Hold your horses — Kochs and GOP will continue to fight ACA

More than six million Americans are breathing a sigh of relief today knowing they’ll be able to keep their affordable health insurance, but the scene at Koch headquarters is undoubtedly whipping into a frenzy. They’re gearing up for the next fight to prevent Medicaid expansion in the states and getting ready to bark orders at GOP politicians like Marco Rubio and Jeb Bush eager to follow their lead.

For people who prioritize return on investment, today’s ruling dealt a huge blow to the Kochs, who spent millions to bring King v. Burwell to the Supreme Court and to stop Medicaid expansion.  Now more than ever, they will work with conservative state governments and GOP candidates to push their extreme agenda.

With this latest defeat, the Kochs and their Republican allies are setting their sights on next year’s court decisions and, of course, the White House.

Background:

THE SUPREME COURT STRUCK DOWN THE KOCH BROTHERS BY RULING IN FAVOR OF THE ACA EXCHANGES

Today’s Supreme Court decision is not only a win for the Americans who rely on the ACA to have access to affordable health care, it is also a striking blow to the Koch brothers and their quixotic and limitless efforts to upend the law and deny health care to everyday Americans.

It’s no secret that David and Charles Koch are opposed to the Affordable Care Act, but what’s been less central to the dialogue is that the two billionaires and their network are the dominant driving force behind challenges to the law in both the political and legal arenas. The genesis of the King v. Burwell case was actually born from a conference organized by AEI, one of the Koch brothers’ pet projects, and CEI, another Koch-funded group, boasted that it was responsible for recruiting the lawyer who filed both the King and Halbig cases. The legal theory behind the challenges to the ACA have also been helped by cheerleading from other Koch-backed entities the CATO Institute and the Pacific Research Institute. All told, AEI, CEI, CATO, and PRI have combined received more than $27 million in funding from the Kochs through the years. Even proving the point further, press reported that half of the briefs filed in King v. Burwell can be tied to Koch Industries.

The Kochs’ legal efforts have only been one part of their assault on American’s health care.  Their network has spent millions of dollars on political organizing, voter contact, and television ads to influence State and Federal officials and election results.  And their spending is expected to only increase, as they are reportedly planning to spend $900 million in the 2016 election cycle. Beyond just overturning the law and targeting elected officials who supported the law, the Kochs have also organized efforts to stop states from expanding Medicaid coverage, as allowed by the ACA, denying access to health care for millions of Americans.  The Kochs pledged to continue this effort if the courts ruled King v. Burwell in their favor.

The Kochs’ relentless efforts against the ACA show that above anything else, they are willing to sacrifice the health and rights of Americans to advance their own anti-government agenda for the benefit of their bottom line and that their spending, political, and legal efforts to do so know no bounds.

The Legal Attacks Against The ACA Are Only One Part Of The Koch’s Comprehensive Strategy To End The Law

Koch Groups Are Planning To Spend Nearly $900 Million for the 2016 election cycle

“The Koch Brothers’ Operation Intends To Spend $889 Million In The Run-Up To The 2016 Elections. According to Politico, “The Koch brothers’ operation intends to spend $889 million in the run-up to the 2016 elections — a historic sum that in many ways would mark Charles and David Koch and their fellow conservative megadonors as more powerful than the official Republican Party. The figure, which more than doubles the amount spent by the Republican National Committee during the last presidential election cycle, prompted cheers from some in the GOP who are looking for all the help they can get headed into a potentially tough 2016 election landscape.” [Politico, 1/26/15]

Koch Groups Already Spent Millions On Ads Opposing Obamacare

Americans For Prosperity
AFP Spent More Than $35 Million On Ads Opposing Obamacare

A “Large Chunk” Of The “At Least $125 Million” Reportedly Spent By AFP On The 2014 Elections Went “Toward Early TV Ads On Obamacare And Other Issues.” According to National Journal, “Over the past few years, Americans for Prosperity has become one of the biggest conservative forces in the country. The non-profit group, part of a network of organizations connected to the Koch brothers, reportedly spent at least $125 million during the 2014 elections. A large chunk of that went toward early TV ads on Obamacare and other issues that set the tone of a long election year for Democrats and helped Republicans take back the Senate. AFP and its millions of volunteers also are deeply involved in state and local politics around the country, rivaling the reach of political party organizations.” [National Journal, 3/15/15]

