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Wendell Potter

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How Obama and the Democrats Got Played by the Insurance Industry on the Mandate

Posted: 06/25/2012 7:45 am

Et tu, Ron?

As President Obama read former Aetna CEO Ron Williams' op-ed in the Wall Street Journal renouncing his support for a key provision of the health care reform law, he must have felt like Julius Caesar when Caesar realized, as he drew his last breath, that his close friend Brutus was in cahoots with his assassins.

Williams' betrayal appeared in last Monday's edition of the Journal under the headline, "Why I No Longer Support the Health Insurance Mandate." The fact that it was published just days before the Supreme Court was expected to rule on the constitutionality of the mandate made it clear that Williams was not the trusted advisor the President thought he was, that, like Brutus, Williams had thrown his lot with those plotting against the commander-in-chief.

The reason why that opinion piece was such a knife in the back was because it was Ron Williams who possibly more than anyone else had persuaded the President to reconsider his campaign pledge to enact reform without making people buy coverage from a private insurer. Candidate Obama's reform platform differed from those of Hillary Clinton's and John Edwards' in only one significant way: both Clinton and Edwards embraced the mandate, which Williams was championing, first behind the scenes and then publicly, on behalf of the insurance industry. Candidate Obama said he didn't believe it was right for people to be forced to buy somethin they couldn't afford.

Williams was the industry's most visible CEO on Capitol Hill during the debate on reform. He testified at numerous congressional hearings about how essential it was to move the millions of uninsured Americans into private health insurance plans and how an individual mandate was necessary to make that happen. He also never missed an opportunity to trash the idea of a "public option" to compete with private insurance companies, which candidate Obama had said was essential "to keep private insurers honest."

Capitol Hill was not the only place Williams was frequenting during the reform debate. In an August 2009 article in Forbes, Williams was quoted as saying that he already had met with the President six times. When I called the White House to confirm that, a top aide told me it was true Williams had been there many times, adding, "We've found him to be one of the more reasonable ones." More reasonable, presumably, than many of the other lobbyists seeking to influence the President. So reasonable, in fact, that in March of last year Obama appointed Williams to the President's Management Advisory Board.

I was still head of corporate communications and a member of the public policy team at Cigna when Williams began speaking out about the need for an individual mandate. Many in the industry, including my former CEO, Ed Hanway, were initially skeptical, so Williams set out to convince them he was right. He argued that if Democrats took control of both Congress and the White House, which was looking increasingly likely, they would set their sights on the insurance industry. They most certainly would attempt to ban many of the industry-wide practices that enabled insurers to be so profitable, such as refusing to sell coverage to people with preexisting conditions. If that were to happen, the best way to guarantee that insurers wouldn't be saddled with just the sickest Americans would be to get the Democrats to agree to a requirement that everybody, including the youngest and healthiest among us, buy private coverage if they weren't eligible for a public program like Medicare or Medicaid. The government would also have to agree to tax credits or subsidies to help low- and moderate income Americans pay their premiums.

Before long, the CEOs of the other big insurers were indeed on board. They came to realize that if Democrats would agree to an enforceable mandate and premium subsidies, their companies would be getting billions of dollars in new revenue every year -- forever. AHIP as a group soon endorsed the mandate, and Williams, who articulated the rationale for it so persuasively, became the industry's chief emissary to both Congress and the White House.

I'm sure the President was led to believe that industry leaders would do their best to get some of their Republican friends to support reform if he would agree to the mandate and drop the idea of a public option. No doubt the President was reminded that the mandate was, after all, a Republican idea, that, in fact, it had been the centerpiece of legislation introduced in both the House and Senate by Republicans as an alternative to Bill and Hillary Clinton's reform bill back in the early 1990s.

Tapping Williams to be the industry's front man paid off. Soon both the President and Democratic congressional leaders were endorsing the mandate. And in a joint address to Congress in September 2009, Obama threw the public option under the bus, saying that although he still thought it was a good idea, it wasn't essential. Williams, who retired from Aetna last year, had won on both counts.

The problem for the President, of course, was that industry executives could not deliver any Republican votes for reform -- or decided not to try when they were realized that lawmakers were not going to impose significant penalties on people who thumbed their noses at the mandate. In addition, the GOP leadership had planned from the get-go to denounce any reform legislation the Democrats came up with as a "government takeover of health care." Not only that, the President's political foes decided to build their legal challenge to the law around the mandate, arguing that it represented an unprecedented overreach of the federal government and, consequently, was most certainly unconstitutional.

Williams' op-ed would never have appeared in the Journal if industry leaders weren't nervous about what the high court will do. Their worst fear is that the mandate will be struck down but the rest of the law will be allowed to go forward. Knowing they can't rely on Obama and the Democrats to get rid of the new regulations and consumer protections under that scenario -- they've tried without much success so far -- they will need to help flip the White House and the Senate to Republican control to be certain the job gets done.

