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Allison Kilkenny

Allison Kilkenny

Posted: August 9, 2009 06:37 AM

If Private Industry Loves Obama's Health Care Plan, Americans Will Hate It

What's Your Reaction:

At first, progressives mistook it for a sign of surrender. Harry and Louise were back, but this time, they were speaking out in support of the president's plans for health care reform. In the 90s, the pleasant middle-aged couple were paraded onto national television as part of a larger plan to derail President Clinton's health care overhaul. They returned this year in a $4 million TV campaign supporting reform, sponsored by Families USA and the Pharmaceutical Research and Manufacturers of America.

But this was actually a bad sign. The reason the pharmaceutical industry and private health care are throwing their weight behind Obama's plan is because -- quite simply -- the plan is great for business. The Harry and Louise II succor is the exact same breed of encouragement offered by Big Pharma in the form of $150 million on television commercials supporting Obama's health care overhaul that will begin over the August Congressional recess. Of course, this is in addition to the millions of dollars in advertising campaigns through front groups like Healthy Economies Now and Families USA, and the $1 million on similar advertisements under its own name.

Big Pharma is willing to spill this kind of cash because they know Obama's reform will pay out big time for them in the end, primarily because Obama has backpeddled on his promise to allow the government to negotiate Medicare drug prices.

During their appearances on Bill Moyer's Journal, Trudy Lieberman, director of the health and medical reporting program at the CUNY Graduate School of Journalism, and Marcia Angell, senior lecturer in social medicine at Harvard Medical School and former editor in chief of the New England Journal of Medicine, discussed why these kinds of industry-sponsored ads, specifically Harry and Louise II, should act as red flags to the American people. Below is an excerpt from the show's transcript (emphasis mine).

BILL MOYERS: Wouldn't that make you think that Big Pharma is supporting health care reform?


TRUDY LIEBERMAN: That's exactly--

MARCIA ANGELL: Yes, yes.

TRUDY LIEBERMAN: That's what they're supposed to be--

BILL MOYERS: But on their terms, right?

MARCIA ANGELL: On their terms. Exactly. Exactly.

TRUDY LIEBERMAN: This is what those ads are supposed to do. They're supposed to make the ordinary person believe that they're good guys this time around.

BILL MOYERS: And on their terms means what for them?

MARCIA ANGELL: Well, they can charge whatever they want. That there will be no bargaining. That--

TRUDY LIEBERMAN: Medicare.

MARCIA ANGELL: That Medicare Part D will not bargain for lower prices. There'll be no formularies. You know, even this thing about the pharmaceutical industry is going to kick in $80 billion over ten--

BILL MOYERS: Have we heard--

MARCIA ANGELL: --years. That the President mentioned in the press conference.

TRUDY LIEBERMAN: Only if health care passes. So.

MARCIA ANGELL: First this is $8 billion a year for the pharmaceutical industry. This is chump change. And second, it's only for brand-name drugs. So, in a sense, it's a subsidy for the most expensive drugs.

BILL MOYERS: Do you believe the health care industry when it tells President Obama that "we will voluntarily cut costs"?

MARCIA ANGELL: No. I mean, these are investor owned businesses. If they behave like charities, heads would roll in the executive suites. They are there to maximize profits. And that's exactly what they do.

TRUDY LIEBERMAN: What's happened now is that the industries have gotten pretty much what they want out of the bills that are going forward. And so, they need to build public support. They need to make everybody in the public realize that they actually are wearing white hats in this one. But behind the scenes, they are lobbying ferociously against the public plan, against cuts in doctors fees, against all kinds of things that they don't want. And for that they're using a different sort of lobbying tactic. All of these are communications or lobbying strategies that they know how to do and they are very excellent at doing them.

MARCIA ANGELL: It's clear that they can turn it to their advantage.

TRUDY LIEBERMAN: Right.

MARCIA ANGELL: That nobody is really trying to break their-- except the single payer people -- their death grip on the system. And here you have hundreds of for profit insurance companies that maximize their income by denying care to the people who need it most. And that's the insurance system. That's how we pay for health care. But you also have to look at how we deliver health care. And we deliver that, primarily or largely, in for-profit facilities -- businesses, hospitals -- whose interest is in delivering only profitable care. So, we have a system that's through and through, in both the payment system and the delivery system, is oriented toward profits. Neither the Senate nor the House is doing anything to change that.