  • By April 2014, AFP Spent More Than $35 Million In Colorado, Louisiana, Michigan And New Hampshire On Ads Opposing Obamacare And Connecting Democratic Senate Candidates To The Law.According to CNN, “The conservative non-profit political advocacy group backed by the deep pockets of billionaire industrialists David and Charles Koch announced Wednesday that it will spend around $2.5 million over the next two weeks to run television commercials critical of the federal health care law in four states where Democrats face a challenge in keeping Senate seats in party hands. The ad buys in Colorado, Louisiana, Michigan and New Hampshire bring to more than $35 million in AFP spending this election cycle on TV spots that highlight how the group says Obamacare has negatively impacted average Americans. The ads have criticized Democratic senators or Senate candidates for their support of the health care law, and have applauded Republicans opposed to it. AFP’s also run Obamacare-related spots in about a dozen or so competitive House races.” [CNN,4/23/14]
AFP Held Anti-Obamacare Rallies With Tea Party Groups

2009: AFP, Along With Tea Party Groups, Held Anti-Obamacare Rallies Across The Country. According to Fox News, “That’s when citizens are planning anti-‘Obamacare’ rallies across the country Saturday in all 435 congressional districts.And their message is clear: We will not stand for socialized, government-controlled health care. The same groups who made the ‘tax tea parties’ possible in April are behind this weekend’s movement. American Liberty Alliance, FreedomWorks and Americans for Prosperity are working with The Sam Adams Alliance, among others, to stage the rallies.” [Fox News, 8/21/09]

Townhall: “AFP Has Been Leading The Fight Against Obamacare Since Before The Legislation Was Passed.” According to Townhall, “AFP has been leading the fight against ObamaCare since before the legislation was passed two years ago and has nearly two million activists in 50 states. Speakers include Allen West, Michele Bachmann, Paul Ryan and more. AFP activists have organized 80 buses to bring people from all over to attend the event.” [Townhall, 3/27/12]

LIBRE Initiative

LIBRE Spent “Millions On Ads Attacking Obamacare Supporters”

The LIBRE Initiative Spent “Millions On Ads Attacking Obamacare Supporters,” While Latinos “Are More Likely To Be Uninsured Than Any Other Group In The US.” According to The Nation, “LIBRE appears to believe that Hispanics need ‘truth’ more than healthcare or relief from a broken immigration system. Instead of pressing Republicans for comprehensive immigration reform, which LIBRE claims to support, the group has spent millions on ads attacking Obamacare supporters. Meanwhile, Latinos are more likely to be uninsured than any other group in the US, and they’ve lagged behind others in enrollment in the new insurance exchanges.” [Nation, 9/4/14]

  • LIBRE Has “Poured Hundreds Of Thousands Of Dollars” Into Ads Attacking Four Democrats Who Voted For Obamacare.  According to Think Progress, “While LIBRE may not tell their members who to vote for, they have poured hundreds of thousands of dollars into telling them in English and Spanish who not to vote for—specifically, four Democratic House members who support the Affordable Care Act.” [Think Progress, 9/30/14]
  • LIBRE Released Ads Attacking Six Members Of Congress “For Supporting The Affordable Care Act And ‘Unnecessary Spending’ By The Federal Government.”According to VOXXI, “Alex also pointed to a new round of digital ads that the LIBRE Initiative released last week. The ads go after six members of Congress—all Democrats—for supporting the Affordable Care Act and ‘unnecessary spending’ by the federal government. Among those attacked by the ads are Reps. Joe Garcia of Florida and Pete Gallego of Texas.” [VOXXI, 9/26/14]
LIBRE Actually Urged Young People Not To Enroll For Health Care Through The ACA

Garza Urged Young People To Reject Enrolling For The Affordable Care Act Because It “Gouges Young People To Prop Up An Unsustainable Scheme.”According to an op-ed by LIBRE executive director Daniel Garza for the New York Post, “The Libre Initiative is promoting a real debate in this community about how we can do better. The White House is avoiding a pitch that convinces young people they’re getting a good deal — because they aren’t. According to recent research by the National Center for Public Policy Analysis, about 3.7 million of those ages 18-34 will save at least $500 if they choose not to buy health insurance and instead pay what the Obama administration calls the ‘shared responsibility’ penalty. Another 3 million will save $1,000. […]Rejecting this path isn’t ‘selfish.’ It’s common sense. The Affordable Care Act gouges young people to prop up an unsustainable scheme that will do serious harm to our health-care system.” [New York Post,9/10/13]

