RSS Feed MenuYesterday, the first ad debuted in what is being described as a $12 million campaign in favor of the Democrats’ health plans. After an August of angry public meetings, September looks to be the month when the big money is heard.
The agitated right may fulminate about liberty vs. tyranny, but from the point of view of the people with advertising dollars to spend, the healthcare debate has resolved itself to insurers vs. PhRMA. The White House has pledged to protect PhRMA’s interests, and PhRMA in turn has reportedly pledged $150 million in promotional cash in support of the White House’s healthcare plans. (If they are shrewd, they might invest a million or two to persuade the American Conservative Union to switch sides.)
PhRMA wins because they have been assured they will not face forced price reductions. By contrast, health insurers lose big under the White House plans. The White House seeks to find money for reform by squeezing costs out of Medicare. The lead target: privately administered Medicare Advantage plans. About one-fifth of seniors are enrolled in these plans, at significantly greater benefit to them and significantly higher cost to the taxpayer. Over half of all Medicare Advantage participants are enrolled in plans insured by four companies: UnitedHealth Care, Blue Cross/Blue Shield affiliates, Humana Inc., and Kaiser Permanente. They stand to lose a great deal from the White House’s proposals.
Of course there’s principle at stake too. But principles do not pay the rent – and in Washington, the rent always gets paid.
Churl // Aug 14, 2009 at 12:29 pm
Yes, the lefties have money to buy advertising that whoops for Obamacare. And the right has talk radio and the likes of Sarah Palin to get out the conservative message on the subject. So, Frum, quit whining about leftie money and at least stop trashing those who are effective at motivating people to fight this massive governmental intrusion on our lives.
Over to you, Otto von BS, for your predictable response.
ottovbvs // Aug 14, 2009 at 12:30 pm
…….Well you have to pay the rent too David……and er…..isn’t that how capitalism is supposed to work?…….and $12 million is just for starters …..apparently they’ve put $150 million aside for this campaign…….basically the reason why pharma has bought in they can make it up on volume……and come off it David…..AHIP isn’t really kicking up too much of a stink because they know somenthing needs to be done or something really bad could happen to them if the system collapsed ……as it happens I’m on an advantage plan…..as you say a great deal….it’s costing the taxpayer about 14% more than regular medicare for my plan…….thanks guys……ohhhhh I’m a taxpayer……..David , advantage is a great deal……I was just never stupid enough to think it would last
ottovbvs // Aug 14, 2009 at 12:49 pm
Churl // Aug 14, 2009 at 12:29 pm
” Over to you, Otto von BS, for your predictable response.”
……….Churl you by contrast are totally unpredictable…..the rejection of capitalism did come as a surprise
LFC // Aug 14, 2009 at 1:14 pm
David, do you really believe that healthcare industry money hasn’t been speaking for months, if not years (or even decades)? I’d say that position would be beyond naive.
barker13 // Aug 14, 2009 at 2:47 pm
Now THIS is a good contribution, David!
BILL
SanDiegoDave // Aug 14, 2009 at 6:44 pm
Forgive my ignorance but, what does “PhRMA” stand for? I know is ostensibly means “Pharmaceutical”, but what’s with the strange abbreviation? And what about biotech? Biotech is the last great American export industry. I would think both parties would wish to preserve that. Is biotech contributing to the pro-Obama plan, anti-Obama rage, or just staying out of it altogether? (disclosure: I work in biotech, but nowhere near the level that can move money to political causes).
ottovbvs // Aug 14, 2009 at 6:53 pm
sandiegodave // Aug 14, 2009 at 6:44 pm
“Forgive my ignorance but, what does “PhRMA” stand for”
…….Can’t remember the precise name….it’s the Pharmaceutical industry trade association…..Chief?…..Billy Tauzin….former Republican relevant industry committee chair…..Republican revolving door
sinz54 // Aug 14, 2009 at 7:37 pm
sandiegodave: It’s the Pharmaceutical Research and Manufacturers of America:
http://www.phrma.org/
David Frum, it’s always good form to spell out these unfamiliar acronyms in a column.
sinz54 // Aug 14, 2009 at 7:45 pm
David Frum sez: “By contrast, health insurers lose big under the White House plans. ”
Investors in those insurers don’t seem too worried. The stocks of UNH, HUM, and AET have been rising, not falling, these past 6 months, as Congress has worked on health care reform.
http://tinyurl.com/kv5qe3
ottovbvs // Aug 14, 2009 at 7:49 pm
sinz54 // Aug 14, 2009 at 7:45 pm
” Investors in those insurers don’t seem too worried. The stocks of UNH, HUM, and AET have been rising, not falling, these past 6 months, as Congress has worked on health care reform.”
