IBJNews

Health insurer cash shifts to favor Republicans before election

Back to TopCommentsE-mailPrint

Health insurers led by WellPoint Inc. are backing Republicans with campaign donations by an 8-to-1 margin, favoring the party that’s promised to repeal President Barack Obama’s health-care overhaul if it wins back Congress.

Indianapolis-based WellPoint, along with Coventry Health Care Inc. and Humana Inc., gave Republican candidates $315,000 from May through July, according to U.S. Federal Election Commission records. That compares with $41,000 given to Democrats by the three companies as the parties near November elections that will determine who controls the U.S. House and Senate next year.

While Republicans aren’t likely to win the large majorities necessary to override a presidential veto and repeal the health law Obama signed in March, they may be able to slow or stall its implementation, said James Morone, a political science professor at Brown University in Providence, R.I.. At the same time, the turn to strongly favor Republicans may anger Democrats who had been receptive to insurers’ concerns, he said.

“It surprises me that they would make such a definitive move,” Morone said in a telephone interview. Focusing donations heavily on Republicans threatens to unite Democrats on policy issues that have divided them, including how strictly to control insurers’ business decisions about rates, he said.

Some Democrats have painted the industry as the enemy of efforts to improve the health-care system. House Speaker Nancy Pelosi has called insurers “villains,” WellPoint head Angela Braly was hauled before Congress in February to explain what Chairman Henry Waxman called “a breathtaking increase” in customer premiums, and Obama warned the industry in June not to undermine the law’s implementation.

Many of the insurer campaign contributions are aimed at congressional Democrats’ top Republicans rivals. WellPoint, Humana and Aetna Inc. gave $10,000 to House Minority Leader John Boehner of Ohio, who would probably take Pelosi’s job as speaker if Republicans win the House. Representative Joe Barton of Texas, the top Republican on the Energy and Commerce Committee headed by Waxman, got $4,500 from WellPoint. Many of the other contributions are to Republican candidates trying to knock off vulnerable first-term Democrats.

Democrats passed Obama’s $1 trillion health overhaul in March, after a year of debate in which they blasted insurers’ rate increases, profits and executive pay. The law includes restrictions on how much insurers can vary premiums on the basis of a person’s age and health status, and a requirement that limits profits and administrative spending.

Republicans unanimously opposed the law, and have since offered legislative proposals on the House floor to change or repeal part of it.

The campaign funding numbers represent a shift for insurers, who previously gave to Republicans by only a 2-to-1 margin.

WellPoint favored Republicans the most among the companies. Not a single dollar of its $144,000 that went to federal candidates and political committees in July was given to a Democrat, the records show.

In the past three months, Louisville, Ky.-based Humana favored Republicans 3-1, after previously splitting donations evenly between Democrats and Republicans since the start of the two-year election cycle that ends in November.

In May, June and July, the political action committees for WellPoint, Humana and Coventry gave a combined $314,900 to Republicans, 7.6 times as much as the $41,000 those companies donated to Democrats, according to the records.

Aetna, based in Hartford, Conn., and Cigna in Philadelphia kept their allocations among the two parties largely the same as earlier in the two-year election cycle, favoring Republicans by about a two-to-one margin. Still, many of the Democrats they have backed are members of the House’s “Blue Dog” Caucus, self-described fiscal conservatives who negotiated against some provisions of the health-care bill. Of the $13,000 Aetna gave to Democrats in July, about half went to Blue Dogs.

WellPoint, Humana, Aetna, Cigna and UnitedHealth Group Inc. have also been considering a $20 million-plus campaign fund to reward friends and punish enemies in Congress, two people familiar with the matter said earlier this month.

That fund would target vulnerable Democrats who have spoken out against the industry, and would support candidates who are likely to argue for the industry’s positions during future debate on the health overhaul.

WellPoint spokeswoman Kristin Binns declined to comment, and Humana spokesman Tom Noland didn’t respond to a phone call and e-mails requesting commen

Information on UnitedHealth’s campaign contributions for July isn’t available because the company doesn’t file data monthly with the Federal Election Commission. Through June, the Minnetonka, Minnesota-based company gave 44 percent of its $284,200 to Republicans and 56 percent to Democrats. UnitedHealth spokesman Tyler Mason also didn’t return a call and e-mail requesting comment on Aug. 23.

Campaign giving by political action committees in health-services industries, which include insurers, has grown every election cycle since 1998, when it totaled $1.1 million to federal candidates, according to the Washington-based Center for Responsive Politics. It peaked in 2007-2008 at $4.2 million over two years, and so far this election cycle totals $3.5 million.


 


ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Well, we could blame ABC because they haven't advertised the INDY 500....not during the HUGE TV rating shows like Dancing with the Stars (of which IICS driver Helio Castroneves is a former champion). He never won a CART championship, did he?

    We could blame the new car...because it's ugly and has a V6 that has less horsepower than the pace car. CART (to my knowledge) never had that problem with cars they presented at the speedway years 1979 through 1995.

    We could blame the fencepost, but that would be crass. Or maybe Danica? Or maybe Jean Alesi....or boost increases from constant rules tampering. Maybe we could blame Penske who still is winning everything as usual.

    Maybe we can blame the world for not understanding the the great Indy gods who regularly twist things in such ways that we mere mortals must only accept, but never question.

    So, it does beg the question....who is responsible if the series and Indy continues to flounder? Are the responsibilities so diffuse and complicated that no one really is to blame for it's fall from grace?

    I urge the speedway to sign on for 7 more years of ABC coverage and 7 more years of NBC Sports Network coverage. It been win-win so far....*cough* *cough*

  2. "They're problem was thinking they were bigger than the institution that made their existence possible. That turned out to be a mistake."

    The above quote made by Disciple shows his continued inability to grasp a simple concept: CART is dead. Twice. It provided a brilliant stage for some of the best open wheel racing in all the past century of racing. It's gone DOOD, get over it.

    PLEASE explain, Mr. Disciple of INDYCAR, why you continually hammer home, even on the eve of the 2012 Indy 500, this same point...over and over? Seriously, why does the legacy of CART haunt you so much?

    The same problems that affected the sport for over a century of AOW racing STILL affect it now. Your answers (or lack thereof) belittle the very sport you claim to love. Indy rots in your hands yet you request status quo. You negate salient points with drivel...always.

    Indy is not going to die. But, it is dying...are you willing to accept that? "Indy is a hot mess"....it's true. Yet you want it that way? What is wrong with you?

  3. I just want to make sure I am reading this right - Wellpoint is eliminating 112 employees. Wellpoint is a customer of Repucare. Repucare is creating 82 jobs. I sure hope they are hiring Wellpoint employees. Does not make sense!

  4. Triscuts...love um!

  5. Of course the fair will go on. Don't you big city reporters understand county fairs? Get outside the beltway and see what life is really like!

ADVERTISEMENT