Lobbyists the silver lining in health care storm?

updated 3:43 p.m. ET July 25, 2009

WASHINGTON - A strong force, perhaps as powerful in Congress as President Barack Obama, is keeping the drive for health care going even as lawmakers seem hopelessly at odds.

Lobbyists.

The drug industry, the American Medical Association, hospital groups and the insurance lobby are all saying Congress must make major changes this year. Television ads paid for by drug companies and insurers continued to emphasize the benefits of a health care overhaul — not the groups' objections to some of the proposals.

"My gut is telling me that something major can pass because all the people who could kill it are still at the table," said Ken Thorpe, chairman of health policy at Emory University in Atlanta. "Everybody has issues with bits and pieces of it, but all these groups want to get something done this year." As a senior official at the Health and Human Services department in the 1990s, Thorpe was deeply involved in the Clinton administration's failed effort.

This time, the health care industry groups see a strategic opportunity. As lawmakers squabble, the groups are focused on how to come out ahead in the end game.

"We're still optimistic that we can get health care reform accomplished," said Robert Zirkelbach, spokesman for America's Health Insurance Plans, the main insurance industry trade group. "There is strong support from policymakers and from across the health care sector."

Heavy investment
It's all got to do with shifts in the economy. Even before the recession hit, employer-sponsored health coverage had been steadily shrinking, and many people couldn't afford the premiums for individual policies. Meanwhile, government programs have been expanding — and they've gotten increasingly friendly to private insurance companies. Insurers now play major roles as middlemen in Medicare, Medicaid and the children's insurance program.

And if the government requires everybody to get coverage — just what the overhaul legislation calls for — it could guarantee a steady stream of customers subsidized by taxpayers not only for insurers, but for all medical providers.

The industry groups have invested heavily to make sure their views get taken into account. The health care sector gave $167 million in campaign contributions to congressional candidates in the 2008 election cycle, according to the watchdog group OpenSecrets.org. Health care companies poured $484 million into lobbying efforts in 2008, and are on pace to exceed that this year.

Video   GOP: Dem's health plan a 'prescription for disaster' July 25: Rep. Cathy McMorris Rodgers, R-Wash., explains the GOP’s version of health care reform. MSNBC

Separately, the drug companies have offered up $80 billion over 10 years to reduce prescription costs of seniors if a deal goes through, while major hospital groups agreed to a $155-billion reduction in Medicare and Medicaid payments to free up funds that would help subsidize coverage for the uninsured.

The political infighting on Capitol Hill has strengthened the hand of the health care groups, since liberals have been thwarted so far in their attempts to win speedy passage of the legislation through the House and Senate.

One of the liberals' main objectives is to include a strong government-sponsored insurance plan in the legislation, to compete against private insurance. Stopping or weakening the government plan is a top priority for the insurance industry. Other health care interest groups are also leery because the public plan could put a dent in their budgets. The House version, modeled on Medicare, would pay doctors and hospitals less than private insurance.

MORE FROM POLITICS

Politics Section Front

Obama: Parties must 'transcend petty politics' GOP flexes muscles, defeats Obama nominee   N.Y. governor says scandal rumors are dying   Police: Man who took over Clinton office flees White House pokes fun at Sarah Palin NYT: McCain takes on GOP foe by tilting right First lady begins fight against childhood obesity GOP wary of Obama's health care summit Loan guarantees recharge nuclear debate Ala. senator releases holds on Obama nominees Politics Section Front   Add Politics headlines to your news reader: