Why Rahm and Baucus dumped the public option (MUST-READ)

The Baucus Caucus:
PhRMA, Insurance, Hospitals and Rahm
By: Jane Hamsher

We started this whip count effort on June 23 because it became clear that in the course of making their
deals with stakeholders, the Baucus Caucus (who were negotiating on behalf of the White House, with the participation of the White House) had very likely already dealt the public plan away.

On May 11, “stakeholders” including the AMA, PhRMA, the hospitals and the device manufacturers delivered proposals to the White House promising to “voluntarily” reduce cost increases over the next 10 years. In an effort to keep them “at the table,” Baucus’s Chief of Staff Jon Selib and Finance Committee staffer Russell Sullivan told stakeholders at a May 20 meeting that their participation in the process of crafting a health care bill was contingent on them “holding their fire”:

Sources familiar with the lobbyist meeting described it as collegial, but they said Baucus’ aides made clear that any public opposition to the proposed financing of a reform package would be at their clients’ peril. The staffers’ message to K Street was clear: Tell your clients to let the process work and don’t torpedo it with advertisements, press releases and Web sites.

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Originally posted: Why Rahm and Baucus dumped the public option (MUST-READ)

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