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Obama Cuts Private Deals On Health Care With Drugmakers, Hospitals

First Posted: 08/21/09 06:12 AM ET Updated: 05/25/11 02:40 PM ET

Obama

WASHINGTON (AP) -- In cutting deals with hospitals and drugmakers, President Barack Obama is giving a private inside track to special interests that's at odds with his promise to make policy in the open.

Obama promised Americans he would hold special interests at arm's length -- that it would no longer be business as usual in Washington. He pledged to open government and let the public and press hold his administration accountable.

And just over two months before the 2008 election, Obama promised before an audience in Chester, Va., to hash out a health care overhaul in public. "We'll have the negotiations televised on C-SPAN, so that people can see who is making arguments on behalf of their constituents, and who are making arguments on behalf of the drug companies or the insurance companies," he said then.

That didn't happen.

Instead, the administration's multibillion-dollar deals with hospitals and pharmaceutical companies have been made in private, and the results were announced after the fact. Both industries promised Obama cost savings in return for an expanded base of insured patients; beyond that, the public is in the dark about details.

In some ways, it resembles what his party criticized President George W. Bush for doing with oil and gas companies as Vice President Dick Cheney wrote a national energy plan in the early days of the Bush administration.

As the Bush White House did, the Obama White House is refusing to release visitor logs that would let people see everyone going in and out during the thick of discussions over major national policies.

Just as environmentalists complained they were shut out as Cheney drafted energy policy, employers now complain that the Obama administration isn't giving them enough say in health care policy. Like the environmentalists, employers fear a new policy will come at their expense.

"There's beginning to be a little bit of, 'Where are all these deals getting us?'" E. Neil Trautwein, chief health care lobbyist for the National Retail Federation, said recently, referring to business concerns that the hospital and drug company pacts would force employers to pay more for workers' medical benefits. "Is this going to add to the process or subtract from it?"

The White House had no immediate comment.

So what happened to the promises?

When cutting special interests out of his campaign and then his administration, Obama targeted people currently registered as Washington lobbyists. He never said he would cut off the companies, unions, trade associations and others that employ lobbyists -- just lobbyists themselves. And even then, he has made exceptions here and there.

Presidents, regardless of party, prefer to keep their dealmaking private, obscuring what's being said, what's being taken and given, and by whom. It's messier and less practical to open the door to a lot of public input, particularly on a national scale; it's much easier to use polls to gauge what the public thinks.

That means the interests whose ideas make it into national policy are usually those with the money and clout to press their case in Washington, and who have the power to block any idea they haven't helped to shape.

EDITOR'S NOTE -- Sharon Theimer has been an investigative reporter in the AP's Washington bureau since 2001.

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WASHINGTON (AP) -- In cutting deals with hospitals and drugmakers, President Barack Obama is giving a private inside track to special interests that's at odds with his promise to make policy in the op...
WASHINGTON (AP) -- In cutting deals with hospitals and drugmakers, President Barack Obama is giving a private inside track to special interests that's at odds with his promise to make policy in the op...
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04:30 PM on 07/22/2009
Obama, all promise, no delivery
11:09 AM on 07/22/2009
All of the backroom deals:

*Acorn
* big pharma
* Hospital management
* Goldman/Wall street - Fed (no audit)
* Moody's S&P
* Specter

Make the adminisrtration seem very corrupt/business as ususal -
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jmpurser
See My micro-bio
01:48 PM on 07/22/2009
Except Acorn is on the other side and so far doesn't seem to have had any "secret" meetings. If they did they were shockingly ineffective.
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HUFFPOST SUPER USER
spinns17
TEAMSTER
08:39 AM on 07/22/2009
Obama is selling us out.
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HUFFPOST SUPER USER
spinns17
TEAMSTER
09:18 AM on 07/22/2009
reagan.,bush and the repugs sold us out.
11:17 AM on 07/22/2009
But BO said he'd change that - honesty - integrity - transparency

I just don't see it
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jmpurser
See My micro-bio
01:48 PM on 07/22/2009
Obama SOLD us out when he took single payer off the table. Now he's holding secret meetings to discuss the price.
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HUFFPOST COMMUNITY MODERATOR
LemonMeringue
Happy Birthday, Steve Jobs - Feb. 24th
03:16 AM on 07/22/2009
This is WaPo.

