Reuters reports on a "gag order" against Humana:
Republicans, health insurers and others blasted the U.S. Medicare agency on Tuesday for what they called political interference over companies that want to directly contact customers about the impact of pending healthcare reform legislation.
The Centers for Medicare & Medicaid Services (CMS), which oversees the Medicare program for the elderly and disabled as well as privately run Medicare alternatives, on Monday said it was investigating a letter Humana Inc sent enrollees about efforts to overhaul the nation's healthcare system.
Humana's letter, sent in an envelope citing important plan information, told customers that Democrats' bills could hurt 'millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable,' according to CMS.
The agency also warned other insurers against sending potentially misleading health reform mailings to customers.
'It looks likes CMS is engaged in government intimidation, pure and simple,' Rep. Dave Camp, the ranking Republican on the U.S. House of Representatives Ways and Means Committee, said in a statement.
Privately run Medicare plans, also known as Medicare Advantage, make up more than 20 percent of Medicare coverage, with more than 10 million elderly or disabled Americans choosing them over government-run fee-for-service plans.
America's Health Insurance Plans, the lobbying group for Humana and other health insurance companies, called the CMS action a 'gag order.'
Critics pointed to the direct intervention of Sen. Max Baucus, who urged CMS to get involved and said he welcomed the investigation of what he called 'scare tactics' by Humana. CMS announced its Humana probe before Baucus's committee began work on his health reform bill on Tuesday.
This afternoon in the Senate, Mitch McConnell and Lamar Alexander ripped Baucus and CMS (see a transcript after the jump).
MR. McCONNELL: MR. PRESIDENT, I RISE TO CALL MY COLLEAGUES'
ATTENTION TO A TRULY DISTURBING DEVELOPMENT IN THE HEALTH CARE
DEBATE. A COLLEAGUE OF OURS -- A COLLEAGUE OF OURS HAS CALLED
FOR AN INVESTIGATION INTO A MAJOR HEALTH CARE COMPANY BECAUSE
THIS COMPANY INFORMED ITS CUSTOMERS OF ITS CONCERNS ABOUT
HEALTH CARE LEGISLATION THAT THIS COLLEAGUE OF OURS INTRODUCED.
LET ME SAY THAT AGAIN. A COLLEAGUE OF OURS HAS CALLED FOR AN
INVESTIGATION OF A MAJOR HEALTH CARE COMPANY BECAUSE THIS
COMPANY DISAGREED WITH A BI OUR COLLEAGUE INTRODUCED. AS A
RESULT, THE FEDERAL GOVERNMENT HAS NOW TOLD ALL COMPANIES THAT
PROVIDE MEDICARE ADVANTAGE TO STOP COMMUNICATING WITH THEIR
CLIENTS ABOUT THE EFFECTS OF THAT LEGISLATION. LET ME SAY THAT
AGAIN. THE FEDERAL GOVERNMENT HAS NOW TOLD THESE COMPANIES TO
STOP COMMUNICATING WITH THEIR CLIENTS ABOUT THE EFFECTS OF A
PIECE OF LEGISLATION THAT'S BEFORE US. EVEN TELLING THEM WHAT
THEY CAN AND CANNOT POST ON THEIR WEB SITES. THIS GAG ORDER,
ENFORCED THROUGH AN AGENCY OF THE FEDERAL GOVERNMENT AT THE
REQUEST OF A CENTER, IS WRONG. IT STARTED WHEN A COMPANY BASED
IN MY HOMETOWN OF LOUISVILLE, KENTUCKY, HUMANA, HAD THE
TEMERITY, MR. PRESIDENT, THE TEMERITY IN THE EYES OF SOME OF
OUR COLLEAGUES, TO EXPLAIN TO ITS CUSTOMERS THAT IF MEDICARE
ADVANTAGE IS CUT, AS THE CHAIRMAN'S MARK REQUIRES, IT MAY
REDUCE BENEFITS, WHICH, OF COURSE, IS A COMMONSENSE CONCLUSION.
NOW, MR. PRESIDENT, THIS IS AMERICA, THE UNITED STATES OF
A. CITIZENS, EITHER AS INDIVIDUALS OR GROUPED TOGETHER IN
COMPANIES, HAVE A FUNDAMENTAL RIGHT -- A FUNDAMENTAL RIGHT --
TO TALK ABOUT LEGISLATION THEY FAVOR OR OPPOSE. IN THIS
COUNTRY. THIS IS THE CORE OF THE FIRST AMENDMENT'S PROTECTION
OF SPEECH. UNFORTUNATELY THIS IS PART OF A TROUBLING TREND OF
EFFORTS TO DISMISS THE CONCERNS RAISED BY THE AMERICAN PEOPLE
OVER THE PAST FEW MONTHS. OVER THE SUMMER, WE SAW AMERICAN
CITIZENS WHO RAISED CONCERNS ABOUT THE HEALTH CARE PROPOSALS
BEFORE CONGRESS DISMISSED -- ULTIMATELY DISMISSED, AS SOMEHOW
UN-AMERICAN BY LEADERS HERE IN CONGRESS. THAT'S BAD ENOUGH. BUT
USING THE FULL WEIGHT OF THE FEDERAL GOVERNMENT'S ENFORCEMENT
POWERS TO STIFLE FREE SPEECH SHOULD TROUBLE ALL AMERICANS AND
ALL OF US EVEN MORE. WE CANNOT ALLOW GOVERNMENT OFFICIALS TO
TARGET INDIVIDUALS OR COMPANIES BECAUSE THEY DO NOT LIKE WHAT
THEY SAY. THE LATEST EFFORT IN THE SQUELCH OF FREE SPEECH
RAISES SEVERAL SERIOUS QUESTIONS. IS THIS WHAT WE'VE COME TO AS
A COUNTRY?
