Health Insurance Reform: Lobbyists Influence

Congress is getting closer to passing healthcare reform. The House of Representatives and Senate have been wrangling over their own versions of the bill, which will result in changes to the health insurance industry. So far, it appears that a public option, run by the government and meant to compete with public plans, will be included. Exactly what form it will take is still in doubt. Senate Majority Leader Harry Reid has proposed a version of the public option that will allow individual states to opt out of the program, while the House prefers are more comprehensive program. Whichever option passes is of extreme importance to supporters and opponents of health care reform, not to mention anyone looking for affordable health insurance. Of course, when groups have a strong stake in a political decision, they turn to lobbyists.

First, let's take a look at the health insurance industry. Insurers were understandably wary of their future in the newly elected Obama administration, but initially cooperated with the government in crafting a reform bill. However, negotiations have recently broken down--and both sides have taken the gloves off. Insurance companies believe that legislators haven't held up their end of the bargain. For example, a key provision for getting the industry on board with new regulations that would, among other things, forbid insurers from denying coverage to people with pre-existing conditions was the inclusion of a health insurance mandate. Such a mandate would require every American to buy a health insurance plan, if they could afford it. There would be subsidies available for those under certain income levels, but those without policies who earned more would be fined. Recently, that option has been downplayed in favor of the public option. They are strongly opposed, believing that it would hurt their business.

Groups like America's Health Insurance Plans have spent over $260 million on lobbying Washington politicians, in addition to creating TV ads meant to sway the public. A similar strategy was successful in torpedoing the Clinton administration's attempt at healthcare reform in the 1990s. The main difference is that this time, the backers of healthcare reform are fighting back. Liberal organizations like MoveOn are ramping up the pressure on those congresspeople who are waffling on the public option. Using Hollywood star power, they have created their own advertisements to sell Americans on the public option. They're also up on Capitol Hill spreading the word.

What is the result of all this? The supporters of government healthcare reform have matched the health insurance companies' lobbying strength, and they seem to be gaining the upper hand. Still, we won't know for sure until the final healthcare bill receives a vote.