I was recently contacted by a reader who tried to convince me that this kind of compromise between Big Pharma, Big Health, and President Obama was a good thing. "I just want everyone to be happy," the reader declared. It's a sweet thought, but unrealistic. The American people, Big Pharma, and Big Health can't all win. If Big Pharma is happy, chances are the American people will pay the price, and the same rule applies if the private health care industry is tickled pink by Obama's plans for reform.

President Obama was elected by the American people because he portrayed himself as a reformer. Back in 2008, he used fiery rhetoric chastising the "stranglehold" of the big drug companies. If that same Obama fought for universal health care and regulated the insane and inhumane price-gouging practices of Big Pharma, the American people would win.

Unfortunately, in Obama's new health care reform plans, the American people will lose.

Cross-posted from Allison Kilkenny's blog. Also available on Facebook and Twitter.

 

Follow Allison Kilkenny on Twitter: www.twitter.com/allisonkilkenny

 
 
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04:46 PM on 08/10/2009
USA is the only country in the world for American people who bankrupted by medical care. If you are poor or unaffordable to pay medical care in USA, then you are better off to be dead. The true tragedy about the medical care in USA is that the profit always prevails over people’s health and lives. There will never be a freedom in America because of greedy capitalism that uses various political contributions to pay politicians for supporting the profit need. Obama recently said that Canadian medical care will not work in America and therefore, Obamacare will cost you more and less medical care availability for everyone. Freedom is bogus in America! Shame on American Capitalism!
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HUFFPOST PUNDIT
jsgaetano
Semper Fidelis Tyrannosaurus!
03:44 PM on 08/10/2009
When Candidate Obama started talking about everyone "sitting around the big table", I realized the health care debate would be lost with him in charge.

Sadly, I was probably the only person in the country who felt that way. But then again, Edwards was more than happy to go Gary Hart while on the campaign trail, and a primary victory for him would have ended the same way.

And Hillary spent a whole lot of time courting Republicans, so that would have likely ended up the same way as it currently is.
03:41 PM on 08/10/2009
Russell Mokhiber of www.singlepayeraction.org gets to the point:

What do:

Rush Limbaugh

Barack Obama

Newt Gingrich

Nancy Pelosi

PhRMA

Families USA

America’s Health Insurance Plans

AARP

Harry Reid

Mitch McConnell

and Fox News

have in common?

They are all freaked out by single payer.

They have all bought the corporate line:

The market has a central place in health insurance.

In contrast, the majority of doctors.

The majority of nurses.

And the majority of the American people favor single payer.

They all agree — the market has no place in health insurance.

Single payer would eliminate the 1,300 private payers (insurance companies).

And replace them with one public single payer.

As Dr. Marcia Angell, former editor of the New England Journal of Medicine puts it:

Single payer is the only option that will control costs and cover everyone.

The right wing is seeking to defeat Obamacare primarily because they irrationally fear creeping socialism.

We seek to defeat Obamacare because it’s a bailout of the insurance and pharmaceutical industries.

And it won’t deliver universal health care to the American people.

Time to scrap Obamacare.

And start from scratch.
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porsche996
an inelastic scattering of photons
12:57 PM on 08/10/2009
Thanks for this truth Allison. The plans that are being supported by the Oval Office are sure to result in the biggest windfall of profits to the Health Insurance Industry in history.

This is too sophisticated an issue for the average voter to understand. The Presidents Blue dogs have dumped single payer and are redistributing campaign donations from republicans to democrats, that's the only change likely to result from this reform.

It's a sham and a farce IMO
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HUFFPOST SUPER USER
Steve Magruder
Administrator, Metro Issues :: Louisville
12:31 PM on 08/10/2009
Here's the funny thing: I would be politically impossible to pass through a reform that makes all health care related industries angry. It's much more feasible to target the one industry (private health insurance) that people overwhelmingly despises, and save the other fights for another day.

Even with a public option for insurance, we will continue to have the same privatized health care delivery we have now. We need those providers on board. They should be happy to get all the new business with new patients.

And as far as the pharmaceutical companies are concerned, with a lot of new customers, they can drive greater economies of scale. This explains why they can drop prices on their products -- higher volume will mean they will ultimately _make money_ on reform.

