Here's a letter from the Department of Health & Human Services Centers for Medicare & Medicaid Services (CMS) to Humana, Inc., a leading health insurance company; the letter is apparently demanding that Humana stop sending this mailing.
Dear Ms. Miller/Ms Kelly:
CMS has learned that Humana has been contacting enrollees in one or more of its plans and alleging that current health care reform legislation affecting Medicare could hurt “millions of seniors and disabled individuals [who] could lose many of the important benefits and services [emphasis in original document] that make Medicare advantage health plans so valuable.” The message, which is included in an envelope that states it contains “important information about your Medicare Advantage plan—open today!,” makes several other claims about the legislation and how it will be detrimental to enrollees, ultimately urging enrollees to contact their congressional representatives to protest the actions referenced in the letter (see attachment).
CMS is concerned that, among other things, this information is misleading and confusing to beneficiaries, represents information to beneficiaries as official communications about the Medicare Advantage program, and is potentially contrary to federal regulations and guidance for the MA and Part D programs and other federal law, including HIPAA. As we continue our research into this issue, we are instructing you to end immediately all such mailings to beneficiaries and to remove any related materials directed to Medicare enrollees from your website.
Please be advised that we take this matter very seriously and, based upon the findings of our investigation, will pursue compliance and enforcement actions....
As best I can tell, the statements in the Humana mailer contained constitutionally protected opinion. Whether it's "misleading and confusing" naturally depends on how you interpret the mailer, and the various health care proposals. But precisely because the terms are so mushy, political advocacy (as opposed to commercial advertising) can't be restricted simply on the grounds that it's "misleading and confusing." Even knowingly false statements of fact about the government are generally constitutionally protected; it's possible that knowingly false statements of fact about particular legal proposals are not protected, but I've never seen any cases that extend such a false-statements-of-fact First Amendment exception to statements that are merely "misleading and confusing." (I suspect also that if HHS had the goods on why the statements were supposedly outright false, it would have said so.)
It's possible that the claim about the envelope's supposedly "represent[ing] information to beneficiaries as official communications about the Medicare Advantage program" is an allegation of outright knowing falsehood. I couldn't find a copy of the envelope that the HHS letter complains about; if you can point me to it, I'd be much obliged. But the HHS letter complains about the content of the mailing as well as the envelope, and the "instruct[ion]" "to end immediately all such mailings to beneficiaries and to remove any related materials directed to Medicare enrollees from your website" seems to cover the content and not just the envelope.
There's also a separate question about whether "instruct[ing]" a private company to stop certain speech, before any adjudication that the speech is unprotected, is a prior restraint. Presumably threats to prosecute or sue based on assertedly unprotected speech are generally permissible, if the speech is indeed unprotected, but an overt order — which is how the letter is framed — is generally not. But that to me is something of a tangent; I don't see any basis for how the contents of the letter can even be subject to subsequent punishment, much less a prior restraint.
Thanks to InstaPundit for the pointer.
Related Posts (on one page):
- The Humana Controversy and Government Funding:
- Government Instructing Private Corporation To Stop Expressing Certain Opinions About Health Care Reform?
How exactly does this letter say anything that a standard "Cease and Desist" letter does not?
By the way, the link is to Huffpo, not Inpu.
I for one would feel much safer.
Nothing. Isn't this basically a "Cease and Desist" letter, from the government, ordering someone to "cease and desist" constitutionally protected speech?
Freakin' awesome. So not only does does a corporation have personhood, it also gets to send out these letters that the government doesn't? Do you see anything in the letter in which CMS threatens any action not available to a corporation?
You obviously know more than I do about commercial speech doctrine (and the Supreme Court has vacillated on the matter, making your job even more interesting) but doesn't the fact that party directly intends to sell a product by the speech at least enter into the calculus?
Ohralik v. Ohio State Bar Ass'n
At any rate, it's a fascinating case at the intersection of commercial speech (where 'truthful but misleading' can be proscribed) and political speech (where even willful falsehood is protected).
Arguably a C&D letter from HHS is different in degree than a C&D letter from J. Random Crank.
Just sayin'.
