September 23, 2009
HUMANA VS. BAUCUS/CMS.... Humana, among the nation's leading private insurers, is not at all pleased that policymakers intend to pay for health care reform by reducing unnecessary spending in Medicare Advantage. Humana, after all, makes an enormous amount of money through the program.
So, the company, which has already spent $1.2 million on lobbying on health care, initiated a new mobilization campaign, contacting its customers with frightening and misleading letters to try to scare them about reform, and creating a website to send form emails to lawmakers. (The emails identify the sender as Medicare Advantage members, whether they are or not.) This came to the attention of the Centers for Medicare and Medicaid Services, which began investigating Humana's lobbying efforts.
More importantly, at the request of Senate Finance Committee Chairman Max Baucus (D-Mont.), the CMS asked Humana to stop the misleading mailings and shut down the form-email website. The agency has authority on the matter, given all the taxpayer money Humana accepts, and the marketing limits Humana accepted as part of the program.
Republicans aren't happy.
Senate Minority Leader Mitch McConnell, who represents Humana's home state of Kentucky, and has received tens of thousands of dollars from the company over the years, called the CMS actions a "gag order" -- a characterization that has been echoed by House Minority Leader John Boehner and Rep. Dave Camp (R-MI) -- ranking member on the House Ways and Means Committee -- who fired off an angry letter to CMS acting administrator Charlene Frizzera.
"In light of CMS' seemingly uneven and potentially politically-motivated use of its regulatory authority," Camp writes, "I therefore request that...CMS immediately suspend this virtual gag order on efforts by an MA plan to let its enrollees know how they could be hurt by the health reforms plans being pushed by President.
Just so we're clear, Republican politicians, some of whom get plenty of money from Humana, are defending an insurer misleading Medicare recipients with taxpayer-subsidized communications.
Senate Minority Whip Jon Kyl (R-Ariz.) said he's only looking out for free-speech rights. "You don't lose your rights because you happen to sell insurance for heaven's sake," he said.
That is, of course, a foolish argument. The government is paying the bills here. Humana accepted lobbying and marketing limits when it started collecting tax dollars. As Ryan Grim noted, "Communication between the private Medicare Advantage providers and beneficiaries is strictly regulated because the private companies are using public dollars."
Republicans shouldn't decry the attached strings simply because Humana and the GOP have the same goal -- attacking health care reform.
In the meantime, Democrats on the Hill were quick to note the background of the company Republicans were desperate to defend: "Humana was recently featured in a HuffPost story for denying health care due to lack of an enema. In 2005, it settled a racketeering suit for $40 million. It settled a fraud lawsuit in 2000 for $14.5 million. Since 2000, its profits have soared from $90 million to $834 million."
Republicans often pick the wrong friends, don't they?
—Steve Benen 8:35 AM
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"Republicans often pick the wrong friends, don't they?"
I think the entire problem with these people is that don't have any real friends. Just people they use, or who use them. I think that might explain a lot...
Posted by: c u n d gulag on September 23, 2009 at 8:47 AM | PERMALINK
It's hard to imagine that anyone could still believe that the for-profit health insurance industry cares more about patients than a government of, by and for the people does.
America: the best democracy money can buy.
Posted by: chrenson on September 23, 2009 at 8:53 AM | PERMALINK
Oooohh... an angry letter. Ouch... lets hope that's as effective (sigh) as the angry letters those sent by the Democrats when in minority - to the ShrubII Administration.
Posted by: sduffys on September 23, 2009 at 8:55 AM | PERMALINK
This could be a good opening for Dems to paint Republicans as in league with an established, money-grabbing, inefficient healthcare entity that is benefiting from the status quo. But then, there have been many such opportunities and connections that haven't been pursued.
Posted by: terraformer on September 23, 2009 at 8:56 AM | PERMALINK
I have Humana through my employer. I had never made a claim except my twice a year dental visits. Then one night I dropped a weight at the gym and broke my foot and had to go to the emergancy room. Afterwards the bills began coming in and it was clear that very little was being covered. I called and questioned it and was told by the representative, "We've already spent alot of money on you."
In hindsight, I think the townhall nonsense that happened in August was a good thing and happened at the right time. That bile left a bad taste in alot of people's mouths, Obama was able to recapture the subject and the Republicans were pretty much exposed as frauds. No in the final stretch we have Cantor's jaw-dropping response to a constituent, and leading Republicans cravenly kissing the ass of insurance companies out to mislead the public. Personally, I think the tide has turned and we may see a decent bill sent to the President in the end.
Posted by: Saint Zak on September 23, 2009 at 9:01 AM | PERMALINK
Obama signs that "ACORN" law into force and then CMS stops giving Humana any money whatsoever and the Republicans can't say a thing (they are shameless so they will). Case over.
