, and funded by powerful conservative and industry firms and organizations. (CAP notes that the anti-tax “tea parties,” with “tea” standing for “Taxed Enough Already,” fail to note that President Obama’s recent legislation actually has cut taxes for 95 percent of Americans.) Two of the most prominent organizations behind the “tea parties” are FreedomWorks and Americans for Progress (AFP). FreedomWorks (see April 14, 2009) is a corporate lobbying firm run by former House Majority Leader Dick Armey (R-TX), and organized the first “tea party,” held in Tampa, Florida, on February 27. It then began planning and organizing “tea parties” on a national scale; officials coordinated logistics, called conservative activists, and provided activists with sign ideas and slogans and talking points to use during protests. AFP has coordinated with FreedomWorks. AFP is a corporate lobbying firm run by Tim Phillips, a former lobbying partner of conservative activist Ralph Reed, and funded in part by Koch Industries, the largest private oil corporation in America (see May 29, 2009). Former House Speaker Newt Gingrich (R-GA) is also involved, through his lobbying form American Solutions for Winning the Future, which is supported by oil companies.
Support, Promotion from Fox News - On cable news channels, Fox News and Fox Business have run promotions for the “tea parties” in conjunction with enthusiastic reports promoting the affairs (see April 13-15, 2009, April 15, 2009, April 15, 2009, and April 6-13, 2009); in return, the organizers use the Fox broadcasts to promote the events. Fox hosts Glenn Beck, Neil Cavuto, and Sean Hannity all plan to broadcast live reports from the events. Fox also warns its viewers that the Obama administration may send “spies” to the events. (Fox justifies its depth of coverage by saying that it provided similar coverage for the 1995 Million Man March. However, Fox did not begin broadcasting until 1996—see October 7, 1996.)
Republican Support - Congressional Republicans have embraced the “tea parties” as ways to oppose the Obama administration. Many leading Republicans, such as Minority Leader John Boehner (R-OH), Paul Ryan (R-WI), and some 35 others, will speak at AFP-funded “tea parties.” Republican National Committee Chairman Michael Steele has moved the RNC to officially support the protests. And Senator David Vitter (R-LA) has introduced legislation formally honoring April 15 as “National Tea Party Day.” “It’s going to be more directed at Obama,” says reporter and commentator Ana Marie Cox. “This is very much, I think, part of the midterm strategy” to win elections in 2010.
Fringe Elements - According to CAP, many “fringe” elements of the conservative movement—including “gun rights militias, secessionists, radical anti-immigrant organizations, and neo-Nazi groups”—are involved in the “tea parties.” [Think Progress, 4/15/2009; Think Progress, 5/29/2009]

Entity Tags: Ralph Reed, Republican National Committee, Paul Ryan, Tim Phillips, Obama administration, Sean Hannity, Newt Gingrich, John Boehner, Michael Steele, Barack Obama, Neil Cavuto, Center for American Progress, Ana Marie Cox, Americans for Progress, Fox Business Channel, Fox News, Koch Industries, David Vitter, American Solutions for Winning the Future, FreedomWorks, Glenn Beck, Dick Armey

Timeline Tags: Domestic Propaganda, 2010 Elections

Progressive news and advocacy Web site Think Progress profiles Tim Phillips, the president of Americans for Prosperity (AFP), the conservative Washington lobbying organization that is planning to coordinate anti-tax “tea party” protests (see April 8, 2009 and April 15, 2009) with a summer push against the White House’s health care reform proposals. AFP is largely funded by Koch Industries, the largest private oil corporation in the US; AFP has long advocated positions favorable to the energy and health care industries. AFP also uses the technique of “astroturfing,” the creation of ostensibly citizen-driven “grassroots” advocacy groups that are actually funded and driven by corporate and lobbying interests. AFP’s most recent creation is a “front group” called “Patients United Now” (PUN), a group explicitly designed to thwart health care reform. PUN’s Web site declares, “We are people just like you,” and actively solicits participation and donations from ordinary Americans without revealing its corporate roots. AFP employs close to 70 Republican operatives and former oil industry officials.
Other 'Astroturf' Campaigns - Think Progress notes that other AFP “Astroturf” groups have organized events such as the “Hot Air Tour” attacking environmental regulation, the “Free Our Energy” movement to promote domestic oil drilling, the “Save My Ballot Tour” which sent conservative activist “Joe the Plumber” (see October 10, 2008) around the country attacking the Employee Free Choice Act, the “No Climate Tax” group aimed at defeating the Clean Energy Economy legislation, and the “No Stimulus” organization, which opposes the Obama administration’s economic policies.
Headed by Former Abramoff Colleague - AFP’s president is Tim Phillips, a veteran conservative lobbyist and “astroturfer.” In 1997, Phillips, then a Republican campaign strategist, joined Christian conservative activists in a new lobbying firm, Century Strategies. The firm promised to mount “grassroots lobbying drives” and explained its strategy as “it matters less who has the best arguments and more who gets heard—and by whom.” Century Strategies was given a boost by Texas GOP political operative Karl Rove, and began its career representing the Texas oil giant Enron. The firm was paid $380,000 to mobilize “religious leaders and pro-family groups” to push energy deregulation on the federal and state level, an effort which helped lead, says Think Progress, “to the energy crisis and economic meltdown of 2001.” As part of their efforts, Phillips and his partner, former Christian Coalition official Ralph Reed, used their congressional connections and “placed” purported “news” articles in the New York Times and other prominent newspapers. Phillips managed the firm’s direct mail subsidiary, Millennium Marketing, which was hired by then-GOP lobbyist Jack Abramoff to pressure members of Congress to oppose federal wage and worker safety legislation. Phillips and Reed also worked with Abramoff in the lobbyists’ efforts to fraudulently charge Native American tribes millions of dollars in lobbying fees over their efforts to build casinos on tribal lands. And they helped Abramoff launder gambling money. Phillips and Reed are responsible for the ads that helped Republicans win election victories by comparing Democratic candidates to Osama bin Laden, and helped George W. Bush (R-TX) defeat Senator John McCain (R-AZ) in 2000 by accusing McCain of fathering an illegitimate black child. They were unsuccessful in preventing the 2000 election of Republican Eric Cantor (R-VA) to the House by attacking his Jewish heritage. [Think Progress, 5/29/2009]
Headed by Oil Billionaire, Republican Party Funder - MSNBC’s Rachel Maddow will later note that AFP’s director is Art Pope, a multi-millionaire who has given so much money to the North Carolina Republican Party that it named its headquarters after him. The national chairman of AFP is David Koch, who with his brother runs Koch Industries, the largest privately held oil company in the US and a longtime supporter of right-wing causes. Koch is the 19th richest man in the world. [MSNBC, 8/6/2009]

Entity Tags: Tim Phillips, Think Progress (.org), Ralph Reed, Patients United Now, Millennium Marketing, Century Strategies, David Koch, Art Pope, Koch Industries, Americans for Prosperity, Jack Abramoff

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Moderate Republican House member Mike Castle (R-DE) faces a raucous band of angry conservative protesters at one of his “health care listening tour” meetings. Castle, who is one of eight Republicans to join the Democratic majority in voting for the American Clean Energy and Security Act, is challenged by a full range of accusations and conspiracy theories, some ranging far afield from health care reform and energy policy.
'Socialized Medicine' Worse than 9/11 - Some audience members accuse Castle of supporting “socialized medicine.” One member shouts, “I don’t have the answers for how to fix the broken pieces of our health care system, but I know darn well if we let the government bring in socialized medicine, it will destroy this thing faster than the twin towers came down.”
'Cap and Trade' Tax Will Destroy Economy - One audience member shouts that the proposed “cap and trade” tax on pollutants will destroy the US economy. “Do you have any idea what that cap and trade tax thing, bill that you passed is going to do to the Suffolk County poultry industry?” the member says. “That’s how chicken houses are heated, with propane. It outputs CO2. I mean, I’m outputting CO2 right now as I speak. Trees need CO2 to make oxygen! You can’t tax that!”
Global Warming a 'Hoax' - Many audience members respond with cheers and chants to expressions that global warming is a hoax. “I’m actually hopeful that this vote that you made was a vote to put you out of office,” one says to a barrage of applause and cheers. “You know, on this energy thing, I showed you, I had in my email to you numerous times there are petitions signed by 31,000 scientists that that know and have facts that CO2 emissions have nothing to do and the greenhouse effect has nothing to do with global warming. It’s all a hoax! [Applause.] First of all, I cannot for the life of me understand how you could have been one of the eight Republican traitors!” Another audience member says that global warming is “still a theory, so is Darwin’s theory of evolution! And yet we have the audacity to say global warming is accurate, it’s more than a theory? How about how cold it’s been this spring. Personal data, data shows that since 1998 average temperatures have been cooling!”
'Dead Baby Juice' Used to Create AIDS, Swine Flu - Some audience members believe that AIDS and the H1N1 “swine flu” epidemic are part of a conspiracy to kill Americans, using “dead baby juice.” “The virus was built and created in Fort Dix, a small bioweapons plant outside of Fort Dix,” one audience member asserts. “This was engineered. This thing didn’t just crop up in a cave or a swine farm. This thing was engineered, the virus. Pasteur International, one of the big vaccine companies in Chicago, has been caught sending AIDS-infected vaccines to Africa. Do you think I trust—I don’t trust you with anything. You think I’m going to trust you to put a needle full of dead baby juice and monkey kidneys? Cause that’s what this stuff is grown on, dead babies!”
Obama a Kenyan - One audience members wins a round of applause by asserting that President Obama is not an American citizen. “Congressman Castle, I want to know,” she shouts. “I have a birth certificate here from the United States of America saying I’m an American citizen, with a seal on it. Signed by a doctor, with a hospital administrator’s name, my parents, the date of birth, the time, the date. I want to go back to January 20th and I want to know why are you people ignoring his birth certificate? He is not an American citizen! He is a citizen of Kenya!”
Protests Organized by Conservative Lobbying Organizations - According to liberal news and advocacy site Think Progress, Castle and other moderate Republicans are facing orchestrated attacks on their energy and health care policies by conservative lobbying firms and right-wing talk show hosts. Lobbying organizations such as Americans for Prosperity (AFP—see May 29, 2009) have tarred Castle and other moderate Republicans as “cap and traitors,” joined by members of Fox News host Glenn Beck’s “9-12” organization (see March 13, 2009 and After) and exhorted by pronouncements from Beck, fellow talk show host Rush Limbaugh, the Web site Prison Planet, and others. [Think Progress, 7/21/2009]

