You couldn’t have missed the commonality of nationwide assaults on corporate 
regulations, civil liberties, voting rights, health care, the environment, 
public schools, et al, happening right after the 2010 debacle.  It’s not a 
shock to learn they have a common, until now-hidden origin.  Here’s the source, 
followed by ‘click-on’s to the various subjects, listed above.  I include one 
here, and will space out the others in days to come.  -Ed

 

http://www.thenation.com/article/161978/alec-exposed

 


ALEC Exposed 


John Nichols:                                                                   
                   

The Nation: In the August 1-8 edition

 

“Never has the time been so right,” Louisiana State Representative Noble 
Ellington told conservative legislators gathered in Washington to plan the 
radical remaking of policies in the states. It was one month after the 2010 
midterm elections. Republicans had grabbed 680 legislative seats and secured a 
power trifecta—control of both legislative chambers and the governorship—in 
twenty-one states. Ellington was speaking for hundreds of attendees at a 
“States and Nation Policy Summit,” featuring GOP stars like Texas Governor Rick 
Perry, former House Speaker Newt Gingrich and House Majority Leader Eric 
Cantor. Convened by the American Legislative Exchange Council (ALEC)—“the 
nation’s largest, non-partisan, individual public-private membership 
association of state legislators,” as the spin-savvy group describes itself—the 
meeting did not intend to draw up an agenda for the upcoming legislative 
session. That had already been done by ALEC’s elite task forces of lawmakers 
and corporate representatives. The new legislators were there to grab their 
weapons: carefully crafted model bills seeking to impose a one-size-fits-all 
agenda on the states.

 

Founded in 1973 by Paul Weyrich and other conservative activists frustrated by 
recent electoral setbacks, ALEC is a critical arm of the right-wing network of 
policy shops that, with infusions of corporate cash, has evolved to shape 
American politics. Inspired by Milton Friedman’s call for conservatives to 
“develop alternatives to existing policies [and] keep them alive and 
available,” ALEC’s model legislation reflects long-term goals: downsizing 
government, removing regulations on corporations and making it harder to hold 
the economically and politically powerful to account. Corporate donors retain 
veto power over the language, which is developed by the secretive task forces. 
The task forces cover issues from education to health policy. ALEC’s priorities 
for the 2011 session included bills to privatize education, break unions, 
deregulate major industries, pass voter ID laws and more. In states across the 
country they succeeded, with stacks of new laws signed by GOP governors like 
Ohio’s John Kasich and Wisconsin’s Scott Walker, both ALEC alums.

The details of ALEC’s model bills have been available only to the group’s 2,000 
legislative and 300 vorporate members. But thanks to a leak to Aliya Rahman, an 
Ohio-based activist who helped organize protests at ALEC’s Spring Task Force 
meeting in Cincinnati, The Nation has obtained more than 800 documents 
representing decades of model legislation. Teaming up with the Center for Media 
and Democracy, The Nation asked policy experts to analyze this 
never-before-seen archive.

The articles that follow are the first products of that examination. They 
provide an inside view of the priorities of ALEC’s corporate board and 
billionaire benefactors (including Tea Party funders Charles and David Koch). 
“Dozens of corporations are investing millions of dollars a year to write 
business-friendly legislation that is being made into law in statehouses coast 
to coast, with no regard for the public interest,” says Bob Edgar of Common 
Cause. “This is proof positive of the depth and scope of the corporate reach 
into our democratic processes.” The full archive of ALEC documents is available 
at a new website,  <http://www.alecexposed.org/wiki/ALEC_Exposed> 
alecexposed.org, thanks to the Center for Media and Democracy, which has 
provided powerful tools for progressives to turn this knowledge into power. The 
data tell us that the time has come to refocus on the battle to loosen the grip 
of corporate America and renew democracy in the states.

“ <http://www.thenation.com/article/161977/business-domination-inc> Business 
Domination Inc.,” by Joel Rogers and Laura Dresser

“ <http://www.thenation.com/article/161975/sabotaging-healthcare> Sabotaging 
Healthcare,” by Wendell Potter

“ <http://www.thenation.com/article/161973/koch-connection> The Koch 
Connection,” by Lisa Graves

“ <http://www.thenation.com/article/161971/starving-public-schools> Starving 
Public Schools,” by Julie Underwood

“ <http://www.thenation.com/article/161969/rigging-elections> Rigging 
Elections,” by John Nichols

John Nichols <http://www.thenation.com/authors/john-nichols>  

 

 

* * *

 

 

http://www.thenation.com/article/161975/sabotaging-healthcare

 


ALEC Exposed: Sabotaging Healthcare 


 

Wendell Potter <http://www.thenation.com/authors/wendell-potter>  

The Nation:  In the August 1-8 edition

 

This article is part of a Nation series exposing the American Legislative 
Exchange Council, in collaboration with the Center For Media and Democracy.  
<http://www.thenation.com/article/161978/alec-exposed> John Nichols introduces 
the series. 
Days after President Obama signed the Affordable Care Act into law, I arrived 
at the spring 2010 meeting of the National Association of Insurance 
Commissioners (NAIC) in Denver, where a fellow consumer representative 
introduced me to one of the hundreds of industry lobbyists swarming the 
convention center. “She’s somebody we can work with,” he said, clearly 
convinced that she would deal with us in good faith, even if we might disagree 
on certain policy issues. Over the next several months, other consumer reps 
agreed that she really did seem to want to do what was right for patients, even 
if the organization that paid her salary often seemed to care more about 
profits than people.