Williams' real audience for that op-ed was Republican lawmakers and kingmakers. It was a signal to the GOP that the industry's brief and often rocky affair with Obama is over and done with, that they were just playing the Democrats all along.

 
 
 

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Et tu, Ron? As President Obama read former Aetna CEO Ron Williams' op-ed in the Wall Street Journal renouncing his support for a key provision of the health care reform law, he must have felt like Ju...
Et tu, Ron? As President Obama read former Aetna CEO Ron Williams' op-ed in the Wall Street Journal renouncing his support for a key provision of the health care reform law, he must have felt like Ju...
 
 
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splashy
Really?!?!!!
05:15 AM on 06/28/2012
Trying to work with these big corporations and the Republicans is trying to work with grifters, people who will always try to work it around to their benefit, without any regard as to who gets hurt in the process. That's how they have made their money in the first place, so why would they stop at any time?

Thieves, criminals, con people - that's the description of the big corporate heads of these companies that don't produce anything of value. They just steal from everyone.
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08:17 PM on 06/26/2012
No, he just continues what Bush starts. So what does that make him?
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01:26 PM on 06/26/2012
They are the same. Two parties fighting for corporate interests. One just spins it in a better way.
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01:16 PM on 06/26/2012
"I'm sure the President was led to believe"

Pretty much says it all. Obama is not a leader. He is a follower in every sense. From continuing Bush policies to the mandate.
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WestSeattle8
O futuro Ă© agora.
08:15 AM on 06/26/2012
I would almost say let Romney win. And make sure the GOP takes the senate and has more seats in the House. Then all you Fox News viewers would see just how disastrous the conservative party line is. The middle class would be gone. We could all stand in bread lines if we're not on the front lines. The environment would be forever damaged. Healthcare would only exist for the wealthy. Public schools would disappear. And America would be over.

But, I did say almost. Because red states would still vote republican. They never learn their lesson.
12:09 PM on 06/26/2012
I would argue it is more of a degree of education. While some believe in the GOP ideology, most are ignorant of the fact that they are voting against their interests because the corporate owned media tows the line for business and the local news has been wiped out in this economy so you have millions being educated by Fox News and Limbaugh/Hannity on the radio.

They need someone to blame for their situation and Democrats are an easy target because a) they are almost as corrupt as the GOP and b) they refuse to fight back with easy to understand arguments. My guess is a is a symptom of why b happens too.
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WestSeattle8
O futuro Ă© agora.
08:05 AM on 06/26/2012
Look people. As long as you have the remote in your hand with your feet kicked up, CEO's are going to continue to make decisions for you. Remember the famous line of FDR to progressives? If you want me to do something, make me do it. As much of a joke the tea party was, at least they got off the couch and made their voices heard. Even with the nonsense they were hearing, they saw the results. At some point the intelligent people of this country need to make their voices heard. Loud and clear. Voting for Obama is NOT enough. Getting the GOP who insists on holding this country back out of office is the only real way to move this country forward. So stop thinking that one person, even if he is the president, is going to do all the work for you. I know you work hard and it's tough enough just to pay the bills and take care of the family. But all of that would be a lot easier if the country was moving in the right direction instead of being held back. It's up to you. Be the change you want to see, instead of waiting for someone else to do it for you.
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TheHandyman
Death...the last new experience you will ever have
04:14 PM on 06/26/2012
Try opening your eyes. Obama said that whst needed to happen in order to get a single payer system was that the Democrats would have to have the Senate, the House and the White House. When he came into office he had all that. And he won in a big way. All the polls showed that Americans wanted a single payer health care system with the figures ranging from 64% to 81%. Then Max Bacaucus hires himself 2 Health Insurance Industry insiders to write the health reform bill that wasn't. And Obama lobbied to take out those provisions he told the American public he would not sign the bill without. As Ralph Nader predicted, Obama was more concerned about the opposition liking him than he was about fighting for the People. And he has continued to do so. You propose the same cliche'd excuse that the Dims themselves put forth. You forget the Yes, We can! and the HOPE and CHANGE we were supposed to believe in that Obama sold himself as being able to accomplish. He has yet to veto, yet to stand up and fight for anything. Instead he trots down the same path as Bush while the people who eat lotus blossoms and worship all things Obama make excuses for him!
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05:33 AM on 06/26/2012
So if the entire health care package survives, will you write another article saying you were played?
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john649
03:55 AM on 06/26/2012
I actually hope the mandate is stuck down. Obama will by a small margin but he will win. We will re-do health care but with a Public Option or Single Payer. Either way it has to be amended.
No one on either side will be in business if it isn't.
07:41 AM on 06/26/2012
Wow you actually think the republicans are going to do anything to re-do the health care system and supply you with cheap affordable insurance? Its going to be more like if this fails you are own your own. You will either be able to afford a $35,000 dollar a year policy or you will not.
12:39 AM on 06/26/2012
People are in denial. People simply do not want to face the fact that our entire government, Republican and Democrat alike, is corrupt.
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WestSeattle8
O futuro Ă© agora.
08:08 AM on 06/26/2012
That is the biggest load of, well, you know. I understand the frustration with the Dems, especially the blue dogs. But to equate one party fighting for financial reform, expanded healthcare for all Americans, a level playing field in the business world and a tax system that makes the people at the top pay their fair share is not the same as the party fighting against every one of these things. No matter how you spin it, the two parties ARE NOT the same.
12:38 AM on 06/26/2012
Stop it. Stop it. Here's the story this guy is selling you: Obama, in the negotiation, agreed to do what the Republicans wanted to do, and in exchange, they agreed to support their own legislation.

