The political appointees tapped by President Donald Trump to oversee federal health care programs — including the potential transition to a new Republican bill to replace the Affordable Care Act — joined the government just after working as lobbyists and attorneys for the largest health care interests in America.
Several senior Health and Human Services Administration appointees previously worked for insurers seeking to influence the consumer regulations mandated by the ACA, according to new political appointee financial disclosures obtained by The Intercept. The appointees work closely under HHS Secretary Tom Price — a former member of Congress and longtime ACA opponent who has pushed his old colleagues on the Hill to repeal the ACA.
Eric Hargan, the nominee for deputy secretary at HHS, and Paula Stannard, Price’s senior counselor, previously worked in the lobbying and government affairs departments of their respective law firms, Greenberg Traurig and Alston & Bird. Hargan and Stannard both disclosed serving health insurance giant UnitedHealth as a client.
UnitedHealth, which prompted worries about the ACA’s tenability when it exited most of the health exchanges that underpin President Barack Obama’s signature health care reform law, has lobbied the federal government on a number of issues. The group targeted its work in Washington at ACA policies dealing with mandating insurers cover a series of basic medical services known as essential health benefits; limits on how much insurance prices can differ between age groups; and the health insurance industry taxes. All these policies are in Republicans’ sights as they move to repeal Obama’s reforms.
Hargan is but one of several top HHS appointees with health insurance industry ties.
HHS Associate Deputy Secretary for Health Reform Randolph Wayne Pate previously worked as the vice president for public policy for Health Care Services Corporation, an insurance company that operates Blue Cross Blue Shield plans in five states. In recent months, Pate’s previous employer has lobbied on bills to provide waivers for health insurance companies to duck costly consumer mandates, such as prohibiting discrimination over age.
Price’s Chief of Staff Lance Leggitt listed 40 previous health care-related clients as a partner of the law firm Baker, Donelson, Bearman, Caldwell & Berkowitz. Leggitt served as the chair of the federal health care practice of the firm, which lobbies for the insurer Aetna and the Pharmaceutical Research & Manufacturers of America, a trade group. Leggitt disclosed being paid $801,008 in compensation.
Keagan Lenihan, who serves as a senior counselor to Price, previously worked as a top lobbyist for McKesson Specialty Health, the largest distributor of drugs and other health care products in the country. As recently as last year, Lenihan attempted to influence lawmakers on “pharmacy reimbursement issues and implementation of the Affordable Care Act,” according to disclosures.
McKesson has faced accusations that it ignored warning signs and distributed dangerous opioids to pill mills, worsening the drug overdose crisis. In January, the firm paid a record $150 million settlement for failure to report suspicious orders of controlled substances, including oxycodone and hydrocodone pills.
The Intercept reached out to HHS for comment on the appointees’ past ties to health care industries and their lobbying, but did not receive a response.
Private health care interests, particularly health insurers, have worked closely with Republican leaders to shape the next iteration of health reform. House Speaker Paul Ryan, R-Wis., attended a fundraiser hosted by health insurance lobbyists just before appearing to explain his party’s approach to repealing and replacing the ACA. The major provisions of the plan passed by House Republicans includes a major tax cut for insurers, along with an option for states to opt-out of consumer protections — proposals demanded by health insurance companies.
Top photo: UnitedHealthcare signage is displayed outside of a store in Queens, N.Y., in 2013.
Astounding… especially since healthcare lobbyists wrote Obamacare as well!!
If we had medicare for all there would be a much less need for the current health care companies. There would be little need for the expensive “health care over site” office. And hell. Everyone would have medical coverage, EVERYONE.
The Republican Healthcare plan is not getting out of the Senate. To many Republican Senators believe in self preservation, than political suicide. Wishful think by Republicans that they can get any big legislation done.
This is a sensible development. Lobbyists become justly frustrated, trying to explain the complexities of healthcare to clueless politicians, who then good naturally try to implement the lobbyists’ plans, but invariably screw it up. Giving lobbyists positions within the administration cuts out the middleman and the entire process becomes much more efficient. Putting a businessman in the White House is finally starting to pay dividends to the long suffering shareholders of the United States.
‘good naturally = good-naturedly’. My computer thinks it is smarter than I am, continually changing the words I type. But artificial intelligence still has a ways to go before it is ready to rule the world. (Surprised my computer let me type this – it must still be only half awake).
Big problem!!! I often use technical or unusual words that Apple changes to something else. Very frustrating.
IT hint for the day: turn off spell check as you type; turn of automatic correction.
I know. I’m no fun at all.