Entity Tags: 9/12 Project, American Clean Energy and Security Act, Fox News, Glenn Beck, Barack Obama, Rush Limbaugh, Mike Castle, Pasteur International, Prison Planet (.com), Americans for Prosperity

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

A Syracuse “town hall” meeting hosted by Democratic House member Dan Maffei (D-NY) turns ugly after police are forced to intervene to restore order. During the meeting, held at Lincoln Middle School and focusing on health care reform, conservative anti-reform protesters cause disruption with shouts, curses, and screams that repeatedly drown out both Maffei’s remarks and the questions and comments from the audience, which numbers around 400. Many of the protesters are members of one or another “tea party” groups (see April 8, 2009), which have long opposed the policies of the Obama administration. The worst of the attempts to shout down discussion comes when Maffei or audience members bring up the idea of the “public option,” the idea of a government-run alternative health care plan similar to Medicare or Medicaid. Some pro-reform audience members bicker with the anti-reformists, adding to the cacophany. Maffei will later say he believes many of the loudest and most discourteous anti-reform protesters were not from the district, but had been brought in by special interest groups (see July 23, 2009 and August 4, 2009). “Many of them are not even from the Congressional district,” Maffei says. “But we’re not going to check driver’s licenses and ask people if they live in the district. It’s very, very unfortunate.” After the meeting, Maffei says he is considering other formats for such meetings; he says any such format should allow everyone to speak and discuss ideas in a respectful fashion. “This has been a problem going on a little bit with our public meetings,” he says. “It just makes me think we can do a better job with the format.” [Syracuse Post-Standard, 7/12/2009; TPMDC, 8/3/2009]

Entity Tags: Dan Maffei

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Wendell Potter (r) being interviewed by Bill Moyers (l).Wendell Potter (r) being interviewed by Bill Moyers (l). [Source: PR Watch (.org)]Former health care executive Wendell Potter, who left the insurance giant Cigna after fifteen years, appears on “Bill Moyers’ Journal.” He was formerly the head of corporate communications before he resigned his position, a post he calls “the ultimate PR job.” He says he was not forced to leave the company, and was extremely well compensated for his duties. He left after realizing that the health care industry is using underhanded and hurtful tactics to undermine the drive towards health care reform. He never went to his bosses with his observations because, he says, “for most of the time I was there, I felt that what we were doing was the right thing. And that I was playing on a team that was honorable. I just didn’t really get it all that much until toward the end of my tenure at Cigna.”
Health Care Expo Changed His Perceptions - In June 2007, Potter recalls, his perceptions were drastically changed by his visit to a health care exposition in Wise, Virginia (see June 2007).
Changing Plans - The industry shifted from selling primarily managed care plans, he says, to what they call “consumer-driven plans.” Despite the name, they are health care plans with high deductibles and limited coverage.
'Highlight Horror Stories' - Moyers shows Potter a copy of an “action plan” devised by America’s Health Insurance Plans (AHIP), the industry’s trade association. In large gold letters, the plan tells lobbyists and industry representatives to “Highlight horror stories of government-run systems.” Potter says that AHIP and other industry representatives try to paint government-run health care as socialism, and as inevitable failures. “The industry has always tried to make Americans think that government-run systems are the worst thing that could possibly happen to them,” he says, “that if you even consider that, you’re heading down on the slippery slope towards socialism. So they have used scare tactics for years and years and years, to keep that from happening. If there were a broader program like our Medicare program, it could potentially reduce the profits of these big companies. So that is their biggest concern.” Moyers also notes that the AHIP plan targets the film Sicko, a 2007 documentary by leftist filmmaker Michael Moore that portrayed America’s health care industry in a dismal light. AHIP’s action plan is to “Position Sicko as a threat to Democrats’ larger agenda.” Potter says that was an effort to discredit the film by using lobbyists and AHIP staffers “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.’” If they did, AHIP would retaliate by running negative ads against the lawmakers in their home districts or other electoral punishments. AHIP focused strongly on the conservative Democratic Leadership Council. Another tactic, as delineated in the memo: “Message to Democratic insiders. Embracing Moore is one-way ticket back to minority party status.” Moyers says that AHIP attempted to “radicalize” Moore and portray him as an extremist who could not be believed. Many politicians used AHIP talking points in discussing Moore and his film. “So your plan worked,” Moyers observes. Potter agrees: “It worked beautifully.” The lesson that was lost from Moore’s film, Potter says, was that Americans “shouldn’t fear government involvement in our health care system. That there is an appropriate role for government, and it’s been proven in the countries that were in that movie.”
Conservative Counter-Strategy - Moyers then displays a memo from Republican strategist Frank Luntz, who in the spring of 2009 wrote a strategy memo for health care reform opponents. The memo reads in part: “First, you have to pretend to support it. Then use phrases like, ‘government takeover,’ ‘delayed care is denied care,’ ‘consequences of rationing,’ ‘bureaucrats, not doctors prescribing medicine.’” He then shows film clips of House Minority Leader John Boehner (R-OH), Senate Minority Leader Mitch McConnell (R-KY), Senator Jon Kyl (R-AZ), and others using Luntz’s talking points in discussions on the floors of Congress. Potter says that many conservatives—Democrats as well as Republicans—“are ideologically aligned with the industry. They want to believe that the free market system can and should work in this country, like it does in other industries. So they don’t understand from an insider’s perspective like I have, what that actually means, and the consequences of that to Americans. They parrot those comments, without really realizing what the real situation is.” He notes that Representative Zach Wamp (R-TN), who grew up very near Potter’s childhood home in Chattanooga, told reporters that half of America’s uninsured don’t want health care, they would rather “go naked and just take the chance of getting sick. They end up in the emergency room costing you and me a whole lot more money.” Potter notes that the word “naked” is an industry term for people who choose not to buy health insurance. He calls Wamp’s comment “ridiculous” and “an example of a member of Congress buying what the insurance industry is peddling.” Moyers cites conservative Democrat Max Baucus, the chairman of the Senate Finance Committee, as another politician central to the health care reform process who is heavily influenced by corporate lobbyists—two of whom used to work on his own Senate staff. Potter says: “[I]t does offend me, that the vested special interests, who are so profitable and so powerful, are able to influence public policy in the way that they have, and the way that they’ve done over the years. And 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.”
Fierce Opposition to Public Option - The “public option,” the idea that the government would extend a non-profit, government-run health care alternative for citizens, is fiercely opposed by the health care industry. Potter says the reason why is “[t]he industry doesn’t want to have any competitor. In fact, over the course of the last few years, has been shrinking the number of competitors through a lot of acquisitions and mergers. So first of all, they don’t want any more competition period. They certainly don’t want it from a government plan that might be operating more efficiently than they are, that they operate.” Government programs such as Medicare and the Veterans Administration’s medical providers are far more efficient than private, for-profit health care providers, and the industry fears that having to compete with such a program will slash their profits. Medical companies will do whatever it takes to keep their profit margins—and shareholder returns—above a certain threshold. They will deny more claims, kick more people off their rolls, purge employer accounts, whatever it takes. Potter, evidently bemused, says, “You know, I’ve been around a long time. And I have to say, I just don’t get this. I just don’t understand how the corporations can oppose a plan that gives the unhealthy people a chance to be covered. And they don’t want to do it themselves.… I’m a capitalist as well. I think it’s a wonderful thing that companies can make a profit. But when you do it in such a way that you are creating a situation in which these companies are adding to the number of people who are uninsured and creating a problem of the underinsured then that’s when we have a problem with it, or at least I do.” A public option would help “keep [health care corporations] honest,” he says, and they would inevitably lose profits.
Predictions - Right now the industry is primarily involved in what Potter calls a “charm offensive,” where it is attempting to give the perception that it, too, is for health care reform. But once Congress begins putting out specific legislative language, the industry and its flacks will begin attacking specific provisions. Moyers says the upshot is for the industry to either “kill reform” or prevent lawmakers from agreeing on a bill, just like what happened in 1993-94 under the Clinton administration. No matter what they say—favoring the elimination of pre-existing condition restrictions, for example—the industry will adamantly oppose reform of any kind. “They don’t want a public plan,” Potter says. “They want all the uninsured to have to be enrolled in a private insurance plan. They want—they see those 50 million people as potentially 50 million new customers. So they’re in favor of that. They see this as a way to essentially lock them into the system, and ensure their profitability in the future. The strategy is as it was in 1993 and ‘94, to conduct this charm offensive on the surface. But behind the scenes, to use front groups and third-party advocates and ideological allies. And those on Capitol Hill who are aligned with them, philosophically, to do the dirty work. To demean and scare people about a government-run plan, try to make people not even remember that Medicare, their Medicare program, is a government-run plan that has operated a lot more efficiently.… [T]hey want to scare you into thinking that through the anecdotes they tell you, that any government-run system, particularly those in Canada, and UK, and France that the people are very unhappy. And that these people will have to wait in long lines to get care, or wait a long time to get care. I’d like to take them down to Wise County. I’d like the president to come down to Wise County, and see some real lines of Americans, standing in line to get their care. [PBS, 7/10/2009]

Entity Tags: John Boehner, Frank Luntz, Cigna, Bill Moyers, America’s Health Insurance Plans, Zach Wamp, Wendell Potter, US Veterans Administration, Senate Finance Committee, Michael Moore, Medicare, Max Baucus, Mitch McConnell, Jon Kyl, Clinton administration

Timeline Tags: US Health Care

Republicans intend to use the fight over health care reform to “break” President Obama, says at least one Republican senator. Jim DeMint (R-SC) joins other Republican lawmakers in a conference call with so-called “tea party” organizers (see April 14, 2009, April 15, 2009, May 29, 2009, August 4, 2009, August 5, 2009, and Before August 6, 2009) to plan how to use town hall confrontations with Democratic lawmakers to help stall any health care reform bill from being voted on in Congress until at least after the August recess. The call was organized by the lobbying organization Conservatives for Patients Rights (CPR). “I can almost guarantee you this thing won’t pass before August, and if we can hold it back until we go home for a month’s break in August,” members of Congress will hear from “outraged” constituents, DeMint says. “Senators and Congressmen will come back in September afraid to vote against the American people.… [T]his health care issue is D-Day for freedom in America. If we’re able to stop Obama on this it will be his Waterloo. It will break him.” One of the talking points from CPR is to characterize the reform package as a “government takeover” of health care. [Politico, 7/17/2009] When Obama says on PBS that “[w]hat they [DeMint and other Republicans] don’t recognize is, this isn’t about me; it’s about the American people… [a]nd things have gotten worse since 1993,” DeMint takes to Fox News to say the argument is about “socialism versus freedom,” and challenge Obama to a debate. “So, I’m glad to have the debate with him,” DeMint says, “but frankly, I’ve been working on health care for over 10 years. I think I know a lot more about how it works than he does. So I’m ready.” [Think Progress, 7/22/2009]

Entity Tags: Conservatives for Patients Rights, Jim DeMint, Barack Obama

Timeline Tags: US Health Care, Domestic Propaganda, 2012 Elections, 2010 Elections

Anti-health care reform protesters displays sign with swastika prominently featured.Anti-health care reform protesters displays sign with swastika prominently featured. [Source: Paul Rhea]The Democratic National Committee and several national and local unions stage a rally in Austin, Texas, to support the White House’s health care reform proposals. Anti-health care protesters also appear, one of whom carries a sign with a Nazi symbol prominently displayed. The sign warns that anti-reform advocates want “no repeats” of Nazi Germany, apparently in reference to the reform proposals. [TX 912 Candidates, 8/5/2009; Philip Martin, 8/6/2009]

Entity Tags: Democratic National Committee

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

The conservative lobbying group Americans for Prosperity (AFP—see April 15, 2009 and May 29, 2009), in conjunction with the St. Louis Tea Party Coalition, organizes a large protest at a town hall meeting organized by Senator Claire McCaskill (D-MO). Michelle Sherrod, a McCaskill aide, intends to discuss the senator’s opinion on the Obama administration’s health care reform proposals with the protesters, but AFP volunteers and associated protesters have a different agenda. The AFP Web alert says, “We hope we can have a vigorous yet courteous exchange Monday evening,” but according to liberal blog OpenLeft, whose contributors videotape part of the proceedings for YouTube, the conservative protesters—numbering somewhere around 1,000—are disruptive, often preventing Sherrod and other citizens from asking or answering questions. AFP later calls the protest a “smashing success.” The Fox News blog, Fox Nation, celebrates the protest with the headline, “Tea Party Protest Erupts During Senator’s Town Hall!” [Americans for Prosperity, 7/24/2009; Open Left, 7/27/2009; St. Louis Business Journal, 7/27/2009; Americans for Prosperity, 7/28/2009; Fox Nation, 7/29/2009]

Entity Tags: St. Louis Tea Party Coalition, Claire McCaskill, Americans for Prosperity, Michelle Sherrod, Fox News, OpenLeft

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

House Speaker Nancy Pelosi (D-CA) says of the corporate-led resistance to health care reform (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, and August 6-7, 2009): “Insurance companies are out there in full force, carpet bombing, shock and awe against the public option. These are initiatives that are very important in this legislation, and they are to correct what the insurance companies have done to America and to the health of our people over the years.” Afterwards, Pelosi is equally blunt, telling reporters: “It is somewhat immoral what they are doing. Of course, they have been immoral all along how they have treated the people they insure. They are the villains in this. They have been part of the problem in a major way. The public has to know that.” [MSNBC, 7/31/2009]

Entity Tags: Nancy Pelosi

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

The Internet news site Politico reports on the quickly escalating confrontations occurring at “town hall” meetings held around the country, featuring conservative protesters agitating against the White House’s health care reform proposals (see Late July, 2009). Reporter Alex Isenstadt writes: “Screaming constituents, protesters dragged out by the cops, congressmen fearful for their safety—welcome to the new town hall-style meeting, the once-staid forum that is rapidly turning into a house of horrors for members of Congress.” The meetings, held by Democratic House members attempting to discuss the health care proposals with their constituents, have quickly devolved into confrontational events disrupted by shouting, cursing protesters waving signs and shouting down speakers, often before they can begin speaking.
Other Methods to Discuss Issue with Constituents - After one such meeting (see June 22, 2009), House member Tim Bishop (D-NY) says he will not hold more town halls until late August. “I had felt they would be pointless,” he says. “There is no point in meeting with my constituents and [to] listen to them and have them listen to you if what is basically an unruly mob prevents you from having an intelligent conversation.” He adds: “I have no problem with someone disagreeing with positions I hold. But I also believe no one is served if you can’t talk through differences.” Other Democrats such as Bruce Braley (D-IA), Allen Boyd (D-FL), and Thomas Perriello (D-VA) have experienced similar incidents at their own town hall meetings. Isenstadt characterizes the meetings as plagued by “boiling anger and rising incivility.” Braley explains the heated protests by saying, “I think it’s just the fact that we are dealing with some of the most important public policy issues in a generation.” Bishop notes: “I think in general what is going on is we are tackling issues that have been ignored for a long time, and I think that is disruptive to a lot of people. We are trying, one by one, to deal with a set of issues that can’t be ignored, and I think that’s unsettling to a lot of people.” Dan Maffei (D-NY), whose July 12 meeting at a Syracuse middle school was disrupted, says he is considering other options to avoid the confrontations. “I think you’ve got to communicate through a variety of different ways,” he says. “You should do the telephone town hall meetings. You should do the town hall meetings. You should do the smaller group meetings. It’s important to do things in a variety of ways, so you don’t have one mode of communication. You’re going to have people of varying views, and in this case, you’ve got the two extremes who were the most vocal.” Russ Carnahan (D-MO) says he enjoys the town hall meetings, and will not let disruptions stop him from holding them. Perriello agrees. “I enjoy it, and people have a chance to speak their mind,” he says.
Countering the Protesters - Chris Van Hollen (D-MD), the chairman of the Democratic Congressional Campaign Committee (DCCC), has planned countermethods for the spate of meetings to be held during the August recess. According to sources familiar with the meetings Van Hollen has held, Van Hollen advised his fellow Democrats to “Go on offense. Stay on the offense. It’s really important that your constituents hear directly from you. You shouldn’t let a day go by [that] your constituents don’t hear from you.”
Continuing the Protests - Van Hollen’s Republican counterpart, Pete Sessions (R-TX), who chairs the National Republican Congressional Committee (NRCC), says the protests will continue. “We’ve seen Russ Carnahan, we’ve seen Tim Bishop, we’ve seen some other people face some very different crowds back home,” he says. “The days of you having a town hall meeting where maybe 15 or 20 of your friends show up—they’re over. You’ve now got real people who are showing up—and that’s going to be a factor.” Asked if the Republicans would use the confrontations against Democrats, Sessions says, “Wait till next year.”
Possible Backlash? - Democrats warn that Republicans will likely face a backlash in public opinion if the public perceives the party as being too closly aligned with tea party activists or other radical-right protesters. Former DCCC political director Brian Smoot says: “It’s a risk that they align themselves with such a small minority in the party. They risk alienating moderates.” [Politico, 7/31/2009]

Entity Tags: Dan Maffei, Brian Smoot, Allen Boyd, Alex Isenstadt, Chris Van Hollen, Tim Bishop, Russ Carnahan, Bruce Braley, Obama administration, Pete Sessions, National Republican Congressional Committee, Democratic Congressional Campaign Committee, Politico, Thomas Perriello

