Healthcare firms load up on lobbyists

July 07, 2009|Associated Press

WASHINGTON - The nation’s largest insurers, hospitals, and medical groups have hired more than 350 former government staff members and retired members of Congress in hopes of influencing their old bosses and colleagues, according to an analysis of lobbying disclosures and other records.

The tactic is so widespread that three of every four major healthcare firms have at least one former insider on their lobbying payrolls, according to The Washington Post’s analysis.

Nearly half of the insiders previously worked for the key committees and lawmakers, including Senators Max Baucus, a Montana Democrat, and Charles Grassley, an Iowa Republican, that are debating whether to adopt a public insurance option opposed by major industry groups. At least 10 others have been members of Congress, such as former House majority leaders Richard Armey, a Texas Republican, and Richard Gephardt, a Missouri Democrat, both of whom represent a New Jersey pharmaceutical firm.

The hirings are part of a record-breaking influence campaign by the healthcare industry, which is spending more than $1.4 million a day on lobbying in the current fight, according to disclosure records. Overall, healthcare companies and their representatives spent more than $126 million on lobbying in the first quarter, leading all other industries, according to Senate data and the Center for Responsive Politics.

The television ad wars are also beginning and expected to grow this summer.

Through June 27, $31 million was spent for roughly 47,000 TV ads on healthcare this year, said Evan Tracey, president of the Campaign Media Analysis Group, a firm that tracks issue advertising. That’s double the roughly $14 million the insurance industry spent in 1993 and 1994 for the famous “Harry and Louise’’ ads credited with helping kill President Clinton’s healthcare drive, but a fraction of the $250 million Tracey guesses will ultimately be spent this year.

So far about $15 million has been spent on ads favoring the Democrats’ push to revamp healthcare, and $4 million to oppose it. Another $12 million has gone to ads generally favoring better healthcare - nearly all of that was spent by the Pharmaceutical Research and Manufacturers of America, representing drug makers, which hopes its market will expand.

WASHINGTON POST AND ASSOCIATED PRESS

White House and hospitals reported near deal on costs

WASHINGTON - The Obama administration and major hospital associations were nearing a deal late yesterday for about $150 billion in cost savings to help pay for an overhaul of the nation’s healthcare system, with an announcement expected at the White House as early as tomorrow, officials said.