I was skeptical. I knew from my two decades as an insurance company executive 
that the industry often conducts duplicitous charm offensives, assuring the 
public that insurers support consumer-focused reform while executives work 
surreptitiously to block any reform that might curtail profits. So I was not 
shocked when I found out that Joan Gardner, executive director of state 
services for the Blue Cross and Blue Shield Association’s Office of Policy and 
Representation, had been keeping something important from us. As a leading 
member of ALEC’s Health and Human Services Task Force, she’d been helping write 
legislation designed to ensure that any healthcare reform implemented at the 
state level would benefit insurance companies far more than their 
policyholders. She was also leading an effort to recruit more dues-paying 
members to ALEC.

I learned of Gardner’s clandestine work when a reform advocate alerted me to a 
story about a resolution her ALEC committee had drafted in 2008 to forbid 
“government-mandated health care.” Apparently fearful that a bill would reach 
Obama’s desk that would allow states to establish single-payer systems, ALEC 
crafted the Freedom of Choice in Health Care Act, which, despite its Orwellian 
name, was written to deny the citizens of any state that passed it the freedom 
to set up such a system. By declaring that Congressional attempts to regulate 
health insurance at the federal level would be unconstitutional, it would 
effectively ban not only a federal single-payer proposal but also a federally 
created health insurance exchange and a federally operated public insurance 
option. ALEC has boasted that some forty-four states have introduced its 
Freedom of Choice in Health Care Act (which itself would not withstand a 
constitutional challenge). What it hasn’t acknowledged is that attempts to pass 
healthcare-nullification bills have failed in at least twenty-five states. Only 
eight states have passed the act so far.

Reviewing ALEC’s healthcare-related bills and resolutions from the past few 
years makes it clear that insurers realized early on that the best way to block 
the profit-threatening provisions of any federal reform would be to attack them 
at the state level through ALEC. With Democrats in control of both houses of 
Congress and the White House in 2009, insurers assumed some kind of healthcare 
reform was inevitable, so they adopted a strategy to shape rather than stop 
reform. Its top five goals became:

§ Keeping single-payer proposals off the table;

§ Ensuring that the final bill contain a clause requiring all Americans not 
eligible for an existing federal program to buy coverage from a private 
insurance company;

§ Preventing the new law from establishing a government-run plan (the “public 
option”) that would compete with private insurers;

§ Making sure that the reform law is implemented primarily at the state level, 
to keep the federal government from assuming any significant new oversight of 
private insurers’ business practices; and

§ Keeping any new regulations and consumer protections to a minimum.

Insurers achieved their first four goals, with ALEC playing a key role in a 
well-coordinated effort to keep the most progressive proposals from being 
enacted at the state or federal level. Where it fell short was in blocking 
provisions of the law that will impose more rigorous oversight of insurance 
companies’ business practices. After Obama signed the bill into law, the 
industry turned its attention to influencing how the new regulations would be 
written (by the NAIC and federal bureaucrats) and how the law would be 
implemented in the states.

As its archive reveals, ALEC has been at work for more than a decade on what 
amounts to a comprehensive wish list for insurers: from turning over the 
Medicare and Medicaid programs to them—assuring them a vast new stream of 
revenue—to letting insurers continue marketing substandard yet highly 
profitable policies while giving them protection from litigation. Republican 
lawmakers continue to promote model bills from the 1990s. Some of the most 
far-reaching and industry-favorable measures adopted by ALEC over the years:

§ The Resolution Urging Congress to Create Private Financing of the Medicare 
Program, initially adopted in 1998, calls on Congress to privatize Medicare by 
permitting the creation of Individual Medical Accounts, similar to Health 
Savings Accounts that accompany high-deductible health plans and that have 
become attractive tax shelters for well-to-do Americans. Individual Medical 
Accounts, along with vouchers, are a feature of Representative Paul Ryan’s 
federal proposal to privatize Medicare.

§ The Resolution on Medicaid Funding Through a Federal Block Grant, adopted in 
2008, urges Congress to replace the current financing mechanism for Medicaid 
with block grants, as Ryan proposes. In another proposal to privatize the 
program, the Access to Medicaid Act, beneficiaries would receive vouchers to 
buy insurance policies in the private market.

§ The Health Care Choice Act for States, adopted in 2007, would permit the sale 
of individual health insurance policies across state lines, which would not be 
subject to the mandated benefits required by in-state policies. The effect 
would be to make comprehensive policies significantly more expensive than they 
already are. (Wyoming was the first state to enact this model bill, in 2010, 
followed by Georgia and Maine this year.)

§ The Non-Economic Damage Awards Act, adopted in 2002, would limit medical 
malpractice awards for damages like pain and suffering to $250,000, making such 
lawsuits infeasible. (Few lawyers would be willing to represent patients if the 
total award were limited to that amount because they probably would not be able 
to cover their costs.) Insurers and the American Medical Association have 
joined forces in lobbying for such tort reform.

In sum, ALEC’s model legislation would not only undermine the consumer 
protections in the Affordable Care Act; it would shred the social safety net 
for the most vulnerable among us: older, disabled and poorer Americans, and 
those who become victims of a system that is supposed to heal, not harm.

Wendell Potter <http://www.thenation.com/authors/wendell-potter>  

 

 

 



[Non-text portions of this message have been removed]



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