Halloween coming early on health, liberal group says

As the Senate Finance Committee today voted against including in the health care overhaul a government-run public option to compete with private insurers, the back-and-forth continues over an existing government program.

After Senate Finance Chairman Max Baucus complained about a mailer sent by Humana, one of the nation's largest insurers, warning seniors that they could lose important Medicare benefits under the Democratic health care bills, Health and Human Services ordered Humana and other private companies that contract with Medicare to stop sending customers information about the overhaul's potential effects on their benefits.

While Democrats deny that the bills would cut Medicare benefits, the Congressional Budget Office and independent analysts said some seniors could lose some enhanced benefits under the Medicare Advantage program .

Republican leaders responded late last week by warning HHS Secretary Kathleen Sebelius that they will block confirmations of any agency appointees until she lifts what they call the "gag order" on insurers.

Today, the liberal-labor coalition Americans United for Change unveiled a new TV spot going after Humana and the Republicans.

The Halloween-themed ad accuses the insurance industry and its GOP allies of resorting to fear tactics.

"This year Halloween comes early for health insurance giant Humana," the announcer says. "Humana is sending letters to its senior citizen policy holders intended to frighten them into opposing health insurance reform. The letters say health insurance reform threatens their Medicare benefits. AARP says: that’s just not true."

"But we shouldn’t be surprised," the announcer says as images of Republican leaders in various costumes flit across the screen. "Whether it’s the insurance companies or their Republican allies, the case against health insurance reform always gets down to one word."

"Boo!" it says on screen.

Baucus did not include a public option in his draft plan, largely because he does not believe that a bill that includes it would pass the Senate. Liberal groups launched a new TV ad this week in his home state trying to pressure him to change his mind.

But Senator Jay Rockefeller, a West Virginia Democrat, is proposing a public plan modeled on Medicare, the government program for the elderly.

President Obama has said he prefers a public option, but is not firmly wedded to it, as long as there is competition for private insurers.