So where was this website post-Patriot Act? Hmm?
If you goto archive.org, you'll see this current version didn't come active until after 2006.
I don't know, but it appears from the quote that a condition of being able to participate in the government-run Medicare Advantage program, and thus take government money, is agree to the limits (rules) mentioned above. Does anyone if this is true and what those rules are?
I note also that it was Senator Baucus that requested the action.
Yeah, and a private citizen (even acting on behalf of a corporation) can tell random people on the street, "Can you step over here please, put you hands on the wall and spread your feet apart. OK, now please get the the back seat of my car, I'm going to take you downtown" for no reason. But uniformed police officers can't! I wonder what the world's coming to?
What are they selling? Membership in the Humana Partner program? They're not charging for that, which I'd think would be an important component of a sale.
For example, if Congress can bar persons receiving money for family planning from mentioning abortion (Rust v. Sullivan), why can't Congress bar insurers from expressing a position contrary to the limits set by Congress.
If Congress controls the food supply, and insurers get fat at the congressional feeding trough, then the insurers should man-up and keep quiet . . . if that's what Congress wants.
It worked in Rust.
Personally I think we'd all be better off if the courts would respect the First Amendment and stop coming up with nonsense like Rust that exalts the power of the government. But that's me. YMMV.
I said http://biggovernment.com/ is a new website - and it is ( In terms of suddenly becoming widely known and read ).
You asked "So where was this website post-Patriot Act? Hmm?"
Well, seeing as the timeframe you specify includes today, it is exactly at the URL above, as I stated.
The key things about it, IMO are A ) he has name recognition / insider contacts, and B ) the money to keep the site alive ( against inevitable attempts to take it down ).
That, and he's breaking NEW news, like the Acorn tapes that have brought down ACORN.
This is an interesting point, because the gubment's position is that anyone who wants to keep their insurance won't lose it. So from the gubment's worldview, the insurance company isn't 'selling' anything.
The gubment can charge the company for fraud, or accuse them of political speech violations, but the government's very own stand is that there will be no change for those who wish to keep their coverage. And since these messages were sent out to existing customers, they're 'selling' nothing.
Unless of course the government is actually a competing company, and that changes everything. Incidentally, is the government willing to subject itself to all the rules, restrictions and oversight as a corporation? Can it?
No corporation has a Department of Justice. Just another reason why 'public option' is not fair 'option.'
Personally I think we'd all be better off if corporations weren't treated as people, and concentrated on manufacturing goods and services in exchange for payment, rather than getting involved in politics. But that's me.
BOO-yeah. CMS imposes penalties first &thinks about them later.
The comment about "strict limits and oversight on how [Medicare Advantage] plans communicate with beneficiaries" may well be correct -- I haven't had the pleasure of litigating this issue with CMS, tho I've tangled with them on other, really boring ones.
But I would hope to see, in CMS's letter, some EXPRESS reference to the SPECIFIC regulation authorizing its threat.
They dug the Nike shoe case, didn't they? I sure hope we don't expand the "commercial speech" doctrine beyond speech proposing a comercial transaction, to any speech that the speaker hopes to gain commercially from. We can pretty much kiss the 1A goodbye if that happens.
'specially if the government goes into business, then prosecutes its competition...
There will be rent-seeking by rent-seekers as long as there is rent to seek. Solution: stop dishing out rent.
Of course, many folks find it convienient to form corporations for the purpose of getting involved in politics, like the ACLU, NAACP, etc.
In particular, the manual governing advertising and marketing materials can be found here: marketing manual
Undoubtedly, somewhere in this massive pile of verbiage there is a regulation that could be read to prevent a Medicare Advantage plan from doing just about anything. Whether it should be used to restrict advocacy in this way is a pretty debatable proposition.
(By the way, the next time someone tells you that there isn't very much government intervention in health care, point them to the section where the manual specifies the font size to be used in marketing materials.)
Your letter may contain an impermissible prior restraint. Furthermore, it is potentially confusing and misleading to the public as to there First Amendment rights. As we continue our research into this issue, we are instructing you to end immediately all such mailings to insurance companies and to remove any related materials from your website.