Posted by: blowback on September 23, 2009 at 9:03 AM | PERMALINK
Wait till the Roberts Supreme Court allows much more political expression by corporations because they are "persons" and entitled to free speech, etc.
Posted by: Bob M on September 23, 2009 at 9:06 AM | PERMALINK
"Republicans often pick the wrong friends, don't they?"
Are you nuts? They pick friends with money.
Posted by: buford on September 23, 2009 at 9:21 AM | PERMALINK
What's this country come to when you can't use taxpayer dollars to lobby against the taxpayers?
Another step towards nazi socialism.
Will Ferrell is right, enough is enough!
Posted by: Allan Snyder on September 23, 2009 at 9:21 AM | PERMALINK
Corporations are people too, y'know.
Posted by: Conservatroll on September 23, 2009 at 9:22 AM | PERMALINK
If that ACORN legislation becomes law, it will be the gift that keeps on giving. And to think, without all the hard work by our friend Glenn Beck, it wouldn't have been possible. Thank-you, Mr. Beck, your proving to be quite a valuable member of the team.
Posted by: tempered optimism on September 23, 2009 at 9:24 AM | PERMALINK
Republicans make politics too easy. If they're for it, it's probably really, really fucked; and if they're agin it, it's probably a good idea. This rule of thumb is so reliable I've developed a lazy, knee-jerk habit of mind toward what they say.
The only real intellectual challenge anymore is within Dem politics. If Dems were reliably good or bad, I might stop thinking altogether.
Posted by: Raenelle on September 23, 2009 at 9:34 AM | PERMALINK
Cut off Humana! De-fund the right!
Posted by: Northern Pike on September 23, 2009 at 9:50 AM | PERMALINK
Hmm, Republicans had no problems with the government's condition of the receipt of federal funds on the requirement that clinics give up their free speech right to provide abortion counseling or referrals, which the Supreme Court upheld in Rust v. Sullivan (.
Posted by: JS on September 23, 2009 at 10:10 AM | PERMALINK
Raenelle at9:34 the fact that your post is 100% correct is a sorry statement on the condition of USA politics.
Posted by: Gandalf on September 23, 2009 at 10:44 AM | PERMALINK
I received a Medicare Advantage scare tactic robocall about a month or so ago, and I was suspicious right away. The voice didn't really identify who was behind the call, but it urged me to follow the call's menu to contact my legislators to support continuation of Medicare Advantage. I'm not eligible for Medicare, but I listened to the call anyway because I was suspicious. It was a scare tactic designed to frighten seniors into thinking Medicare itself was in jeopardy. These people are shameless. After reading this post, I suspect now that the call may have been generated by Humana.
Posted by: Varecia on September 23, 2009 at 10:48 AM | PERMALINK
If Dems were reliably good or bad, I might stop thinking altogether.
You won't have that problem as long as we're stuck with Conrad and Baucus.
Posted by: Allan Snyder on September 23, 2009 at 10:52 AM | PERMALINK
Supreme Court Justice Ginsburg asked the right question recently -- she asked who believes anyone has endowed these corporations with inalienable rights?
The Republicans think they're as good as God.
They think they can give corporations the same rights human beings are born with.
It's just wrong.
Posted by: Hank Roberts on September 23, 2009 at 11:28 AM | PERMALINK
What? You mean Humana doesn't have the right to lie to people with tax dollars??? How un-American!
Posted by: Mitch McConnell on September 23, 2009 at 11:42 AM | PERMALINK
The frustration I feel for both major parties is at a boiling point. Both are rife with corrupt politicans that are there for personal gain, they go into office having a modest income and come out 40 years later as multi-millionaires. Terms limits should be enacted for every political position in the country. Then maybe they won't have time to make their under-the-table deals that rake in millions.
However, the frustration I feel for the parties is nothing compared to what I feel for all of you that believe either party is above the fray and all you care about is your turn at the public teat of "free" stuff.
A bunch of whiney babies that believe the government is supposed to take care of you. Remember if the government can give, it can also take away, and they have to take from someone to give to you.
Something the liberal government run schools may not have told you is that the government is "we the people" and when we the people find that we can vote in people that will "bring home the bacon" we are no longer a republic. As Benjamin Franklin, "you have a republic, if you can keep it".
Capitalism is the driving force that has given us a strong economy and when the government gets involved it weakens that force. There should never be more than just enough regulation to keep the companies honest. Sounds to me like most of you prefer a "socialist" government.
You can't see the forest for the trees.The only way we are going to survive as the greatest nation on the earth is to demand that our leaders start following the constitution, you know that little piece of paper that is suppose to limit the power of the federal government.
Grow up, accept responsibility for yourself, get a job take care of your family and stop depending on the forced "charity" of the government. If you don't you are going to lose the freedoms that our forefathers gave their lives and fortunes to preserve.
