As Zack noted in great detail here, the Obama administration is investigating the activities of health insurance giant Humana--a participant in Medicare Advantage that's been telling its aging consumers that the government plans to slash benefits, and urging them to tell Congress not to touch the program as it reforms the U.S. health care system.
Medicare Advantage plans are private health care plans that seniors can buy into with federal assistance in lieu of participating in traditional Medicare. Under terms the government erected when it created the system, those insurers face strict limits on how they communicate to beneficiaries--regulations that exist to protect seniors from acting under the pressures of insurers, who control their benefits. In response to a request from Sen. Max Baucus (D-MT), the Center for Medicaid and Medicare Services has demanded the lobbying effort cease, and is investigating the company to determine whether it violated those rules.
PERMALINK | COMMENTS (13) | RECOMMEND RECOMMEND (4)Last fall, James Ross, a New York City resident and a donor to several Democratic organizations, received an unusual letter. "Your name has been put in our database," Ross was told. "We are monitoring all reports of a wide variety of leftist organizations. As your name appears in subsequent reports, it is our intent to publicize your involvement in your local community. Should any of these organizations be found to be engaged in illegal or questionable activity, it is our intent to publicize your involvement with those activities."
The letter was signed by Howard Rich, a publicity-shy New York real-estate investor and the founder of the conservative activist group Americans for Limited Government. Rich and his group were accused by the Democratic Senatorial Campaign Committee of illegally using Federal Election Commission disclosure reports to obtain the names and addresses of political donors in order to discourage them from making contributions -- a violation of election law. In April, three of the FEC's six commissioners voted to open an investigation into the matter. But the commission's three Republicans opposed a probe. The FEC deadlocked 3-3, and no action was taken against Rich.
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