To Pass ObamaCare, Dems Got Paid and Working Families Got Played

June 12, 2012

White House Got Drug Companies to Run A Multi-Million Dollar ObamaCare Ad Campaign with Firm That Was Still Paying Top Obama Advisor 

  • The Obama administration arranged for an advertising firm started by Obama advisor David Axelrod to handle millions of dollars in ads from third party groups funded by special interests who made backroom deals with Democrats.
  • This happened while Axelrod was still owed millions by his ad firm and while his son still worked there as well. It must have made it easier for the firm to pay Axelrod his millions with such a lucrative contract coming in the door thanks to the Obama administration.
  • Democrats kept on wheeling and dealing with special interests to secure support for their government healthcare takeover, and enlisted special interest help to “thank” House Democrats who put ObamaCare ahead of the working families opposed to the government takeover of healthcare.

The Obama administration arranged for an advertising firm started by Obama advisor David Axelrod to handle millions of dollars in ads from third party groups funded by special interests who made backroom deals with Democrats:

QUID PRO QUO, CHICAGO-STYLE: “Drugmakers led by Pfizer (PFE) (PFE) Inc. agreed to run a ‘very significant public campaign’ bankrolling political support for the 2010 health-care law, including TV ads, while the Obama administration promised to block provisions opposed by drugmakers, documents released by Republicans show.” (Drew Armstrong, “Drugmakers Vowed to Campaign for Health Law, Memos Show,” Bloomberg, 5/31/2012)

OBAMA PROMISED SPECIAL INTERESTS PROTECTION IN EXCHANGE FOR SPENDING MILLIONS TO PROMOTE OBAMACARE: “In a June 2009 email, President Obama’s point person on health care promised the pharmaceutical industry it would be protected against efforts to allow cheap drugs to be re-imported from Canada, because drug lobbyists had been ‘constructive’ in their secret negotiations with White House officials. … As part of the final deal, PhRMA agreed to support health care legislation, spend millions on ads promoting it, and agree to $80 billion in savings and taxes to help finance the bill.” (Phillip Klein, “Emails Reveal Secret Obamacare Deal with Drug Cos,” The Washington Examiner, 5/31/2012)

AXELROD FIRM AKPD WAS HIRED BEFORE PhRMA EVEN AGREED TO JOIN THE EFFORT: (Energy and Commerce Staff, “Investigation Update: Closed-Door ObamaCare Negotiations,” House Energy and Commerce Committee, 6/8/2012)

TIES BETWEEN AXELROD FIRM AND OBAMA WHITE HOUSE “DID NOT GO UNNOTICED”: “The close ties between the advertising team and the White House did not go unnoticed. PhRMA Consultant Steve McMahon went to the meeting and later made several references to the advertising team’s White House connections:

“‘The WH-designated folks….’

“‘For reference, and to understand the players and their roles, Grossman, Grizzalano, and DelCecato are very close to Axelrod (Griz and DelCecato are partners in Ax’s firm). They have been put in charge of the campaign to pass health reform.’

“‘Interesting and very good meeting today with Pollack and the WH folks.’”(Energy and Commerce Staff, “Investigation Update: Closed-Door ObamaCare Negotiations,”House Energy and Commerce Committee, 6/8/2012)

PhRMA MEMO: “INDUSTRY PROVIDES THE MAJORITY OF FINANCIAL SUPPORT” FOR PRO-OBAMACARE ADS: “A PhRMA memo described a group called Health Economy Now, and noted that under an agreement ‘the industry provides the majority of financial support for positive TV ads advocating passage of health reform.’ It also provided financial backing for television ads thanking lawmakers for their support of an expansion of children’s health care insurance under Medicaid, the U.S. insurance program for the poor, and a campaign called ‘Harry and Louise,’ run with Families USA, a Washington-based pro-health care reform group that advocates for consumers.” (Drew Armstrong, “Drugmakers Vowed to Campaign for Health Law, Memos Show,” Bloomberg, 5/31/2012)

DRUG COMPANIES “WON OTHER UNPUBLICIZED DEALS FROM THE ADMINISTRATION” THAT WHITE HOUSE DENIED AT THE TIME: (Alicia Mundy, “E-mails Describe Deal-Making on Obama Health Bill,” The Wall Street Journal, 5/31/2012)

“THE WHITE HOUSE THREATENED TO SHAME THE INDUSTRY PUBLICLY IF THE NEGOTIATIONS FELL APART”: “At one point, the White House threatened to shame the industry publicly if the negotiations fell apart, according to an email written June 10 by a PhRMA lobbyist. ‘Barack Obama is going to announce in his Saturday radio address support for rebating all of [Medicare Part] D unless we come to a deal. So they are punishing us’ for refusing to concede, he wrote, referring to a proposal to require rebates in across-the-bard Medicare’s prescription-drug program. ‘They can’t get 60 votes for that [in the Senate]. It isn’t even a real threat,’ the email concluded. The president’s radio address, three days later, didn’t include the line.” (Alicia Mundy, “E-mails Describe Deal-Making on Obama Health Bill,” The Wall Street Journal, 5/31/2012)