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Anti-reform protesters carry signs depicting Doggett with ‘devil horns’ and a sign featuring Nazi SS lettering.Anti-reform protesters carry signs depicting Doggett with ‘devil horns’ and a sign featuring Nazi SS lettering. [Source: Raw Story]Congressman Lloyd Doggett (D-TX) receives a hostile reception in a town hall meeting in an Austin grocery store. The meeting is to discuss the controversial Democratic health care reform proposal. The crowd is much larger than some had anticipated, and apparently packed with anti-health care reform protesters; anti-reform and anti-Obama signs are prominently displayed, including signs that read, “No Socialized Health Care.” Protesters also wave signs with Doggett depicted with devil horns, of a marble tombstone with Doggett’s name on it, and with slogans alleging Democrats are Nazis. When Doggett tells the crowd that he will support the reform plan even if his constituents oppose it, many in the crowd begin chanting “Just say no!” and, according to news reports, “overwhelm… the congressman as he move[s] through the crowd and into the parking lot.” One resident says of the meeting: “The folks there thought their voices weren’t being heard. They were angry, but they were respectful. There wasn’t any violence.” Another says, laughing: “He jumped in [his car] and fled. It was like he was tarred and feathered and ridden out of town on a rail. It was a beautiful thing.” Doggett later notes that because of the disruption, he is unable to engage in discussion with constituents who have other issues, including a father who wants his help in getting his son into a military academy. [Austin American-Statesman, 8/3/2009; New York Times, 8/3/2009; Atlantic Monthly, 8/4/2009]
Congressman: Protesters a 'Mob' - Doggett will later characterize the anti-reform protesters as a “mob.” In a statement, he says: “This mob, sent by the local Republican and Libertarian parties, did not come just to be heard, but to deny others the right to be heard. And this appears to be part of a coordinated, nationwide effort. What could be more appropriate for the ‘party of no’ than having its stalwarts drowning out the voices of their neighbors by screaming ‘just say no!‘… Their fanatical insistence on repealing Social Security and Medicare is not just about halting health care reform but rolling back 75 years of progress. I am more committed than ever to win approval of legislation to offer more individual choice to access affordable health care. An effective public plan is essential to achieve that goal.” [Politico, 8/3/2009; CBS News, 8/3/2009]
Coordinated by Local Republicans, Washington Lobbyist Firm, 'Tea Party' Group - The protest is coordinated by Heather Liggett, a local Republican Party operative, and by officials with the lobbying firm Americans for Prosperity (AFP), which has organized numerous anti-tax “tea party” demonstrations (see April 15, 2009 and May 29, 2009). Liggett confirms she is part of a national network of conservative organizers putting together anti-reform protests. Doggett says: “This is not a grassroots effort. This is a very coordinated effort where the local Republican Party, the local conservative meet-up groups sent people to my event.” Of the event itself, he says: “In Texas, not only with the weather but with the politics, it is pretty hardball around here. I have a pretty thick skin about all of this. But this really goes over the line.” And Jennifer Crider, a spokeswoman for the Democratic Congressional Campaign Committee (DCCC), adds: “Conservative activists don’t want to have a conversation. They want to disrupt.” [New York Times, 8/3/2009] Democratic National Committee (DNC) spokesman Brad Woodhouse says, “The right-wing extremists’ use of things like devil horns on pictures of our elected officials, hanging members of Congress in effigy, breathlessly questioning the president’s citizenship, and the use of Nazi SS symbols and the like just shows how outside of the mainstream the Republican Party and their allies are.” Another group with connections to the “tea party” movement, “Operation Embarrass Your Congressman,” helped organize the protest. It says on its Web site: “These arrogant, ignorant, and insolent [Congress members] have embarrassed America, trampled the Constitution, and ignored their constituents for far too long. Attend their townhall meetings during recess and press them with intelligent questions (unlike the mainstream media), asked in an intelligent manner to see if they are really in touch and on board with ‘the will of the people.’” [CBS News, 8/3/2009] After the meeting, FreedomWorks, a conservative lobbying organization that actively promotes disruptive behavior at Congressional town halls (see April 14, 2009), posts video from the meeting, and exhorts its members, “If you know of a town hall meeting your Congressman is having, be sure to show up, bring some friends, and them know what you think.” [FreedomWorks, 8/3/2009]

Entity Tags: Lloyd Doggett, Heather Liggett, Brad Woodhouse, FreedomWorks, Jennifer Crider, Operation Embarrass Your Congressman, Americans for Prosperity

Timeline Tags: US Health Care, Domestic Propaganda, US Domestic Terrorism, 2010 Elections

Conservative blogger and commentator Michelle Malkin, on ABC’s “This Week with George Stephanopoulos,” calls the “tea party movement” opposing taxes and health care reform “counterinsurgencies.” Malkin says there is a growing “tea party movement—these counterinsurgencies amongst taxpayer rights groups,” that is fomenting opposition to health care reform. She claims that these “counterinsurgencies” will escalate their confrontation behaviors in what she calls “town halls-gone-wild.” And, Malkin says, the “counterinsurgents” are members of true “grassroots” organizations (see April 14, 2009, April 15, 2009, May 29, 2009, August 4, 2009, August 5, 2009, and Before August 6, 2009). [Think Progress, 8/2/2009]

Entity Tags: Michelle Malkin

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Conservative radio host Rush Limbaugh says that if the recent spate of disruptive and violent protests against health care reform (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, and August 4, 2009) are, in fact, orchestrated (see April 14, 2009, April 15, 2009, May 29, 2009, August 4, 2009, August 5, 2009, and Before August 6, 2009), then it is “about damn time.” He continues: “We have had groups like ACORN [the Association of Community Organizations for Reform Now] and Democrat rent-a-mobs making up excuses and lying about things they oppose to affect public policy for years, while people like me haven’t had time because we work. We do not protest for a living. We do not rent ourselves out to be part of mobs. So, if this is actually an orchestrated event, then I’m glad somebody on our side’s getting in gear.… It doesn’t matter to me one way or the other [if the protests are coordinated]. The people who are showing up are genuinely angry. And if their transportation is being facilitated—about damn time. You’ve got to take these people on the way they play the game. The aggressor sets the rules in a conflict.” [Media Matters, 8/6/2009]

Entity Tags: Rush Limbaugh, Association of Community Organizations for Reform Now

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Local ‘tea party’ protesters at the Arcuri/Hoyer town hall.Local ‘tea party’ protesters at the Arcuri/Hoyer town hall. [Source: WKTV]Democratic Majority Leader Steny Hoyer (D-MD), taking part in a town hall meeting in upstate New York hosted by House member Michael Arcuri (D-NY), is browbeaten and verbally assaulted by conservative protesters who are against health care reform. The meeting is to discuss a proposal for a high-speed rail system for the area. “You’re lying to me!” one protester, local conservative activist Don Jeror, screams during the assemblage. “Just because I don’t have sophisticated language, I can recognize a liar when I see one!” Jeror adds, “Why would you guys try to stuff a health care bill down our throats in three to four weeks, when the president took six months to pick a dog for his kids?!” Jeror and many of the activists, who continue to scream and shout over Hoyer during his entire presentation, belong to a group called the “Fort Stanwix Tea Party ‘Patriots.’” House Member Lloyd Doggett (D-TX), who was recently accosted by conservative protesters during a town hall meeting in his district (see August 1, 2009), says the protests are anything but spontaneous and citizen-driven. “This notion of a grass-roots campaign is totally and completely phony,” he says. “The Republican Party has coordinated this apparent outrage and stirred it up.” While he and fellow Democrats welcome dialogue, he says, “there’s no way you can change the legislation to satisfy any of these Republicans and their insurance allies.” Doggett is referring to allegations that corporate lobbying groups such as Americans for Prosperity and FreedomWorks (see April 14, 2009, April 15, 2009, May 29, 2009, August 4, 2009, August 5, 2009, and Before August 6, 2009) are behind the protests. White House press secretary Robert Gibbs agrees, saying, “I think what you’ve seen is they have bragged about manufacturing, to some degree, that anger.” Bob MacGuffie, a Connecticut conservative activists who recently wrote a strategy memo directing fellow conservatives in methods to disrupt and dominate town hall meetings (see Late July, 2009), says that while there is organization, the anger and resistance to reform is “most assuredly real.… We’re organizing those voices, but it’s a real emotion, coast to coast.” ABC News reports that polls show the “protesters are not representative of the public at large, which overwhelmingly supports provisions such as ‘requiring insurance companies to sell health coverage to people, even if they have pre-existing medical conditions’ and ‘requiring that all Americans have health insurance, with the government providing financial help for those who can’t afford it.’” [ABC News, 8/4/2009; TPMDC, 8/4/2009; WKTV, 8/4/2009]

Entity Tags: Lloyd Doggett, Americans for Prosperity, ABC News, Bob MacGuffie, FreedomWorks, Robert Gibbs, Don Jeror, Michael Arcuri, Steny Hoyer, Republican Party

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

America’s Health Insurance Plans (AHIP), the health care industry’s trade association, distributes “talking points” for use by opponents of health care reform that specifically target the so-called “public option” for alternative government-provided health care. AHIP has been heavily involved in orchestrating and facilitating the recent spate of raucous anti-reform protests (see July 10, 2009 and August 2, 2009). The talking points, entitled “August Recess Talking Points,” include the following: “Health plans strongly believe that now is the time for comprehensive, bipartisan health care reform that enhances affordability, improves quality, covers all Americans, and puts the health care system on a sustainable path. However, we also share the concerns that employers, providers, and patients have raised about the significant unintended consequences of a new government-run plan. A government-run plan would dismantle employer-based coverage, thereby violating the shared commitment to ensure that those who like their current coverage can keep it. The government-run plan would also add significant liabilities to the federal budget.” Reporter Greg Sargent notes that like any other lobbying group or citizens’ organization, AHIP has the right to “encourage… participation and distribut[e] talking points.” However, he notes that the industry AHIP represents “has a tremendous financial stake in whether a public plan becomes a reality. And the industry is not only telling people to go to town meetings, but also telling them how to voice their opposition to a public option. Bottom line: It’s indisputable that the industry is orchestrating public opposition to one of health care reform’s most important components.” [Plum Line, 8/6/2009]

