Wendell Potter: Rally Against Wall Street's Health Care Takeover

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Saturday, August 29 I had the good fortune to speak at a community rally for health care reform in a city park in downtown Portland, Oregon. It was a broad-based and diverse group with many signs and placards supporting the 'public option' being debated by Congress, and others calling for 'single payer' reform like that working effectively in other countries such as Canada. Here is what I said:

I would like to begin by apologizing to all of you for the role I played 15 years ago in cheating you out of a reformed health care system. Had it not been for greedy insurance companies and other special interests, and their army of lobbyists and spin-doctors like I used to be, we wouldn't be here today.

I'm ashamed that I let myself get caught up in deceitful and dishonest PR campaigns that worked so well, hundreds of thousands of our citizens have died, and millions of others have lost their homes and been forced into bankruptcy, so that a very few corporate executives and their Wall Street masters could become obscenely rich.

But it was only during the last few years of my career that I came to realize the full scope of the harm my colleagues and I had caused, and the lengths that insurance companies will go to increase their profits at the expense of working families.

As I told the Senate Commerce Committee two months ago, the higher up the corporate ladder I climbed, the more I could see how insurance companies confuse their customers and dump the sick – all so they can satisfy those Wall Street masters.

I described for the senators how insurers make promises they have no intention of keeping, how they flout regulations designed to protect consumers, and how they make it nearly impossible to understand -- or even to obtain -- information consumers need.

I also told the Committee how the industry has conducted duplicitous and well-financed PR and lobbying campaigns every time Congress has tried to reform our health care system -- and how its current behind-scenes-efforts may well shape reform in a way that benefits Wall Street far more than average Americans.

I noted that, just as the industry did 15 years ago when it led the effort to kill the Clinton reform plan, it is using shills and front groups to spread lies and disinformation to scare Americans away from the very reform that would benefit them most.

Make no mistake, the industry, despite its public assurances to be good-faith partners with the President and Congress, has been at work for years laying the groundwork for devious and often sinister campaigns to manipulate public opinion.

The industry goes to great lengths to keep its involvement in these campaigns hidden from public view. But I know from having served on many trade group committees that industry leaders are always full partners in developing strategies to derail any reform that might interfere with their ability to increase their companies' profits.

My involvement in those activities goes back to the early '90s when insurers joined with other special interests to finance the activities of an organization called the Healthcare Leadership Council, which led a coordinated effort to scare Americans and members of Congress away from the Clinton plan.

A few years after that victory, the insurers formed a front group called the Health Benefits Coalition to kill efforts to pass a Patients Bill of Rights. While it was touted as a broad-based business group, the Health Benefits Coalition in reality got the lion's share of its funding from Big Insurance.

Like most front groups, the Health Benefits Coalition was set up and run out of a big and well-connected PR firm. One of the key strategies developed by the PR firm as the coalition was gearing up for battle in late 1998 was to stir up support among conservative talk radio hosts and other media.

The PR firm formed alliances with groups like the Christian Coalition and the Family Research Council and persuaded them to send letters to Congress and to appear at press conferences. The firm also launched an advertising campaign in conservative media outlets. The message was that President Clinton owed a debt to the liberal base of the Democratic Party and would try to pay back that debt by advancing the type of big government agenda on health care that he failed to get in 1993. Those tactics worked. Industry allies in Congress made sure the Patients' Bill of Rights would not become law.

The insurance industry has funded several other front groups since then whenever the industry has been under attack. It formed the Coalition for Affordable Quality Healthcare to try to improve the image of managed care in response to a constant stream of negative stories that appeared in the media in the late '90s and the first years of this decade.

It funded another front group when lawyers began filing class action lawsuits on behalf of doctors and patients.

The PR firm the industry hired to create that front group, by the way, had planned and conducted a similar campaign for the tobacco industry a few years earlier.

