The Fourth Scandal: GOPs Accuse Sebelius of Obamacare ‘Shakedown’
Illegal, unethical, or no big deal? HHS secretary has been soliciting donations from healthcare companies to fund a private organization promoting PPACA.
May 17, 2013 - 9:34 am
WASHINGTON – A handful of congressional committees are looking into Health and Human Services Secretary Kathleen Sebelius’ solicitation of monetary contributions from private companies to help fund an organization that promotes Obamacare.
Sebelius sought donations from various groups after Congress failed to make appropriations to Enroll America, a nonprofit advocacy group dedicated to promoting the Patient Protection and Affordable Care Act and making sure the public is aware of its potential benefits. The group is operated by Anne Filipic, former White House deputy director for public engagement.
An HHS spokesman initially denied that Sebelius was seeking the contributions. But the agency reversed course and later maintained that the secretary was authorized to seek assistance under the Public Health Service Act, which permits the secretary to work in behalf of nonprofit groups that offer health information. Justice Department regulations further permit cabinet members to seek contributions to organizations as a private citizen as long as they don’t use their official title or “solicit funds from a subordinate or from someone who has or seeks business with the Department.”
Sebelius has denied asking for money from any firm regulated by the Department of Health and Human Services.
Regardless, Michael F. Cannon, director of health policy studies at the Cato Institute, a Washington-based, libertarian think tank, maintained that Sebelius is engaged in an “abuse of power” that “strengthened the case for her removal from office.”
Cannon observed that HHS is the federal government’s largest department with a budget of almost $1 trillion per year with most of its funding subsidizing the healthcare sector.
“Those subsidies will increase dramatically when Obamacare takes full effect next year,” he said. “Sebelius has been calling executives from the industry she regulates, including ‘multiple insurance executives,’ and asking them to donate money to Enroll America – a private organization, headed by a former White House official, whose purpose is to help make ObamaCare a success. Sebelius has a history of threatening uncooperative companies with retaliation.”
Even if her activities are not illegal, Cannon said, “they are definitely unethical.”
The revelation struck a nerve with congressional Republicans who unanimously oppose the healthcare law scheduled to take full effect in 2014. The measure requires all Americans to acquire health insurance – with some receiving financial assistance from the government to do so – and expands the Medicaid rolls.
GOP lawmakers, including Sen. Lamar Alexander, of Tennessee, maintain the Sebelius initiative may be more than unethical.
“Secretary Sebelius’s fundraising for and coordinating with private entities helping to implement the new healthcare law may be illegal, should cease immediately and should be fully investigated by Congress,” said Alexander, ranking member on the Senate Health, Education, Labor and Pensions Committee. “Such private fundraising circumvents the constitutional requirement that only Congress may appropriate funds.”
Sen. John Barrasso (R-Wyo.) characterized the secretary’s solicitation as “the Sebelius shakedown” and demanded to know “what is she promising those businesses that she talks to and what is she threatening them with.”
Barrasso accused Sebelius of devising a plan to “cover over and cover up the train wreck that is happening with the President’s healthcare law” by “shaking down companies, executives throughout the country.”