Creators of "Harry & Louise" Ads Fire First Shot at HMO Consumer Protections in Prop. 214; This Time, "Harry & Lou" Characters Sidestep Consumer Concerns, Inflate Potential Costs in Attempt to Sink Prop. 214.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 12, 1996--Opponents of Proposition 214, the HMO Patient Rights Initiative, today launched a television ad campaign created by the makers of the "Harry and Louise" ads against national health reform in 1993.

This time around, the ads feature twin brothers, "misrepresenting two ballot measures that use very different methods to address HMO denial of care to patients," according to Beth Capell, Prop 214 campaign manager.

"In 1993, Harry and Louise took on the Clinton health plan. This year, twin characters ("Harry and Lou") star in ads designed to defeat Prop. 214, which ensures access to health care for those who already have insurance," said Capell. "While consumers need to battle their HMO to receive the health care that has already been paid for, HMOs are spending millions of patients' premium dollars on these ads to defeat consumer protections."

"The HMO attack ads don't deal with the real issue -- denial of medical care to patients who need it and have paid for it," said Dr. Jennifer Reifel, a Los Angeles oncologist and Prop. 214 supporter. "Voters need to see through these ads and ask, `Why won't the HMO industry talk about real people and real problems?' These ads may seem silly, but this issue is painfully serious and deserves a serious discussion."

Hoping that consumers and voters may fall for scare tactics, the HMO industry contracted with Goddard-Claussen/First Tuesday -- the makers of the Harry and Louise ads. This time, the ads feature twins whose purpose it is to confuse Prop. 214 with another health care-related ballot measure. The ads are paid for by Taxpayers Against Higher Health Costs (TAHHC) -- an HMO and insurance industry organization. -0-

Prop. 214 is a measure to ensure that medical decisions are made by patients and their doctors -- not HMO bureaucrats. Prop. 214 would:

- ban written and unwritten gag rules; - prohibit HMOs from offering financial incentives to doctors for

denying needed medical care; - require a second opinion before a doctor-recommended treatment can

be denied;

Prop. 214 is the first of two health care-related initiatives on the November ballot. It does not contain new taxes, increase health care costs dramatically, or create new government agencies.

Cost figures used in the ad are from a study by the Barents Group, which was paid $40,000 to date by TAHHC, according to recent campaign finance reports.

The Barents cost estimates are based on the completely false assumption that Prop. 214 would return health care to a "fee for service" system. An analysis by James Kahn, MD, MPH at the Institute for Health Policy Studies at the University of California/San Francisco calls the Barents study "deeply flawed and inconsistent with published research."

The Barents study's cost estimates are "grossly exaggerated" and contain "very substantial errors," Dr. Kahn said.

The state's legislative analyst estimates that Prop. 214's consumer protections may cost between "tens of millions and hundreds of millions of dollars" to implement -- less than one percent of California's annual $120 billion health care industry. This number is significantly less that the Barents' estimate.

"The HMO industry and Chamber of Commerce insist Prop. 214 is not `real reform,'" Capell said. "We encourage every Californian to read the voter pamphlet they will receive before the election. Prop. 214 is a simple, effective measure to ensure that HMOs don't deny care to patients who need it and have paid for it. Voters will decide if Prop. 214 contains real consumer protections they support." -0-

YES ON 214/HMO PATIENT RIGHTS INITIATIVE

A ballot initiative endorsed by Californians for Patient Rights, a coalition of consumers, doctors, nurses, healthcare workers, labor & seniors.

CONTACT: Californians For Patient Rights

Robin Kane, 415/546-6656

Maureen Marr, 310/659-8828