The Will Ferrell Video - Actually Not a Parody

The video you've certainly seen today, with Hollywood celebrities coming out to defend those poor insurance companies, has gone viral. What's a little less-known is that prominent Republicans are basically engaging in a note-for-note remake of that video, leaping to the defense of that industry which has turned in record profits, raising premiums even during the Great Recession and saving money by denying Americans care.

Here's the story so far: yesterday the Department of Health and Human Services launched an investigation into Humana for sending its elderly customers a mailer warning that they would lose benefits under the new health insurance reform plan. Interestingly, Max Baucus, yes that Max Baucus, registered the complaint that triggered the investigation. The whole thing concerns Medicare Advantage payments:

Humana is one of the largest private carriers serving seniors under a program called Medicare Advantage. About one-fourth of the elderly and disabled people covered under Medicare participate in the Advantage program, which offers a choice of private plans that usually deliver added benefits.

Humana has about 1.4 million Medicare Advantage enrollees, and the program accounts for about half the company's revenue, Noland said.

Government experts say the private plans are being paid too much -- about 14 percent more than it costs to care for seniors in traditional Medicare. The Baucus plan -- and other proposals -- would reduce payments to the plans, and the health insurance industry is fighting back.

The Humana mailer focused squarely on the Medicare Advantage program.

Actually the Medicare Advantage plans cost the government about 14% more and deliver less than traditional Medicare, according to the Government Accountability Office. We are subsidizing private industry billions of dollars so they can perform the exact same task as Medicare, and with lower quality.

The mailer that Humana sent to beneficiaries, designed to look like official communication with customers and not naked lobbying documents, wasn't all; a website which generated automatic emails to members of Congress, claiming to be from customers (despite the fact that anyone could generate an email), is also being probed. And of course, this is not the only example of insurance companies filling their customers' heads with misinformation and turning them into citizen lobbyists.

Of course, the industry went into full-on whine mode as a response, with Republican leaders right behind them.

A spokesman for America's Health Insurance Plans, the industry's main lobbying group, issued a statement Tuesday criticizing what he described as the government's "gag order."

"Seniors have a right to know how the current reform proposals will affect the coverage they currently like and rely on," AHIP spokesman Robert Zirkelbach said.

Sen. Mitch McConnell of Kentucky, the Senate's Republican leader, denounced the HHS order as an attempt to squelch free speech.

"We cannot allow government officials to target individuals or companies because they do not like what they have to say," McConnell said.

"Is this what we believe as a Senate -- that this body should debate a trillion-dollar health care bill that affects every American while using the powerful arm of government to shut down speech?" McConnell said.

McConnell noted that Humana, an insurer at the center of the controversy, is based in his home state. The company has been a large contributor to McConnell, donating $112,452 over his career, according to Eric Schultz, communications director for the Democratic Senatorial Campaign Committee. (emphasis mine)

Shocking that Mitch McConnell would leap to the defense, Will Ferrell-style, of a health insurer based in his state which has feathered his nest to the tune of six figures, no?

There is a difference between free speech issues and what Humana and others are doing, namely violating federal law. Medicare Advantage providers are contracted employees of the federal government, and under the terms of Medicare Advantage, providers have strict limits on what they can communicate to beneficiaries. This lobbying effort would appear to violate those guidelines, and those customers receiving this letter could be excused for believing it to be an official document warning of loss of benefits if they failed to take action.

In short, Medicare Advantage is a wasteful corporate welfare program providing no benefit to individual subscribers and actually worse quality of care to seniors, at a cost of around $150 billion over 10 years to the taxpayer. The government has no imperative to keep such a scheme going, and they certainly shouldn't be paying providers to send misleading letters to their customers so they can keep the gravy train going.

But the real amusement here is watching Republicans like Mitch McConnell read from the Will Ferrell script and crying to "leave health insurance CEOs alone," as if they don't get enough help from the taxpayers to fund their lavish lifestyles.

Follow David Dayen on Twitter: www.twitter.com/ddayen

Comments

[dwit]

Ah, the truth comes out about these SECRET meetings Obama had with the Pharma and Insurance company CEOs. No wonder he is totally on board with the Baucus bill. OBAMA AND THE INSURANCE COMPANIES WROTE IT!

"Sen. Chuck Schumer, a Democrat from New York, complained that he and others were never part of the deal with the Pharmaceutical Research and Manufacturers of America and were under no obligation to protect drugmakers from further costs.