Garza: “Allowing Young People To Stay On Their Parents’ Plan And Eliminating ‘Pre-Existing Conditions’” Are  “Costly Changes For Insurers.”According to an op-ed by LIBRE executive director Daniel Garza for the New York Post, “Part of the reason young people are getting a bad deal is that the law is making insurance so expensive. Policies can’t be sold in the Affordable Care Act exchanges unless they meet ‘essential coverage’ standards set by the administration — which go far beyond the policies that millions of Americans buy. Allowing young people to stay on their parents’ plan and eliminating ‘pre-existing conditions’ are also costly changes for insurers, forcing them to raise rates more. Even Secretary Sebelius admits people will see a higher cost from moving to what she calls a ‘fully insured product.’” [New York Post, 9/10/13]

Generation Opportunity

The Kochs Gave Generation Opportunity “$5 Million To Roll Out Its Anti-Obamacare Campaign”

Koch Brothers Gave Generation Opportunity “$5 Million To Roll Out Its Anti-Obamacare Campaign.” According to Huffington Post, “In addition to giving Generation Opportunity $5 million to roll out its anti-Obamacare campaign, the Koch brothers have funded a number of conservative advocacy groups that have pushed states to adopt mandatory ultrasound laws.” [Huffington Post, 9/24/15]

  • GenOpp President Evan Feinberg: Obamacare Supporters Attempted “To Brainwash My Generation Into Signing Up For An Expensive, Unfair, And, Quite Frankly, Creepy Pyramid Scheme.” According to The Huffington Post, “Evan Feinberg, president of Generation Opportunity, responded to the ads in a statement. ‘The feigned outrage on the left shows that they’re genuinely terrified that young people will hear our message,’ Feinberg said. ‘Obamacare supporters are using millions of taxpayer dollars in an attempt to brainwash my generation into signing up for an expensive, unfair, and, quite frankly, creepy pyramid scheme.’” [Huffington Post, 9/24/15]
GenOpp Tried To Convince Young People To ‘Opt-Out’ Of The Obamacare

GenOpp Launched A Campaign “Aimed At Convincing Young People To ‘Opt-Out’ Of The Obamacare Exchanges.” According to Yahoo News, “Generation Opportunity, a Virginia-based group that is part of a coalition of right-leaning organizations with financial ties to billionaire businessmen and political activists Charles and David Koch, will launch a six-figure campaign aimed at convincing young people to ‘opt-out’ of the Obamacare exchanges.” [News.Yahoo.com9/19/13]

GenOpp President Evan Feinberg: “What We’re Trying To Communicate Is, ‘No, You’re Actually Not Required To Buy Health Insurance.” According to Yahoo News, “‘What we’re trying to communicate is, ‘No, you’re actually not required to buy health insurance,’ Generation Opportunity President Evan Feinberg told Yahoo News in an interview about the campaign. ‘You might have to pay a fine, but that’s going to be cheaper for you and better for you.’” [Yahoo News, 9/19/13]

GenOpp Launched A Tour In 2013 That Was Expected To Stop At 20 College Campuses And Host Events With “Beer Koozies That Read ‘Opt Out,’ Pizza And Literature About The Health Care Law.” According to Yahoo News, “Later this month, the group will begin a tour of 20 college campuses, where they plan to set up shop alongside pro-Obamacare activists such as Enroll America that are working to sign people up for the insurance exchanges. Generation Opportunity intends to host events at college football tailgate parties festivals, where ‘brand ambassadors’ (read: hot young people) will pass out beer koozies that read ‘opt out,’ pizza and literature about the health care law. Some events may have impromptu dance parties with DJ’s, complete with games of cornhole and competitions for prizes, organizers said.” [Yahoo News, 9/19/13]

Koch Aggresively Worked to Block Medicaid Expansion Proposals In States

AFP “Poured More Money And Resources Than Anyone Else” Into Blocking State’s Efforts To Expand Medicaid

AFP “Has Poured More Money And Resources Than Anyone Else Into Convincing Republicans Around The Country To Repel State Efforts” To Expand Medicaid. According to the Washington Examiner, “Meet the group persuading states to block Medicaid expansion. The D.C.-based advocacy group Americans for Prosperity has poured more money and resources than anyone else into convincing Republicans around the country to repel state efforts to grow the federal health insurance program for the low-income and disabled.” [Washington Examiner, 4/8/15]

AFP “Pelted Swing Districts With Mailers, Filled The Airwaves With Paid Advertising, Sent Volunteers Door To Door And Hosted Town Hall Meetings…To Sway Legislators Away From Approving Medicaid Expansion.” According to the Washington Examiner, “It has pelted swing districts with mailers, filled the airwaves with paid advertising, sent volunteers door to door and hosted town hall meetings in a concentrated effort to sway legislators away from approving Medicaid expansion, which is a key way Obamacare extends health coverage to the poor. The group won’t disclose how much money it has spent in total on the effort. But it’s ‘in the millions,’ says AFP President Tim Phillips.” [Washington Examiner, 4/8/15]