Entity Tags: Greg Sargent, America’s Health Insurance Plans

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Tim Phillips (r) being interviewed by Rachel Maddow (l).Tim Phillips (r) being interviewed by Rachel Maddow (l). [Source: YouTube]Tim Phillips, the president of the corporate lobbying firm Americans for Prosperity (AFP), is interviewed by progressive MSNBC host Rachel Maddow. AFP, like FreedomWorks, Conservatives for Patients Rights (CPR), and other organizations, is responsible for what Maddow calls “astroturfing” the health care reform debate—creating “fake grassroots organizations” such as Patients First and Patients United Now that purport to represent ordinary citizens, but are in fact entities created and controlled by corporate and/or political interests (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, and August 6-7, 2009).
Representing 'Real Folks' - Phillips is jovial with Maddow, insisting that AFP merely represents the interests of “real folks.” When asked who funds AFP’s “grassroots” offshoot, Patients First, instead of answering, Phillips tells Maddow that the organization is made up of patients “just like us. I’m a patient. Rachel, you’re a parent. So I think we’re all patients in this issue. And we all have something at stake here.” Phillips even denies being a Washington lobbyist, but instead calls himself “a community organizer” similar to the position once held by President Obama. “What do you think about that?” he asks. “Maybe I’m qualified to be president.” He finally claims that AFP is funded by citizen donors, though he admits that the bulk of its money comes from foundations such as the Koch Industries Foundations, the grant-giving arm of Koch Industries, the largest privately held oil company in the US. Maddow says, “[I]t seems odd to just call yourself patients like us when you’re a huge recipient of funding from a big company, and you’re trying to distinguish yourself from lobbyists and big companies.” Phillips in turn says that to label groups like AFP anything but citizen organizations is “demeaning” to the ordinary citizens who turn out at the rallies and forums. Maddow responds: “I’m not calling anybody, any individual American, a front group. I’m calling Americans for Prosperity’s subgroups a front group for the corporate interest that funds you, guys. Honestly, I mean, that’s the allegation that we’re making here.”
'We Would Love to Have More Corporate Funding' - Phillips says: “[C]orporate interests are a minuscule part of our funding.… And by the way, we would love to have more corporate funding. So if there’s more corporations watching us, feel free to give to us. We’ll be happy to have their support as well. We will get the message out on this health care issue.” He denies ever taking money from Exxon, but says AFP would be more than happy to accept Exxon and other such funding. Maddow notes that Exxon has listed AFP as a recipient of large amounts of money, and Phillips qualifies his statement: “This year, we haven’t had any Exxon money.… But again, though, we’re happy to take corporate money.” Maddow says that she isn’t sure the protesters showing up at the town halls at the behest of AFP know that the organization is funded by oil and health care corporations.
'Gotcha Politics' - After Maddow notes Phillips’s involvement with several Republican political and lobbying campaigns, Phillips accuses her of playing “gotcha politics.” Maddow retorts that Americans “want to know who the players are in this fight and who’s organizing what are being maintained as if they’re just spontaneous efforts happening organically by Americans who are angry and they’re aren’t being coordinated by industry and by lobbyists and by political campaign groups associated with the Republican Party. And that’s why I want to talk about who you are, because you have such an important role in coordinating these events and I think the American people are curious.” In his turn, Phillips says that it is “gotcha politics” that is helping the anti-reform movement win the issue. Before Maddow ends the interview, Phillips invites her to join AFP on the bus tour “as my guest to see these real Americans. Would you do that?” Maddow replies, “I can’t bear the conflict of interest with your corporate funders.” [MSNBC, 8/7/2009]

Entity Tags: Koch Industries Foundations, Conservatives for Patients Rights, Americans for Prosperity, ExxonMobil, Koch Industries, Republican Party, FreedomWorks, Patients United Now, Patients First, Tim Phillips, Rachel Maddow

Timeline Tags: US Health Care, Domestic Propaganda

MSNBC’s Rachel Maddow (l) interviews Frank Schaeffer (r).MSNBC’s Rachel Maddow (l) interviews Frank Schaeffer (r). [Source: Crooks and Liars (.com)]Frank Schaeffer, who with his late father Francis Schaeffer helped shape the social and religious conservatism that currently dominates much of American politics, writes what he calls an “inside scoop” on “why conservatives are rampaging town halls” to disrupt discussions of health care reform (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6, 2009, and August 6-8, 2009), and, ultimately, to deliberately foment political violence. Schaeffer was once a leader of the conservative evangelical movement who has now repudiated his former positions, and has written a book on the subject. [AlterNet (.org), 8/7/2009; MSNBC, 8/10/2009] Schaeffer’s father wrote a book, A Christian Manifesto, which compared pro-abortion policies to those of Adolf Hitler, and said that the use of force to roll back abortion law would be justified. Schaeffer himself has written a very different book, entitled Crazy for God: How I Grew Up as One of the Elects, Helped Found the Religious Right, and Lived to Take All or Almost All of It Back. [MSNBC, 6/1/2009]
Comparing Pro-Abortion Activists to Nazis - He tells MSNBC’s Rachel Maddow that his father used to compare pro-abortion activists to Nazis, and told his followers “that using violence or force to overthrow Nazi Germany would have been appropriate for Christians, including the assassination of [Adolf] Hitler.” It is a straight, short line, Schaeffer says, to go from the concept of justifiably assassinating Hitler to using violence against those who are compared to Nazis. “It’s really like playing Russian roulette,” he says. “You put a cartridge in the chamber, you spin, and once in a while it goes off. And we saw that happen with Dr. Tiller (see May 31, 2009). We’ve seen it happen numerous times in this country with the violence against political leaders, whether it’s Martin Luther King or whoever it might be. We have a history of being a well-armed, violent country.… There is a coded message here. And that is that you have a group of people who, like Rush Limbaugh (see July 21, 2009, July 27, 2009, July 28, 2009, August 3, 2009, August 4, 2009, August 6, 2009, and August 6, 2009) would rather see the president and the country fail, and their coded message to their own lunatic fringe is very simple—and that is go for broke. When you start comparing a democratically elected president, who is not only our first black president but a moderate progressive, to Adolf Hitler (see August 7, 2009), you have arrived at a point where you are literally leading—leaving a loaded gun on the table, saying the first person who wants to come along and use this, go ahead. Be our guest.” [MSNBC, 8/10/2009]
Conservative World View Shattered by Obama Election - In a separate op-ed, Schaeffer writes: “The Republican Old Guard are in the fix an atheist would be in if Jesus showed up and raised his mother from the dead: Their world view has just been shattered. Obama’s election has driven them over the edge.” Schaeffer says that when he worked with Dick Armey (R-TX), the former House Majority Leader and now lobbyist was “a decent guy, whatever his political views. How could he stoop so low as to be organizing what amounts to America’s Brown Shirts today?” He answers his own question: Armey, former House Speaker Newt Gingrich (R-GA), and others “can’t compute that their white man-led conservative revolution is dead. They can’t reconcile their idea of themselves with the fact that white men like them don’t run the country any more—and never will again. To them the black president is leading a column of the ‘other’ into their promised land. Gays, immigrants, blacks, progressives, even a female Hispanic appointed to the Supreme Court (see May 26, 2009)… for them this is the Apocalypse.… [N]ow all the the Republican gurus have left is what the defeated Germans of World War Two had: a scorched earth policy. If they can’t win then everyone must go down. Obama must fail! The country must fail!”
Using 70s-Era Anti-Abortion Protest Tactics - Schaeffer says conservative and industry lobbying firms orchestrating the anti-reform movement (see April 14, 2009, April 15, 2009, May 29, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, May 29, 2009, and August 6-7, 2009) are using the same tactics he and his father helped create for anti-abortion clinic protesters in the 1970s. He notes one lobbying organization, Armey’s FreedomWorks. “FreedomWorks represents a top-down, corporate-friendly approach that’s been the norm for conservative organizations for years,” Schaeffer writes. “How do I know this is the norm? Because I used to have strategy meetings with the late Jack Kemp (R-NY) and Dick Armey and the rest of the Republican gang about using their business ties to help finance the pro-life movement to defeat Democrats. I know this script. I helped write it. Democratic members of Congress are being harassed by angry, sign-carrying mobs and disruptive behavior at local town halls. It’s the tactic we used to follow abortion providers around their neighborhoods. ‘Protesters’ surrounded Rep. Tim Bishop (see June 22, 2009) and forced police officers to have to escort him to his car for safety. We used to do the same to Dr. Tiller… until someone killed him.” [AlterNet (.org), 8/7/2009]
Aware of Potential for Violence - In a previous interview with Maddow, Schaeffer expounded on this same topic. “[W]hat we did is we talked one game to the large public and we talked another game amongst ourselves,” he told Maddow. “And amongst ourselves, we were very radical.… I know that this is the case because of the fact that I was part of the movement, but also understood very well what we were doing back then was to attack the political issue when we talked to people like Ronald Reagan and the Bush family and Jack Kemp—the late Jack Kemp that we were very close to in all this. But on a private side, we also were egging people on to first pick at abortion clinics, then chain themselves to fences, then go to jail. We knew full well that in a country that had seen the assassination of Dr. Martin Luther King, two Kennedy brothers, and others, that what we were also doing was opening a gate here. And I think there’s no way to duck this. We live in a country in which guns are all over the place. We have plenty of people with a screw loose, plenty of people on the edge. It only takes one.” [MSNBC, 6/1/2009]
Using Lies to Obscure Facts, Disrupt Debate - The health care reform opponents are using what Schaeffer calls “[a] barrage of outright lies, wherein the Democrats are being accused of wanting to launch a massive euthanasia program against the elderly, free abortions for everyone, and ‘a government takeover’ of health care” to disrupt informed debate. Some protesters have escalated to physical violence and intimidation. Schaeffer says that just as in the 1970s, the protesters engaging in the physical violence are often “plants sent to disrupt public forums on the health care issue.… [M]uch of these protests are coordinated by public relations firms and lobbyists who have a stake in opposing President Obama’s reforms. There is no daylight between the Republican Party, the health care insurance industry, far-right leaders like Dick Armey, the legion of insurance lobbyists, and now, a small army of thugs.… No, I don’t believe that these people are about to take over the country. No, the sky is not falling. But the Republican Party is. It is now profoundly anti-American. The health insurance industry is run by very smart and very greedy people who have sunk to a new low. So has the Republican Party’s leadership that will not stand up and denounce the likes of Dick Armey for helping organize roving bands of thugs trying to strip the rest of us of the ability to be heard when it comes to the popular will on reforming health care.”
American Fascism - Schaeffer accuses the right of undermining American democracy and attempting to establish an almost-fascist control of society. “Here’s the emerging American version of the fascist’s formula,” he writes: “combine millions of dollars of lobbyists’ money with embittered troublemakers who have a small army of not terribly bright white angry people (collected over decades through pro-life mass mailing networks) at their beck and call, ever ready to believe any myth or lie circulated by the semi-literate and completely and routinely misinformed right wing—evangelical religious underground. Then put his little mob together with the insurance companies’ big bucks. That’s how it works—American Brown Shirts at the ready.” He notes that the murder of Tiller closed down his clinic, one of the few in the country that performed late-term abortions. So the murder of Tiller achieved the goal of the anti-abortion movement. “In this case a once-in-a-lifetime opportunity to save our economy from going bankrupt because of spiraling health care costs may be lost, not because of a better argument, but because of lies backed up by anti-democratic embittered thuggery. The motive? Revenge on America by the Old White Guys of the far right, and greed by the insurance industry.” Schaeffer concludes, “It’s time to give this garbage a name: insurance industry funded fascism.[AlterNet (.org), 8/7/2009]