The insurance industry hired that same PR firm again in 2007 to help blunt the impact of Michael Moore's movie, "Sicko." It created and staffed a front group called "Health Care America" specifically to discredit Moore and to demonize the health care systems featured in the movie.

Among the tactics the PR firm used once again was to enlist the support of conservative talk show hosts, writers and editorial page editors to warn against a "government-takeover" of the U.S. health care system. The term "government-takeover" is one the industry has used many times over the years to scare people away from reform.

Health Care America also placed ads in newspapers. One of those ads carried this message, "In America, you wait in line to see a movie. In government-run health care systems, you wait to see a doctor."

With this history, you can rest assured that the insurance industry is up to the same dirty tricks, using the same devious PR practices it has used for many years, to kill reform this year, or even better, to shape reform so that it benefits insurance companies and their Wall Street investors far more than average Americans.

Americans need to be alert to how the industry and its allies are working to influence their opinions and lawmakers' votes. I know from years as an industry PR executive how effective insurers have been in using scare tactics to turn public opinion against any reform efforts that would threaten their profitability.

I warned earlier this year that Americans and the media should pay close attention to the efforts insurers and their ideological buddies would undertake to demonize health care systems around the world that don't allow for-profit insurance companies to have the free reign they have here.

Americans must realize that the when they hear isolated stories of long waiting times to see doctors in Canada and allegations that care in other systems is rationed by government bureaucrats, the insurance industry has written the script.

And Americans must realize that every time they hear we will be heading down the "slippery slope toward socialism" if Congress creates a public insurance option to compete with private insurers, some insurance flack like I used to be wrote that, too.

Every time you hear about the shortcomings of what they call "government-run" health care, remember this: what we have now in this country, and what the insurers are determined to keep in place, is Wall Street-run health care.

And know that we already have one of the most insidious means of rationing care in the world -- not by people we can hold accountable on election day but by insurance company executives who answer only to a few wealthy investors and hedge fund managers who care far more about earnings per share than your health and well-being.

If Congress goes along with the "solutions" the insurance industry says it is bringing to the table and fails to create a public insurance option to compete with private insurers, the bill it sends to President Obama might as well be called the Insurance Industry Profit Protection and Enhancement Act.

Some in the media believe the health insurers have already won. That's not only because the debate over reform seems to have been hijacked recently by insurance company shills and people who believe the lies they have been spewing, but because of the billions of dollars the insurers have been spending to influence votes on Capitol Hill.

Folks, it is not too late to keep the insurers from winning, but time is running short. We need to think of the coming weeks as some of the most important weeks in the history of this country. We need to think that way because they will be, and we must redouble our efforts to make sure members of Congress put our interests above those of private health insurers and others who view reform as a way to make more money.

If we want to take back control or our health care system from the big for-profit companies that have wrecked it, we must take back control of this debate. We must begin to talk in ways that reach our friends and neighbors who have been influenced by the lies.

We need to tell them that we can continue to have a system that allows 20,000 Americans to die every year because they don't have insurance, or we can have a system that will make sure their sons and daughters are not one of them.

We should ask the skeptics of a public option, who are afraid that giving people a choice of a government-run plan will lead to socialism, if they would want to go back to the day when Americans had to buy private fire insurance.

Tell them if they lived in Ben Franklin's day and they didn't have a shield on the outside of their house indicating they were insured, their town's private fire insurance companies would let their house burn down. The private insurance companies would keep your fire from spreading to your insured next-door neighbor's house, but your house would soon be nothing more than a pile of ashes.

We must remind our family members and our friends and neighbors why we are having this debate in the first place. If they tell you they don't think their tax dollars should be used to pay for someone else's coverage, point out to them that they already are paying for the care uninsured people receive when they go to the emergency room and can't afford to pay the exorbitant bills they get from the hospital. Those of us who are insured pay an extra thousand dollars in premiums every year just to cover that uncompensated care.