AFP “Won’t Disclose How Much Money It Has Spent In Total On The Effort” To Block Medicaid But President Tim Phillips Said It’s “In The Millions.”According to the Washington Examiner, “It has pelted swing districts with mailers, filled the airwaves with paid advertising, sent volunteers door to door and hosted town hall meetings in a concentrated effort to sway legislators away from approving Medicaid expansion, which is a key way Obamacare extends health coverage to the poor. The group won’t disclose how much money it has spent in total on the effort. But it’s ‘in the millions,’ says AFP President Tim Phillips.” [Washington Examiner, 4/8/15]

Phillips: “The Question Of Expanding Medicaid Is Arguably The Most Important State-Level Aspect Of Obamacare That’s In Play.” According to Newsmax, “‘We were deeply disappointed at Gov. Kasich’s actions on the Medicaid expansion battle in Ohio,’ said Tim Phillips, president of the Koch-supported Americans for Prosperity. ‘Obamacare is a core issue at this point for so many Americans who will most likely be participating in primaries and caucuses. The question of expanding Medicaid is arguably the most important state-level aspect of Obamacare that’s in play.’” [Newsmax.com, 6/20/15]

Americans for Prosperity Began Signaling Intent to Pressure State Legislatures and Governors On Medicaid Expansion Immediately After 2014 Elections

After 2014 Elections, AFP President Tim Phillips Attacked Governors Who Expanded Medicaid In Their States: “I Think It Was A Dramatic Mistake For Them To Do That, Policy-Wise And Politically.” According to The Washington Examiner, “And governors who expanded Medicaid in their states, such as New Jersey’s Chris Christie or Ohio’s John Kasich, might face pushback, [AFP President Tim] Phillips predicted.[…] ‘I think it was a dramatic mistake for them to do that, policy-wise and politically. I think it’ll hurt them [in 2016],’ Phillips said. ‘I don’t know that it will disqualify them. I mean, there’s no perfect candidate. But I do think it’ll hurt them.’” [Washington Examiner, 12/1/14]

Phillips On The Chances Of Governors Who Expanded Medicaid In The 2016 Election: “I Do Think It’ll Hurt Them.” According to The Washington Examiner, “Americans for Prosperity helped boost Republican candidates to victory last month, but its most monumental test still lies ahead: helping Republicans win the White House. […] ‘And governors who expanded Medicaid in their states, such as New Jersey’s Chris Christie or Ohio’s John Kasich, might face pushback, [Tim] Phillips predicted. AFP has vehemently opposed Medicaid expansion in the states. ‘I think it was a dramatic mistake for them to do that, policy-wise and politically. I think it’ll hurt them,’ Phillips said. ‘I don’t know that it will disqualify them. I mean, there’s no perfect candidate. But I do think it’ll hurt them.’” [Washington Examiner, 12/1/14] 

After 2014 Elections, AFP Pledged to Run Ads On “Medicaid Expansion Causing Doctor Overload.” According to Bloomberg Politics, “Watch for AFP to continue with ads about environmental regulations putting business owners under water and Medicaid expansion causing doctor overload, [AFP President Tim] Phillips said.” [Bloomberg Politics, 11/17/14]

2015: AFP Said It Could Deploy More Than 500 Staffers Focusing On Medicaid In 33 States

AFP Could “Deploy More Than 500 Staffers On Medicaid And Other Issues In 33 States, Up From Fewer Than 100 In 2010.” According to Reuters, “‘We hold politicians accountable, regardless of their party, particularly if they use the mantle of ‘conservative’ or ‘limited government principles’ and then they do the opposite,’ said Adam Nicholson, a regional communications manager for Americans for Prosperity. Tennessee has also felt the influence of the group’s field operation, which can deploy more than 500 staffers on Medicaid and other issues in 33 states, up from fewer than 100 in 2010.” [Reuters, 4/9/15]

AFP President Tim Phillips: AFP “Planned To Make The Affordable Care Act A Key Theme Of The 2016 Election And Vehemently Opposed” Gov. Chris Christie’s Decision “To Accept The Medicaid Expansion.” According to The Wall Street Journal, “Many Republican political operatives expect the candidates to bash the Affordable Care Act in the GOP primaries, which often attract the most conservative voters. Tim Phillips, president of Americans for Prosperity, a conservative group backed by David and Charles Koch, said his organization planned to make the Affordable Care Act a key theme of the 2016 election and vehemently opposed the decision by Mr. Christie and other governors to accept the Medicaid expansion.” [Wall Street Journal, 4/14/15]