In our zeal to deal with these problems and even push for a robust public option, we shouldn't act like we're anti-business to do it. It should be about target the scamming behavior of private health insurance companies.
12:28 PM on 08/10/2009
again, what's good for the corporates (maximum profit at all cost) is BAD for the people.

simple as that.
11:38 AM on 08/10/2009
we need to work against obama on this one.
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HUFFPOST SUPER USER
Steve Magruder
Administrator, Metro Issues :: Louisville
12:22 PM on 08/10/2009
Disagreed. Most of the current reform bills are plenty good enough to move the country in the right direction.
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porsche996
an inelastic scattering of photons
01:12 PM on 08/10/2009
Current legislative system is corrupted and in need of campaign reform, agreed?

So, that being agreed, how can any reform done by the corrupted co-pted politicians be of substance and or have integrity? This includes the President that is the biggest single recipient of Health Insurance companies support in 2008.

First address the corruption outlaw the lobbyists and make election reform, term limits the first agenda, then perhaps Americans could be more confident of the integrity of any reform legislation created by the legislature.

This is typical of Chicago style democrats that are on the take, calling for reform of the system that enables their own corruption. the hypocrites are "clearing out the temples"

Yeah right, and the Kennedy assassination wasn't a conspiracy, right?
11:27 AM on 08/10/2009
There are over 50 million americans without health insurance. If just 5 million were organized in coordinated marches throughout Main Streets through America on Saturday/Sunday mornings, a Public Plan would gather the attention it deserves.

However, the majority of people in the U.S. want someone else to fix their problems. They don't want to voice and fight for their human health rights.

I predict a future where more and more americans will immigrate to other countries that offer Human Services for its' citizens.
Medical Tourism is also on the rise.
I for one will not support a corrupt medical system that we have in the U.S.
It's full of thieves and criminals.Their only concern is greed over good.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
12:09 PM on 08/10/2009
". If just 5 million were organized in coordinated marches throughout Main Streets through America on Saturday/Sunday mornings, a Public Plan would gather the attention it deserves."

These are the workers at the lower end of the wage scale, not the idle poor who have the best insurance already. It will be hard to organize them when they most likely are working their second job on Saturday/Sunday.
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HUFFPOST PUNDIT
DRaymond
Network administrator, voiceovers
11:26 AM on 08/10/2009
So by your logic it is impossible for a private industry to succeed by providing a quality service at a fair price.

If auto companies win, car buyers must lose.

If airlines win, passengers must lose

If cell phone companies win, callers must lose

If Colleges and Universities win, students must lose.

Getting rid of the practices that cause people to hate and fear their insurance companies isn't the same thing as causing the insurance companies to 'lose'. When it boils right down to it the 45 million uninsured in America are 45 million potential new customers. And when Americans start not avoiding their doctors because of being worried about being denied coverage or being labeled as having an undesirable medical history there will be more prescriptions written for things like blood pressure and cholesterol lowering drugs.
03:41 PM on 08/10/2009
Providing health care is not the same as building car or cell phones.

The market works better in some applications than in others.

Not everyone needs a cell phone--or the fanciest cell phone.

Not everyone needs a car--or the fanciest car.

But EVERYONE needs basic, decent health care. If you restrict health care on the ability to pay, as the U.S. system does, you are sentencing people to suffering and death. Some 20,000 people die in this country every year because they cannot afford medical treatment--that's the equivalent of three 9/11s every year.

Medical care should be classified as a basic physical protection of the citizenry, like police and fire protection, as it is treated in every other civilized, industrialized country. They all guarantee police, fire, AND health protection to all citizens. The U.S. guarantees police and fire protection but consigns health care to the cruel whims of the marketplace, with its brutal price rationaing, price gouging, and vastly wasteful, sprawling billing bureaucracies and profit skimming, which waste some $400 billion per year.

How would you feel if your house were burning down and the fireman who showed up asked for a hundred-dollar copay before he would turn on the hose? And what if you didn't have it on hand? Would he be justified in letting your house burn to ashes? Are human lives less important than houses?

Think it over.
11:19 AM on 08/10/2009
I really like Obama and I think he is doing his best against the monopolies in the Insurance/Drug industries.
This is Health Insurance Reform, nothing to do with Healthcare.
Every man, woman, and child with a social security number will be mandated to BUY health insurance.
There will be loopholes/­exceptions to the rules. Those earning at or below poverty wages will get Free Health Insurance. Overall premiums will go down, so the wealthy who already buy insurance will benefit.
The middle class will get squeezed because they will have to BUY their own insurance.

