Kennedy Scores Insurer Group’s Health Plan Ads

Senate Labor and Human Resources Committee Chairman Edward M. Kennedy (D-Mass.) joined the Clinton Administration’s public relations campaign against the health insurance industry Tuesday, accusing one organization of using unfair scare tactics in its controversial $6.5-million advertising campaign.

“Do you think you are bringing light or do you think you are bringing heat to this issue?” Kennedy demanded of Charles N. Kahn III, executive vice president of the Health Insurance Assn. of America.

His criticism during a hearing before his committee echoed that of First Lady Hillary Rodham Clinton last week and was joined by several other Senate Democrats. Their complaints that insurance companies are in part to blame for skyrocketing health care costs and inequities in the system have escalated as polls show that public support for Clinton’s proposal is dropping.

Kennedy called the health insurance industry “the backbone of the collapse of the health care system for so many individuals in this country, particularly those with pre-existing conditions and those who have lost their jobs.” Kahn replied that his organization felt compelled to use advertising to counter the Administration’s “inaccuracies and mischaracterizations of the role of the health insurance industry.”

“The heat from the Administration was sustained . . . and our members felt they had to take their message to the American people and to the Congress. And the advertising was one way to do that . . . “ Kahn said. “The purpose of the ads was to raise certain issues which we thought would be of concern to people about the details in the plan.”

The association represents small and medium-size insurance firms that many believe would be driven out of the health care underwriting business by Clinton’s proposal. Although it contends that it agrees with many of Clinton’s goals, it objects to his plan to impose limits on increases in premium growth and to require people to purchase health coverage from state-run alliances.

Its advertisements raise broad and non-specific concerns about the Clinton program. Its “Harry and Louise” spot, for instance, features a couple discussing their fears that health reform might leave them worse off than they are now.

Kahn said the current set of ads will run only through Thanksgiving. After that, he said, “we are going to reassess their usefulness.”