Please be advised that we take this matter very seriously and, based upon the findings of our investigation, will pursue compliance and enforcement actions.
-The Voters
Uh, yes? There's a reason the Constitution says "Congress shall make no law" and not "No one can restrict the right..." Government has a legal monopoly on force and is, therefore, in need of unique restrictions.
Yes. I think that's a valid point. But I still think there needs to be of a clear separation between organizations created with the stated purpose of political action and advocacy and those created with a profit motive.
But now I just sound like someone railing against centuries of case law... Who knows... next I may start calling the judiciary, "those tyrants in black robes," or some such nonsense.
Why? What's wrong for organizing for a profit motive? And certainly folks have a right to request political action so they can earn more money, right? Hell, women demanding equal pay have a profit motive.
What am I missing?
Ebenezer,
Yeah, that did Microsoft a lot of good under Clinton. I think it is safe to say they learned their lesson about not contributing to political parties.
Don't forget ACORN and the NEA. Whoops, sorry, the NEA is a neutral tax funded organization. Now, why is it they were on a conference call with the White House to promote his health care agenda along with a lot of recent grantees and potential grantees? Yeah, don't want anyone who earns a profit and pays taxes to be able to speak.
However, I still wonder about EV's primary analysis. Let's use a simple example:
Government contracts with company to print ballot envelopes for election. Government specifies what can and cannot be put on to those envelopes (in very specific terms). Printing company decides to also put on the ballot envelopes a lengthy screed in support of certain cnadidates and/or propositions. Government tells them to stop. Analyze.
So I think this is a little more complicated. If Humana had sent out *separate* mailings to these customers and were speaking in their own voice, that would be a clear violation of the 1st Am.. If Humana called them up, again, they could be advocating (and annyoing). But this might be more complicated because of the nature of the speech (perhaps it is mixed goernment speech, a la Beef Council case- as I said, too tired to really think this through right now).
Hard to see how Rust helps the government here. I guess I'm taking for granted that Humana isn't using government funds to send this mailing, but that seems like a safe assumption.
I do think the envelope is a concern, and Humana really shouldn't be allowed to trick people into reading a political message under the guise of "important information about your Medicare Advantage plan," but those are separate issues.
Ha. It's a good thing most newspapers and other print media don't turn a profit, right? Nothing worse than a profitable media corporation publishing political opinions. Especially in a free nation.
speech and other? how 'bout religion?
Yes, but I see a difference between people (individuals) speaking, which I believe they should be able to do for just any purpose or reason, and corporations speaking. (I'm not saying that you have to see it as well)
The added layer of anonymity and unaccountability that corporations grant probably isn't something that the founding fathers envisioned when they thought about the First Amendment. But now I'm sounding like an originalist, which I'm also not... I'm all over the place today...
Honestly though, I'd trade free political speech for Corporations--if they could be tried and put in prison (or executed), for their wrongs, like normal people.
Because journalism/newspapers didn't exist before the invention of the corporate personhood?
Of course, that gets a little tricky. I get deceptive stuff on envelopes all the time. Envelopes that contain information that the govt disagrees with shouldn't get heightened scrutiny.
Well, corporations don't really speak, do they? That letter was written by a group of individuals acting as an ogranization, seeking to advance their interests. The fact that the govt ficticiously treates the organization as a person doesn't change the fact that what they're doing is threatening to harm the financial interests of individuals in order to cause individuals to stop engaging in constitutionally protected speech, correct?
I think the government has a pretty clear interest in ensuring that people don't get an envelope saying "important information about your government program" and toss it out assuming it's just another piece of junk mail.
My sense is that the government has actually been fairly aggressive about safeguarding this particular prerogative in the past.
[Whoops, thanks! -EV]
There is a long list of what Medicare Advantage and Medicare Supplement policies may say, all coming under strict Federal regulation.
In this case, the law regulating what companies may say they offer in the way of Medicare health related benefits has nothing to do with what the insurance company may say regarding politics. I do believe that the current bills will eliminate Medicare Advantage. It seems that those who have Medicare Advantage have a right to know this and that Humana has not only a right, but a duty to inform their policy holders of this even, and perhaps especially, if the Government action will eliminate this option. I do believe our founding Fathers would have been in favor of full disclosure.