They lost what was left of their credibility with that Salon baloney.

I wonder who paid them to publish this.
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HUFFPOST SUPER USER
LeLoup
Res ipsa loquitur, ergo tace!
10:54 AM on 07/22/2009
Thank you for pointing that out.
Truth is, the tone of the article was starting to seriously titillate my BS detector.
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jmpurser
See My micro-bio
01:49 PM on 07/22/2009
Discrediting the source doesn't address the facts and WaPo isn't the only one reporting this.
This user has chosen to opt out of the Badges program
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loki
Better to die fighting, than live on knees
02:39 AM on 07/22/2009
I dont get the rich whining about paying a little more in taxes. For instance, if they actually paid all their taxes, which they dont due to loopholes, they said a person making 1.5 mil a year pays about 500k in taxes. With the proposed health care increase it would by closer to 600k. Still leaving them about 1 mil a year. Thats if they didnt use any of the many lope holes to avoid paying their fair share.

Now, a person making 50k a year will pay about 15k in taxes , leaving them around 35k to live on that year. And there are no real lope holes for the working stiff, so they dont have much of an option except to pay all the taxes. Tell you the truth, I would be tickled pink if I could walk away each year with close to a million after taxes rather than the 35k after taxes. But Im not a privileges elite who things everything that crosses their hands should belong to them 100%.
02:54 AM on 07/22/2009
Yea..well I could care less about the rich..and your foolish if you think you won't be paying more in the form of other taxes..and by the way..the rich will remain rich enough to be able to pay more to see a doctor right away and get the tests they need right away..you'll be waiting a month to get approval from the government and then 2 months to get in..wake up..
10:41 PM on 07/22/2009
Wasn't there a study published recently that said 33% of all payroll being paid out in the country is going to the top 1%.

We are all so being ripped off. We need to identify this "top 1%" and do to them what they have been doing to us....

And yes, I do meant THAT.
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loki
Better to die fighting, than live on knees
02:33 AM on 07/22/2009
"Obama promised Americans he would hold special interests at arm's length "

Yes, that is correct and he is totally keeping his promise. He is at arms length away with his palm facing up. The special interest put money into his open palms until its to heavy to hold his arm out anymore, and then they just put the rest on his desk.
See , this is one promise he has no problem keeping.
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HUFFPOST SUPER USER
spinns17
TEAMSTER
09:19 AM on 07/22/2009
got something to prove this, go to the media .if not than dont spread false rumors.
11:52 PM on 07/21/2009
To the author, F U.
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HUFFPOST SUPER USER
Clayton139
Fight The Right-Wing (R) Spin Machine! VOTE 1% OUT
11:21 PM on 07/21/2009
If we can get a Good Quality Progressive Health Care Bill ! - I am for it !

I am on Disability and Medicare, Medicaid and it takes care of all my Doctor Bills as good or better than any AETNA, and/or Blue Cross Blue Shield, I have ever had !
In fact Aetna and Blue Cross would DENY me on lots of claims !

