Page 12 - Modern Healthcare (January 2020)

Politics
Healthcare industry spent big on
lobbying before year-end spending deal
By Rachel Cohrs
outpaced Q4 totals for 2018, except for the American Medical Association.
MAJOR HEALTHCARE COMPANIES
Percentage
2018
Q4 lobbying disclosures
2019
and lobbying groups spent big dollars as
they fought to advance their interests on
surprise medical billing, Affordable Care Lobbying spending for the major healthcare industry groups in Q4 2019 change
AHA
21.06%
Act taxes and prescription drug pricing
before a big year-end spending deal, and AHIP 50.97%
they mostly got their way.
The American Hospital Associa- AMA -16.67%
tion opposed a bipartisan, bicameral
compromise on surprise billing that BCBSA 15.72%
was ultimately left out of the 2020 ap-
propriations package. The group spent GNYHA 6.90%
more than $6.6 million on lobbying in
the last quarter of 2019 according to PhRMA 6.97%
federal lobbying disclosures, which is $0 $2 $4 $6
$1.2 million more than they spent over Million Million Million
the same period in 2018. Source: Senate Office of Public Records
The Greater New York Hospital As-
sociation, an influential force in Sen-
ate Minority Leader Chuck Schumer’s costs was left out. PhRMA spent $6 mil- ter spending just $320,000 on lobbying
home state, spent $620,000 on lobbying lion in the 2018 period. in the fourth quarter of 2018, Humana
in the fourth quarter, up $40,000 from Insurers won some and lost some in ramped up spending to $2.9 million for
the same period in 2018. Schumer, a the year-end deal—they scored repeals the 2019 period.
Democrat, called Sen. Patty Murray of a health insurance tax and an excise Physician groups also largely op-
(D-Wash.), who negotiated the surprise tax on high-cost employer plans that posed the surprise billing compromise
billing deal, to express his displeasure were included in the Affordable Care measure. The American Medical Asso-
with the agreement at a key juncture, Act, but the surprise billing deal they ciation spent $4 million on lobbying in
the Washington Post reported. supported was left out. the quarter, about $790,000 less than
“This isn’t your typical partisan fight the same period in the previous year.
about healthcare. This is really about the Repeal of the two insurance-related Private equity-owned physician staff-
business interests of healthcare against taxes and a 2.3% excise tax on medi- ing companies also beefed up their
the interests of families,” said Frederick cal devices will cost federal taxpayers lobbying. TeamHealth, owned by the
Isasi, executive director of the consumer nearly $400 billion over the next de- Blackstone Group, spent $130,000 in the
advocacy group Families USA. cade, according to the Congressional fourth quarter. It didn’t report any lobby-
The AHA and GNYHA declined to Budget Office. ing expenditures in that period in 2018.
comment on their lobby- The insurance indus- Blackstone spent $720,000 on its own
ing spending. try trade group America’s in the same period of 2019.
The brand-drug lobbying THE TAKEAWAY Health Insurance Plans Envision Health, a physician staffing
powerhouse Pharmaceu- Major healthcare spent $2.3 million on lob- company owned by the private equity
tical Research and Manu- companies and bying in the quarter, up firm Kohlberg Kravis Roberts & Co.,
facturers of America spent lobbying groups $790,000 from the previous spent $380,000 lobbying in the quarter,
$6.5 million on lobbying mostly got their way year. The Blue Cross and up from just $80,000 in 2018.
Congress in the quarter, as controversial Blue Shield Association Lawmakers will take another run at
and got its desired outcome measures like was another big spender at addressing drug pricing and surprise
in the year-end spending surprise billing $1.8 million, up $250,000 medical bills ahead of a self-imposed
deal as major, bipartisan were left out of the from its lobbying in the May 22 deadline to fund expiring Medi-
legislation to lower drug spending package. same period of 2018. Af- care and Medicaid programs. l

10 Modern Healthcare | January 27, 2020