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Election 2004

Medicare ads called political

By SARA FRITZ, Times Staff Writer
Published February 10, 2004

WASHINGTON - Administration officials call it a legally mandated public service announcement. The conservative National Taxpayers Union describes it as "an election-year ploy." And Democrats say it's evidence President Bush is using taxpayer funds to assist in his re-election.

At issue is the government's expenditure of about $20-million on a national advertising campaign promoting the controversial Medicare prescription drug benefit enacted last year.

Thirty-second television spots are already appearing on soap operas, game shows and other programs favored by seniors. Brochures with similar information soon will be mailed to Medicare recipients.

Bill Pierce, spokesman for the Department of Health and Human Services, says the ads are intended to get seniors across the country to call 1-800-MEDICARE for information about the new prescription drug benefit. He noted the legislation creating the program called on the administration to "broadly disseminate" information about benefits to eligible seniors.

But critics assail the administration's motives, and the General Accounting Office has announced that it will investigate charges the ad campaign is a misuse of federal funds.

Democratic Sens. Edward Kennedy of Massachusetts and Frank Lautenberg of New Jersey, who opposed the Medicare bill and asked for the GAO investigation, said the television ad misrepresents the truth about the prescription drug benefit.

In a letter to Comptroller General David M. Walker, they wrote: "If there's anyone who thinks that the sole purpose of these ads isn't to promote President Bush's re-election, they must come from another planet. Probably from Mars."

Among the other Democrats signing the letter were Rep. Jim Davis of Tampa and Sen. John Kerry of Massachusetts, the leading candidate for the Democratic presidential nomination.

Although the drug benefit does not commence until 2006, the government will be sponsoring a variety of privately run discount cards beginning in June. Democrats took issue with the television ad's claim that seniors "can save with Medicare drug discount cards this June."

"The real answer is not that simple," Kennedy and Lautenberg wrote. "The discount cards, which will be similar to drug discount cards currently on the market, will not provide a discount on all medicines. A senior viewing this advertisement could certainly be led to believe that all prescription medicines will be covered. Furthermore, the card will not be free, which is not disclosed."

As added evidence the ads are politically motivated, the Democrats noted the television time is being purchased by National Media Inc. of Alexandria, Va., a political consulting firm that also works for the Bush-Cheney campaign. In the past, it also has done ads for a political group funded by the pharmaceutical industry.

Typically, media consultants such as National Media charge at least 10 percent of the total expenditure as their fee. In this case, since the administration is spending about $9.5-million on the television ad, the fee would likely be about $1-million.

Pierce said National Media was hired primarily because it played a part in an earlier Medicare advertising campaign the Bush administration began after the president took office in 2001. Previous administrations did not use advertising to promote the Medicare program, according to HHS officials.

Pierce suggested the complaint to the GAO was part of the Democrats' effort to scuttle the new Medicare benefit. "It's unfortunate that people who voted against the law are trying to undermine our attempt to educate seniors," he said.

The National Taxpayers Union, a nonprofit organization committed to eliminating wasteful government spending, asked the administration to halt the ad campaign.

[Last modified February 10, 2004, 01:00:27]


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