Authors: Aaron Klein,Brenda J. Elliott
This is a win-win for health insurers, and fertile ground for government/private sector cronyism. One of the major private-sector beneficiaries of ObamaCare would be the American Association of Retired Persons (AARP), a group of 39 million members, and the nation's largest provider of Medigap. AARP lobbied hard for ObamaCare and now stands to profit from it.
7
A late-March 2011 report by the House Ways & Means Committee exposed AARP's “apparent conflict of interest” and revealed the tradeoff for AARP's support of the lawâAARP stands to make $1 billion over ten years “on health insurance plans whose sales [were] expected to pick up under the new law.”
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A major grouping of socialists within the U.S. Congressâthe seventy-five-member Congressional Progressive Caucusâstill mostly favors a single-payer plan. The CPC, founded originally by the Democratic Socialists of America, attempted to relaunch single-payer in December 2011 with its Restore the American Dream for the 99% Act. The 99% Act would provide protections for Medicare, Medicaid, and Social Security;
9
hence it is not purely a single-payer plan.
The CPC bill projects $88 billion in “savings” by allowing a “public option” to operate in conjunction with private health insurance in so-called health care exchanges. It also posits an additional $156 billion in savings by allowing Medicare to negotiate drug prices with pharmaceutical companies. The progressive legislation would also reinstate higher federal Medical Assistance Percentage rates, which is the reimbursement formula for federal Medicaid grants to the states. This would purportedly “ease the state budget crises and help states finance health care for disadvantaged children, poor seniors, and the disabled.”
10
The CAP called this provision of the 99% Act “the single most important step the federal government could take to provide relief to state and local governments,” perhaps boosting employment by 349,000 jobs in fiscal year 2012.
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Of course, the key word here is
perhaps
. As you will see, a gigantic coalition of left-wing progressive groups like CAP were not so certain of ObamaCare's future and, in early 2011, launched an all-out campaign to save ObamaCare a year in advance of the bill's scrutiny before the Supreme Court.
These chapters are being written immediately following the high court's March 26â28, 2012, hearing of oral arguments on ObamaCare, and before the court hands down its ruling in June. Our analysis is, should the Supreme Court strike the law, or its individual mandate, then the huge messaging efforts now under way to prevent its repeal will immediately shift to pushing for a single-payer health care planâwhich will be touted as a legitimate taxâto be implemented before the current Obama administration comes to an end.
Should ObamaCare be repealed or overturned, progressive journalist Ezra Klein prognosticated in his March 30, 2012,
Washington Post
column that neither Democrats nor Republicans would be likely to propose “any big changes” to the current health care system. Klein did suggest how the single-payer health insurance goal could be accomplished piecemeal.
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Rising health care costs for employers, he opined, would lead Senate Democrats to “begin dipping their toes in the water with a strategy based around incremental expansions” of Medicare, Medicaid, and the Children's Health Insurance Program (CHIP). As this plan inched forward through budget reconciliation in the Senateâwhere the policies could be passed with only 51 votesâit would lead to “more and more Americans being covered through public insurance” and eventually to “something close to a single-payer system” with a majority of Americans covered by the federal government.
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A great majority, perhapsâbut not every American. When one recalls that ObamaCare was pitched to the American public as a moral imperative, in order to provide health coverage to 30â40 million Americans who were uninsured, the following should provoke outrage. According to a March 15, 2012, estimate by the Congressional Budget Office and the Joint Committee on Taxation, even if ObamaCare is upheld and fully implemented, there will still be 27 million Americans with no health insurance coverage.
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A not-so-surprising development occurred a mere two days after the Supreme Court arguments ended and it was apparent that ObamaCare was in deep trouble. On March 30, CAP and ObamaCare's other progressive supporters were described by Judicial Watch as “apoplectic at how badly the oral arguments went for their side.” The groups' first target was Don
Verrilli, Obama's solicitor general, whose embarrassing stumbling performance failed to defend the indefensible before the Court.
15
Amy Gardner of the leftist-friendly
Washington Post
cautiously characterized the fate of ObamaCare as “uncertain.” She also reported that progressivesâaghast at the thought of ObamaCare being ruled unconstitutional, and thereby sound its demiseâwere ready with a second prong of attack. The Obama front group, Know Your Care/Protect Your Care, which we discuss in detail below, planned to “throw out its playbook,” Gardner reported, and “would devote its time in the fall to going negative on the court itselfâpainting the conservative justices as partisan ideologues who robbed Americans of needed benefits.”
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Ever impatient, President Obama jumped the gun to lead an early attack. In an April 2 speech, Obama had the “unmitigated gall,” as
American Thinker
contributor Fay Voshell put it, to warn the “unelected” Supreme Court (Obama's words) that it had better rule in his favor. Obama, Voshell added, “revealed not only his hypocrisy, but the extent [to which] he will go to in order to preserve the key accomplishment of his administration. He seems fully to intend to intimidate the Court into rubber-stamping the Affordable Care Act of 2010 as constitutional.”
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While the Center for American Progress has been deeply involved in drafting and promoting all of the legislative efforts by Barack Obama and progressives in Congress, CAP was most staunchly supportive of Obama's health care plan. CAP now is also deeply involved in the campaign to save ObamaCare. At a mid-April 2011 press conference in Washington, D.C., Duval Patrick, the Democratic governor of Massachusetts, CAP's president, Neera Tanden, and Jim Doyle, the former Democratic governor of Wisconsin, jointly announced the launch of the Know Your Care and Protect Your Care (KYC/PYC) public relations efforts.