So, unless you demonstrate on your taxes that you earn below poverty wages, you will have to buy health insurance. More cash businesses and jobs will proliferate and more people will hide their incomes from the tax man.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
12:17 PM on 08/10/2009
"The middle class will get squeezed because they will have to BUY their own insurance. "

Faulty logic abounds.

The middle class buys their insurance now, whether privately or through their employer. How would they not benefit from the same cost reductions that you claimed the rich would enjoy? Is there a bit of reverse class envy going on here?

Every insurance policy includes a hidden cost of $900 pr year to compensate for the unpaid medical bills of the uninsured. Do you think that these bills just go away? Each provider has adjusted their fees to make up the hit of serving the uninsured who have no hope of paying even a minor medical bill under today's costs.
10:50 AM on 08/10/2009
Obama/Dems prove how right-wing US Media and Government are and what utter complete lunatic Republicans are.

After all consider these FACTs:

1. Obama/Dems ran on the promise of brining about Universal Health Care, something that EVERY European nation, Canada, every developed nation has, but once in the office Obama/Dems are having a bi-partisan group to study the health care crisis
in US and suggest improvements to the current system, to make it more affordable!

Are you kidding us?
Universal Health Care is something that is very well known, as it has been practiced in all developed nations of the World for the past 20 to 30 years!
This is not a new thing, this is not a mystery, Universal Health Care has been in PRACTICE for more than 30 years in ALL European countries. To be exact, Universal Health Care as it has ben perfected for many years now in England, Canada, France, etc. etc. means the following:

I) Every citizen gets the same health care, regardless of their income or whether they have a Job or not.
II) Universal Health Care is paid for from the Taxes that people pay.
III) Health care is pretty much operated on a not-for-profit basis.

For sake of lack of space here, U can read full article here:
http://www.anoox.com/blog/real_news.article=33758
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HUFFPOST COMMUNITY MODERATOR
Coinyer101
King of Doobiestan
10:48 AM on 08/10/2009
I agree completely. This battle was lost the day single-payers were escorted from the roundtable. They gave up their best bargaining chip, before the debate even began. And allowing a useless congress, that very few have any confidence in, to draw up the plan was a major fail. Once again President Obama failed to 'lead'.......,
10:48 AM on 08/10/2009
If the assumption of these guests were that President Obama would root out the capitalistic tendencies of insurers, pharmaceutical companies and providers they are naive in the economic ways of the world..However if you can shift some of those dollars that are generated from the transactions to help support the system ,you have effectively tunred lemons into lemonade..Our goals are to provide health care to all, improve quality and reduce costs..I didn't hear that prohist made off of health care is evil..
10:11 AM on 08/10/2009
Healthcare? It's the health of the CORPORATE PROFITEERS' BOTTOM LINE vs Your Health.
And YOU LOSE!
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Kassandra
Idiot savant artistic genius
10:02 AM on 08/10/2009
Well, I guess they'll own ALL our houses in the end because NOBODY can afford to pay them anymore with their mob extortion/protection rackets. They're really shooting themsleves in the foot as well as destroying the very capitalism they love so very much.

This will truly and completely end America as we know it. Hope no more.
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BBackSoon
Hello, I must be going.
10:59 AM on 08/10/2009
I am not a Con spiracy nut but do a search on the New World Ord er. According to the stuff I have read in order to fulfill their dreams of complete control they will own everything, allow billions to starve to death and keep a small subservient working class to provide the goods and services for the Ruling class. This will allow plenty of natural resources since the demand will be much lower.

Not sure if I believe but it sure looks like a possibility.
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porsche996
an inelastic scattering of photons
01:27 PM on 08/10/2009
Already in place, have you been in a coma? This plan began Nov. 22, 1963 it is very far advanced and nearly complete, when the Red Chinese are revealed to the masses as being our new masters perhaps then you'll get it?

Did it slip by you last month that President Obama was offering an explanation and apology to Red China for the reports that more senior in America were increasing their credit card debt? The President of the US has to report to our creditors on the smallest of economic factors affecting our credit rating to foreign governments? The FED Reserve is a private banking entity controlled by foreign interests.

We are enslaved now, our upside down mortgages ensure our cooperation and adherence to the new credit guidelines. The real estate bubble was created to pull the rug of freedom out from under the masses of Americans that have few options now.