The Government essentially transfers the risk from themselves to Humana. They take the average cost of treating Medicare patients in a given area and pay that money to Humana. If Humana makes money, good. If they lose money, too bad for them. I think Humana Medicare Advantage is very, very good and can be very, very bad. Medicare recipients make the decision if the good outweighs the bad. I understand that most Medicare Advantage patients are very happy with it. I would not choose it, based on past experience with it due to parents after the 1996 balanced budget act. It is not Humana's fault that the government cut reimbursement to the point that Humana had to dramatically cut back in certain areas, Medicare Rehab in nursing homes is the specific issues I have with them. Most major problems can be traced back to Government action, I think. The failing of Medicare Advantage, most certainly, can be traced to the cuts in Medicare reimbursement in 1996 and the much vaunted Balanced Budget Act. Two thirds to three fourths of the nursing homes in this country went into bankruptcy following this act. There is no free ride or benign legislation. Humana Medicare Advantage has to make a profit to stay in business. It prevented them from doing so. Something had to give. It was, as it always is, patient care.
However, Humana Medicare Advantage is very, very good at preventive medicine and prescription drug coverage. You pick your poison as it is not a perfect world and never will be.
But, the regulations are all about what is covered. They are absolutely not about what the corporation may say about the Government.
You've established, at most, that CMS has the authority to enact a speech-restricting rule.
But did they actually do so? Where in the CFR or the Marketing Manual is it?
Of course, it's hard to imagine that any such regulation would be consitiutional, unless the mailing were paid for by govt funds.
The analogy upthread to a private company with the contract to print ballot envelopes actually seems rather apt. Just because you have the list of people receiving absentee ballots, that doesn't mean you get to send them whatever the heck you want about the upcoming election - even if it's completely truthful information.
Then there's no question of fraud and the government doesn't even have an arguable reason to send a C&Ds.
That's not unreasonable, but I don't think the analogy holds in this case. As I understand it, Humana is contacting its own customers, not simply a list of names that it received as being a government contractor.
To take a different analogy, the do not call list exempts companies with whom you have an existing relationship (it also exempts politicians...). Humana would seem to have a reasonable interest in keeping its customers informed about potential changes to their benefits - it's likely that at least some of their customers would be upset to find their benefits changed, even if the change was the result of new legislation.
If that's the bottom line, I can't say that I'm necessarily outraged.
Given that the Healthcare bills in Congress may make Medicare Advantage go away completely, I think Humana is within bounds communicating with their enrollees, but I'm not sure that urging them to write Congress supporting Humana's point of view is legit.
Now there, I dunno; part of contracting w/ CMS might be the nondisparagement of CMS. As noted above, nobody forced Humana into the Medicare Advantage business.
Don't matter. The govt can't pay people to give up their 1A rights. Even govt employees have the right to critize the govt.
Oh noes! Poor little pitiful oppressed US federal government. Life is so unfair!
no.
a) medicare advantage dates from the Clinton administration (and I'm not willing to credit/blame Clinton for it) under the name Medicare+Choice, Medicare Advantage is merely the Medicare+Choice program renamed with minor changes mostly concerned with how the government calculated payments
b) alternatively you can credit/blame Reagan for it, prior to Medicare+Choice the Tax Equity And Fiscal Responsibility Act allowed the privatization of some portion of Medicare, although Medicare+Choice completely rewrote how this was done, the beginning of privatization took place under Reagan
Really? Because apparently the Chairman of the Senate Finance Committee doesn't seem to think so. See U.S. investigates mailing by Humana, www.courier-journal.com/louisville-news (registration required).
It looks like this is more than a mere warning letter to Humana. How far the investigation goes and how serious it becomes are not yet clear. Still, judging by the sudden chill in the air, it looks like winter arrived early this year at Humana's Louisville headquarters.
Thank you for explaining the Medicare Advantage history. You saved me the trouble. Now, some will have to dig much deeper to blame everything, including Medicare Advantage, on Bush. I am sure they will come up with something, even if they have to imagine it, as was this one.