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(Recall that Patrick has been a spokesman for Obama's reelection campaign.) Patrick alleged that ObamaCare was “under attack by well-coordinated and well-funded organizations that spread misinformation in order to take away people's benefits by repealing health care.” He told reporters:
This campaign will be an aggressive effort designed to explain and promote these rights as well as protect against other attacks such as attempts to privatize Medicare and Medicaid.
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Writers at the
Huffington Post
claimed the catalyst for the Patrick-Tanden-Doyle so-called counteroffensive was the 2011 budget proposal of Rep. Paul Ryan (R-WI), which the U.S. House had passed prior to its Easter 2011 recess. According to
Huffington Post's
Michael McAuliff and Sam Stein:
The Republican Party's endorsement of sharply conservative prescriptions to fix ailing state and federal budgets is threatening to reunite the progressive movement and heal its disillusionment with the Democratic Party.
Over the past week, an informal coalition of non-government groups has plotted ways to make town halls increasingly uncomfortable for Republican lawmakersâa coordination that is more advanced than previously reported.
One of the main groups in this coalition is KYC/PYC. McAuliff and Stein wrote that support for KYC/PYC was “being provided from D.C.-based organizations with an eye towards expanding the echo chamber ⦠Still, it's difficult to dismiss both the synchronicity and glee with which these groups have operated,” the
Huffington Post
writers concluded. In particular, they named the Obama-allied group, Americans United for Change, which, they wrote, “has become the de-facto organizer of the movement.” (More on AUC below.) They also reported that CAP had “sent trackers to film various events” such as town hall forums. In addition, they reported that a third entity, a Democrat-oriented consulting firm called New Media Partners, had “pitched these same events to local and national reporters in search of more earned-media.” (We did not find New Media Partners named in conjunction with KYC/PYC in any other reports.)
And, of course, Big Labor is involved: the SEIU and the union-affiliated Health Care for America Now (HCAN)â“two entities deeply invested in fighting Ryan's vision of Medicare reform, took the lead on field operations.” They were backed by the Soros-funded MoveOn.org, AFSCME, the Social Security Campaign, and “other groups.”
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A central question is: whence cometh the money for the gigantic Save ObamaCare campaign we are about to describe to you? Aside from pointing out the host of deep-pocketed backers listed above, no one we know of has yet traced the precise money trail. When you read how many high-poweredâand high-pricedâprogressive political operatives are involved in this campaign, you will understand that its price tag runs into many millions of dollars. How many millions it is impossible to know at this juncture, let alone the sources of those millions. But the enormous scope of the progressive effort to save ObamaCareâprobably the costliest and most unpopular expansion ever of government powerâmakes clear that its proponents are sparing no effort or expense to defend it.
All this comprises a major shift towards more offensive tactics. During the 2009 and 2010 sell of ObamaCare to the American public, more subtle messaging had been used. As we wrote in
Red Army
, a major coalition called the Herndon Allianceâwhose sole purpose had been to soft-sell a government takeover of American health care (and which is also part of this new effort)âhad helped politicians “to sell the American public on ObamaCare by crafting appealing, moderate language to sell a radical plan.”
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Now that ObamaCare is already lawâthough in a certain amount of legal and political jeopardyâthe more aggressive KYC/PYC “will push back against what is expected to be an onslaught of ads financed by the conservative groups and targeting the health care law,” wrote Michael D. Shear in the
New York Times
.
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“Technically,” explained Stephen Koff in the Cleveland
Plain Dealer
, the Protect Your Care half of KYC/PYCâwhich is chartered by the IRS as a 501(c)4 organizationâis “all about defending” ObamaCare, and can “participate in political activity to defend the bill.” But its sister organization, Know Your Care, is a 501(c)3 group whose “focus is education,” Koff added.
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So PYC is free to work with the Obama administration and members of Congress on “policy issues,” especially those connected with Obama's reelection campaign. However, PYC “may not coordinate with the politicians on their elections,” Koff wrote. For its part, PYC is clear about its purpose: It “will create the political and media space for elected officials, industry leaders and community advocates to champion the Affordable Care Act and hold accountable those who seek to take those benefits away by repealing or defunding the law.”
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Clearly, the Obama administration, progressives in Congress, and progressive groups and unions are very worried. But they are also stunningly well prepared for a fight. It's all hands on deck with an army of big-name political operatives working overtime. Perhaps not intending to be so revealing, the
New York Times
account reported: “A collection of Democratic and labor operatives have left their organizations to form a pair of independent groups [KYC/PYC] with the mission of defending the health care overhaul championed by President Obama and Congressional Democrats during 2009 and 2010.” In fact, this “collection” includes several individuals with close ties to the Obama administration. The number of high-powered political operatives working for KYC/PYC read more like a presidential campaign team than it does any “grassroots” operation:
⢠KYC/PYC's senior advisor Neera Tanden, according to her CAP bio, served as a senior adviser for health reform at the Department of Health and Human Services. She advised secretary Kathleen Sebelius and worked on Obama's White House health reform team to pass the ObamaCare bill. “In that role she developed policies around reform and worked with Congress on particular provisions of the legislation.”
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Tanden served as director of domestic policy for the Obama-Biden presidential campaign, where she managed all domestic policy proposals.
Tanden is also closely connected with Secretary of State Hillary Clinton. She was policy director for Clinton's presidential campaign and was legislative director for then senator Clinton, “where she oversaw all policy in the Senate office.” During her New York senatorial campaign, Tanden was Clinton's deputy campaign manager and issues director. Earlier, during the Clinton administration, Tanden served as associate director for domestic policy and as a senior policy advisor to the first lady.
Tanden has been with CAP since its launch in 2003. She served
as CAP's vice president for academic affairs and joined as its senior vice president for domestic policy.