AS AN INDIVIDUAL OR COMPANY -- THAT AN INDIVIDUAL OR COMPANY
CAN NO LONGER FACTUALLY ABDICATE THEIR POSITION ON AN IMPORTANT PUBLIC POLICY ISSUE?
IS THIS WHAT WE'VE COME TO IN AMERICA, MR. PRESIDENT?
SHOULDN'T CUSTOMERS HAVE A RIGHT TO KNOW THE POTENTIAL IMPACT
OF A CONGRESSIONAL ACTION?
IS THIS WHAT WE BELIEVE IN THE SENATE THAT THIS BODY SHOULD
DEBATE $1 TRILLION HEALTH CARE BILL THAT AFFECTS EVERY SINGLE
AMERICAN WHILE USING THE POWERFUL ARM OF THE GOVERNMENT TO SHUT DOWN SPEECH?
IS THIS HOW CITIZENS AND COMPANIES CAN EXPECT TO BE TREATED IF
HEALTH CARE REFORM PASSES?
THAT ANY HEALTH PROVIDER THAT DISAGREES WITH A POWERFUL SENATOR
WILL BE SUBJECT TO AN INVESTIGATION AND A GAG ORDER FOR
DISAGREEING WITH A POWERFUL SENATOR?
HOW IS THIS ANY DIFFERENT THAN "THE WASHINGTON POST" AND "THE
NEW YORK TIMES" HAVE DONE IN LOBBYING FOR A REPORTER SHIELD LAW?
WOULD WE STAND BY IF THE JUDICIARY COMMITTEE ASKED THE F.B.I.
TO INVESTIGATE THE MEDIA FOR TAKING POSITIONS ON PENDING
LEGISLATION WE DON'T AGREE WITH?
OF COURSE NOT. OF COURSE NOT. HUMANNA IS HEADQUARTERED IN MY
HOMETOWN OF LOUISVILLE, AND, YES, I CARE DEEPLY ABOUT ITS 8,000
EMPLOYEES IN KENTUCKY. BUT THIS GAG ORDER, MR. PRESIDENT --
THIS GAG ORDER APPLIES TO ALL MEDICARE ADVANTAGE PROVIDERS.
SHUT UP, THE GOVERNMENT SAYS. DON'T COMMUNICATE WITH YOUR
CUSTOMERS. BE QUIET AND GET IN LINE. I WOULD REMIND MY
COLLEAGUES THAT I'VE SPENT A GOOD PART OF MY CAREER DEFENDING
THE FIRST AMENDMENT RIGHTS OF PEOPLE TO CRITICIZE TO THEIR
OFFICIALS, INCLUDING ME. I WOULD MAKE THE SAME ARGUMENT IF THIS
WERE A COMPANY BASED IN SAN FRANCISCO OR HELENA, MONTANA, OR
CHICAGO. THE RIGHT TO FREE SPEECH IS AT THE CORE OF OUR
DEMOCRACY. FREE CITIZENS HAVE A FIRST AMENDMENT RIGHT TO
PETITION THEIR GOVERNMENT FOR REDRESS OF GRIEVANCES. THIS GAG
ORDER ON COMPANIES LIKE HUMANNA AND THOSE IN ALL OF OUR STATES,
IN MY VIEW, IS A CLEAR VIOLATION OF THAT RIGHT AND IT IS WRONG.
EMPLOYERS THAT WARN THEIR CUSTOMERS ABOUT THE EFFECTS OF
LEGISLATION AREN'T THE ONES WHO SHOULD BE GETTING WARNINGS, MR.
PRESIDENT. THEY AREN'T THE ONES WHO OUGHT TO BE GETTING
WARNINGS. SENATORS WHO THREATEN FIRST AMENDMENT RIGHTS ARE THE
ONES WHO SHOULD BE GETTING THE WARNING. MR. PRESIDENT, I YIELD
THE FLOOR. A SENATOR: MR. PRESIDENT?
MR. ALEXANDER: BEFORE THE REPUBLICAN LEADER LEAVES --
THE PRESIDING OFFICER: THE SENATOR FROM TENNESSEE IS
RECOGNIZED.