If they say they don't want to saddle their children and grandchildren with additional taxes, ask them if they have thought what might happen to their children and grandchildren if they found themselves among the millions of people without health insurance or, maybe more likely, among the underinsured.

Ask them how they would feel if their daughter came down with breast cancer soon after she and your son-in-law moved into their dream house and just as your grandchildren were beginning to think about college.

Ask them how they would feel if their daughter and son-in-law learned that the insurance they thought would be there when they needed it required them to pay so much out of their own pockets that they couldn't afford to pay for their daughter's cancer treatments and also make the house payments.

Ask them how they would feel if their children and grandchildren were forced out of their dream home and into bankruptcy, and ask them how they would feel if their grandchildren had to give up their dreams of going to college.

Ask them how they would feel if their granddaughter fell into the wrong crowd and died of a drug overdose just as her high school friends were graduating from the college she herself had once dreamed of graduating from. Ask them how they would feel when they found out that this all happened because their daughter's private insurance company forced her to pay more for her care than her family could afford just so it could continue to pay its CEO $30 million a year and meet Wall Street's profit expectations.

Folks, I believe we Americans by and large are a compassionate people. Yes, we believe in individual responsibility, but we also believe in the Golden Rule.

I don't know a single American -- or at least I hope I don't -- who would knowingly wish the future I just described on anyone's family. But the sad reality is that many of the people who have become unwitting spokespeople for the insurance industry -- the people who are objecting to a public insurance option because they have bought into the lies the insurance industry's shills are telling them -- will ensure that that horrific future is a reality for millions of Americans, including their loved ones, if the insurance industry wins this debate again.

So over the coming weeks, we must tell our conservative friends who are worried needlessly about a government-takeover of our health care system that what we all should really be concerned about is the Wall-Street takeover that has occurred while we were not paying attention.

It is that takeover that has led to more and more working Americans being forced into the ranks of the uninsured. It is that takeover that has forced millions more of us into the ranks of the underinsured because insurers are making us pay thousands of dollars out of our own pockets before they'll pay a dime.

It is that takeover that has forced many of our neighbors out of their homes and into bankruptcy. And it is that takeover that is causing more and more small businesses to stop offering coverage to their employees because of the exorbitant premiums that greedy, Wall-Street-driven insurers are charging them.

I want to close by thanking you for being here today and for the hard work you've already been doing to try to persuade members of Congress to do the right thing. But as I pointed out earlier, the coming weeks will be some of the most important weeks of our lives.

Let's pledge to each other that we will work even harder to ensure that America joins the rest of the developed world in making sure that ALL of its citizens -- our brothers and sisters, our sons and our daughters, our neighbors and our co-workers -- have good coverage we can all have the peace of mind knowing will be there when and if we need it. Thank you.


Wendell Potter is the Senior Fellow on Health Care for the Center for Media and Democracy in Madison, Wisconsin.

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Are there any non-profit insurance providers in the US?

We've had them in Israel before we were even a state... They're called "patients funds" (I believe the source is German, as I understand there are more than 100 of these bodies in Germany). The Israeli healthcare system was practically built on them. About 80%-90% of all Israelis were covered by them before the national health insurance bill was passed in 1995. These days we pay our premium (aka "health tax") directly to the government and the government pays the funds a fixed price per registered patient. But the funds existed before we had public insurance, and while we still had some of the problems your country is facing: about 10% uninsured, mainly the poor; some of the funds (though not all) rejected patients on the base of pre existing conditions etc. We still had health insurance that was affordable for most of the population to obtain privately, not through the employer; and people didn't pay their premiums only to realise their coverage had been dropped right when they needed it most. Is it possible to form such bodies in USA? If your political system fails you, perhaps this is an easier way to break the healthcare industry cartel, and lay the grounds for a real public insurance in the future.

How do we find the truth?

