Labor & Employment Law

Health Insurers Mull Secret Donor Election Front Group

By Mike Hall

Yesterday we reported that the nation?s biggest health insurers are ?sparing no expense to weaken? the new health care reform law by lobbying the state regulators who are writing new regulations to ensure consumers? premium dollars are spent on real medical care.

Today a new report from the Center for Public Integrity (CPI) reveals the same insurance giants are discussing forming a $20 million, ?nonprofit? front group to influence regulations, sway voters and back industry-friendly candidates.

The companies, according to CPI, are Aetna Inc., Cigna Corp., Humana Inc., United HealthCare Inc. and WellPoint Inc. Sources told CPI they:

expect millions of dollars will be pumped into issue advertising in a number of races where candidates sympathetic to health industry concerns have a shot at winning?.Overall, the insurers are expected to focus on swaying about two dozen close House contests, says one source.

Keep in mind that during the health care debate there was near unanimous Republican opposition to the bill and the strong insurance reforms the industry is now fighting. Senate and House Republican leaders have marked repeal of health care reform as a top item on their agenda if they win back control of Congress.

During last year?s contentious health care debate in Congress, writes CPI:

these same five insurers?teamed up to channel between $10 million and $20 million to the U.S. Chamber of Commerce to underwrite a negative advertising drive to block the legislation.

The front group under discussion would be what is known as a 501(c)(4) group, which, says CPI:

is legally allowed to engage in lobbying and election-related work. Donors to this type of nonprofit don?t have to be publicly disclosed.

Click here for more on the industry?s drive to weaken new health insurance rules and here for a report from health Care for America Now!

Full post as published by AFL-CIO NOW BLOG on July 28, 2010 (boomark / email).