HEALTH CARE
American Progress
Feb. 2004

Dr. Frist Is Not In

According to the latest data from the Census Bureau, in the first two years of the Bush Administration, the number of uninsured Americans increased by more than 9%, to 43.6 million. Now, Senate Majority Leader Bill Frist (R-TN) has decided to throw in the towel. Frist told a group of journalists that "it is impossible" for the U.S. health care system "to get everyone covered." Of course, Frist is not objective in the debate: the profits of the private health care industry that a universal system would jeopardize has made him and his family multi-millionaires, and has bankrolled Frist's political campaigns.

The Frist family founded the giant for-profit hospital chain Hospital Corporation of America (HCA). The AP reported on 06/13/03 that, upon entering the Senate, Frist transferred his holdings in HCA and other assets into a trust that is now valued at up to $31 million– and earns more than $5 million a year. Frist's wife and three sons also have trusts that are worth more than $1 million. It was HCA which was forced to pay $745 million "to settle allegations of billing fraud" for overcharging Medicare. Nevertheless, Frist claimed that his home state of Tennessee was "going bankrupt," not from excessive corporate profiteering, but from "trying to achieve universal insurance coverage."

FRIST STATEMENT FOLLOWS OTHER TOP HEALTH OFFICIALS: Frist's comment comes on the heels of another Bush Administration official who nonchalantly told Americans that health care for all was impossible. In the same month President Bush proposed $1 trillion in new tax cuts primarily for the wealthy and a multi-billion dollar Mars proposal, HHS Secretary Tommy Thompson said it is "not realistic" to provide health insurance for every American by 2010.

FRIST ABANDONS THE MISSION OF GROUP HE CHAIRS: Frist's rejection of the pursuit of universal health coverage is particularly puzzling in light of his role in the Alliance for Health Care Reform. The mission statement of the non-profit group, where Frist serves as vice-chairman, states "the Alliance believes that all in the U.S. should have health coverage at a reasonable cost." Question: has Frist resigned from the group?

DOLE THINKS WE CAN DO IT: Frist's stance also represents a departure from the position of former Majority Leader Bob Dole (R-KS). On January 14, 2004, Dole spoke at an event celebrating the release of an Institute of Medicine report that called for universal health coverage by 2010. In his remarks Dole, referring to the goal of universal health care, said "the bottom line is, I think we have what it takes to get it done."

FUNDS SLATED FOR HEALTH CARE GO TO TV ADVERTISEMENTS: Apparently, while there are insufficient resources for universal coverage there is plenty in the kitty for government propaganda. The Administration has launched a $9.5 million television advertising campaign touting the new Medicare law and plans to spend another $10 million on brochures. The ads were "developed by a media company that has done work for President Bush's reelection campaign and for groups aligned with the pharmaceutical industry." Now, the General Accounting Office is investigating whether the millions in ads and direct mail constitutes the misuse of federal funds for political purposes. Several members of the House are also calling for a similar investigation by the Department of Health and Human Services (HHS) inspector general. Kevin Keane, assistant secretary of public affairs for HHS, called the investigations an attempt "to undermine efforts to educate seniors." American Progress has examined the White House plans that do exist.

FRIST'S POSITION HURTS AMERICAN BUISNESS, DRIVES DOWN WAGES: Another potential victim of Frist's refusal to have the government work towards providing universal coverage: American businesses. The NYT reports that, because employers shoulder such a large part of the burden of providing health care, the costs of benefits have become a "competitive disadvantage for American manufacturers." In all developed countries, "paying for health care means a combination of public and private money." In the U.S. "businesses pay a larger chunk than do their European and Asian counterparts." Some companies are attempting to compensate for high health care costs "partly by holding down growth in wages." In Canada and the European Union, "higher taxes on citizens pay for comprehensive coverage. This is a trade-off that big business seems increasingly to favor."