With so much said about health care in the past few months, from partisans on both sides, it strikes me that I have not encountered any study to address the major claims made in these arguments. I remember reading several years ago that hospitals only collected 75% of all billings, and just 25% of ER billings. Is this true? If a single payer system were instituted how much would this save us on premiums? How much would prevention cost versus any savings? Tort reform would save 10% according to the State of New Jersey, can we accomplish that without punishing those truly wronged by malpractice? How much is added to health care costs by having private insurance companies, with their profit motives as middlemen, versus the cost of a government single payer system with the inefficiencies that would accompany it? I tend to believe that healthcare should not be sullied by a profit motive( I do not consider the salaries of health care workers as profit, they are underpaid, but that is another subject), and we seem to be trapped by that today, with a way out fraught with uncertainty, and I don't see anyone giving us concrete answers to the different opinions we have been hearing. Where can an open mind find truth on this subject?

How do we find the truth

The Kaiser Foundation is one place to start.

That was a good speech...

but thats all it was. it may as well have been written by David Axelrod. I support single payer in theory, but i am skeptical that it will ever be realized. A bill like that which cuts out the middleman will never make it through joint committee. as for the "public option" id have to agree with Mr Gurda there, i 100% oppose it... it would provide no real options at all.

As for the substance of my comment:
While i object to Mr Gurda's characterization Of Potter as "McCarthy-like," many of the comments here have responded to him in exactly the same vein. If you are going to criticize someone, be specific. Vague epthets get the debate nowhere... is that kind of inane bickering that plagues our federal legislature today.
We also need to realize who Mr. Gurda really is: A small carrier who does not represent "big corporate america," in fact he most likely represents small business owners who are the heart of the american economy. Note i am taking his claims at face value because this is the web - i cannot go up to him and ask him for his business card. And for the record, i think many of Gurda's comments were more apt than we care to admit. Was Potter not preaching to the choir, as someone else noted? A large group of public option and single payer supporters cannot possibly be broad based. Was he not horribly vague and rhetorical in his speech? There were no specific references except to the "front groups." I would rather have listened to his Cong. testimony, which I will probably have to wait about 2 months for CSPAN to release on youtube, after the bill has already been killed. Potter came off more as a demagogue than an advocate, although i would not go so far as to say "McCarthy-like" or eastern european.

I guess this boils down to 3 things:
let's try to keep the comments civilized, so we can get down to the substance of an argument, instead of throwing around useless rhetoric like the GOP.
always be skeptical of what a person says! think of their background, their interests, be it financial or political or both. but stay away from ad hominems.
respect opinions that differ from your own. i dont agree with Mr Gurda much, but i respect him more than anyone else on this forum for encouraging democratic debate.

And the issue itself? Health insurance a complex issue that for me (and many)is often too hard to grasp coherently. i guess that is how "the wall-street takeover" has occurred - the public has been kept confused through series of convoluted and incessant paperwork. But if we think of it as an institution dominated by big-business, and recognize that it needs to be changed, then we should recognize that almost every facet of our economy is like this, and was built to be this way. And if we are to change that, we have to change the very economic structure of the country itself. And this would indeed be socialism. Are you ready to do that? Because if not, then Congress sure as hell isn't.

We need to take this one step further...

I could not possibly agree with you any more when it comes to the spin, public relations, propaganda and marketing tricks being used to subtly manipulate the blind masses straight towards the money. Ever heard of Edward Bernays? Of course, you haven't. He is the Father of Spin and one of the most influential figures of the 20th century. You didn't read about him in your history books because the victors "write" history and they always disguise their keys to success.