My mistake. I blamed it on the Bush administration based on inexpert anecdotes. I notice that "one of many" confirmed that it was a conservative attempt at privatization, and did not dispute that it hasn't been a success, at least in the narrow sense that it hasn't saved the government a lot of money. Medicare Advantage does offer a choice of a very different plan which ought to be a good thing, at least in the abstract. There could be a very lengthy discussion about whether it worked well in practice.
I really don't know about the savings or lack thereof. Do you have figures?
It can't cost the Government more than they are spending already, I wouldn't think, as they pay Humana the average cost of Medicare per person in a given area.
I don't think "privatization" is the correct term to apply to Humana, either. A person still must be eligible for and enrolled in Medicare. It is an alternative form of Medicare, but it is still Medicare. Anyone over 65 has no other health insurance option as their primary care provider other than Medicare, either traditional or Advantage. I am not sure why anyone would equate Humana Medicare Advantage to privatization.
I don't agree that it was a conservative attempt at privatization. Regardless of what Reagan did, it took off under Clinton. I am not sure why you think Medicare Advantage aka, in your world, "privatization" is somehow, by definition, "bad".
Even if it has not "saved Medicare a lot of money" that would be an extreme success given that regular Medicare has and continues to have skyrocketing expenses and costs to the point of going bankrupt in the near future. Compared to that, it would seem that Medicare Advantage is a rousing success story in cost control and, given the satisfaction of its members, in providing quality services that they want and desire. We wish a government program could achieve customer satisfaction and cost containment. I don't think it has ever been know to happen. At least, I can't think of a single example.
http://tinyurl.com/m2hkp9
Some specific quotes:
SeaDrive,
The above is from the article you referred to. I agree about the dangers of relying on newspaper articles. It is always fraught with danger.
That said, I note that it quotes "One estimate from House Democrats is that premiums are $90.00 higher per year because of Medicare Advantage." I don't think I am being partisan to say that I believe in financial estimates from House Dem's as much as I believe in Santa Claus. I would not accept estimates from Rep.'s either if it is on something they want. That is why we have the CBO and a so-called free press.
I note the article does not seem to factor in a reduction in costs from fewer hospital visits and readmissions and keeping people healthy i.e. preventive medicine.
It is odd that on the one hand Democrats are trashing this and at the same time, saying their "reforms" will save money by reducing hospital visits through preventive care and reduce costs by reducing readmissions. And, I note as well the author did not mention that Medicare Advantage completely eliminates waste, fraud and abuse which is another method Obama and the Democrats say they will use to reduce costs and pay for insuring 47 million, oops, it is now down to 30 million uninsured (having suddenly eliminated illegals from the ranks of the uninsured). Also, pay for the 500 billion in aledged "savings" from reforms to the program. I can't understand how you can reduce or eliminate a program that has been shown to be effective, provide preventive care, has no fraud, waste or abuse and then say that reducing it and putting more people into traditional Medicare will save money.
Overall, it makes no sense to say that what you want to do will accomplish all that the Dem's say it will and trash a plan that does exactly that. I am truly confused.
Also, the author claims this happened in the mid-90's with a Republican Congress. Maybe so, but I know for a fact that the 1996 Balanced Budget Act severely hurt Humana and, as I said above, nursing homes as well as many in Allied Health Care who had previously provided services to Medicare recipients as well as just about everyone else providing Medicare services.
I think we got a very partisan and not terribly well informed version of Medicare Advantage in this article. I don't think I even buy the mid-90's thing. That does not square with my memory (however, relying on that is as dangerous as relying on newspaper articles) and I was pretty actively involved in Medicare at that point both from the aged parent standpoint who had Humana from the very early 90's and as an insurance agent for Humana. I doubt a whole lot of what the author presented.
However, the article pretty well supports Humana's contention (getting back on topic) that Congress is trying to reduce or eliminate Medicare Advantage so I am at a loss as to how Baucus gets off accusing Humana of lying to Seniors. I do dread the day when members of Congress get to unilaterally decide what is truth and what is a lie. I think the First Amendment is in pretty serious trouble.
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