Medicare Marketing Within Legal Bounds, GAO Says

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Medicare Marketing Within Legal Bounds, GAO Says

By Ceci Connolly, the Washington Post

March 11, 2004

The Bush administration did not overstep legal boundaries in its $12 million marketing campaign promoting the virtues of a new Medicare prescription drug package, according to a legal opinion issued yesterday by the General Accounting Office.

The GAO, an independent investigative arm of Congress, pointed to flaws in the administration's marketing approach but rejected Democratic assertions that the ads and brochures were overwhelmingly political or partisan.

In a 30-second television commercial and printed fliers, the Department of Health and Human Services touts the recently enacted drug plan as "Same Medicare. More benefits."

Last month, congressional Democrats questioned the accuracy of the claim and charged that the spots were an attempt to bolster President Bush's reelection prospects. Administration officials characterized the materials -- $9.5 million in TV spots and $3.1 million worth of print, radio and Spanish-language ads -- as part of an ongoing public education campaign.

GAO lawyers largely agreed with the administration. The use of federal money to produce and distribute the ads and brochures "does not violate the publicity or propaganda prohibitions" in the new Medicare law, according to the opinion signed by GAO general counsel Anthony H. Gamboa.

"This is not to say that the content is totally free of political tone," the 14-page report added.

In particular, the GAO questioned the administration's assertion that it placed ads in certain newspapers largely in an effort to provide helpful information to Congress. Gamboa also noted that although some may view the 10-year, $534 billion drug plan as providing "more benefits," the ads fail to mention the additional fees Medicare will charge and long-term financing gaps in the program.

"The GAO agreed with us that the administration sugarcoats the drug discount cards that will soon be offered and that they overstate the benefits of the Medicare prescription drug plan that will go into effect in 2006," Sen. Frank Lautenberg (D-N.J.) said in a statement. He called on HHS to pull the "misleading ads."

Administration officials said they were drafting a statement on the GAO report last night. Senate Majority Leader Bill Frist ( Tenn. ) said the ads were "providing seniors critical information" that will help them lead "healthier lives."

Sen. Edward M. Kennedy (D-Mass.) predicted voters will render a different decision.

"The more senior citizens learn about the bill the less they like it," he said in a statement. "And the more they learn about the Bush administration's attempt to disguise these blatant campaign ads as an official government expense, the angrier they will be."