Friday, January 28, 2011

David Cutler: “Independent Analyst” or

This morning’s HHS report on premiums makes several questionable claims, including one about the potential long-term savings associated with the health care law.  Page 9 of the report includes the following paragraph:

Independent analysts suggest that the combination of these policies could slow the growth of health spending by 1 percentage point a year starting in 2014.  By 2019, this could save 9 percent or $2,000 for a family policy, in addition to the savings that come from the policies implemented in 2014.

The footnote in the report cites a paper by economist David Cutler released earlier this month to support its claims.  There’s just one problem with citing David Cutler, however:  His own website indicates that he was a PAID advisor to the Obama presidential campaign.  Under “outside activities,” the “Obama presidential campaign” is listed among a list of “activities…listed where the compensation was over $3,000 in a calendar year for non-profit or government activities, or over $500 for for-profit activities.”  In other words, Cutler’s own website suggests he received several thousand dollars from the Obama presidential campaign.

During his time as a campaign advisor, Cutler co-wrote the famous memo attempting to defend candidate Obama’s assertion that his health plan would save $200 billion per year, or $2,500 per family – claims that the campaign alleged would occur within Obama’s first term.  Now the Cutler report cited by HHS claims that families could save a smaller amount (i.e., $2,000 vs. $2,500) over a MUCH longer time span – an example of the soft bigotry of low expectations if ever one existed.

These contradictions raise obvious questions, on both process and substance:

  1. How on earth can a PAID advisor to the Obama campaign be considered an “independent analyst” by HHS – or any other reasonable outside observer?
  2. How does repeating claims from a paid campaign advisor with a financial interest in defending the Obama agenda – and failing to disclose this MAJOR conflict of interest – not constitute taxpayer-funded propaganda?
  3. If both Cutler and the White House can’t defend their prior allegations that health “reform” will cut premiums by $2,500 per family, why should anyone believe their claims – on premiums, job creation, or anything else for that matter – now?