 

LIBRE On Medicaid Expansion: Medicaid Is “Government-Run Care That Costs Taxpayers Hundreds Of Billions”

LIBRE: Medicaid Is “A Costly Program That Has Historically Done Little To Improve Health Outcomes.” According to a press release from the LIBRE Initiative, “As Florida leaders argue the merits of whether to expand the state’s Medicaid program to include more able-bodied, childless adults, elected officials must consider the risks of expanding a costly program that has historically done little to improve health outcomes, and which is supported by taxpayer dollars. The expansion of Medicaid under the Affordable Care Act (ACA, or Obamacare) is projected to cost taxpayers hundreds of billions of dollars in the years ahead – a cost that grows as more states agree to expand Medicaid.”  [LIBRE Initiative Press Release, 2/2/15]

LIBRE Executive Director Daniel Garza: “Medicaid Has Been Called A Caste System That Delivers Inferior Quality Care To Its Participants.” According to a press release from the LIBRE Initiative, “Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement: ‘The states and the federal government should be focused on how to ensure that families have access to quality medical care at competitive prices. Unfortunately, the White House seems committed to forcing more families to sign up for government-run care that costs taxpayers hundreds of billions and which has been shown to have poor health outcomes. Medicaid has been called a caste system that delivers inferior quality care to its participants. We can and should do better. Efforts to expand Medicaid are focused on spending more money and enlisting more participants, rather than ensuring the program is actually providing the quality care that is needed. Such expansion may actually have negative effects on the very people the program was intended to help – the neediest among us.’” [LIBRE Initiative Press Release,2/2/15]

Garza: “The White House Seems Committed To Forcing More Families To Sign Up For Government-Run Care That Costs Taxpayers Hundreds Of Billions. “Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement: ‘The states and the federal government should be focused on how to ensure that families have access to quality medical care at competitive prices. Unfortunately, the White House seems committed to forcing more families to sign up for government-run care that costs taxpayers hundreds of billions and which has been shown to have poor health outcomes. Medicaid has been called a caste system that delivers inferior quality care to its participants. We can and should do better. Efforts to expand Medicaid are focused on spending more money and enlisting more participants, rather than ensuring the program is actually providing the quality care that is needed. Such expansion may actually have negative effects on the very people the program was intended to help – the neediest among us.” [LIBRE Initiative Press Release, 2/2/15]

GenOpp Opposed Medicaid Expansion

GenOpp: “Since 2012, The Amount Of Taxpayer Money That Has Been Spent On Health Care Has Jumped 22 Percent, With Most Of That Money Going To Medicare And Medicaid.” According to a web post from GenOpp, “Since 2012, the amount of taxpayer money that has been spent on health care has jumped 22 percent, with most of that money going to Medicare and Medicaid.” [Post via GenerationOpportunity.org, 4/24/15]

Koch Groups Pledged To Follow Up SCOTUS Ruling With Campaign To Pressure States From Creating Health Care Exchanges

If Health Insurance Subsidies Had Been Blocked, AFP Promised To “Pressure Republican Governors And Legislators Not To Create Exchanges”

New York Times: “Should The Subsidies Be Blocked, Conservative Groups Like Americans For Prosperity Would Pressure Republican Governors And Legislators Not To Create Exchanges.” According to The New York Times, “As the Supreme Court prepares to rule on whether to block health insurance subsidies in 34 states that use the federal insurance exchange, Pennsylvania and Delaware are the best prepared. They have submitted detailed plans for creating their own exchanges by next year, a move intended to keep subsidies flowing to their residents, though possibly with an interruption. […] Should the subsidies be blocked, conservative groups like Americans for Prosperity would pressure Republican governors and legislators not to create exchanges. In some states, including Florida and Tennessee, these groups have been effective in persuading state lawmakers to oppose expanding Medicaid under the health care law.” [New York Times, 6/22/15]

AFP Spokesman Levi Russell: If Subsidies For Federal Health Exchanges Were Blocked By SCOTUS, AFP Will “Be Involved One Way Or Another” In Convincing States To Not Set Up Exchanges Or Medicaid Expansion. According to The New York Times, “Should the subsidies be blocked, conservative groups like Americans for Prosperity would pressure Republican governors and legislators not to create exchanges. In some states, including Florida and Tennessee, these groups have been effective in persuading state lawmakers to oppose expanding Medicaid under the health care law. […] Levi Russell, a spokesman for Americans for Prosperity, said the group would ‘be involved one way or another.’ But he also said he believed predictions of voter backlash over lost subsidies were overblown, noting that only a sliver of the voting population would be affected. Most Americans get health insurance through work and do not have to buy their own.” [New York Times, 6/22/15]

The Koch Network Was The Driving Force Behind Anti-ACA Legal Strategy And King V. Burwell

The Nation: “The Influence Of The Koch Network Pervades Nearly Every Part Of The Challengers’ Case In King V. Burwell.”

