Insurance Companies Become Obama's Top Enemy on Health Reform

After the health insurance industry released a report Monday attacking Democrats' plans for health reform, it appears that the insurance lobby and the White House have abandoned all hope of working together on the issue, the Washington Post reported Wednesday. The White House had spent months courting the industry for input on reform, but the report and the ensuing battle of rhetoric suggests that insurers have become the administration's chief enemy in the health care battle.

The health insurance lobby was a key player in defeating reform 15 years ago under President Clinton. Obama had hoped to avoid a similar showdown by inviting various industry groups -- hospitals, drug makers and insurers -- to participate in the negotiations. But after the critical report funded by America's Health Insurance Plans (AHIP) hit Washington earlier this week, the gloves came off.

"The insurance industry has decided to lead the charge against health reform, and everyone recognizes their motives: profits," White House deputy communications director Dan Pfeiffer said. "We are going to make sure they can't sink this effort at the last minute."

Insurers, meanwhile, responded with one of the oldest tactics in the book: spreading concern among senior citizens that they will lose their current benefits. AHIP launched a multi-state ad campaign warning seniors that Democratic legislation would take away benefits they receive from private Medicare accounts.