Ex-Insurance Exec: Industry "Playbook" At Work Against Health Reform

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First Posted: 08-12-09 04:56 PM   |   Updated: 08-12-09 07:43 PM

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The latest wave of attacks on health care reform are straight from the insurance-company "playbook," a former industry vice president told reporters at the Capitol Wednesday.

"I know from years as an industry P.R. executive how effective insurers can be using scare tactics to turn public opinion against any reforms that affect profitability," said Wendell Potter, who ran corporate communications for health insurance giant CIGNA until last year. "This year, you can rest assured the industry is up to the same dirty tricks."

That's not to say insurers are sending angry citizens to town hall meetings, but Potter said that through "shills" and "buzzwords" they are indirectly responsible for much of the anti-reform "lies and disinformation" dominating the current debate.

"Americans should realize that when they hear isolated stories of long waiting lines or wait times to see doctors in Canada, and allegations that care in other systems is rationed by government bureaucrats, the insurance industry has written the script," he said. "They're masters of linguistics. They know hot-button issues. They know buzzwords that get people excited."

If anyone knows the playbook, it's Potter, who helped oversee CIGNA's opposition to health care reforms from the Clinton era forward. Since the early nineties, he said, insurers have publicly espoused support for reform while privately funneling patients' premium dollars to front groups working to turn Congress and public opinion against any change. Potter said the industry funded the Health Leadership Council's crusade against Clintoncare and helped form the Coalition for Affordable Quality Health Care and the Health Benefits Coalition, the latter billed as a broad group of business interests, to fight the Patients' Bill of Rights.

Stirring up grassroots support was a big piece of that strategy, Potter said. P.R. firms would reach out to groups like the Christian Coalition and Family Research Council, asking their members to write angry letters to Congress and make a scene at press conferences.

After Clinton-era reform efforts went down in flames, the health insurance industry made no effort to reduce coverage denials for preexisting conditions or other reforms they told Congress they supported, said Potter. More recently, he said, insurers used P.R. vehicles like APCO -- a powerful D.C. firm best known for fronting Phillip Morris' pseudo-scientific defense of smoking back in the nineties -- to try and damage the credibility and limit the influence of Michael Moore's 2007 documentary "Sicko".

Insurers have been effective at maintaining "Wall Street-run health care," Potter said. A strong public option is necessary to change that model, he said -- otherwise, the final bill "might as well be called 'the Insurance Industry Profit and Protection Act.'"

The strength of the public option is likely to make for the toughest fight on the House floor. Conservative Blue Dog Democrats in the Energy and Commerce Committee derailed negotiations for nearly two weeks before emerging with a weaker version of the public option included in bills from the Ways and Means and Energy and Commerce committees.

House Rules Committee Chair Louise Slaughter (D-N.Y.) joined Potter at the press conference Wednesday afternoon, and said staffers on the respective committees are currently working to combine the three bills into one. Slaughter dodged the question of which public option will emerge in the final bill, but noted that she herself hopes to make use of it, as she currently relies on her husband's health insurance from Kodak rather than the generous plan available to members of Congress. "I think the public option is key," she said.

The House will have time to thoroughly judge the final bill, Slaughter said, promising that there would be no repeat of the abrupt passage of climate change legislation late on the night immediately before the July 4 recess.

Can Congress get legislation to President Obama's desk sometime in September?

"That would be nice. Of course, there's no bill without the Senate," she said, pausing briefly to search for words. "The ... well, the Senate."

The latest wave of attacks on health care reform are straight from the insurance-company "playbook," a former industry vice president told reporters at the Capitol Wednesday. "I know from years as a...
The latest wave of attacks on health care reform are straight from the insurance-company "playbook," a former industry vice president told reporters at the Capitol Wednesday. "I know from years as a...
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Increased funding for health providers and insurance for non insured individuals is an ongoing need. However this should not be confused with true and needed health reform as this requries effective spending of money and a focus on daily health care outcomes of every provider. Canada is mentioned as a model of medicare however the reality is annual government spending is over 42% for health expenditures alone with increasing privatization of health services. Imagine a US State or Federal budget where over 42% is for health care alone. Solely increasing the supply of money will lead to the squandering of billions and poor outcomes identified by others including the Commonwealth Fund. The publication Squandering Billions Health Care in Canada is print version preceding SiCKO. the steady increase of the supply of money without improved outcomes will only fuel inflation beyond any management. Real health care reform must lead with improved outcomes.

    Favorite    Flag as abusive Posted 04:12 PM on 08/14/2009
- rogi99 I'm a Fan of rogi99 2 fans permalink

Someone should "cut" and add featuring this guy.

