A whole lot of money is being spent in an attempt to derail true healthcare reform and maintain the untenable status quo.
This is the grim reality from a report released today by Common Cause. The special interests, all aligned against the urgent needs of the American people, are spending $1.4 million a day so that they will prevail and we won’t.
Key findings of the Common Cause report include:
• Health industries – including health insurance, pharmaceuticals and health products, hospitals and HMOs, and health professionals – have contributed over $372 million in campaign contributions to members of Congress since 2000.
• Political spending by the health industries has increased 73 percent since 2000. Health interests contributed about $94 million to candidates for Congress in the 2008 election cycle, up from about $54 million in the 2000 cycle.
• Members serving on committees and subcommittees with jurisdiction over health care reform in the House and Senate received the lion’s share of health industries’ largesse. Committee members raised $178 million from the industries this decade – roughly half of the industries’ contributions to the entire Congress. Since 2000, the House members sitting on health committees have raised twice as much money from the health industry per election cycle as non-committee members (an average of 171,000 compared to 87,000), and the average House member on a key health subcommittee hauled in three times as much per cycle ($269,000). Senators with plum committee posts also enjoy sizable fundraising advantages.
• The industries engage in “switch-hitting” – shifting campaign contributions between Democrats and Republicans to win access with the party in power. In 2000, with Republicans controlling the House and a closely-divided Senate, Republicans on health-related committees received more than double what Democrats received (68 percent to 32 percent) from the health industries. In 2008, with Democrats controlling both the House and Senate, over 61 percent of the industries’ contributions to committee members went to the majority Democrats and just 39 percent went to Republicans.
• The major health interests have spent an average of $1.4 million per day to lobby Congress so far this year and are on track to spend more than half a billion dollars by the end 2009. That comes out to about $2,600 per day per member of the House and Senate. The pharmaceutical lobby alone spent $733,000 per day in the first quarter of 2009. Since 2000, the industries have spent over $3 billion on lobbying, with the total increasing every year and rising more than 142 percent over the course of the decade. In each of the past four years health interests have been the number-one lobbying force in Washington, measured in expenditures, and have averaged over $1 million per day.
But this is just the tip of the iceberg!
There’s also the spectacle of what I would call a medical-industrial congressional employment office. While the rest of us go to work every day wondering whether today will be the day we get the pink slip, CQ Politics reports that the medical-industrial complex seems to be an employer of choice for congressional spouses.
Nearly four dozen members of Congress have spouses employed in the health care industry — ties that lawmakers acknowledge are influencing their thinking about how the health system should be overhauled.
Financial disclosure forms made public in mid-June showed that at least 39 members were tied to the industry by their spouses in 2008. In addition, 13 full-voting House members are medical doctors.
Paul Krugman is worried. His blog post this morning in The Conscience of a Liberal, was titled, Obama messes up on healthcare, big time. Krugman’s take home message, you and I will have to drag healthcare reform over the finish line, or it will die an ignoble death.
My big fear about Obama has always been not that he doesn’t understand the issues, but that his urge to compromise — his vision of himself as a politician who transcends the old partisan divisions — will lead him to negotiate with himself, and give away far too much. He did that on the stimulus bill, where he offered an inadequate plan in order to win bipartisan support, then got nothing in return — and was forced to reduce the plan further so that Susan Collins could claim her pound of flesh.
. . . Maybe there’s a way to recover from this. But it’s up to the health reform activists to stiffen the administration’s spine. Obama may be satisfied with “broad parameters” — but the rest of us aren’t, and have to make that known.
I don’t blame Krugman for being scared–and angry.



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Thanks so much, Eve. And so good to have you posting here.
It’s scary how much money is being spent to make sure people don’t get the healthcare they need.
Or — more realistically — to make sure that the price of people getting what they need is an insurance industry bailout.
It’s really horrific.
Anyway, we’re so happy to have you here working with us on this. Very excited about it.
This is so horrible.
Tell your Rep it’s horrible.
Call your senator.
Great data.
“The finish line” being, in this case, single payer” — to capture the administrative savings (3% vs. 30% under profit plans), avoid adverse selection, avoid framing public option as “welfare,” an “entitlement,” and a tax (already happening), and most important of all, to establish health care as a right. (It would also have been nice to have a legitimate process where single payer advocates weren’t excluded and censored, but it’s too late for that now.)
Given the givens, which Krugman points out, the “finish line” won’t be this year. Oh well.
Oh Jane, I’m beyond honored and beyond thrilled, I walking two feet above the earth.
But I’ve got to run out to a long planned appointment, so please forgive me, this is not what I normally do. I love commenting more than writing.
nyceve – just want to say that i’m a big fan of yours. thanks for all you do.
This is flat out sickening. This government has GIVEN these corporations this power in America, with their bottomless bailouts from OUR pockets.
Once the insurance Corps own US thru this, we will never be able to get their hooks out of US….or any of the other ones either.
I blame Obama for this, he didn’t HAVE to move his presidency to be seamless with Bush’s, but he did….or maybe that was the price for his emplacement as POTUS.
I’ve a sinking feeling that this is going to go the way of the supplemental and our “representatives” will about -face at the last minute.
I think I’ll go throw up now…………
i’ve been censored at another blog for being a single payer advocate — but NEVER here. my thanks to jane and all the mods.
Good post today, Lambert.
