Report Clears
Medicare Ads
But GAO does
cite `omissions' in spots critics call partisan
By Kristina Herrndobler
Washington Bureau
March 11, 2004
WASHINGTON -- Congressional investigators cleared the Bush administration
Wednesday of wrongdoing in producing advertisements about new Medicare
prescription-drug benefits that critics claimed were a misuse of taxpayer
dollars and misled the public about the benefits.
But the report by the General Accounting Office, the investigative arm of
Congress, concluded that the ads produced by the Department of Health and
Human Services have "notable omissions and other weaknesses."
Democrats alleged that the ads were being used by the administration to
promote President Bush and misrepresented the program to make it appear that
the new Medicare benefits are more generous than they are. Nine members of
Congress asked the GAO to review the ads to determine whether the spots
violated federal laws prohibiting agencies from spending taxpayer money on
"publicity or propaganda" without the approval of Congress.
But the report found that the advertisements, while flawed, "are not so
partisan as to be unlawful."
The ads, which include mail, print and television advertising, are part of a
$22 million media campaign by Health and Human Services to highlight changes
resulting from the enactment of prescription-drug coverage
The television spots emphasize that the basic Medicare program has not
changed, but that under reforms passed last year, new benefits are available
to senior citizens, such as prescription-drug coverage. The ads include a
toll-free number for seniors who have questions about their benefits.
The ads do not mention that seniors who enroll in the drug-discount card
program created by the new law may be charged an annual fee, or that the
savings from the discount cards may vary by the type of prescription drug. But
the GAO found that those omissions were not enough to recommend that the ads
be pulled.
"GAO confirmed that the law mandates us to educate seniors and that our ads
are not political," HHS Secretary Tommy Thompson said in a statement. "The GAO
report makes clear our responsibility to inform seniors. We feel a great
responsibility to make sure seniors understand the new benefits and how they
might help them."
Democrats say the ads oversimplify the benefits available to senior citizens
and may even confuse seniors about the program. Some lawmakers say they will
continue fighting to get the advertisements changed.
Rep. Jan Schakowsky (D-Ill.), one of the lawmakers who requested the
investigation, said the GAO has left it up to Congress to force the agency to
halt the campaign and "provide accurate information to beneficiaries."
"GAO's report on the Bush's administration's multimillion-dollar Medicare PR
campaign raises serious questions about whether taxpayer dollars were misused
for political purposes," she said. "Although the campaign is not technically
illegal, it was found to include `notable omission and other weaknesses,' to
have a `political tone,' and have the appearance of `an attempt to persuade
the public to the administration's point of view.'"
The White House said the ads were strictly educational.
"It is important seniors get all the information about the Medicare plan,"
said White House spokesman Trent Duffy. "The administration thinks the ads are
educational and the companies airing the ads have reached the same
conclusion."
But that conclusion was not reached without controversy. CBS pulled the ads
when it became aware of the investigation, though the ads were back on the air
after the words "savings may vary" were added. Congressional Democrats said
the addition proved the ads were incomplete and possibly deceptive.
The GAO criticized Health and Human Services for putting advertisements about
Medicare reform in newspapers targeted at members of Congress. The report says
department officials said publishing the advertisements would make it easy for
lawmakers and their staff to have the information that it was providing to
beneficiaries.
But the GAO found that "there are any number of more effective vehicles to
communicate with members and staff, and at less cost, than advertising in a
newspaper."