    Favorite    Flag as abusive Posted 03:09 PM on 08/13/2009
- Deschris I'm a Fan of Deschris 19 fans permalink

There is a current AD which states that all of this is on the backs of seniors,ra­tioning,50­0 billion in cuts to medicare and medicaid,no mri's,death panels...scaring the sh**t out of seniors.Now I might be wrong,but this same voice was in all those anti Obama ads during the election and the same voice appears in most right wing ads,anti abortion etc; I thought that guy was dead or out of business,BTW CNN has been playing that AD like every 15 to 20 minutes.I think the organization is something about americans for the over 60 years....and they seem to be well funded.Pro reformers must confront this type of stuff....it's a war folks!!
Thank goodness Huff Post let us comment,as soon as a few people have commented on CNN they close comments.Is it just me or have they become like FOX and the National Enquirer. You know a lot of us folks in Canada came up for the Inaugration of Pres Obama and you all saw the reception he got here in Ottawa,in the cold....WE LOVE HIM and we ENVY YOU,don't let him down and yourselves­...organiz­e and march on Washington teach those wavering dems and rethugs who is boss...YOU.

    Favorite    Flag as abusive Posted 01:58 PM on 08/13/2009
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If the Democrats don't want to see health care reform go down in flames under a barrage of lies and scare tactics, they should work to make sure that every household in America knows the name Wendell Potter.

The president needs to meet with him and start dropping his name. Progressive groups need to put him in TV ads. He's been on the inside and he knows what goes on.

    Favorite    Flag as abusive Posted 01:41 PM on 08/13/2009
- ASF I'm a Fan of ASF 2 fans permalink

I have an idea that will give the option of healthcare to the millions that have none, all the seniors on Medicare who do not want socialized government run healthcare opt out and buy their own,leaving it for everyone who does.

    Favorite    Flag as abusive Posted 01:25 PM on 08/13/2009
- missmaryc I'm a Fan of missmaryc 6 fans permalink
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I worked for CIGNA and met Wendell a handful of times. He seemed to me to be a very kind, almost grandfatherly type. Guess that helped when he was CIGNA's front man. So, I'm glad he's coming clean (and I imagine the list of former colleagues who are also on his list of friends now is pretty short). But how about having the guts to say he regrets his work of the past? I hope that he does, and I think HE could be a great proponent for reform...as he seems to be "reformed" himself on this topic.

    Favorite    Flag as abusive Posted 12:56 PM on 08/13/2009
- Grannysue I'm a Fan of Grannysue 128 fans permalink
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For the person who said "I don't believe that it's that bad yet", when speaking about the thousands of people who lined up for free healthcare exams in L.A. presented by Doctors without borders, worked in healthcare for thirty years, guess what in 2001 the Emergency Rooms saw 17% of their patients without insurance, today it's 46%. Any Questions?
As far as this executive, good for him, sometimes it's too little too late but at least he's finally being honest.

    Favorite    Flag as abusive Posted 12:35 PM on 08/13/2009
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That would be me. I know its bad. I also know that I would never go to one of these third world countries for my health care. I also know that if we focused on spending as much as we send overseas on the poor hear in America we wouldn't have had half as many people lined up at the Forum as there was. You seem to think that I didn't know that the Doctors and Nurses are from Doctors Without Boarders and routinely do this in other countries. What if they devoted their full time to treating the poor and ill here in America? Once again don't get me wrong, I support what they do and feel it is a noble endeavor, but how can I help anyone without first helping myself? If I am sick and out of work how can I show the love to the rest of the world?

    Favorite    Flag as abusive Posted 12:56 PM on 08/13/2009
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Re posting my reply.

    Favorite    Flag as abusive Posted 01:10 PM on 08/13/2009
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That would be me. I know its bad. I also know that I would never go to one of these third world countries for my health care. I also know that if we focused on spending as much as we send overseas on the poor hear in America we wouldn't have had half as many people lined up at the Forum as there was.

    Favorite    Flag as abusive Posted 01:11 PM on 08/13/2009
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You seem to think that I didn't know that the Doctors and Nurses are from Doctors Without Boarders and routinely do this in other countries. What if they devoted their full time to treating the poor and ill here in America? Once again don't get me wrong, I support what they do and feel it is a noble endeavor, but how can I help anyone without first helping myself? If I am sick and out of work how can I show the love to the rest of the world?

    Favorite    Flag as abusive Posted 01:11 PM on 08/13/2009
- tantrictim I'm a Fan of tantrictim 30 fans permalink
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watching doctors without borders treat indigent people at a los angeles areana in desperate need of health care, is a shocking image and only reinforces the notion that america is slowly becoming a third world country where health care is a "privilege" for the bourgeoise

    Favorite    Flag as abusive Posted 12:21 PM on 08/13/2009
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I don't believe its that bad yet, but your point is well taken, especially because I live in LLay.

    Favorite    Flag as abusive Posted 12:29 PM on 08/13/2009

Big Pharma is spending $150 million FOR Obamacare. Stop your whining - that's more than the entire cost of John McCain's presidential campaign (but not Barack I-believe-­in-campaig­n-finance-­except-whe­n-it-affec­ts-me Obama). If Democrats can't overcome the efforts of a relatively large lobby with the combined efforts of the most affable president in recent times, super majorities in both chambers, and the third largest lobby, then they have no one to blame but themself.