Entity Tags: Frank Schaeffer, Francis Schaeffer, Newt Gingrich, Dick Armey, FreedomWorks, Tim Bishop, Rachel Maddow, Barack Obama

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Discussing the anti-health care reform protests, Fox News host Sean Hannity asks his guest, conservative radio host Mark Levin, “You think the president [Obama] bears any responsibility for this conflict now that is emerging in these town halls” (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6, 2009, and August 6-8, 2009)? Levin responds, “[L]et me suggest that if there’s anything that happens at these town hall meetings, if anybody’s hurt or if anything really stupid happens, this White House has some responsibility for it.” Levin justifies his claim: “This White House is calling out its dogs. The president sent out an e-mail to millions of, uh, his supporters. [White House chief of staff] Rahm Emanuel, behind the scenes, is pushing too, so is [White House political coordinator David] Axelrod. If something terrible happens at one of these town hall meetings, I think the president in part can be held accountable.” [Media Matters, 8/8/2009]

Entity Tags: Sean Hannity, Fox News, Mark Levin

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

60+ logo.60+ logo. [Source: 60 Plus Association]An anti-health care reform television ad designed to frighten seniors into believing that so-called “death panels” will have government officials choosing to terminate them (see August 7, 2009, August 10, 2009, and August 10, 2009) is produced by a supposedly “non-partisan seniors advocacy group.” However, in fact the group is led, organized, and funded by senior Republican operatives. The ad says in part that health care reform will, for seniors, “mean long waits for care, cuts to MRIs, CAT Scans, and other vital tests. Seniors may lose their own doctors. The government, not doctors, will decide if older patients are worth the cost.” The organization that produced and released the ad is called the “60 Plus Association,” or “60+,” a registered non-profit organization that claims to be non-partisan. The president of 60+ is Jim Martin, a former official for the National Conservative Action Committee and another group, Americans Against Union Control of Government. The honorary chairman of 60+ is Roger Zion, a former Illinois Republican congressman whom the group’s site calls “one of Washington’s leading spokesman for the conservative cause.” When 60+ began running ads against prescription drug reform a few years ago, the American Association of Retired Persons (AARP) discovered that, in the organization’s words, “virtually all of their largest contributions in recent years have come from the same source—the nation’s pharmaceutical industry.” John Rother of AARP will confirm that 60+ is “funded primarily by corporate interests, especially pharmaceuticals.” Speaking to MSNBC’s Rachel Maddow, he says that 60+ and other anti-reform groups are specifically targeting seniors. “I don’t think you can look at those commercials and not conclude that seniors are the target of a very intentional scare campaign,” he says. “And many seniors, of course, are worried about change because they depend on Medicare. They are perhaps not in the greatest of health, and they definitely want to know that Medicare will be there, their doctor will be there when they need it. So, change can be a little scary.… It certainly makes me angry because, you know, there are real issues and people should be engaged in this debate. But to scare people, to raise these bogus issues, to intentionally mislead a big part of the population is—you know, it’s a subversion of democracy.” Rother adds: “[W]e’ve looked at this bill and we read every page, we’ve concluded that the bills proposed in the Congress would be good for seniors, would actually help them afford their medications better, make sure that doctors are there when they need them. So, we feel there’s nothing to be scared about in the actual legislation.” In 2003, the pharmaceutical giant Pfizer paid 60+ to organize opposition against prescription drug reform in Minnesota and New Mexico. 60+ in turn hired a PR firm, Bonner & Associates, which according to the AARP “specializes in ‘Astroturf lobbying’” (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, and August 6-7, 2009). Bonner paid employees to call residents of those states and, identifying themselves as volunteers for 60+, urge them to oppose the legislation. 60+ also has ties to former Republican lobbyist Jack Abramoff, who directed Native American tribes to donate to 60+ in return for Republican support in Congress. 60+ has also lobbied in favor of approving the storage of nuclear waste at the infamous Yucca Mountain, Nevada, storage site. Maddow says: “[T]he campaign against health care reform in this country is being brought to you by professional, corporate-funded, Republican-staffed political PR operations. In this case, an organization that promotes itself as non-partisan but appears to be anything but. These are professional PR operatives that are scaring real Americans with increasingly paranoid and kooky lies about health care. And they’re getting rich in the process, thanks to the largess of extremely interested parties who are more than willing to pay for their services.” [MSNBC, 8/11/2009; MSNBC, 8/12/2009]

Entity Tags: John Rother, 60 Plus Association, American Association of Retired Persons, Jim Martin, Roger Zion, Rachel Maddow

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

Former health insurance executive Wendell Potter (see July 10, 2009), who formerly headed the PR division at Cigna, says that the skyrocketing profits of health care corporations and their executives are directly driving the industry’s opposition to health care reform. According to filings with the Securities and Exchange Commission, the profits of the US’s 10 largest health insurance companies rose 428 percent between 2000 and 2007. In 2000, those 10 companies made a combined profit of $2.4 billion. In 2007, those numbers had risen to $12.9 billion. During that seven-year period, the number of Americans without health insurance rose 19 percent. The CEOs of those 10 firms made an average of $11.9 million in 2007 alone. MSNBC’s Rachel Maddow notes that the health insurance industry “bankrolled efforts to kill the last effort at health care reform” in 1994 (see Mid-January - February 4, 1994). In an interview with Maddow, Potter blames the insurance industry for much of the recent spate of “town hall” disruptions that have helped derail debate over health care reform (see June 30, 2009, July 6, 2009, July 25, 2009, July 27, 2009, July 27, 2009, July 31, 2009, August 1, 2009, August 1, 2009, August 2, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 3, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 6-8, 2009, August 8, 2009, and August 10, 2009) “and a lot of the deception that’s going on in terms of disinformation that many Americans apparently are believing.” Potter goes on to note that health insurance firms are making tremendous profits on the steady erosion of paid premiums going to fund medical claims. In 1993, the industry paid out roughly 95 percent of the premiums they took in to claims. In 2007, that number had dropped to 80 percent. Insurance firms also routinely “kick sick people off the rolls when they do get sick or when people get injured.… [A]nd also, they’re paying fewer claims.” The health insurance industry is dead set against the so-called “public option,” Potter says, for the simple reason that a publicly run alternative to private insurance would cost its members profits. [MSNBC, 8/11/2009]

Entity Tags: Wendell Potter, Rachel Maddow

Timeline Tags: US Health Care

Top “tea party” and other conservative organizers, taking part in a private conference call, discuss their primary goal for health care reform: blocking any kind of compromise entirely, and ensuring that no health care reform package of any kind is passed. An AFL-CIO organizer manages to get involved in the call, and his notes are provided to, first, the union itself, and then to the Washington Post’s Greg Sargent. The call consists of representatives of powerful lobbying and “grassroots” organizations (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, and August 6-7, 2009) such as the American Liberty Alliance, the “Tea Party Patriots,” and RecessRally.com (see August 5, 2009). [Plum Line, 8/11/2009] The conference call is sponsored by the “Tea Party Patriots,” which labels itself the “official grassroots American movement.” The group is sponsored and organized by, among other organizations, FreedomWorks (see April 14, 2009). When the “Tea Party Patriots” organized a trip to Washington in July, FreedomWorks provided the members with prepared packets of information and briefed them on how a visit to Capitol Hill works. [MSNBC, 8/12/2009] Sargent writes: “It’s certain to be seized on by [Democrats] to argue that organized tea party opposition to [President] Obama has no constructive intentions and is fomenting public ‘concern’ about Obama’s plan solely to prevent any reform from ever taking place. GOP officials would argue that they don’t share these goals.” The moderator on the call tells participants that bipartisan compromise on the Senate Finance Committee, where senators are holding talks, must be stopped at all costs. Organizers are told to pressure Republican senators seen as likely to compromise with Senate Democrats, including Chuck Grassley (R-IA), Mike Enzi (R-WY), and Olympia Snowe (R-ME), to stop the negotiating. “The goal is not compromise, and any bill coming out this year would be a failure for us,” the moderator says. He adds that “the Democrats will turn even a weak bill from the Senate Finance Committee into Canadian-style single-payer through underhanded implementation.” Single-payer, or a system of government-only health care, is not in any versions of the legislation in either house of Congress. Another organizer says, “The purpose of tea parties is not to find a solution to the health care crisis—it is to stop what is not the solution: Obamacare.” A spokeswoman for the American Liberty Alliance later acknowledges that comments like the ones noted by the AFL-CIO source were likely made, and that the organization’s specific goal is to prevent the current legislation in Congress from becoming law. No audio of the call exists, she claims. A “tea party” organizer later denies that his organization has any intention of “politically ‘accepting’ or denying legislation.” [Plum Line, 8/11/2009]

Entity Tags: Greg Sargent, American Liberty Alliance, AFL-CIO, Barack Obama, FreedomWorks, Senate Finance Committee, Charles Grassley, Olympia Snowe, Mike Enzi, Tea Party Patriots, Recess Rally

