Healthcare drive fanned by lobbyists

As a senior official at the Health and Human Services department in the 1990s, Thorpe was deeply involved in the Clinton administration’s failed effort.

This time, the healthcare industry groups see a strategic opportunity. As lawmakers squabble, the groups are focused on how to come out ahead in the end game. “We’re still optimistic that we can get healthcare reform accomplished,’’ said Robert Zirkelbach, spokesman for America’s Health Insurance Plans, the main insurance industry trade group. “There is strong support from policy makers and from across the healthcare sector.’’

It’s all got to do with shifts in the economy. Even before the recession hit, employer-sponsored health coverage had been steadily shrinking, and many people couldn’t afford the premiums for individual policies. Meanwhile, government programs have been expanding - and they’ve gotten increasingly friendly to private insurance companies. Insurers now play major roles as middlemen in Medicare, Medicaid, and the children’s insurance program.

And if the government requires everybody to get coverage - just what the overhaul legislation calls for - it could guarantee a steady stream of customers subsidized by taxpayers not only for insurers, but for all medical providers.

The industry groups have invested heavily to make sure their views get taken into account. The healthcare sector gave $167 million in campaign contributions to congressional candidates in the 2008 election cycle, according to the watchdog group OpenSecrets.org. Healthcare companies poured $484 million into lobbying efforts in 2008, and are on pace to exceed that this year.

Separately, the drug companies have offered up $80 billion over 10 years to reduce prescription costs of seniors if a deal goes through, while major hospital groups agreed to a $155-billion reduction in Medicare and Medicaid payments to free up funds that would help subsidize coverage for the uninsured.