I would like to see an actual non-partisan article about Universal Health care vs the current system. I would be willing to consider, single payer, if the US health care system only allowed verified US citizens, and required a two year wait for new citizen arrivals.
Keep watching CA. We will be leading the way while the government tries to destroy everything it is touching.
I generally agree with you about the two-year wait for things like education and any kind of government financing for business etc. but you are asking for trouble with high healthcare costs for new arrivals. Whether it appeals to you or not it’s simply in the best interest to offer affordable or free healthcare. You don’t want to saddle new arrivals with debt that makes them unable to start businesses and build a life, you just want to make it a little less of a “freebie” to pop over when you have a medical condition. Most Canadian provinces (which are known for their near-free health care) have a wait time of 3 months. This at least removes the incentive for most pre-existing medical conditions (imagine going without cancer treatment for 3 months???), without leaving lots of people uninsured and thus not properly supported by the government to fulfil important roles and achieve things they might be able to accomplish without either crippling debt or an untreated medical condition.
Elites are “allergic” to regular people and regular modest humble life. They have a mental disorder that requires them to be pampered, adored and adorned. Their requirements are such that many whores about them feed on them like suckerfish. They and their suckerfish feed on us like sharks. They don’t mind if their personal economy and methods kill us and may wish it would when we are near dying and in need to take back what they have robbed us of. The fact is, they are poison for a good and working society of people with equal rights, equal power, and equal ownership of public life support and services.
https://www.nytimes.com/2017/05/15/business/dealbook/a-whistle-blower-tells-of-health-insurers-bilking-medicare.html
This article is obviously bias towards the appointees by the Trump Administration, but I ask what the alternatives to these appointees would be. If a top goal of the administration is to repeal and replace the ACA, then wouldn’t one expect to have professionals with experience in health insurance on a team to ponder an alternative to the ACA? If you disagree, take this analogy: it would be like trying to field an NFL team with all NHL players; or hiring an NBA coach to coach an MLB team. Just some food for thought.
Health INSURANCE professionals are not pros at health care in the slightest. They are nothing but overhead…like paying tribute to a mob boss.
By that logic we should have criminals appointed to head the Justice Department, polluters hired to head the EPA, opponents of public education hired to head HEW. Oops. Already did that.
Never mind.
Ah, United Healthcare. It would seem that their attorneys ought to be too busy to serve in the Government, as they ought to be tied up in the litigation over UHC’s fraudulent overcharging of Medicare (for years). For instance, https://www.nytimes.com/2017/02/16/business/dealbook/unitedhealthcare-improperly-took-money-from-medicare-suit-says.html?_r=0 and also http://www.npr.org/sections/health-shots/2017/03/28/521691406/justice-department-joins-second-lawsuit-against-unitedhealth
In the interest of complete disclosure I must admit that currently my Medicare supplemental is provided by UHC. The operative word is “currently”.
The richest country in the world can not afford Universal Medicare. These fake US politicians can take a look at Canada Universal Medicare maybe they can learn how does it work. Why Americans still vote at the elections when nothing change? For a few months, Bernie Sanders brought some hope and then he decided to support Clinton, another corrupted politician. Such a disappointment. Canada is a wonderful country with a great Universal Medicare for all Canadians, rich, middle class and poor, everybody under the same umbrella.
Hmmm….you seem to think ‘you know’.
“I know one thing: that I know nothing”
What’s your name again?
IOW, you have fuck-all to contribute.
Oh, I see….your name’s not Socrates at all; it’s Nete. Thanks.
I didn’t know you had a book! I would love to read it.
I lived in S.F. for many years.
I can’t deal with all of this being perfectly legal. It makes me sick. Thank you for doing your best to hold these corrupt people accountable.
We are Medicare recipients through the Advantage plan of United Health Care. My wife and I have had very large medical charges as I have prostate cancer and we are both in our 80s. The health care we have had is sometimes slower to happen than we would like but nevertheless it has been splendid, especially for my problem. I hope the status remains quo. My $5000 copay limit has been exceeded since March 28th.
I miss Glenn Greenwald!
I have no health insurance. How about you?
I can’t afford to buy it under Obamacare- and certainly not under Trumpcare- and the Medicaid policy in my state is confusing. My hopes are either to get a better job that has insurance, or Medicare for All after 2020.
Trump’s not “draining the swamp”, he’s restocking it!
Thanks for your consideration, thoughtfulness, and best wishes for D.J.
John Wax
The wolves are digesting.
They won’t howl again until they’re hungry.
Which won’t be long.
actually, I thought they were in their lair ripping up their latest victim behind closed doors. We’ll find out about in a year or two when we discover the remaining bones and attempt to identify what it is they ripped to shreds.