Timeline Tags: US Health Care, Domestic Propaganda

Wendell Potter, a former health insurance executive with CIGNA who has now become a whistleblower against the industry (see July 10, 2009 and August 10, 2009), says that the raucous and contentious protests at health care “town halls” are the result of what he calls “covert,” or “stealth” efforts by health insurance companies. Potter says he lacks the specifics for the current campaign, but he witnessed and actually took part in similar efforts in earlier years. This year’s efforts follow similar patterns to the ones he was familiar with, he says. “The industry is up to the same dirty tricks this year,” Potter says after meeting with House Rules Committee Chairwoman Louise Slaughter (D-NY), who supports the Democrats’ health care reform initiative. “When you hear someone complaining about traveling down a ‘slippery slope to socialism,’ some insurance flack, like I used to be, wrote that,” Potter says. He notes that during his 20 years in the industry, he watched—and participated in—the industry’s funneling money to large public firms who would create “Astroturf,” or fake grassroots, organizations (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, August 6-7, 2009, and August 10, 2009) and use friendly conservative media voices. Slaughter says, “[T]he notion that this is going to be something devilish comes from the people who would lose money on it.” [The Hill, 8/12/2009]

Entity Tags: Wendell Potter, Louise Slaughter

Timeline Tags: US Health Care, Domestic Propaganda

In an op-ed for USA Today, House Minority Leader John Boehner (R-OH) takes the White House to task for “letting House Speaker Nancy Pelosi [D-CA] and Congress run health care reform into the ground,” and says that Republicans have always “stood ready to work with him to pass bipartisan health care reforms that reflect the priorities of struggling American families and small businesses.” Boehner says Pelosi and the Congressional Democrats have crafted a bill that “puts Washington in control of Americans’ health care—something most Americans staunchly oppose.” He then accuses President Obama of trying to “spin the American people” about what he calls the “hopelessly flawed bill.” He terms the bill “radical,” and claims, falsely, that Pelosi and House Majority Leader Steny Hoyer labeled opponents of the bill “un-American” (see August 10, 2009—Pelosi and Hoyer wrote that “[d]rowning out opposing views is simply un-American”). Boehner says that neither Republicans nor anyone else “condone… the actions of those who disrupt public events,” but decries those who claim the dissent against the bill is in any way “manufactured” (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, and August 12, 2009). He says Obama is lying about the portion of the bill that would allow Americans to keep their present health care, and cites the debunked study by the Lewin Group (see July 27, 2009) as evidence. He says the bill would add $239 billion to the deficit over the next decade, says Obama is lying about not cutting Medicare benefits, and says Obama is lying when he says the bill would not lead to health care “rationing.” Boehner concludes by claiming that “Republicans are offering better solutions that would make quality health care more affordable and accessible for every American,” and calls on Obama to “scrap this costly plan, start over, and work with Republicans on reforms that reflect the priorities of the American people.” [USA Today, 8/13/2009] Liberal news and advocacy Web site Think Progress notes that Boehner’s office has sent out messages promoting the town hall disruptions, and notes that Boehner’s claims of “rationing” are wrong. [Think Progress, 8/13/2009]

Entity Tags: Think Progress (.org), Nancy Pelosi, Barack Obama, Steny Hoyer, John Boehner, Medicare

Timeline Tags: US Health Care, Domestic Propaganda

John Stossel.John Stossel. [Source: Nashville Scene]The lobbying firm Americans for Prosperity (AFP), which is heavily involved in so-called “Astroturf” protests against health care reform (see April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, Before August 6, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, and August 12, 2009), announces it will hold three town-hall style meetings in Wisconsin on August 26 and 27. The meetings will take place in the districts of three House members, David Obey (D-WI), Ron Kind (D-WI), and Tammy Baldwin (D-WI), all of whom AFP feels might be open to pressure. ABC reporter John Stossel will moderate the sessions for AFP. [Milwaukee Journal Sentinel, 8/14/2009] Progressive news watchdog Web site Media Matters questions the propriety of Stossel, a supposedly nonpartisan member of the media, moderating the sessions for AFP, an avowedly partisan organization. [Media Matters, 8/17/2009]

Entity Tags: Ron Kind, Americans for Prosperity, David Obey, Tammy Baldwin, John Stossel, Media Matters

Timeline Tags: US Health Care, Domestic Propaganda

BlueCross BlueShield logo.BlueCross BlueShield logo. [Source: TopNews (.us)]Health insurers have mobilized tens of thousands of employees to fight against the Democrats’ health care reform initiative, according to reports by the Los Angeles Times and the Wall Street Journal. The insurance industry’s primary motive seems to be financial gain, according to the Times reporters. Many of the nation’s largest insurers, including UnitedHealth, have urged their employees to become involved in protesting health care reform, and provided advocacy “hot line” telephone numbers, printed “talking points,” sample “letters to the editor,” and other materials in almost every Congressional district throughout the nation. And many insurers, including BlueCross Blue Shield, have sponsored anti-reform television ads targeting conservative “Blue Dog” Democrats, many of whom are considered vulnerable to pressure from the industry. The insurance industry is paying for over 900 lobbyists, spending $35 million in the first half of 2009 lobbying Congress and the White House. AFL-CIO spokesman Gerald Shea says: “They have beaten us six ways to Sunday. Any time we want to make a small change to provide cost relief, they find a way to make it more profitable.” [Los Angeles Times, 8/24/2009; Wall Street Journal, 8/24/2009]
Jamming the 'Town Halls' - Insurers like UnitedHealth and others are sending their employees to “town hall” meetings to protest against reform. The Journal reports, “[T]he industry employees come armed with talking points about the need for bipartisan legislation and the unintended consequences of a government-run health plan to compete with private insurers.” But they are instructed not to become contentious and argumentative, according to a “Town Hall Tips” memo provided by the industry’s chief lobbying organization, America’s Health Insurance Plans (AHIP—see Before August 6, 2009). The memo warns those attending the meetings to expect criticism, and to stay calm. “It is important not to take the bait,” the memo cautions. AHIP president Karen Ignagni says the town hall meetings are an opportunity “to strongly push back against charges that we have very high profits. It’s very important that our men and women… calmly provide the facts and for members of Congress to hear what these people do every day.” Larry Loew, who works for the insurance administration firm Cornerstone Group, says he attended a recent town hall meeting hosted by Representative Alan Mollohan (D-WV) because “my whole industry is being threatened.” Loew claims he was not coached by AHIP, but admits to preparing for the meeting by gathering talking points from hospital and insurance company Web sites. AHIP spokesman Robert Zirkelbach says about 50,000 employees have been engaged in writing letters and making phone calls to politicians or attending town hall meetings. [Wall Street Journal, 8/24/2009]
'Hallelujah!' - One industry proposal that is gaining traction among some in Congress is the so-called “individual mandate,” which would require all citizens to buy some form of health insurance. That provision would guarantee insurers tens of millions of new customers—many of which would receive government subsidies to help pay the premiums. Robert Laszewski, a former health insurance executive who now heads the consulting firm Health Policy and Strategy Associates, says of the provision, “It’s a bonanza.” The industry’s reaction to early negotiations can, Laszewski says, be summed up in a single word: “Hallelujah!” Linda Blumberg, a health policy analyst at the nonpartisan Urban Institute, says, “The insurers are going to do quite well” with health care reform. “They are going to have this very stable pool, they’re going to have people getting subsidies to help them buy coverage, and… they will be paid the full costs of the benefits that they provide—plus their administrative costs.” Aetna’s chief executive, Ron Williams, says: “We have to get everyone into the insurance market. That is a huge, big deal [and] everyone has coalesced around that.” [Los Angeles Times, 8/24/2009; Wall Street Journal, 8/24/2009]
Battling the Public Option, - Insurers have fought most strongly against the so-called “public option,” which would create a government-run, non-profit alternative to private health insurance. Some polls are showing public support for the public option has declined, and stock prices for the insurance corporations have tracked upwards. Other insurance industry proposals are gaining ground. The Senate Finance Committee is considering a proposal to lower the proposed mandatory reimbursement rate for insurers to policyholders from 76 percent to 65 percent, and the industry is pressuring Congress to lower the limit that insurers must meet to cover a policyholder’s medical bills, leaving more of the money it gleans from premiums as profits. “These are a bad deal for consumers,” says J. Robert Hunter, a former Texas insurance commissioner who works with the Consumer Federation of America. Insurance companies would reap huge profits by providing less insurance “per premium dollar,” he says. Former Cigna executive Wendell Potter says, “It would be quite a windfall” for the insurance industry. [Los Angeles Times, 8/24/2009]

Entity Tags: Consumer Federation of America, UnitedHealth Group, Urban Institute, Wall Street Journal, BlueCross Blue Shield, Alan Mollohan, Senate Finance Committee, AFL-CIO, Aetna, America’s Health Insurance Plans, Wendell Potter, Robert Laszewski, Health Policy and Strategy Associates, Gerald Shea, Cornerstone Group, J. Robert Hunter, Robert Zirkelbach, Ron Williams, Linda Blumberg, Karen Ignagni, Larry Loew, Los Angeles Times