The Nation: “The Influence Of The Koch Network Pervades Nearly Every Part Of The Challengers’ Case In King V. Burwell.” According to the Nation, “The Kochs and their affiliated groups spent vast sums to try to stop the Affordable Care Act from passing in the first place; to unseat those that backed the law over the course of several election cycles; and more recently, to stymie the law’s implementation (e.g., killing Medicaid expansion in Tennessee last month). And the influence of the Koch network pervades nearly every part of the challengers’ case in King v. Burwell.” [The Nation, 3/2/15]

  • The Nation: “All Told, Koch Influence Informs About Half Of The Twenty-One Briefs Filed On The Anti-ACA Side, And Little More Than Half If You Don’t Count The Briefs From States And Elected Officials.”According to the Nation, “Thus, much of the financial and legal muscle behind King v. Burwell directly traces back to Koch Industries. Moreover, aside from the major players in the King case discussed above, a quick glance at the case’s filings finds more Koch-linked amici: […] All told, Koch influence informs about half of the twenty-one briefs filed on the anti-ACA side, and little more than half if you don’t count the briefs from states and elected officials. The petitioner might be ‘King’ in body, but it’s Koch in heart, mind, spirit—and bank account.” [The Nation, 3/2/15]

The Nation: “Once Again The Fate Of The Affordable Care Act Will Be In The Nine Justices’ Hands… Naturally, The Kochs Are Pulling More Than Their Fair Share Of Strings.” According to The Nation, “The Supreme Court will hear oral arguments in King v. Burwell this Wednesday, and once again the fate of the Affordable Care Act will be in the nine justices’ hands. Unlike National Federation of Independent Businesses v. Sebelius, the 2012 case that affirmed the ACA’s individual mandate but gutted its expansion of Medicaid, King turns not on the act’s constitutionality but rather on an statutory issue variously described as ‘bordering on frivolous,’ ‘nested in a fictional history of Congressional intent,’ and ‘fluff.’ But like the prior case, whose result effectively denied health insurance to half of the 17 million intended to have been covered by the ACA’s expansion of Medicaid, King, if decided against the government, could leave another 8.2 million uninsured and, effectively, send the ACA into its oft-cited ‘death spiral.’ Naturally, the Kochs are pulling more than their fair share of strings.” [The Nation, 3/2/15]

The King Case Was “Hatched” By The American Enterprise Institute And The Competitive Enterprise Institute

“The King Case Started Out As A Legal Theory Hatched By A Group Of Conservative Lawyers In 2010 At A Conference Sponsored By The American Enterprise Institute.” According to Mother Jones, “The King case started out as a legal theory hatched by a group of conservative lawyers in 2010 at a conference sponsored by the American Enterprise Institute, the right-leaning think tank. Attendees were urged to devise a litigation strategy to bring down the Affordable Care Act, which months earlier had been signed into law. The libertarian Competitive Enterprise Institute, a think tank funded by big pharmaceutical firms, oil and gas outfits, the Koch brothers, Google, tobacco companies, and conservative foundations, answered the call.” [Mother Jones, 2/9/15]

  • AEI “Is A Very Large Recipient Of Koch Cash, And David Koch Co-Chairs Its National Council.”According to The Nation, “As Mother Jones noted last month, ‘The King case started out as a legal theory hatched by a group of conservative lawyers in 2010 at a conference sponsored by the American Enterprise Institute, the right-leaning think tank.’ AEI, of course, is a very large recipient of Koch cash, and David Koch co-chairs its National Council. One of the speakers on that AEI panel was Michael Greve, now a law professor at George Mason (where the ‘staunchly anti-regulatory,’ Koch Industries–funded Mercatus Center is located).” [The Nation, 3/2/15]

“Attendees Were Urged To Devise A Litigation Strategy To Bring Down The Affordable Care Act” And The Competitive Enterprise Institute “Answered The Call.” According to Mother Jones, “The King case started out as a legal theory hatched by a group of conservative lawyers in 2010 at a conference sponsored by the American Enterprise Institute, the right-leaning think tank. Attendees were urged to devise a litigation strategy to bring down the Affordable Care Act, which months earlier had been signed into law. The libertarian Competitive Enterprise Institute, a think tank funded by big pharmaceutical firms, oil and gas outfits, the Koch brothers, Google, tobacco companies, and conservative foundations, answered the call.” [Mother Jones, 2/9/15] 

