Cash-Roots, Manufactured Anger, and Hot Air over Health Care

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Protesters or Faux-Testers?

protesters or faux-testersThis summer's health care town hall meetings have been turned into high-profile media opportunities for people shouting talking points crafted by anti-health reform front groups. These confrontations make "good news" but don't make for good policy. I don't doubt the sincerity of the anger of some of these seriously misinformed protesters, so I wouldn't label the lot "faux-testers," but these flames have been stoked by lie upon lie.

Manufactured Anger

That the anger is real doesn't make it any less manufactured. It's literally a product, the sum of a public relations campaign orchestrated by some of the wealthiest interests in the country. The goal is to scare ordinary Americans, who've been shaken up by the economic crash of 2008, into opposing health care reforms intended to help protect them from insurance industry practices that hurt real people every day. As Rachel Maddow noted, the industry's profits have literally quadrupled while countless Americans have been denied coverage or squeezed with higher premiums for policies riddled with loopholes. Here is a great clip of her interviewing CMD's own Wendell Potter on this very subject.

FreedomWorks' Corporate Roots

This recent controversy over health reform is partly the product of a well-financed disinformation campaign by groups like "FreedomWorks, Inc." That's the name of a registered non-profit that is greatly funded by undisclosed for-profit corporations. Before this group was re-branded with a fancy new name, leaked documents showed that 85 percent of its funding came from huge donations from big companies, like Philip Morris, and right-wing foundations, like those funded by the mega-rich Scaifes. This was under its former name, "Citizens for a Sound Economy" (CSE), which was created by billionaire ideologue David Koch. Because its brand new name is more Orwellian than I can stand, I'm just going to call it "F-Works."

Grassroots, Astroturf, and the Cash-Roots

cash-rootsSourceWatch editors have noted that some past campaigns of F-Works have been dubbed "astroturf" to denote their fakery, such as angryrenter.com. Given the corporate dollars likely bankrolling the current misinformation campaign, an additional way to describe this came to my mind: cash-roots.

It Pays Big to Run Cash-Roots Campaigns

Richard "Dick" Armey received $320,000 a year for working about 32 hours a weekIt's also a little difficult to think of this effort as one initiated by the little guy when the group's leaders are paid corporate executive-level salaries, which is understandable because it's really a corporate group. How well does F-Works pay? Richard "Dick" Armey, former U.S. House Majority Leader (R-TX), received $320,000 a year for working about 32 hours a week as the Chairman of F-Works' board, according to F-Works' most recent IRS filing. He received an additional $80,000 per year from its lobbying arm. And he didn't do any reported lobbying for them that year! That's four hundred grand. Part-time!

His other part-time job was as a hired gun for the huge American corporate law firm DLA Piper, which grossed $1.1 billion in receipts that year, with profit per partner of over $1 million. We don't know how much they paid Armey on top of his F-Works' take, but he did report lobbying for DLA Piper that year, including lobbying to get a designated foreign terrorist organization un-designated. Just last week, Armey announced he was leaving DLA Piper to spend more time on F-Works where, after all, he was earning big bucks on the side. Almost half a million dollars, part-time.

Fat Cats and Back-Scratching in DC

F-Works, by the way, takes credit for leading the fight against the Clinton Administration's failed health care reform, which they called "Hillary Care" (just as now protest signs oppose "ObamaCare"). And who was leading the fight against health care reform from inside Congress? Armey. He was the Majority Leader with then-Speaker of the House Newt Gingrich (R-GA) who helped write the "Contract with America." These very lucrative revolving door relationships are just the kind of coziness between some politicians and front groups I saw time and time again in Washington, and that I plan to help expose in my new role as Executive Director of the Center for Media and Democracy. I'm especially happy to be here as we fight spin and deception by the heath insurance industry and its allies.

So, Here's the Real Question

Do you want a Wall Street fat cat, whose bottom-line is literally maximizing profit, between you and your doctor? That's one of the most important questions on the table in Bill Moyer's illuminating interview with Wendell, who is another reason I am so pleased to be leading CMD. We will be posting links to his major interviews on the home page of PRWatch.org so please check out our site to find more of this courageous whistleblower's insights into corporate PR and this raging debate.

Gratitude for a Real Visionary

I am very grateful to John Stauber, CMD's visionary founder, for sharing with me the opportunity to lead this important organization. His foresight in bringing on Wendell has opened a powerful, new chapter in CMD's mission. And, I'm thrilled to announce that John has accepted my invitation to stay on as a key advisor to CMD and me.

And There's More Great Work to Come!

These are just a few of the many reasons I seized the opportunity to become CMD's new Executive Director. Our team is providing important, unique resources and analysis in the current debates over policy changes affecting the health of people and our environment. We also have some bold, new initiatives up our sleeves that we'll be announcing soon. And, I'm excited to add my knowledge and style to the mix and have the kind of intellectual freedom, to dig deep and speak the truth on a wide range of issues, that has been CMD's hallmark since John founded the organization back in 1993. Given the high pitch of spin on critically important issues, we have a lot of work to do together, and I'm looking forward to fighting by your side!


Lisa Graves is Executive Director of the Center for Media and Democracy based in Madison, Wisconsin.

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Inefficient government programs

I'd like to respond to 'Better Solution's' comments and suggestions: "Check out their track records on social security - underfunded and inefficient, medicare - same, post office -broke and inefficient, border control - are you kidding?"