He’s not “draining the swamp”, he’s restocking it!
JW
Putting employees of the 1% in charge of the government’s regulatory machinery is an old story. It is a large part of why the middle class is being eroded away. Trump is just the latest front man, and his supporters are just the latest dupes.
“Trump Officials Overseeing Health Care Overhaul Previously Lobbied for Health Insurance Firms” Yes, and those who WROTE the Obama administration’s signature healthcare law were not only former industry lobbyists, but former industry executives!
Glenn Greenwald wrote some good articles for Salon and the Guardian on Liz Fowler, a VP for Public Relations at Wellpoint before joining the Obama administration. She then went on to a very lucrative position at Johnson & Johnson.
It seems a little strange that The Intercept would run an article on this topic and not even mention previous work by Greenwald, one of their founders. To give the impression that the corrupt oligarchy under which we live was invented by Trump is to give Trump way more credit than he deserves.
It does seem strange, unless you understand that the average journalist considers his readers to be unwashed illiterates without memory or judgement. “Otherwise” they reason “why would they pay attention to idiots like me?”
Glenn who?
That name sounds familiar, but then, I am so busy that I can’t seem to
re-call why I came here. Oh, that’s right! The Russians made me come here!
Obama’s now gone. It’s Trump’s baby now…and TI has raked the Dems over the coals for caving into the insurance industry, which they deserved because they are Liberals.
Trump fully encourages private industry looting of the taxpayer, but we should let him off because the Dems did it too?
Did you not write this:
“Yes, and that is SO DIFFERENT from Obama’s…and, by extension, Clinton’s modus operandi…how?”
Doesn’t your comment essentially agree with Alan’s? So why contradict yourself? Where did Alan say that Trump should be let off the hook?
Alan’s central point seems to be: ‘To give the impression that the corrupt oligarchy under which we live was invented by Trump is to give Trump way more credit than he deserves.’
You seem to have already acknowledged that truth by saying Obama’s and Clinton’s M.O. is no different than Trump’s.
Are you not talking out of both sides of your mouth?
Try thinking about two possibilities…that the Obama/Clinton treatment of healthcare was the shits, AND that Trump is offering no better or even worse. C’mon…you can do it!
Ok, will do….now try answering my question. I’ll repeat it in case you missed it:
“Alan’s central point seems to be: ‘To give the ***impression that the corrupt oligarchy under which we live was invented by Trump*** is to give Trump way more credit than he deserves.’
You seem to have already acknowledged that truth by saying Obama’s and Clinton’s M.O. is no different than Trump’s.
Doesn’t your comment essentially agree with Alan’s? So why contradict yourself?
*******Where did Alan say that Trump should be let off the hook?*******”
Lee Fang – Typo: fifth paragraph from bottom, last sentence – should be Leggitt disclosed “being” paid…
Helluva job draining the swamp, POTUS.
How many waivers has he sought?
I have been paying for childbirth since long after (decades) my child was born.
It’s part of the landscape in health insurance.
Since it’s such a mean piece of work, did Mr Trump say he was going to veto the bill, should it come to him in its current mean form? I wonder who finally read the bill and pointed it out to our feckless leader.
Thank you, Lee Fang.
Yes, and that is SO DIFFERENT from Obama’s…and, by extension, Clinton’s modus operandi…how?
true, but might as well go after trump now. he’s what’s for dinner.
It may not be much different, except Mr Obama’s chief WH counsel didn’t call for the deconstruction of the administrative state.
Oh, and the other thing: Mr Trump, who is so utterly unacceptable as a human being, let alone president of the US, is morally, psychologically, emotionally, temperamentally, mentally, and physiologically repugnant to some of us that it makes perfect sense to point out his every flaw, and to especially point out the utterly contrary approach to “governance” versus his so-called populist raison d’être.
s/he’s the monster’s mother
Fully agree. I’m harder on Dems because they are highly educated and accomplished, so they should have known better.
You would think that the Dems should know better, but the past four decades show that they do not know better, because they chose a different constituency.
I am hard on both parties and I take great pleasure in offering my honest assessments.
Insurance owns much of the economy. Salaries of CEOs of just 3 companies is close to $200 MILLION dollars I have no idea of salaries of other hundreds of other execs, but cumulatively it is likely more than a billion in exec. salaries.
These costs are deductible from gross income yet net income (profit) allows about another 100 million in dividends from profit. Then they can afford to spend tens of millions in lobbying and bribes called campaign donations to congressmen who ooze slime as they push to end regulations on ACA and give them a easier path to privatizing all of health insurance like we did for decades before we finally created the ACA with limits on the corporate pirates.