Sen. Chuck Grassley, a Republican from Iowa, responded angrily that the deal would stand, noting that the White House helped adopt it.

"If you think this is a bad deal you ought to be embarrassed at your president at sitting down with these folks," Grassley said."

http://www.msnbc.msn.com/id/32983155/ns/politics-health_care_reform/

[keepemhonest]

How come I cannot find ANY of the quotes you posted on the link YOU provided?

The link you provided is just Sen. Olympia Snowe requesting to DELAY Health Care Reform and Sen Blanch Lincoln (turncoat D) agreeing with Sen. sleepy Bunning to DELAY voting on Reform.

[psomerset]

The problem with the John Hamm/Will Farrell promo is that it is too subtle. Those who are smart enough to catch the satire are most likely the ones who already agree with Hamm/Farrell. Others will not get it, and think that it does really sympathize with Health Care Corporation CEOs.

[mergina]

Hollywood is angry. CEO's make more than most of them for f*****g up peoples lives. More please.

[hippie chucker]

Yeah, Farrell made 20 million on just one picture, yet criticizes CEO's pay?
But I am sure Farrell rejected Bush's tax cuts, right?

[jayraye]

Entertainers actually do produce a product, Big Insurance produces nothing. In fact Big Insurance stands between the American people and a product they need to live, health care. American Citizens die as a result.

[keepemhonest]

hippieNOT,

Farrell is NOT criticizing CEO's pay ... He is criticizing that CEO's are putting THEIR profit before patient's HEALTH.

Health is NOT a commodity.

[Bonwell Parker]

It's hard to know if you're being serious, because the second half of your comment sounds to me like absurd sarcasm, but on the off chance that you're being serious, the majority of entertainment industry millionaires were staunchly against Bush's tax cuts, often offer to pay more in taxes, and if the government doesn't take their money they donate large amounts of it to charity.

"Hypocrite" shouldn't be considered the default—give humanity some credit.

[hippie chucker]

The healthcare bills advocated by Obama call for half a trillion dollar cut to Medicare (cost savings that if they exist he could have enacted his first week in office).
How is it a thoughtcrime to express the concern that cuts in service won't affect seniors?

If the tables were turned, and a nonprofit which spoke out against arts funding cuts by the government (who has made it clear that they were going to take 500 billion from arts programs for months now),
and the government launches an investigation against the non profit's pushback, think that might be a TINY bit of a 1st amendment overreach by the government?

The Orwellian blinders that the left has about the State's power and goodness are in direct proportion to the inherent evil it sees in government when the right is in power.

[Gidster]

Sorry, the facts do not back up your assessment.

The government PAYS these insurance giants billions in subsidies to manage and to administrate Medicare and Medicare advantage, the companies then charge more and deliver less to it's customers, this is a redundant payment, and the reduction or elimination of it will save the government a lot of money.

Comparing money given to a private for profit industry twice to do a single job to non profit arts funding that gives kids a more rounded education is intellectually dishonest.

Throwing Orwell out there is just fear mongering.

[hippie chucker]

Perhaps, you could forward your insight to Doug Elmendorf, the Democrat appointed head of CBO:

http://www.google.com/hostednews/ap/article/ALeqM5gJK9ly3ovzfflxGjV-dxk2sLILKgD9ASKCQG2

[dawnec1957]

Why dont the Republicans in the Mark-Up of the Baucus Bill want to restore Medicare.M­edicaid to the way it was 5 years ago. The amendment is about to be voted on , that will CLOSE the donut hole and provide full meds for Seniors AND save the taxpayer 86 BILLION dollars with a 30 Billion dollars surplus AFTER the donut hole is closed....­.The rethugs don not care about the seniors, PLAIN AND SIMPLE !

[LeftRight]

If those hypothetical organizations were contracted by the federal government to provide services to people, and were highly regulated on what they could communicate to the people they provide services to.......

[Margery Kempe]

I...am...n­ot..an..an­imal...I am...a Human..(co­rporate entity with fictive personhood).

[DAE]

Why does AARP sponsor Medicare advantage administered by UnitedHeathCare which sponsors astroturf townhall protests?

[Photon55]

You have to watch AARP closely because they need their profits just like any other organization and place profit above membership which they aggresively pursue.

[Uosdwis]

Humana, or more subtly, "humane-a.­" That's ironic.