“CEI, Which Is Heavily Koch-Backed, Brags That It Is ‘Coordinating And Funding Both The King V. Burwell Case And The DC Circuit Halbig V. Burwell Case’” And Reached Out To Lawyer Who Filed Both Cases. According to The Nation, “CEI, which is heavily Koch-backed, brags that it is ‘coordinating and funding both the King v. Burwell case and the DC Circuit Halbig v. Burwell case.’ It was CEI that reached out to Michael Carvin, the lawyer who filed the King and Halbig cases and who will be arguing King before the Court. Carvin also argued NFIB in 2012.” [The Nation, 3/2/15]

AEI AND CEI Koch Connections

David Koch Is A Co-Chair Of American Enterprise Institute’s National Council. According the American Enterprise Institute’s website, David F. Koch is a co-chair of AEI’s National Council. [AEI.org, accessed 6/19/15]

  • Members Of AEI’s National Council Are “Committed To The Values And Success Of The Institute,” And “Are Ambassadors For AEI” And Provide It “With Advice, Insight, And Guidance.”According the American Enterprise Institute’s website, “Members of AEI’s National Council are business and community leaders from all over the country who are committed to the values and success of the Institute.  They are ambassadors for AEI and provide us with advice, insight, and guidance as we look to reach out to new friends around the country.” [AEI.org, accessed 6/19/15]

AEI Received More Than $20,800,000 From The Koch Network

  • American Enterprise Institute Has Received $18,978,204 from Donors Capital Fund.[Conservative Transparency, accessed 6/15/15]
  • American Enterprise Institute Has Received $240,750 From DonorsTrust. [Conservative Transparency, accessed 6/15/15]
  • American Enterprise InstituteHas Received $867,289 From The Charles G. Koch Foundation.  [Conservative Transparency, accessed 6/19/15]
  • American Enterprise Institute Has Received $750,000 From The Claude R. Lambe Foundation. [Conservative Transparency, accessed 6/15/15]

CEI Received More Than $3,460,000 From The Koch Network

  • Competitive Enterprise Institute Has Received $315,000 from the David H. Koch Foundation.[Conservative Transparency, accessed 6/15/15]
  • Competitive Enterprise Institute Has Received $55,779 From The Charles G. Koch Foundation. [Conservative Transparency, accessed 6/15/15]
  • Competitive Enterprise Institute Has Received $364,820 from the Claude R. Lambe Foundation. [Conservative Transparency, accessed 6/15/15]
  • Competitive Enterprise Institute Has Received $2,024,950 from DonorsTrust. [Conservative Transparency, accessed 6/15/15]
  • Competitive Enterprise Institute Has Received $707,279 from Donors Capital Fund.[Conservative Transparency, accessed 6/15/15]

Cato Institute Has Been “Shoring Up Another Flank Of The Assault On The Affordable Care Act” Alongside The Pacific Research Institute

The Nation: “Shoring Up Another Flank Of The Assault On The Affordable Care Act Is The Koch Army’s Cato Division.” According to The Nation, “Shoring up another flank of the assault on the Affordable Care Act is the Koch Army’s Cato Division. The Cato Institute, for its part, has lent much of the substantive heft to the anti-ACA effort. Michael Cannon, Cato’s director of Health Policy Studies, previously worked at other Koch groups, including Citizens for a Sound Economy/Citizens for a Sound Economy Foundation (where he battled FDA regulation of tobacco, among other things).” [The Nation, 3/2/15]

The Nation: Cato’s Health Policy Studies Director Michael Cannon And Case Western Reserve Law Professor Jonathan H. Adler, “Are The Lawyers Who Have Most Aggressively Pushed The Dubious Legal Theory Behind King.” According to The Nation, “Shoring up another flank of the assault on the Affordable Care Act is the Koch Army’s Cato Division. The Cato Institute, for its part, has lent much of the substantive heft to the anti-ACA effort. Michael Cannon, Cato’s director of Health Policy Studies, previously worked at other Koch groups, including Citizens for a Sound Economy/Citizens for a Sound Economy Foundation (where he battled FDA regulation of tobacco, among other things).” […] Cannon and Jonathan H. Adler, a law professor at Case Western Reserve Law, are the lawyers who have most aggressively pushed the dubious legal theory behind King. Adler reached out to Cannon in 2011, and the pair published a paper in July 2012, saying that the IRS had acted illegally and that the ACA’s tax credits and subsides should not be available to those purchasing insurance on the federal exchange. [The Nation, 3/2/15]

