Last month, the Obama administration imposed an essential ban on insurance company lobbying efforts via private mailings to Medicare beneficiaries that warned seniors of cuts to the entitlement program; those cuts — the mailings would go on to say — would be used to fund a portion of Obama’s healthcare stimulus.

Obama underestimated, perhaps naïvely, the political firestorm that ensued. Stepping up their de rigueur stance of reaction to any Obama action, the GOP proclaimed an assault on the First Amendment, citing “gag order” proclamations.

Although CMS insists no such order was mandated, thus undertaking no formal action on the matter, it did “clarify” its position [PDF] on the incident. At the tail end of the Friday news cycle, Medicare said insurance companies may lobby seniors, provided they first get permission from beneficiaries to do so. Another victory for Insurance is obvious, since their fiduciary stake in MA plans essentially gives them the greenlight to solicit the majority of their plans’ beneficiaries. The losers? The Obama administration.

This entire episode made corporate stronger and the president’s trustworthiness of the American public slightly weaker. After all, how difficult will it continue to be for him and the majority Democrats to strongly and convincingly push a public option provision if Insurance can block any proposal by seeking out the minority party (the GOP) whenever its ability to profit is threatened? | LINK

Related Posts Within Doctor Pundit:

1. White House Releases Statement on Public Option ‘Rumors’, Some Top Dems Unconvinced The President’s drive for a public option is rife with...
2. White House Officially Endorses Composite House Healthcare Reform Bill Take it for what it’s worth — and that really...
3. White House Budget Director’s Plan to Overhaul Medicare Spending Policy Irks Lawmakers An independent panel of sorts meant to develop payment, spending,...
4. Medicare Advantage Plans’ Quality Parameters Scrutinized by Policy Group Medicare Advantage flourished in the second George W Bush administration,...
5. House GOP Actions Force Senate Showdown on Payroll Tax Cut Extension, Medicare ‘Doc-Fix’ Honestly, these “clock-ticking countdowns” are getting a little irksome. The...