If President Obama can get this Health care Bill right then, it will be the BEST thing for our Country !
Who knows maybe we will become No # 1 in the World on Health care instead of No # 37th, !
http://www.photius.com/rankings/healthranks.html

Universal health care is health care coverage for all eligible residents of a political region and often covers medical, dental and mental health care.
Universal health care is implemented in all but one of the wealthy, industrialized countries, with the exception being the United States.
It is also provided in many developing countries and is the trend worldwide.
http://en.wikipedia.org/wiki/Universal_health_care
11:05 PM on 07/21/2009
I WONDER WHEN WILL ALL THE DETAILS WILL COME TO LIGHT. WE CAN GET HEALTH CARE REFORM WITHOUT BEGGING ANYONE TO DO IT. CHECK OUT THE 5 DOLLAR REVOLUTION. COM. IT'S A SINGLE PAYER TYPE PLAN THAT CAN COVER THE UNINSURED AND ANY ONE WHO WANTS REAL CHANGE. IT PAYS DOCTORS DIRECTLY AND DOESN'T ADD TO THE DEFICIT OR HIKE TAXES FOR ANYONE. CHECK IT THEN TELL THE PRESIDENT YOU WANT REAL REFORM THAT DIGNIFIES PEOPLE NOT PROFITS!
10:36 PM on 07/21/2009
from enoughalready: "Sadly, he's just like every other modern era President who is completely controlled by, and at the mercy of, special interests. This country is the biggest hypocrisy on earth. It is corrupt to the very core, yet mercilessly and arrogantly selfrighteous."

I beg to disagree. The USA is still looked up to by many countries who have been suffering from real tyranny for long, including those countries we liberated during the great World Wars.

WE THE PEOPLE are smart, noble and thirsty for truth. We don't accept liars and cheats in government, and never cease to expose them. We work like dogs to support our families, then work even longer for the greater good, from exchanging ideas on these blogs, to writing to and visiting our "elected" officials, to demonstrating on the streets. There's not much difference at the root of an honest Liberal or Conservative activist/reformer - we want the best for our country and are tired of the ruling oligarchs of every persuation making deals among themselves and robbing us of the fruits of our labor.

DON'T GIVE UP, enoughalready! WE THE PEOPLE outnumber THEM THE OLIGARCHS! Our Civil Society will outlast them; we WILL eventually elect a fairer President and Congress that better represents Mainstream America and is not at war with at least half the country!!
11:42 PM on 07/21/2009
I am not 'begging to disagree', I'm asking what planet you are from? For starters I live and work outside the U.S. (am a citizen though) and would like an example or five of countries where the U.S. is 'looked up to'. Because I've never seen one, though you are probably mistaking fear for respect. Lots fear us.

And unfortunately, as proven time and time again for decades the people of the U.S. collectively as dumb as a box of rocks and show no sign of improvement. In fact it's been going the other way. Change you can believe in is so easy with people that will believe anything. How is this rose colored future going to come about? Jesus is going to give all gringos brains and/or guts? We've passed the slippery slope already and are in free fall. Neo con Dems and neo con Repugs join forces to make their already tight control iron clad. Look around you.
07:31 AM on 07/22/2009
I could care less about how other countries "feel" about us. Maybe they fear us because if we were to pull our financial support of their countries..they would find themselves..in a catastrophic situation. This country gives more of it's Taxpayers money to other countries than any other country by miles..I love America..it's the best place to live on the planet.
10:20 PM on 07/21/2009
we know ..have freinds at drug companys......gov.com health care bill a good read
08:50 PM on 07/21/2009
Wait a minute. An inexperienced pol from the cleaner than clean political environment of Chicago is cutting deals!? This cannot be right.

Where's Roland Burriss when we need him?
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jmpurser
See My micro-bio
08:48 PM on 07/21/2009
Apparently "change we can believe in" means we changed the party that was selling us down the river.
08:40 PM on 07/21/2009
And here we have it folks. Another demonstration of why the left wing can't hold power for very long and therefore can't achieve its goals: the circular firing squad.

If the repugnicans don't do in this President - a briilliant, hard working man with actual ideals and a desire to imrpove the country - the loony left is always ready to lend a hand.
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jmpurser
See My micro-bio
08:47 PM on 07/21/2009
He's earned his criticism. I wish the Democratic party would NEVER see the kind of mindless support Bush got from the GOP there is sadly a good deal of it swirling up around Obama.

If he was all that brilliant and hard working then maybe he wouldn't have had to tell so many lies in order to get elected.