"The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country." ~ "Propaganda" by Edward Bernays

However, we need to take this one step further because our medical system is even more broken and more corrupt than the insurance industry. They are most certainly putting profits ahead of our health and well-being. In fact, our health and well-being are not even a consideration. The business model of medicine relies on us being sick and staying sick. Show me people who go to the doctor for chronic degenerative diseases such as heart disease, arthritis, diabetes, or caner and are cured or even improved. Now, I am not talking risk factors (the signs and symptoms of disease) but the underlying sickness. Zero! Your body was designed to heal itself but you believe "star wars" medicine is going to save you. If you can't see this with your own eyes then their memes have infected your mind. You have literally been re-programmed to believe in their most profitable story...which is ultimately the key to effective branding/marketing. I congratulate them on being so effective that people are willing to kill themselves to help them profit.

"Commercial interests are so successful in appearing to represent the public's interest that doctors, health policy experts, and the public are unable to discern the commercial distortions of the medical knowledge upon which they rely. 'Quality of care' is now defined largely in ways that best serve the financial interests of drug and other medical industries rather than the health needs of the American people.

In this context, the most urgent challenge facing American medicine is not how to guarantee adequate access, but first to determine "access to what?" Nor is it even how to ensure quality of care, because this presumes that the available scientific evidence is adequate to make that determination. The most important health care issue in the United States today is whether our current method of creating medical knowledge realizes the full potential of medical science to improve our health, and whether this knowledge is then best applied to clinical practice and communicated effectively to the public. By these standards, American medicine is clearly failing to fulfill its promise."

~ "Overdo$ed America: The Broken Promise of American Medicine" by Dr. John Abramson (family doctor and clinical faculty of Harvard Medical School)

America needs to wake up but this isn't going to happen anytime soon because part of the American dream is being able to consume unlimited quantities of addictive drugs (alcohol, nicotine caffeine, illegal substances, fat, sugar, salt) which numb their minds. The brainwashing is so dominant that 80% of people feel privileged to waste all of their money on useless activities all designed to keep them blind to the fact they are headed for a cliff.

When Marketing Leads to Unnecessary Deaths:
http://blog.thefolderstore.com/2008/12/03/when-marketing-leads-to-unnecessary-deaths/

Healthcare reform

The healthcare system we have today is working out great for the health insurance companies, whose CEO's are earning over $210,000 a day, but it's killing over 18,000 people every year. The health insurance industry denies access & coverage while increasing co-pays, deductions, and premiums.

The U.S. Healthcare system is broken for you and I in the general admission section of the country; 46 million people don't have any coverage except their local ER room. More than 1/2 of all bankruptcies are due to medical costs and 3/4 of those folks HAD health insurance!

All of the House members who are voting against reform were paid on average over $111,000 from health insurance companies and over $225,000 from the pharmaceutical industry over the last 20 years. My congressional representative, Cathy McMorris, has received over $69,000 from the health industry-and that's just this election cycle. she’s received over $144,000 since her election in 2004.

There are now 6 lobbyists for each of the 535 members of congress. Over $200 million in media buys just this year. (These numbers come from the Center for Responsive Politics.)

We simply want quality healthcare that's affordable and fair. Each of us should have the right to pick our plan and our doctor, not just those in the loge seats.

Nobody is pushing rationing, pulling the plug on grandma, federal payment for abortions, coverage for illegal aliens, deleting Medicare money for the elderly, or mandated government coverage for those preferring their own insurance – these are all distortions of the actual debate taking place. But the the other side keeps throwing it out there to scare people into hanging on to the status quo.

Who among us is more worthy than anyone else to have quality healthcare coverage?
Mike

We need a Snopes for Health Care Reform

Mr. Lehan:

For the record, I am in the industry. My answers and opinions seem to be dismissed because of my knowledge. I am not opposed to anyone taking a critical eye to my comments or facts, but would prefer to be refuted with facts rather than dismissed with disdain.

I am going to address your issues mentioned with specific facts. 1) The $210,000 a day figure is one CEO (United Healthcare) in 2005. The $210k a day figure also included stock options. Those officers were charged with a crime for back dating options. I agree that corporate compensation packages are obscene, but the figure is inaccurate.

