Beware of the Wolf in Sheep’s Clothing: Health Insurers Push on Health Reform

With health reform looming, health insurance companies have mapped out various battle plans to protect their profits. And they have shown they are not above committing fraud to keep the money pouring in.

First, their trade association outlined the insurance industry's health reform proposal which would force everyone in the United States to buy one of their health insurance policies at whatever price they choose to set. What a great way to get millions of new paying customers!

Next, they tried to pit older Americans against health care reform to prevent cuts in overpayments to Medicare private plans—known Medicare Advantage plans. The government pays private plans to provide Medicare benefits to people with Medicare up to 19 percent more than it costs to care for the same person under the public, government-run Medicare program—a huge income generator that insurance companies want to protect. For example:

"Thanks to its booming Medicare unit, Humana has literally doubled in size over the past few years. The company now relies on Medicare Advantage for roughly 60% of its profits, analysts estimate, with most of that coming from PFFS plans."

The Eagle Tribune exposed one of the industry's underhanded strategies: forging the names of older American's to letters to the editor of various newspapers asking that overpayments to Medicare private plans not be put on a par with the government-run Medicare program:

"Across Massachusetts, senior citizens are writing letters to newspapers demanding that their representatives in Congress protect a form of health insurance called Medicare Advantage.

"At least that's what newspaper editors are supposed to think.

"Some of those seniors are unaware that they have sent any such letters to newspapers. Some of them hadn't even heard of Medicare Advantage...

"Writers of letters to the editor are routinely contacted by newspapers to make sure letters are legitimate. In this case, they weren't.

"All three of the purported authors of the letters said they had no idea their names were being used to advocate for the health insurance program.

"The letters were, in fact, composed and sent by the Boston office of a national political consulting firm attempting to create the appearance of a 'grass-roots' movement for Medicare Advantage…

"Such campaigns are referred to in the news industry as 'Astroturf'—that is, phony grass roots... The Medicare Advantage campaign is unusual in that the 'letter writers' said they weren't aware they were participating in political advocacy at all.

"A tip-off to the true origin of the letters came when The Eagle-Tribune received a call from a man who turned out to be an intern at the Boston office of the Dewey Square Group, a national political marketing and consulting firm... The Dewey Square Group specializes in grass-roots campaigns, building such overwhelming support from ordinary citizens for a public policy position that politicians are brought into line. America's Health Insurance Plans, an industry trade group, hired Dewey Square to defend the Medicare Advantage program...

"Health insurers are fighting what would be a huge hit to their bottom lines. Their strategy: Get seniors talking to members of Congress about the importance of Medicare Advantage.

"Under the banner of 'The Coalition for Medicare Choices,' Dewey Square operatives are bringing seniors to 'Medicare Advantage Community Meetings,' featuring 'free food' and 'door prizes,' with congressmen and senators, and offering them sample letters to Congress or local newspapers."

The latest line of attack comes from Wellpoint, the largest health insurance company in the country, as it tries to build up its own grassroots army:

"WellPoint, the nation's largest health insurer, has launched what could be the start of a campaign for the hearts and minds of the American public as the country prepares for debates over reshaping its much-maligned health care system.

"The company, which operates in California as Anthem Blue Cross, made 3 million computer-generated phone calls last week to gauge the public's appetite for overhauling health care—and to enlist, critics say, a grass-roots army to voice concerns about the sweeping proposals developing on Capitol Hill."

So beware of health insurers asking for your support in the guise of health reform 'advocates.' Make sure you know who is asking for your help and that they have your best interest in mind—not that of the profit-driven insurance industry.

If you want to support real health reform, join Health Care for America Now! and demand that a public health insurance plan option be part of any health reform package.

Views expressed on this page are those of the authors and not necessarily those of Campaign for America's Future or Institute for America's Future