Timeline Tags: US Health Care

Within minutes of the release of a new study by health insurance lobbying firm America’s Health Insurance Plans (AHIP) that claims health care reform would drastically raise costs to American families (see October 11, 2009), critics from different sides of the political divide dispute the study’s accuracy and question its impartiality.
White House: Study Ignores Key Elements of Reform - White House assistant press secretary Reid Cherlin says the study “conveniently ignores critical policies that 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.” [MSNBC, 10/12/2009]
'Blowback' from Study Possible - White House and Senate officials say that the insurance industry may suffer “blowback” over the report. Democrats may well close ranks behind either the Senate Finance Committee (SFC) bill or another version of the legislation, and liberal lawmakers may go after the insurance companies, maybe by proposing a cap on premiums or solidifying support for the government insurance plan. “They have opened themselves up,” says a senior Senate Democratic aide. “It is an incredibly stupid strategic blunder. If you are going to fire a shot like this, you fire a good shot.” Former industry executive Wendell Potter, who has become an industry whistleblower (see July 10, 2009), says AHIP is responding to critical analyses from Wall Street that the legislation will hurt private insurers. “Karen [AHIP official Karen Ignagni] had no alternative because the CEOs were so determined to do something to try to sway the committee to back off the reductions,” he says. “She didn’t have an alternative. They are obviously doing this on the eve of the vote in the Senate Finance Committee, hoping enough members of the committee would be concerned, to restore it. I think the strategy will backfire.” [Politico, 10/12/2009]
Economist: Study Fundamentally Flawed - MIT economist Jonathan Gruber analyzes the PWC study and concludes that it is fundamentally flawed. He writes: “The nonpartisan analysis based on information from the CBO [Congressional Budget Office] shows clearly that for those facing purchase in the non-group market, the SFC bill will deliver savings ranging from several hundred dollars for the youngest consumers to over $8,500 for families. This is in addition to all the other benefits that this legislation will deliver to those consumers—in particular the guarantee, unavailable in most states, that prices would not be raised or the policy revoked if they became ill.” On MSNBC, Gruber notes: “If the report had came out and said, ‘look we need stronger penalties, or premiums will go up,’ that’s a very valid point to make. But what the report says is that it went too far. It said with the current structure, premiums will be much higher than they are today. And that’s just wrong. I mean, the nonpartisan Congressional Budget Office has came out and said that for this bill, premiums in the exchange will be lower than they are in the none group market today. So they just drew the wrong comparison.” [Massachusetts Institute of Technology, 10/12/2009; Think Progress, 10/13/2009]
Democrats: Proof that Industry Needs Further Regulation - Representative Anthony Weiner (D-NY) says, “[T]he health insurance lobby today fired the most important salvo in weeks for the public option,” and adds that the study proves the industry needs further regulations imposed on it by Congress: “If you have the health care industry complaining that we’re going to raise costs because of these changes, it is them putting us on notice that we haven’t put enough cost containment in the bill. You know, the health care industry themselves is putting out a whole report saying that. That should be a tell to the [Senate Finance Committee] that you know what, maybe it’s time for them to go back and revisit the public option. In a strange way, and look, obviously they didn’t mean this, the health insurance lobby today fired the most important salvo in weeks for the public option, because they have said, as clear as day, left to their own devices, according to their own number crunchers, they’re going to raise rates 111 percent.” [Think Progress, 10/12/2009] Senator John D. Rockefeller (D-WV) charges the insurance industry with releasing a false study for political purposes. “The misleading and harmful claims made by the profit-driven insurance companies are politicking for corporate gain at its worst,” he says. “Their recent statements only further highlight that our focus here in Congress must be on the inclusion of a public health insurance option in the marketplace to protect families and put more money back in their wallets by creating greater competition and driving down costs.” [Politico, 10/12/2009]
Washington Post: 'Industry Hit Job' - The Washington Post’s Ezra Klein calls the report “deceptive” and “a predictable industry hit job,” and notes that the study was produced by accounting and services firm PriceWaterhouseCoopers (PWC), which in the 1990s was commissioned by the tobacco industry to do a study on the economic catastrophe that would result from taxing tobacco products. That study was found to be unreliable, and, perhaps not surprisingly, made all of its errors in favor of the tobacco industry. Klein writes that the same effect can be observed in this report on health care. He concludes: “But if the [study] doesn’t offer much in the way of trustworthy policy analysis, it is an interesting looking at the changing politics of the issue. In short, the insurance industry is getting scared. After many months of quiet constructiveness, they’re launching a broadside on the week of the Senate Finance Committee’s vote. The White House, which had a pleasant meeting with the industry’s leadership last week, was shocked by the report, and so too was the Senate Finance Committee. The era of cooperation seems to be over, and they weren’t given much advance warning. But the report might have another impact, too: The evident anger and fear of the insurance industry might do a bit to reassure liberals that this plan is worth supporting, after all.” [Washington Post, 10/12/2009]
New Republic: 'Questionable Assumptions' - The New Republic’s Jonathan Cohn chastizes PriceWaterhouse for deliberately, and explictly, choosing to believe that all the new factors included in the study will raise costs, when other analyses show that many of those factors will actually drive costs down. Cohn writes that the study is based on a plethora of “strange [and] questionable assumptions.” [New Republic, 10/11/2009]
Progressive Columnist: 'This Is News?' - Progressive columnist Josh Marshall wrote before the study was released: “Let me get this right. The big news tomorrow is that ‘America’s Health Insurance Plans’ (AHIP, aka the health insurance lobby) has commissioned a study by PriceWaterHouseCoopers that comes to the conclusion that the Senate Finance Committee bill is a bad, bad thing and would lead to health care costs going up even faster than they are under the current system. This is news?” [Talking Points Memo, 10/12/2009]
Washington Times: Defending the Study, Attacking the CBO - The conservative Washington Times defends the study as essentially accurate, and instead attacks the Congressional Budget Office, whose own figures differ dramatically from the PWC study. The Times editorial board calls the CBO’s estimates “fanciful” and “grandly overoptimistic,” and accuses the Democrats of adding opportunities for consumers to “game the system”—“It’s a mystery how the CBO can make its evaluation without once mentioning that individuals easily will be able to go without insurance while they are healthy and then buy insurance after they get sick.” The entire proposal allows Democrats to “avoid electoral accountability over the urgent health care needs of the people they say they’re trying to help but won’t.” [Washington Times, 10/12/2009]
AHIP Defends Study - Ignagni defends the study and says the lobbying firm did not release it to undermine the Finance Committee’s attempt to craft an acceptable reform bill. She says the industry’s main concern is getting everyone involved in health care to work together to bring costs down. There is a strong need, she says, to “encourage all the other stakeholders to participate in a broader effort so that they can too lend a hand and get costs under control in a much more effective way than we would.… We don’t see comprehensive cost control in any legislation.” [MSNBC, 10/12/2009]
PWC Backs Off from Study - Late in the evening, PWC issues a statement noting that the study only examined “a small slice” of the health care reform initiative, and saying that if other provisions in the reform package succeed in lowering costs, then the estimates of cost increases claimed in the study would be inaccurate (see October 12, 2009).

Entity Tags: America’s Health Insurance Plans, Anthony D. Weiner, Jonathan Gruber, Congressional Budget Office, Ezra Klein, Jonathan Cohn, Wendell Potter, John D. Rockefeller, PriceWaterhouseCoopers, Karen Ignagni, Washington Times, Obama administration, Joshua Micah Marshall, Reid Cherlin, Senate Finance Committee

Timeline Tags: US Health Care

PriceWaterhouseCoopers (PWC), the services and accounting firm that recently released a controversial study funded by the health care insurance lobbying firm America’s Health Insurance Plans (AHIP—see October 11, 2009 and October 11-12, 2009), backs away from claims that the report is comprehensive. Politico’s Chris Frates writes that the statement “basically sa[ys], ‘Hey, we weren’t paid to evaluate the effects of the entire bill, but rather a small slice of it.’ The statement only seems to reinforce critics’ view that the report is skewed precisely because it doesn’t take into account the totality of reform.” PWC’s statement concludes, “If other provisions in health care reform are successful in lowering costs over the long term, those improvements would offset some of the impacts we have estimated.” Frates explains, “In other words, PWC is saying if reform’s cost containment measures work, their estimate could be wrong.” [Politico, 10/13/2009]

Entity Tags: PriceWaterhouseCoopers, America’s Health Insurance Plans, Chris Frates

Timeline Tags: US Health Care

Former President Bill Clinton warns that the “tea party” movement is led, not by grassroots organizers and ordinary Americans, but by “people backing ultra right-wing corporate interests” who have been pushing the same agenda “for the last 30 years” (see May 16, 2008, August 2008, February 19, 2009, February 27, 2009, March 2, 2009, March 13, 2009 and After, March 23-24, 2009, April 2009 and After, April 6-7, 2009, April 8, 2009, April 14, 2009, April 15, 2009, April 16, 2009, May 13-14, 2009, July 23, 2009, July 24, 2009, August 4, 2009, August 5, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 10, 2009, August 11, 2009, August 11, 2009, August 11, 2009, August 12, 2009, August 28, 2009, July 3-4, 2010, and August 30, 2010). Clinton has advised Democrats to “listen to the tea party” because many of its supporters are “people who feel the middle class has been hosed… by big business and government.… There are a lot of real people in this tea party movement that are saying something everyone should hear—which is: ‘Seems like everyone but average Americans are doing all right here. The people that caused the financial crisis are all back in great shape.’” Clinton expresses his “sympathy” for the members, but draws a sharp distinction between the “tea party” rank and file and its leadership. “The problem is that if you look at the financial energy behind the tea party movement, it’s not about restricting abuse of big public and private power,” Clinton says. “It’s about destroying the role of government in our life so that private centers of power will be untrammeled, and I don’t think that’s good for average Americans.” Democrats should listen to “tea party” members, but Clinton warns against letting their rhetoric “cloud their judgment.” If Republicans take back the House of Representatives in November 2010, Clinton warns that that body will spend most of its time launching pointless, politically-driven investigations into the White House. The nation will experience “two years of unrelenting investigations into the White House, staff, and cabinet,” he says. That is how President Obama will be “rewarded” by Republicans for not investigating alleged Bush administration wrongdoing, he adds. [Politico, 9/20/2010; Salon, 9/21/2010]

Entity Tags: William Jefferson (“Bill”) Clinton, Obama administration

Timeline Tags: Domestic Propaganda

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