In regards to the 50% of bankruptcy's information. An American Journal of Medicine Study also showing that 68% had health insurance. Please note: That's 50% of bankruptcys having a medical being the "largest item" or "core" items. What the large study indicates is that these people were under-insured. A point you probably won't disagree with either. Please remember that you are expected to pay 13% of your income for insurance under the new governement bills. Additionally, if you study the numbers down, Only 34% of bankruptcys were from people with health insurance. With 85% of the population having insurance, that is quite a mathmatical deviation. I don't disagree with having better minimal standards of coverage to lower the number.

Rationing:? - Unless you cut doctor and hospital fees, there has to be some rationing. It's not all bad, but there will be some rationing.
Abortion? - Not in the bills now, not excluded either.
Coverage for Illegal Aliens? - Hmmm... Well while they are specifically excluded from benefits, the Ways and Means Committee democrats struck down an ammendment to require proof of legal status in the country. If the bartender is blind and deaf, it's tough to check ID's. I see coverage for illegals not be design, but by specific omission.

I agree that the headlines look like your view, but the details do not.
Follow the Money: The Main money generally goes to the majority party heads of committees. Over the past 10 years, you can follow the money to republicans, now the democrats. The largest reciepients of health care money in 2009? Max Baucus - Democrat. I don't see him as a friend of the industry.

An Additional Strategy is Now Required to Convince the Rest

That is quite a powerful speech and surely serves to motivate those that might be undecided on the issue of whether or not they support health care reform. The unfortunate part is that there are many who only see dollars out of their own pockets or disruption for themselves by the information that has been disseminated so far. Some of the more extreme have concocted a vision of health care as a destroyer of freedom.

These people do not see the benefit to the country as a whole by protecting the vulnerable and do not see the potential for savings if health care can be made more efficient while still providing great value as in other first world countries. As a result, the next approach required is to provide calm for those who are against the plan now, but may buy into health reform with an argument that aligns with their sensibilities. Appealing to compassion and justice has served its purpose as it only resonates with some of the population. The type of appeal must now evolve.

When in the course of Human events

Abortion is covered in Obama’s health care plan. I don’t want one dime of my tax dollars Going for abortions. I also feel the government is worse than the insurance industry.

Insurance companies are parasite ,paper puppet agencies , that squander our money ,give us nothing but poor service, and could care less about our health.
What I’d like to see is a direct pay to the provider plan. A plan where the community supports the Doctors , health clinics, and hospitals in a given area.

As for our government - I think it’s high time to change - “Government for the few, by the few” And return to a “ Government for the people by the people”.

This is what people need to hear!

This speech is right on the money. I think Mr. Potter's words will give a lot of people the courage, as it did with me not too long ago, to get up and speak up in this important debate. I commend Mr. Potter again for making such an important address.

In response to some of the comments made regarding this speech, first I have to say that more needs to be done than writing a letter or sending a fax to our representatives. We need to be part of the conversation, and we need to talk to our fellow citizens no matter what their political beliefs and affiliations are. Yes, it is often difficult to talk to people with different beliefs, especially when they are walking around chanting razzledazzle and BS that they picked up from the propaganda mills, but that is no excuse to not even make an attempt to get up off of our rears and say something. Also, I would just like to point out that my conversations with those opposing health care reform were not shut down by chants of "Obama will kill your Mama." In fact, it did quite the opposite, it shut them up. So, there is no excuse for not talking with others. It is actually the best thing we can do in a democracy.

Second, I have to address what is being said regarding the example in this speech about the girl being on drugs and dying from an overdose. I think it is easy to forget that when we are talking about health care we are talking about a wide range of services that fall under it, including drug treatment and behavioral health services. Keeping that in mind, I do not think it is very unusual at all to talk about those who have been denied those services under the for-profit health care and who have fallen to drug overdose as a result. Last I checked, drug abuse was considered a public HEALTH issue, so it is perfectly relevant in this discussion.