Social Security ... would not be underfunded if administrations and Congress had raised the cap on income subject to the tax, or slightly increased the tax itself, which Reagan did. The first is preferable, and it should be noted that Reagan had the political capital to get away with raising the tax. The truth is:
a. Social Security is flagging because of the increase in baby boomers reaching retirement age, the lower number of workers paying in due to reduced birth rates, and currently the high rate of unemployment.
b. There's also a problem in that war spending (particularly) has meant a drain on the treasury and the need to sell more Treasury bonds, which saps the SS fund.
c. at something like 2% admin costs, Social Security can hardly be called inefficient.

The same is true of Medicare.
a. Again admin costs are tiny compared to private insurance admin loading.
b. Medicare covers only the elderly, that part of the population with the highest need for major medical treatment and long-term care.
c. If Medicare were expanded to cover the whole population, the high costs for the elderly would be offset by the lower incidence of use among the young and healthy.

The Post Office ... delivers your mail, wherever it has to go.
a. That includes the lone cabin in remote mountain canyons for the same price as a letter destined for across town.
b. Some 40 years back, the private couriers came into the market. The free market. What they could do, that the PO by law cannot, is to refuse to deliver in out-of-the-way places or else charge an arm and a leg for the privilege.
c. In short, the private couriers took the cream routes and left the PO with everything else. We subsidize PO service so that everyone can still mail a letter, but we subsidize it twice over when we pay high rates for that sexy overnight courier service.

Immigration and border control, well, there's a can of worms!
a. The best way to keep hordes of people from coming into the country would be to help them want to stay where they are. As long as there is gross income inequity, trade-driven job loss, war, famine and mayhem ... people will think they might have it better in the US.
b. The Border Fence is a great boondoggle (and threat to wildlife habitat). Flat out pandering to the shrill anti-immigrant voices.
c. There are better solutions to the border problem. As an emigrant, I've experienced a different approach, which works a lot better AND funds the host-country general revenues and social security and health programs.

In short, the argument that government programs are inefficient and ineffective is hollow. It's based on urban myth, propounded by opponents of rational change.

However, I WOULD agree that the legislation currently before us on health care reform doesn't do the job voters had hoped for last November. Failing a single-payer plan, there should be no requirement for people to buy insurance, and there should be no subsidy of such a mandate to add more money to the already bloated private insurance profits.

But, I'd be concerned about admin costs for tax rebates and other means suggested for taking the money out of public coffers and redirecting it, via low-income customers, into the insurance companies.

Why is it exactly that what works in other industrialized countries (single-payer basic health care for all, with optional private top-up for those who like 'the frills') would be a bad idea for the US?

to the "American with much better solution"

1. Though malpractice coverage and defensive medicine is an issue in rising healthcare costs, it is not a significant one. According to Arnold Relman in his excellent book "A Second Opinion" malpractice represents about 7 billion in costs. Defensive medicine has been estimated at 80 billion tops. Out of the 2 trillion in U.S. healthcare costs, the largest in the world, but still leaving the U.S. 37th in the world, this issue can only be seen as a pimple on the behind.
2. I don't think healthcare should be linked to employment either, that's why I'm for reform. But the "individual" will never be able to be in charge of their own insurance. The insurance companies are in charge of insurance, and they don't make money insuring people who need healthcare. The insurance co's business model is to take in as much in premiums as possible and to deny as much healthcare as they can. Their wonderful term for healthcare is "medical loss".
3, 4. Doctors should not be "competing". Good healthcare is integrative, such as uniform, doctor accessible records. Healthcare is not a traditional "marketplace" Sick people are not able to go around kicking tires. All so-called "consumer driven" healthcare ideas come out of business schools, not from MD's. Medicine is complex and needs professional practitioners making informed decisions. Of course paitents should be as informed as possible, but no way are you going to make all medical knowledge available to the public on Burma-Shave signs. The last thing we need is more damn TV commercials peddling prescription drugs.
5. As another commenter pointed out, you've completely contradicted yourself on this one. Are you for universal coverage then? Great! Except, your other 4 points lead in the opposite direction.

You don't know what it means

You don't know what it means to be underfunded or ineffiecient, because your 'proposal' shows no identifiable way of overcoming either problem. Also, look at your fifth point... come on - do you not see a contradiction here? First you say your against turning it over to that wretched, incompetent government, yet you want to expand current programs?

A program which is underfunded is not a euphemism for being inefficient - it simply means the program is underfunded. The US government has A LOT to account for - nevermind healthcare - like for instance, a war that is still going on in case you've forgotten.

You'll have to enlighten me on how the government is 'one of the most inefficient organizations'. I don't see how or why the private sector is run any better (in fact big businesses use this 'inefficient organization' to lobby for policies they want - makes you think where some problems can occur).

If you've paid any attention to what has happened in the past two years, today included with the insurance industries, you can hardly blame the goverment (again, deregulation has been lobbied for by private power for the last 30 years) - in fact its the government that has to clean up every mess the private sector gets itself into (see Goldman Sachs).

I think the military and their industrial complex is far more superior than anything the private sector is capable of - the fact that you are reading this is such evidence, as we owe the creation of the internet to 'one of the most inefficient organizations'. I receive my mail everyday except for Sunday - I have no qualms about that - do you not receive it six days a week? If you do, what is so inefficient about that? How would it be even more efficient if, say, it was run by FedEx? Whether its the post office, medicare (surveys indicate those in the program like it, by the way, I doubt you are even eligible), the police department, fire department, sanitation, park districts... I don't see evidence of 'one of the most inefficient organization', rather, when I think about your claim, I see more evidence of someone who doesn't know what they're talking about, but think they do.