    Favorite    Flag as abusive Posted 12:06 PM on 08/13/2009
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If that was the case it would be easy, but you and I both know that it isn't. By your comments alone you show the falsehood of your premise.

    Favorite    Flag as abusive Posted 12:11 PM on 08/13/2009

The Daily Kos article that claims that PhRma is authorized to spend $150-200 million advertising for healthcare in August of 2009 - http://www.dailykos.com/story/2009/8/8/14427/88164

I assume you know that there is a Democratic President, a filibuster-proof majority in the Senate and a majority in the House, so I don't need to prove that. So just what is it that you find difficult?

    Favorite    Flag as abusive Posted 12:25 PM on 08/13/2009
- plz I'm a Fan of plz permalink

Clearly, you have already bought the insurance script "hook, line and sinker." Obamacare? What the heck is that? Oh, I know, a buzzword for all the Obama haters. If you hate Obama, then of course you will hate health care reform, even though you might be uninsured, on Medicare or in the most danger of losing the insurance you have.

Also, that "relatively large lobby" can afford to spend a million dollars a day just on lobbying. Wonder how much of a stake they have in the status quo?!

Again, hook, line and sinker!

    Favorite    Flag as abusive Posted 12:15 PM on 08/13/2009
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I wonder how much of that money will go to help him with his medical bills when he really needs it?

    Favorite    Flag as abusive Posted 12:27 PM on 08/13/2009

Don't get me wrong - I'm not normally an Obama-fawning leftist, though there are many issues you and I would probably agree on. That being said, fact is fact. I'll accept your claim that insurance is spending $1 million a day on lobbying - that sums up to $31 million for the month of August. Pales in comparison to Big Pharma's $150, does it not?

    Favorite    Flag as abusive Posted 12:27 PM on 08/13/2009
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Health care is just the excuse, something a lot bigger is going on. Don't get me wrong, this issue is so very important and the conversation has to be had, but look at what the topic of discussion is on all the major blogs and media networks.

    Favorite    Flag as abusive Posted 11:55 AM on 08/13/2009
- jsgaetano I'm a Fan of jsgaetano 193 fans permalink
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I haven't seen Kenny the out of work teabagger with no health insurance begging for money lately. Is he the next Joe the Plunger or what?

    Favorite    Flag as abusive Posted 11:29 AM on 08/13/2009
- Joe Caps I'm a Fan of Joe Caps 35 fans permalink
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Why is Obama having his OfA members serve as fake doctor plants at town halls? That's very dishonest.

http://lonestartimes.com/2009/08/13/obama-camp-plants-fake-doc-che-fan-at-jackson-lee-forum/

http://my.barackobama.com/page/event/detail/4r9wf

    Favorite    Flag as abusive Posted 11:21 AM on 08/13/2009
- MJHammonds I'm a Fan of MJHammonds 99 fans permalink
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There is no evidence that Obama had anything to do with those people being present at those meetings, if indeed the information on a politically motivated blog has any credibility whatsoever.

    Favorite    Flag as abusive Posted 11:47 AM on 08/13/2009
- Joe Caps I'm a Fan of Joe Caps 35 fans permalink
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Huh? The woman offered up her name in the town hall. OBAMA's website lists her as a lead delegate for OfA. She has admitted to lying. What else do you need?

    Favorite    Flag as abusive Posted 11:57 AM on 08/13/2009
- Joe Caps I'm a Fan of Joe Caps 35 fans permalink
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I am sure you take everything you read at the HP with a grain of salt, as it is a "politically motivated site," no?

    Favorite    Flag as abusive Posted 11:58 AM on 08/13/2009
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Thanks for your valueless proof.

    Favorite    Flag as abusive Posted 12:04 PM on 08/13/2009
- Joe Caps I'm a Fan of Joe Caps 35 fans permalink
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Did you look into it at all? It's pretty cut and dry.

    Favorite    Flag as abusive Posted 12:24 PM on 08/13/2009
- TJCole I'm a Fan of TJCole 153 fans permalink
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I have written here as the son of the retired Head of Litigation for State Farm Ins. co. who will tell you, that

"Insurance is the biggest racket in America. bigger than banking or Wall St....!"

THEY SUFFER LEAST, WHO SUFFER WHAT THEY CHOOSE..!

    Favorite    Flag as abusive Posted 11:11 AM on 08/13/2009
- bbrecht I'm a Fan of bbrecht 18 fans permalink
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Here's a 60 minutes video of one of the Remote Area Medical health fair's Potter is talking about. Please watch and share with friends, it's really shocking--

http://www.youtube.com/watch?v=t9JmEHsCv4c

    Favorite    Flag as abusive Posted 10:53 AM on 08/13/2009

How in the name of God is this not on TV every day to counter Harry and Louise?

    Favorite    Flag as abusive Posted 11:07 AM on 08/13/2009
- BeauRadley I'm a Fan of BeauRadley 13 fans permalink

Really? Who'd a thunk it. Of course they're out to destroy the plan. Nothing like corporate fascism and the insurance industry as its avatar.

    Favorite    Flag as abusive Posted 10:52 AM on 08/13/2009
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