Adler Reached Out To Cannon In 2011, They Published A Paper Claiming The IRS “Acted Illegally” And “The ACA’s Tax Credits And Subsides Should Not Be Available To Those Purchasing Insurance On The Federal Exchange. According to The Nation, “Cannon and Jonathan H. Adler, a law professor at Case Western Reserve Law, are the lawyers who have most aggressively pushed the dubious legal theory behind King. Adler reached out to Cannon in 2011, and the pair published a paper in July 2012, saying that the IRS had acted illegally and that the ACA’s tax credits and subsides should not be available to those purchasing insurance on the federal exchange.” [The Nation, 3/2/15]

“Over The Years” Funds From The Koch Brothers, Especially The Charles Koch Foundation “Have Reached” The Pacific Research Institute, “Which Has Been A Leader In Litigating Against The ACA.” According to Inside Philanthropy, “A good place to begin is the Pacific Research Institute, which has been a leader in litigating against the ACA over recent years, and took a lead role in writing a key amicus brief in support of King v. Burwell. The institute is headed by Sally Pipes, a healthcare expert and one the most visible conservative critics of Obamacare. […] Predictably, as well, funds from the Koch brothers have reached PRI over the years, with the most public of these funds taking the form of grants from the Charles G. Koch Charitable Foundation.” [Inside Philanthropy, 2/9/15]

  • “The Cato Institute Has Worked Closely With PRI In Making Both A Legal And Policy Case Against Obamacare.”According to Inside Philanthropy, “The Cato Institute has worked closely with PRI in making both a legal and policy case against Obamacare. It’s the second group listed in the amicus brief in support of King v. Burwell, and has been waging a multi-faceted battle against the Affordable Care Act since Obama first proposed the legislation. Cato’s senior fellow Michael Tanner has been at the forefront of this work.” [Inside Philanthropy, 2/9/15]

Cato Institute And Pacific Research Institute Koch Connections

The Cato Institute Was Founded By Ed Crane And Charles G. Koch. According to the Cato Institute 25th Annual Report, “When a young California investment manager, Ed Crane, spent 1976 in Washington, he noticed how much influence a few think tanks had despite their relatively small budgets. He thought there ought to be a public policy research organization, or ‘think tank,’ dedicated to the American principles of liberty and limited government. He was willing to start one, but only if he didn’t have to live in Washington. When he returned to San Francisco, he joined the Kansas industrialist Charles G. Koch to set up the Cato Institute, which opened its doors in January 1977.” [Cato Institute 25th Annual Report, 2001]

In 2012 Charles Koch Made “A Very Serious Play To Reassert His Control” Of The Cato Institute. According to the New Yorker, “What’s interesting, though, is why now, all these years later, after saying that Cato’s independence from him had been for the best, Charles Koch appears to be making a very serious play to reassert his control.” [New Yorker, 3/1/12]

Conservative Economist And Historian Bruce Bartlett: The Kochs “Are Putting In Place A Structure That Will Gradually Erode Cato’s Independence.”According to the New Yorker, “Reduced to its simplest level, says Bruce Bartlett, a conservative economist and historian who briefly worked at Cato and who has fallen out with the Kochs, the dispute came down to control of the think tank’s post-Crane future: ‘It was about making sure that when he left they would name his successor.’ […] As Bartlett put it, ‘It’s clear to me that the Kochs have abandoned libertarianism and essentially thrown in totally with the G.O.P. They are putting in place a structure that will gradually erode Cato’s independence and move it closer to the American Enterprise Institute and Heritage Foundation.’” [New Yorker,7/3/12]

Pacific Research Institute Received More Than $3,200,000 From The Koch Network

  • Pacific Research Institute Has Received $377,000 From The Charles G. Koch Foundation. [Conservative Transparency, accessed 6/19/15]
  • Pacific Research Institute Has Received $400,800 From The David H. Koch Foundation. [Conservative Transparency, accessed 6/19/15]
  • Pacific Research Institute Has Received $905,000 From The Claude R. Lambe Charitable Foundation. [Conservative Transparency, accessed 6/19/15]
  • Pacific Research Institute Has Received $1,210,001 From Donors Capital Fund. [Conservative Transparency, accessed 6/19/15]
  • Pacific Research Institute Has Received $341,000 From DonorsTrust. [Conservative Transparency, accessed 6/19/15]