HOUSE DEMOCRATS’ RESPONSE? SPECIAL INTEREST DEALS ARE JUST “ALWAYS DONE”: “ ‘President Obama’s efforts to enlist the support of private industry are exactly what presidents have always done to enact major legislation,’ U.S. Representatives Henry Waxman of California and Diana DeGette of Colorado said in a joint statement.” (Drew Armstrong, “Drugmakers Vowed to Campaign for Health Law, Memos Show,” Bloomberg, 5/31/2012) 

This happened while Axelrod was still owed millions by his ad firm and while his son still worked there as well. It must have made it easier for the firm to pay Axelrod his millions with such a lucrative contract coming in the door thanks to the Obama administration:

FIRMS EMPLOYING OBAMA CAMPAIGN MANAGER DAVID PLOUFFE, DAVID AXELROD’S SON GETS CONTRACT FOR OBAMACARE ADVERTISING:“President Barack Obama’s push for a national health care overhaul is providing a financial windfall in the election offseason to Democratic consulting firms that are closely connected to the president and two top advisers. Coalitions of interest groups running at least $24 million in pro-overhaul ads hired GMMB, which worked for Obama’s 2008 campaign and whose partners include a top Obama campaign strategist. They also hired AKPD Message and Media, which was founded by David Axelrod, a top adviser to Obama’s campaign and now to the White House. AKPD did work for Obama’s campaign, and Axelrod’s son Michael and Obama’s campaign manager David Plouffe work there.” (Sharon Theimer, “Firms With Obama Ties Profit from Health Push,” Real Clear Politics, 8/19/2009) 

OBAMA SENIOR ADVISOR DAVID AXELROD GOT A $3 MILLION BUYOUT FROM HIS OLD FIRMS WHEN HE JOINED WHITE HOUSE: “White House senior advisor David Axelrod, the founder of Chicago based political and public affairs firms, took a $3 million buyout–spread over five years– when he joined the Obama administration, according to newly released disclosure reports.” (Lynn Sweet, “Obama Advisor David Axelrod Sells Stakes in Chicago Firms for $3 Million,” The Chicago Sun-Times, 4/5/2009) 

AKPD STILL OWED AXELROD MILLIONS WHEN CONTRACT WAS SIGNED: “It revolves around two separate $12 million ad campaigns advocating Obama’s health care plan that were produced and placed partly by AKPD Message and Media, a firm founded by Axelrod that employs his son and still owes Axelrod $2 million.” (Kenneth P. Vogel, “David Axelrod’s Ties Targeted in Health Fight,” Politico, 8/19/2009)

FIRMS WERE HIRED BY SPECIAL INTEREST’S PRO-OBAMACARE SLUSH FUND, “HEALTHY ECONOMY NOW”: “The firms were hired by Americans for Stable Quality Care and its predecessor, Healthy Economy Now. Each was formed by a coalition of interests with big stakes in health care policy, including the drug maker lobby PhRMA, the American Medical Association, the Service Employees International Union and Families USA, which calls itself “The Voice for Health Care Consumers.” (Sharon Theimer, “Firms With Obama Ties Profit from Health Push,” Real Clear Politics, 8/19/2009)

“PUBLIC REVELATIONS ABOUT THE HIRING OF POLITICAL FIRMS CLOSE TO THE WHITE HOUSE WERE PERCEIVED TO BE A ‘BIG PROBLEM’”: (Energy and Commerce Staff, “Investigation Update: Closed-Door ObamaCare Negotiations,” House Energy and Commerce Committee, 6/8/2012)

“NEARLY $70 MILLION SPENT ON TWO 501(c)(4) GROUPS THAT COULD SPEND UNLIMITED CORPORATE MONEY WITH LITTLE PUBLIC DISCLOSURE”:(Energy and Commerce Staff, “Investigation Update: Closed-Door ObamaCare Negotiations,”House Energy and Commerce Committee, 6/8/2012)

Democrats kept on wheeling and dealing with special interests to secure support for their government healthcare takeover, and enlisted special interest help to “thank” House Democrats who put ObamaCare ahead of the working families opposed to the government takeover of healthcare:

WHITE HOUSE GAVE AARP A LIST OF 25 HOUSE DEMOCRATS TO THANK WITH AD BUYS FOR SUPPORTING OBAMACARE: “Messina also forwarded the AARP a list of ‘top 25 targets list from house leadership’ that were ‘to get thanked with ads after the vote.’ ” (Energy and Commerce Staff, “Investigation Update: Closed-Door ObamaCare Negotiations,” House Energy and Commerce Committee, 6/8/2012) 

WHITE HOUSE PRESSURED AARP TO PERSONALLY LOBBY BEN NELSON TO PASS OBAMACARE: “We need barry rand to go meet with ben nelson personally and just lay it on the line.  ‘We will be with you, we will protect you.  But if you kill this bill, seniors will not forget.’ We are at 59, we have to have him” (E-mail From Jim Messina to AARP, House Energy and Commerce Committee, 12/15/2009)