Lobbyists and corporate owned congressmen ignore that those decades of privatized insurance company abuse (like excluding preexisting conditions or blackballing higher risk people and annual rate increases 3-4 times the increase under the ACA) is exactly why we needed ACA.
Still, they have cooked the books and complain they are losing money? And their purchased congressmen are voting to return us to the days of old with bandits stealing from everyone. Republicans will pass the laws rewarding their masters while democrats will voice opposition yet make sure there are enough Dem. votes to have it pass. It is all part of the masquerade of a two party system that really the party of the rich and powerful.
No Democratic votes needed to pass this. Need a cpl pos’s from the reich to jump ship. Or three. THIS is one of the best times to call your reichian reps and tell them to stop this shit.
Americans need to understand that people who become wealthy throo fame or inventiveness or really hard work is no longer the way to wealth. The way to wealth is power and greed or trickery. Consider some of the conniving ceo’s of the past of say, United Health or that fla gov criminal of health fraud. Or the ceo criminals of wallstreet banks. That is the way to wealth. It only makes sense that criminals who want to be wealthy have the protection of lawyers who write the devious laws and help out with the complexities of robbing the public legally.
Protesters can just get off their high horses, join the military, go to war and get killed. So instead of being the downtrodden they can be heroes…. albeit for the profits of the wealthy ceo criminals in the war industries.
Ain’t America great!?
And Obama had Liz Folwer, VP of Wellpoint, write Obamacare in secret. What is your point?
http://www.salon.com/2012/12/13/obamacare_brought_to_you_by_johnson_johnson/
The point is Trump is no better than Obama on this front.
More honest headline:
“Corporate Healthcare Giants Again Capture Washington”
I am thankful every day that none of the HuffPo headline writers came to TI.
I haven’t played at HP in years and will likely never return, but recall that their headlines were particularly and effusively deceptive and awful.
So, not too bad, right?
“Trump Care” is only to give the top 1% another tax break, and kill the 99%.
But Obamacare was a totally civic-minded planning process performed only by heavenly angels who wanted nothing but the very best care possible for the huddled masses. Right? Give me a break.
Obamacare was a massive– the MOST massive– giveaway to the insurance industry in the corrupt history of government programs. Attempting to paint this as a Trump Administration issue lets waaaay too many people off the hook and ignores the extensive historical reality of crony capitalism.
But hey, this is The Intercept, Huffpo for people who like their left-wing slime delivered with NPR pretentiousness, so why would I expect any less?
Oh, and by the way, great in-depth reporting on the shooting rampage against US Senators yesterday. Oh wait, they were Republican Senators, and the psycho was a mainstream left-winger programmed and triggered by exactly the sort of mindless propaganda this site churns out every day. So that’s not news, is it? Not worth reporting.
How’s Reality Winner doing, by the way? Great organization, The Intercept. Keep it up.
I’m guessing that their in depth reporting on the shooting yesterday will be just that and not the jump on the bandwagon reporting that takes place almost everywhere else before all the facts are known.
New here, aren’tcha… https://theintercept.com/2016/08/27/obamacares-faltering-for-one-simple-reason-profit/
@Brent-nobody cares about politicians being shot! As matter of fact, one could say it is our “duty” to shoot politicians when they have sacrificed our rights as much as they have, per the Declaration of Independence.
Excellent article as usual Lee, thank you.
FYI re typo: last sentence of para 7 should read “Leggitt disclosed being paid” rather than “Leggitt disclosed bring paid”.
Yes, it would be terrible to let the insurance industry control
legislation the way they controlled the design of the so-called
“Affordable”Care Act so that the likelihood of any real version of
“single payer” will has less chance of ever existing within the
faking U$A.
Those who are desperate to save the ACA need to realize it was a scam
designed to stall and set the groundwork for what is happening now.
I could not agree more. It has always been about MONEY.
Fascism.
Spot on.
Dr. Lawrence Britt “Fourteen Defining Characteristics of Fascism”, a one page easy concise read available online.
Yah, especially if you give them a link: http://www.rense.com/general37/char.htm
I think we’re still holding out on points 5, 6, and 8. While 14 is more controversial … and turning.
Thanks for posting the link.
Fascism has been here since 10/26/01. Where have you been, in a cave this whole time?
Uhhhh…a bit earlier than that, ie always. Britain & the USA. have malways loved fascism.
http://rarehistoricalphotos.com/henry-ford-grand-cross-1938/
and
http://www.azquotes.com/quote/580419