MR. ALEXANDER: THANK YOU. I WANT TO CONGRATULATE HIM FOR HIS
STATEMENT. OVER THE YEARS HE HAS BEEN A CONSISTENT DEFENDER OF
FIRST AMENDMENT RIGHTS. EVEN FOR A GREAT MANY AMERICANS WITH
WHOM HE DISAGREED. AND SENATOR BYRD, WHO IS THE CONSTITUTIONAL
CONSCIENCE OF THE SENATE, OFTEN ENCOURAGES US -- SENATORS TO
CARRY WITH US A LITTLE POCKET OF THE -- A LITTLE POCKET VERSION
OF THE CONSTITUTION, AND I'M READING THE FIRST AMENDMENT TO THE
CONSTITUTION, WHICH YOU SPENT A GREAT DEAL OF YOUR CAREER
SPENDING, CONGRESS SHALL MAKE NO LAW RESPECTING AN ESTABLISH OF
RELIGION OR PROHIBITING THE FREE EXERCISE THEREOF OR OF RIGHT
OF PEOPLE TO DECENTLY ASSEMBLE OR PETITION THE GOVERNMENT FOR A
REDRESS OF GRIEVANCES. I ASK THE SENATOR THROUGH THE CHAIR
WHETHER; AS HE UNDERSTANDS THE FIRST AMENDMENT TO THE
CONSTITUTION, IF IT WOULD BE CLEARLY UNCONSTITUTIONAL FOR US TO
PASS LAW THAT WOULD TELL A MAJOR HEALTH CARE COMPANY THAT IF
THEY OBJECTED TO A PIECE OF LEGISLATION BY INFORMING THEIR
CUSTOMERS OF ITS CONSEQUENCES, THAT THERE WOULD BE SOME PENALTY?
MR. MCCONNELL: I WOULD SAY TO MY FRIEND FROM TENNESSEE, HE'S
ABSOLUTELY CORRECT. THERE ARE TWO OBVIOUS VIOLATIONS TO THE
FIRST AMENDMENT, ONE, THE RIGHT TO SPEAK FREELY AND THE OTHER
TO ADDRESS THE CONGRESS FOR REDRESS OF GRIEVANCES. AND HERE
YOU'VE GOT AN INDUSTRY, THE HEALTH INSURANCE INDUSTRY, AT LEAST
ONE COMPANY OF WHICH IS COMMUNICATING TO ITS CUSTOMERS THE
TRUTH ABOUT THIS LEGISLATION. AND BEING THREATENED BY A
POWERFUL SENATOR AND A GOVERNMENT AGENCY TO SHUT UP.
MR. ALEXANDER: NOW, I WONDER, MR. PRESIDENT, AS I UNDERSTAND IT
FROM READING IN THE NEWSPAPERS SOME OF THE BIG DRUG COMPANIES
ARE LINED UP WITH THE OBAMA ADMINISTRATION WITH THE DEMOCRATIC
HEALTH CARE BILL. AND I WONDER WHAT THE REPUBLICAN LEADER WOULD
THINK IF SOME REPUBLICAN SENATOR CALLED UP ONE OF THE BIG DRUG
COMPANIES AND SAID YOU'RE GOING TO SUFFER SERIOUS CONSEQUENCES
OR EVEN SO WENT TO ONE OF THE AGENCIES OF GOVERNMENT AND CAUSED
THEM TO TELL A BIG DRUG COMPANY THAT BECAUSE OF THEIR SPEECHES
AND REMARKS THEY'RE GOING TO SUFFER SOME CONSEQUENCES.
MR. MCCONNELL: ONCE AGAIN, I WOULD SAY TO MY FRIEND FROM
TENNESSEE, TO CALL UP AN AGENCY OF GOVERNMENT FOR THE PURPOSE
OF IMPLEMENTING A GAG ORDER AGAINST A COMPANY THAT IS SPEAKING
FREELY ABOUT THE IMPACT OF LEGISLATION ON ITS BUSINESS AND ITS
EMPLOYEES IS AN ASTONISHING THING TO BEHOLD HERE IN THE UNITED
STATES OF AMERICA. NOW, I ASSUME THE PARTICULAR INDUSTRY YOU'RE
TALKING ABOUT, WHICH HAS BEEN OUT RUNNING MILLIONS OF ADS IN
SUPPORT OF WHAT THE ADMINISTRATION HAS BEEN TRYING TO DO IS NOT
GETTING SUCH ADDRESS.
MR. ALEXANDER: MAY I ASSUME -- MR. PRESIDENT, I ASSUME THAT THE
-- THAT THE BIG DRUG COMPANIES WHO ARE RUNNING ADS AGAINST
REPUBLICAN SENATORS FOR QUESTIONING THE HEALTH CARE REFORM
BILL, THEY HAVE A RIGHT TO DO THAT. I KNOW THAT'S WHAT'S
HAPPENING IN MEMPHIS IS PEOPLE ARE SEEING THE ADS AND CALLING
AND TELLING ME TO CONTINUE TO OPPOSE WHAT'S GOING ON. BUT
THAT'S PART OF OUR SYSTEM. AND I CONGRATULATE THE REPUBLICAN
LEADER FOR BRINGING TO THE ATTENTION AND ALL OF HIS COLLEAGUES
THIS ACTION.
MR. MCCONNELL: I THANK MY FRIEND FROM TENNESSEE, AND I YIELD