……..According to you they are all going out of business
SFTor1 // Aug 15, 2009 at 3:20 am
It appears that the private health care industry has spent 130 million dollars in the last quarter to oppose health care reform.
Does that count?
barker13 // Aug 15, 2009 at 8:52 am
Re: Sandiegodave // Aug 14, 2009 at 6:44 pm (#6) –
From your typing fingers to God’s in-box!
My buddy works for Genentech. Do you know who owns Genentech now?
We’re losing our country, folks.
BILL
joedee1969 // Aug 15, 2009 at 9:40 am
We all have a voice. Well let me turn you on to “thee” voice.
http://americaspeaksink.com/?s=sell+out+the+people
barker13 // Aug 15, 2009 at 10:11 am
Re: Joedee1969 // Aug 15, 2009 at 9:40 am (#13) –
Actually, folks… take a gander. Interesting site.
Hell… props on the whole graphic style as well as content.
BILL
greg_barton // Aug 15, 2009 at 10:35 am
You mean the big money going to ads instead of the big money going to astroturfing?
ottovbvs // Aug 15, 2009 at 11:03 am
greg_barton // Aug 15, 2009 at 10:35 am
………I suspect we’ll see the big ad push in September/October……..despite the smoke and clashing of cymbals most people are thinking about the beach……..big pharma, AARP and AMA have big wallets to blow on this……this will be done by November.
joedee1969 // Aug 15, 2009 at 1:02 pm
Re: barker13
Ya, I like that site to. His body of work is so big but one day I was sick and took the day off work and read for hours. The guy is so smart and speaks about things no one would say. I got turned on tto America Speaks Ink when I read some NBC article here what got me hooked:
http://americaspeaksink.com/2009/06/heroes-for-sale/
Churl // Aug 15, 2009 at 3:29 pm
ottovbs talks about “capitalism”, but
“You keep using that word. I do not think it means what you think it means. ”
~Inigo Montoya
SFTor1 // Aug 16, 2009 at 1:11 am
Barker:
Oh, no!!! The Swiss are coming!!!!
They are going to choke your arteries with raclette, Barker. We’d better get universal health care before it’s too late.
SFTor1 // Aug 16, 2009 at 1:15 am
Churl says: “ottovbs talks about “capitalism”, but…”
Do we have capitalism today, churl? Or do we have corporatism and oligopolies? Is the health insurance industry an oligopoly? Big pharma? Aerospace and defense? Or do you think they operate in atomistic markets?
Maybe the game has changed just a little since yeoman farmers ruled the economy, if they ever did.
SFTor1 // Aug 16, 2009 at 1:21 am
Churl:
forgot the financial industry. How about them? Atomistic market? Oligopoly?
ottovbvs // Aug 16, 2009 at 10:37 am
Churl // Aug 15, 2009 at 3:29 pm
“ottovbs talks about “capitalism”, but
“You keep using that word. I do not think it means what you think it means. ”
~Inigo Montoya”
………Since I spent forty odd years as practising capitalist and am now essentially a member of the rentier class…….yep I’d say I had a fair idea…..Is this sort of banality your cover for an imperfect understanding of the theory and practice of capitalism in the 21st century
20 sftor1 // Aug 16, 2009 at 1:15 am
Do we have capitalism today, churl? Or do we have corporatism and oligopolies?
…………In modernized industrial economy almost all markets become oligolopolies…….it’s inevitable….the issue is how do you manage a modern industrial economy so competition and innovation, and all the other good outcomes of the capitalist model can flourish but the broader public good is not harmed but served………Churl and co, to the extent they understand it at all, are living in some antideluvian fantasy that they pick up from talk radio or the back of cereal packets…….for some bizarre reason they think they’d enjoy living and working in the environment that existed in 1875……I rather doubt it
franco 2 // Aug 17, 2009 at 10:43 am
Socialists and closet commies are happy to “practice” capitalism, they just don’t like it when others wish to do so as well. Hence – Otto.
Churl // Aug 17, 2009 at 12:15 pm
to ottovbs, sftor1 et al.
Your questions and comments help to clarify my point: “capitalism” is not well defined and seems to mean “evil” or “salvation”, all in the mind of the beholder.
ottovbvs // Aug 18, 2009 at 7:27 pm
Churl // Aug 17, 2009 at 12:15 pm
” Churl // Aug 17, 2009 at 12:15 pm
to ottovbs, sftor1 et al.
“Your questions and comments help to clarify my point: “capitalism” is not well defined”
……….It’s extremely well defined since much of the literature and intellectual exploration of the past 235 years since Adam Smith wrote The Wealth of Nations has been devoted to the topic for godsake