So what Obama got back is a promise from the Republicans to support the result they wanted in the first place.

If you believe this, you are completely insane. That's like negotiating for a car, and agreeing to pay full sticker if the salesman agrees to support your decision to pay full sticker. Honestly, that's exactly what this story is trying to sell you.

There was no negotiation. Republicans and Democrats were told flat out that big money lobbyists were opposed to the public option, and both sides immediately agreed to make sure it didn't pass. Everything else from that point forward was designed to craft a cover story to get the American public to swallow this immense, disgusting betrayal.
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WestSeattle8
O futuro Ă© agora.
08:09 AM on 06/26/2012
You don't get to make up facts. Even if it is a free country.
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TheHandyman
Death...the last new experience you will ever have
04:22 PM on 06/26/2012
That's the thing with people who eat lotus blossoms, they no longer live in the real world. When someone tells them about what reality is like they just stare vacantly and keep on believing that their god is real. If you had been in the real world you would have remembered how all this went down and realize that Potter is just saying what the rest of us knew all a long, Obama sold out the People so he could look good and now the wheels are coming off this piece of crap legislation like it should.
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The Power To Unelect
Corruption Is Destroying The Nation
12:29 AM on 06/26/2012
Obama and the Democrats have played the entire country...

Which is why I re-registered as an Independent [not affiliated with any political party] and I will be voting Independent and Third Party only in the coming election.

I refuse to be played.
07:42 AM on 06/26/2012
Speaking of playing the entire country hows that hunt for WMD coming along for ya?
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MacTheCat
Those Clouds You See Aren't really clouds at all
11:54 PM on 06/25/2012
If he got played, then so much for the meme of the super duper 3 dimensional wizards chess playing Harvard genius president.
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WestSeattle8
O futuro Ă© agora.
08:11 AM on 06/26/2012
Um, your operative word is "if". He got healthcare passed. Something that was tried going all the way back to Teddy Roosevelt. So, actually, it is you that got played. Check mate.
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TheHandyman
Death...the last new experience you will ever have
04:24 PM on 06/26/2012
And when it all comes crashing down? You really aren't as bright as you believe you are. Your comments prove it!
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Gupdiver
We are in a period of Ineptocracy!
11:23 PM on 06/25/2012
He has to have someone to blame, he still blames Bush after 3.5 years in office for whatever. He is one who cannot accept responsibility for his own actions or decisions, always pointing a finger at someone else so it's never his fault. Give me a break, this is Leadership?
07:43 AM on 06/26/2012
Speaking of great leadership hows that hunt for WMD coming along for ya?
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Gupdiver
We are in a period of Ineptocracy!
12:06 PM on 06/26/2012
Typical response still blaming Bush. Has that Hope and Change going for you? Now it's I need another 4 years even though I haven't delivered on my promises. If you really want to blame the WMD hunt, try the CIA who convinced the President they were there. Just like now, Panetta is saying if we cut military spending we'll be in trouble.
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OleProfessor
"Ours is not a system based upon trust"
10:15 PM on 06/25/2012
We've seen this time and time again, the same as with so called Financial or Banking Reform..

Obama let's the devil ride, and when you let him ride, he'll wanna drive..!

Obama had over 70% support and squandered great opportunities to reform and repair America..

Still we must hold our noses and vote for him, as the Republicans are so much worse..much much worse...
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11:50 PM on 06/25/2012
If the President had any integrity, he'd decline to run for re-election and let a real progressive try. Obama is just representing the "democratic" wing of the Republican-Corporate party.
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OleProfessor
"Ours is not a system based upon trust"
04:38 PM on 06/26/2012
Something like that...
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tbmuch
I'm going to take a nap
10:04 PM on 06/25/2012
The way I see it, all of America citizens get played and messed over all the time by Congress, bankers, people that sell insurance policies, corporations, whomever is in the WH and lawyers.This is not all of the scalawags that play us all for imbeciles but think on those that I have listed and tell me whether you see anything different.