Posted by: Janice Ball on September 23, 2009 at 1:43 PM | PERMALINK
CMS should do what they should have done in the first place -- pull Humana's contract. Then they can lie about health care reform to their hearts' content.
Posted by: Disputo on September 23, 2009 at 2:16 PM | PERMALINK
According to the OMB:
- Omaba lied
- Humana was correct
- Benen is wrong.
http://www.google.com/hostednews/ap/article/ALeqM5gJK9ly3ovzfflxGjV-dxk2sLILKgD9ASKCQG2
Posted by: am on September 23, 2009 at 2:22 PM | PERMALINK
That's the Baucus bill, you moron, you know, the *conservative* bill.
Posted by: Disputo on September 23, 2009 at 3:39 PM | PERMALINK
Someone has to...
Re: Janice Ball post @ 1:43 PM.
Para 1) "...Both are rife with corrupt..." Start naming names, please; otherwise you are simply concern-trolling. Nor expect me to "defend" anyone against shotgun charges.
Para 2) "All you care about is your turn at the public teat..." Must be the old Jedi-mind flip: pretend to insult people to get them on your side.
Para 3) More insults and then the give-away: "...they have to take it from someone to give it to you." You mean, (whispers) taxes?
Para 4) "...the government is 'we, the people'...". Yes, and just what part of "WE" don't YOU understand? The democratic part where the majority, while respecting the rights of the minority, governs? Or the part where you now are no longer, if you ever were, the majority?
Para 5) "Captialism is the driving force..." You betcha! You might want to look into how the following were/are funded: canals, railroads, shipping, the aircraft industry, high tariff policies, interstate highways, farm subsidies, and inustry-favoring tax policies, just to name some from memory. Oh, and minus 10 points for using the "s" word where it obviously doesn't apply.
Para 6) "...demand our leaders start following the constitution(sic)...". And where were you in 2001? 2002? 2003? 2004? 2005? 2006? 2007? 2008? I thought so...
Para 7) I have, I do, I do, and I don't. Name those "freedoms" and I might believe you are at least sincere in your ravings and not another one of those poor, frightened misplaced children of the nineteenth century, unable to cope with the economic and political challenges facing our democracy in the 21st century (ie: a troll).
Have a nice day!
Posted by: Doug on September 23, 2009 at 8:42 PM | PERMALINK
It's not clear to me whether the bills being considered will eliminate Medicare Advantage or will just equalize the payments the government makes between Medicare Advantage and traditional Medicare. If it's the latter, I'm unconditionally in favor. If it's the former, I'm ambivalent.
As someone on Medicare and who has been enrolled in a couple of different Medicare Advantage plans, my feelings and experiences are mixed. There are problems with finding providers who accept the private insurer and I've had problems with deducting my premiums from my social security benefits. And of course there's the very unethical sales practices of some insurers that have been reported.
On the other hand, there are various deductibles in traditional Medicare that can leave you with large unpaid bills, depending upon the circumstances. And for doctor visits themselves, Medicare only pays 80%. Before Medicare Advantage, people who consume a lot of health care and needed insurance coverage for what Medicare doesn't cover/pay would get so-called "Medi-Gap" plans. Those are still offered. But with a Medicare Advantage plan, it replaces regular Medicare and usually offers this additional kind of coverage—also prescription drugs and sometimes dental and vision. All on one plan with an additional premium (that is, additional to the regular Medicare premiums). This is very convenient.
I consume a lot of health care because I'm disabled with a congenital illness. I need this additional coverage.
I've seen MA plans characterized on the web as "unnecessary" and "not offering much more than Medicare" and that's not really true. Of course, different insurers offer different plans and there's certainly some out there which don't, in fact, offer much (or anything) Medicare doesn't cover, so this is probably true in some cases. But in many other cases, it's worth having.
I don't think that the government should be reimbursing Medicare Advantage insurers more for each rated treatment than it schedules in regular Medicare. That's the part that was the giveaway to the insurance companies when the program was created. It's also why there are some MA insurers who provide it with no premiums at all—they're making their money off the differential.
But assuming the payments are equalized between Medicare and MA, then I think the program should continue. Maybe there should be a second-tier of Medicare coverage available directly from the government to those who wish to pay an additional premium. Well, ideally, Medicare should reduce its deductibles, but that would increase its already massive costs.
Posted by: Keith M Ellis on September 23, 2009 at 9:30 PM | PERMALINK
The article fails to mention anything about what set this off. The non-partisan CBO has stated that those under MA will, indeed, have services cut.
The argument is is Baucus trying to shut them up because they are saying something against the health bill or is what they are saying false.
Please report the whole story.
Posted by: IndyPendent on September 24, 2009 at 12:13 PM | PERMALINK