Thank you, Selise.
I sincerely hope — unlike Kathleen Sibelius — that if anything gets passed it puts us on a road where single payer becomes possible, if not inevitable.
I understand that is extraordinarily optimistic.
here’s hoping your optimism bears fruit.
Ironic and not in a funny way. All this lobbying money paid for by sick people booted by denial clerks to protect profits to purchase legislation to deny the public from any options.
Is that about right?
Oo. Sanford emails.
Jane upstairs with:
The Pillars of a Robust Public Option
If there wasn’t so much at stake, this would be fun.
Playing “Whack-a-Mole” with congress critters heads every time one of ‘em pops up saying “no public option”.
Isn’t that also approximately the increase in premiums over the same period?
What a coincidence.
This number should be wrapped around all private plan defenders necks, and wrapped real tight.
As in “If private plans are so cost efficient, how can they squeeze out 500 million a year just for lobbying?”
How many stethoscopes would that buy?
It just goes to show how much money is being wasted by private insurers on things other than providing care to their patients.
Thank you, Eve, and welcome to the Silo! It will be great working with you to make real reform a reality.
It may be optimistic, but I believe that’s where we’re headed.
The public option is the stalking horse because once offered, it’s gonna be flooded by people like me who have no desire to have anything to do with an insurance company again.
This is why the $1.4 million a day is being spent; they know if they lose this fight, the gravy train is over.
or it’s going to be an expensive dumping ground for the sickest (and therefore most expensive) people. we don’t have a good track record of controlling adverse selection.
but that’s where we’re at, so i’m rooting for jane’s optimism.
Just a deductible business expense. But it illustrates the clout acquired through concentrated effort – and how much “real” money is on the table.
This is just the ante for a game of liar’s poker to these guys. Industry-wide, profits over just a few years are a hundred times more than this amount.
Anything’s possible, but I don’t think so.
Because overhead will be anywhere from 50-90% less, employers will flock to a public alternative, which will include a wide range of participants.
do you have a link for that? thanks!
Eve, how good it is to see you writing here! I’ve been reading your health care diaries for years now. Thank you so much for your dedication to this issue.
Selise, keep up pulling us back.
I need your help at Oxdown. Can you please see to it that we can still access your Dr. Steve post comparing the plans; it’s off the chart and I didn’t get my printer problem resolved until after it disappeared. I really want and need to study this doc to better understand all kinds of issues.
Thanks for any help you can give,
Blessings,
I have emailed my wishy washy senators that won’t go on record one way or another.
Emanuel, go to hell. You belong there, and no one gives a damn about what you are or what you do. Your dirty knees and insurance money will retire you. As a Blue Dog, we will just have to see to it. Even your own constituents will realize what a truly absent empty suit you really are.
i’ve x-posted three diaries from drsteveb (i think it’s the top one you want):
DrSteveB: The CBO Analysis We Really Need
DrSteveB: Strong Public Option: 100% Coverage & Cost Control
DrSteveB: More Medical Bankruptcy – Have Insurance, Go Bankrupt
here are all my oxdown diaries:
http://oxdown.firedoglake.com/diary/author/1195
and here are all drsteveb’s daily kos diaries (he posts a lot of great diaries!):
http://drsteveb.dailykos.com/
and while i’m at it, here is pnhp’s blog:
http://www.pnhp.org/blog/
… please let me know if that doesn’t give you want you’re looking for!
edit to add: the charts in the top diary can be viewed at full size by clicking on them.
This link quotes Sen. Sanders as saying private insurance spends 30% of each dollar on administration, billing, lobbying, etc.
Other articles I’ve read (no links unfortunately) say medicare & medicaid’s like expenses come in at anywhere between 5 & 15%.
Just got a call from AARP urging that we call our congress critter and demand insurance that everyone would be covered by calling 1-800-929-4030 from there you can reach your critter FREE.. Nada and demand they support Single Payer!! Looks like all the people’s players are coming out and getting behind National Health Care as so many are denied coverage for OH some many reasons
AARP probably has more members covered by sIngle payer (medicare) than any other organization in the US… yet they ask their own to champion something they could never afford…and could surely suffer, even die from.
Despicable.
Hey Pups more fodder for our campaign: From BoldProgressives.org
Well at least they are helping to allow you to have your voice heard for free so you can voice your opinion.
How ya doing ES?
Just fine, nahant.. How are you? Hey, perhaps you could put the info you shared about the AARP here? I’m going to do a running post / collection of these nefarious activities.
that’s the 30% is the administrative overhead due to private insurance companies that could be avoided by going to single payer. a public option in a multi payer system might be able to save a portion of that (although there are additional administrative costs involved in running the exchange and regulating to try to prevent some of the adverse selection).
Your health is not a commodity.
Your health is not a profit center.
Takeaway: They spend 1.4 million dollars a day, that you paid them in premiums. They spend it to make sure they have no competition. They spend it so they can deny you coverage, without fear that another system will more efficiently help you.
How much health care would 1.4 million dollars a day buy?
Hi Margot-
Thanksos so much for your kind words, but thank Jane for inviting me! I’m thrilled to be here.
As a former health care giver, I am sad to see what has become of health care in America. Clearly Profit Care comes ahead of Patient Care. We must have public option, so what if it puts the greedy bastards out of business. http://www.wisecountyissues.com/?p=62