Broke: Obama Health Care Secretary Illegally asks US Health Executives to Pay for Obamacare

 

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/10/budget-request-denied-sebelius-turns-to-health-executives-to-finance-obamacare/?print=1

Budget request denied, Sebelius turns to health executives to finance Obamacare

By Sarah Kliff, Updated: May 10, 2013

HHS Secretary Kathleen Sebelius is asking private industry executives to help fund Obamacare's implementation.

Health and Human Services Secretary Kathleen Sebelius has gone hat in hand to health industry executives, asking them to make large financial donations to help with the effort to implement President Obama's landmark health-care law.

Her unusual fundraising push comes after Congress has repeatedly rejected the Obama administration's requests for additional funds to set up the Affordable Care Act, leaving Health and Human Services to implement the president's signature legislative accomplishment on a shoestring budget.

Sebelius has, over the past three months, made multiple phone calls to health industry executives, community organizations and church groups and directly asked that they contribute to non-profits that are working to enroll uninsured Americans and increase awareness of the law, according to a Health and Human Services official familiar with the Secretary's outreach who spoke on condition of anonymity.

Health and Human Services spokesman Jason Young said Sebelius is working "with a full range of stakeholders who share in the mission of getting Americans' the help they need and deserve."

"Part of our mission is to help uninsured Americans take advantage of new, quality affordable insurance options that are coming thanks to the health law," he said.

Low public awareness could jeopardize the president's law, which depends on having many people sign up for insurance coverage. If only a small number of sick people sign up for coverage premiums would spike.

The Affordable Care Act included $1 billion to be used in overall implementation of the law. Congressional Budget Office projections, however, estimated that federal agencies would need between $5 billion to $10 billion to get the law up and running over the next decade. And as many states have refused to partner with the federal government in setting up the law, the burden on HHS has grown.

Sebelius must walk a tightrope in asking for money. Federal regulations do not allow department officials to fundraise in their professional capacity. They do, however, allow cabinet members to solicit donations as private citizens "if you do not solicit funds from a subordinate or from someone who has or seeks business with the Department, and you do not use your official title," according to Justice department regulations.

"It sounds like the people she's going to are people that are being regulated by her agency, I think that is definitely problematic," said Meredith McGehee, policy director for the Campaign Legal Center. "That's not a statement about the value of the law, but it's a statement about using the power of government to compel giving or insinuate that giving is going to be looked at favorably by the government."

The Health and Human Services official, who requested anonymity because he was not authorized to discuss the secretary's private discussions, described her work as well within the bounds of her authority.

Many of the secretary's calls have gone to current supporters of Enroll America, the most prominent non-profit working on the health-care law's implementation. Its president, Anne Filipic, joined the group in January, after serving as the White House's deputy director for public engagement.

"We all have a lot of work to do between now and the Marketplace opening in October," Filipic said in a statement. "That's why it's so important that the public, private and non-profit sectors are coming together to educate consumers about the opportunities that will be available to them later this year. Secretary Sebelius recognizes how important the work Enroll America is doing and we're thrilled to be working with her."

Health and Human Services has repeatedly requested additional funds from Congress to assist in implementing the law but so far has received no more money.

After Congress turned down a request in March for nearly $1 billion in additional spending, the White House asked for $1.5 billion to set up and run dozens of exchanges that provide Americans options for health insurance. The new marketplaces will launch in October for open enrollment.

"We requested additional money…but we didn't receive any additional funding for the exchanges," HHS Assistant Secretary for Financial Resources Ellen Murray said last month at a budget briefing. "So we've had to come up with a Plan B. We've been working very hard to develop that."

In 2012, budget documents show that Health and Human Services pulled hundreds of millions of dollars from programs not specifically earmarked for the Affordable Care Act's implementation.

On top of that, the agency announced Thursday that it would use $150 million in Affordable Care Act funds meant to build additional community health centers to train thousands of health care outreach workers at facilities that already exist.

"Investing in health centers for outreach and enrollment assistance provides one more way the Obama administration is helping consumers understand their options and enroll in affordable coverage," Sebelius said in a statement.

Multiple insurance executives have received calls from Sebelius with outreach ramping up in recent weeks, an industry source familiar with the conversations said.

Health insurers plan to run their own outreach campaigns alongside the work of the Obama administration. They have a vested interest in recruiting Americans to enroll in their specific products rather than their competitors.

"As open enrollment gets closer, health plans will be engaged in a variety of innovative outreach activities," America's Health Insurance Plans spokesman Robert Zirkelbach said.