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Medicare News Video `Covert` Propaganda

The General Accountability Office (GAO) has ruled that government news videos about the new Medicare prescription drug law violated federal propaganda laws. The GAO said that the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) illegally spent federal money on what amounted to �covert propaganda� touting the new Medicare drug law because the government was not identified as the source of the materials.

The content of the news reports was attributed to persons purporting to be reporters, but who were actually hired actors. Two of the videos end with the voice of a woman who says, �In Washington, I�m Karen Ryan reporting.� A third video was narrated in Spanish, by a man who identified himself as �Alberto Garcia reporting.�

Portions of the videos were broadcast by at least 40 televisions stations around the country. The GAO said the videos violated a second law because the Centers for Medicare and Medicaid Services (CMS) had no appropriation to produce or distribute the materials.

The consequences of the ruling are not yet clear. Although the GAO is the investigative arm of Congress, the agency has no law enforcement powers. The finding, however, adds fuel to the rising controversy over the new Medicare drug legislation and how the administration has been promoting the new law.

Earlier this year, the GAO investigated CMS print and television ads promoting the new law. The GAO found that, while not illegal, the ads misrepresented the prescription drug benefits that would be offered to millions of Medicare recipients. The report said the most notable omission included failing to mention that Medicare beneficiaries may have to pay an annual fee of up to $30 for enrolling in the new discount card program, or that savings may vary among the drugs covered. The administration is expected to spend some $22 million on the advertisements and brochures promoting the new benefit in 2004.

Editor�s note: In the February 2004 issue of this newsletter, we reported in our article, �What Your Higher Medicare Premium Covers � A Medicare Blimp?� that premiums for 2004 jumped 13.5% and that Medicare spent some $600,000 to fly a blimp at sporting events.

TSCL is continuing to monitor this situation and supports stronger Congressional oversight of Medicare program expenditures. Seniors should not be forced to bear the cost of misleading advertisements or propaganda materials. TSCL does support legitimate education materials so that our seniors can make the best choices when it comes to their health care.

Sources: �Medicare Ads Ruled Not in Violation,� Reuters, March 10, 2004. �White House�s Medicare Videos Are Ruled Illegal,� Robert Pear, The New York Times, May 20, 2004.

July 2004


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