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Attendees at AHIP's Annual State Issues Conference got a bit more than bargained for yesterday.

Insurance industry pollster Bill McInturff was giving a speech Friday when he was interrupted at first with cheers of praise from people who seemingly belonged at the conference, given their business attire. The cheers turned into a song about the "public option," or government-run health insurance, performed to the tune of "Tomorrow" from the musical Annie.

The singers, who were eventually escorted out of the conference, belonged to a group that calls itself Billionaires for Wealthcare

"Health care reform is on life-support and we’re here to pull the plug," the group writes on its Web site. "Thanks to our loyal foot-soldiers Glenn Beck and Rush Limbaugh, we’ve raised the level of discourse to a cacophonous din."

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I love the Billionaires for Wealthcare:

Republican pollster Bill McInturff was the keynote speaker on the final day of the America's Health Insurance Plans's state issues conference on Friday morning.

But his speech on how the health care reform debate was playing among the public was interrupted before it even began. A group of protesters began aggressively cheering McInturff for the work he has done for AHIP (he's a hired pollster for the private insurance lobby and, most infamously, was the force behind the 'Harry and Louise' ads in 1994).

McInturff, initially thinking that the cheering was legitimate, thanked the "AHIP officials" in the back of the room for giving him mental encouragement for his speech. He was not being paid for his appearance, he noted.

And then, the protesters -- dressed in business attire to fit into the crowd -- began singing. A relatively lengthy and harmonious rendition of "Tomorrow" from the musical Annie ensued, only with the chorus focused on government-run insurance. "The option, the option, we must have, the option... " went the rendition, in reference to the public plan.

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Rep. Anthony Weiner on MSNBC's Dr. Nancy show explaining how the AHIP memo released yesterday is making the case for the public option.

Weiner: But it’s interesting in their analysis they’re not 100% wrong. It is true that the Baucus plan doesn’t cover enough people. And it is true—the health insurance says it straight out on your show a moment ago—they’re going to raise the rates. The only thing that prevents them from doing that—and you almost got your last guest to stumble into saying it—some form of competition, but in a strange way the health insurance industry, not standing up and saying “No, no” they’re not doing enough in the Baucus bill, what they really mean is we thought we were going to get all these new customers and you’re doing all these other things to try to hold down costs—“They ain’t gonna’ work. We’re not going to let you do it”.

Which is why the argument is more profound than ever and Chuck mentioned it, we have to have the public option. If we don’t have it—if you leave them to their own devices—the health insurance industry right now is putting us on notice, “We’re not going to lower costs at all. We’re going to keep on raising costs.” Because that’s their business model.

[…]

If you have the health care industry complaining that we’re going to raise costs because of these changes, it is them putting us on notice that we haven’t put enough cost containment in the bill. You know, the health care industry themselves is putting out a whole report saying that. That should be a tell to the Baucus team that “You know what?” maybe it’s time for them to go back and revisit the public option.

But the other thing that’s interesting here is the deal was always going to be for the health care guys, look, you’re going to get all these new customers that are going to be coming in and that’s going to be the reason you’re going to take a hair cut here. But make no mistake about it, the health care industry keeps raising costs and I think what’s going to happen with the Baucus bill is put new requirements on them, they raise costs and whatever subsidies we’re giving people to buy their own insurance, they won’t be able to afford it and we’ll keep on losing people.

This is the whole argument for the public option is right here laid out by the health care industry right now.

Dr. Laura: Do you think you’ll get it?

Weiner: I think so. I think in a strange way, and obviously they didn’t mean this, the health insurance lobby today fired the most important salvo in weeks for the public option, because they have said, as clear as day, left to their own devices, according to their own number crunchers, they’re going to raise rates 111%. And that’s why, you know we have a petition at CountdownToHealthCare.com where we’re telling people for the moderates in the Senate, the so-called moderates, and for the White House, we need the public option, and the health care industry is making our argument for us.

So in a bit of attempted last-minute blackmail, AHIP pulls a suspicious-looking rabbit from their hat. They're worried about families' costs? All the more reason to approve a strong public option!

After months of collaboration on President Obama's attempt to overhaul the nation's health-care system, the insurance industry plans to strike out against the effort on Monday with a report warning that the typical family premium in 2019 could cost $4,000 more than projected.

The critique, coming one day before a critical Senate committee vote on the legislation, sparked a sharp response from the Obama administration. It also signaled an end to the fragile detente between two central players in this year's health-care reform drama.

Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.

Administration officials, who spent much of the spring and summer wooing the insurers, questioned the timing and authorship of the report, which was paid for by America's Health Insurance Plans (AHIP), an industry trade group.

"Those guys specialize in tax shelters," said Nancy-Ann DeParle, director of the White House Office of Health Reform. "Clearly this is not their area of expertise."

Yes, not only is it not their area of expertise, the brand carries with them a history of conflicts of interest and even fraud. As recently as 2007, PwC paid $225 million to settle a class-action lawsuit brought by shareholders of Tyco International Ltd. over a multibillion-dollar accounting fraud.

It seems to me that AHIP is very, very unhappy about the relatively minor changes in the Baucus bill that give the insurance industry slightly less of a stranglehold on the process via the insurance mandate. I mean, how dare we include a hardship exemption?

Now let's watch Democrats spend all day defending the crappy Baucus bill as if it were the tablets Moses brought down from the mountaintop.

Think Progress does a little digging and finds a lot of right wing groups under the covers with AHIP, the health insurance lobbying association. Whoever would have suspected such a thing?

Earlier this week, the Wall Street Journal reported that AHIP — the multimillion dollar lobbying juggernaut for the health insurance industry — has mobilized 50,000 employees to lobby Congress to defeat the public option. ThinkProgress has learned that AHIP’s grassroots lobbying is being managed by the corporate consulting firm Democracy Data & Communications. DDC has made a name for itself as one of the most effective stealth lobbying firms. Earlier this summer, DDC was caught by reporters using a front group called “Citizens for a Safe Alexandria” to attack the Obama administration for seeking to prosecute Guantanamo Bay prisoners in Alexandria, VA.

According to the server-information hub Domaintools.com, the AHIP grassroots outreach website AHIPAdvocacy.org is hosted on a server owned by DDC. Though DDC conceals the hosting of its other websites using a service called DomainsByProxy, ThinkProgress has obtained a list of the domains hosted on DDC servers. A review of this data shows that DDC maintains the grassroots outreach websites for large health insurance companies, but also for big tobacco and Koch Industries:

– phillipmorrisusaactioncenter.org (Altria)
– tobaccoissues.com (Altria)
– kochpac.com (Koch Industries)
– aetnavotes.com (Aetna)
– healthactionnetwork.org (WellPoint)
– humanapartners.com (Humana)
– ahipadvocacy.org (AHIP)

DDC is a firm that promises “high impact” outreach programs to not only influence the grassroots, but “change attitudes for the long term.” As the Washington Post explains, DDC pays over 500 contract workers to “spend much of their day telephoning people around the country and asking them to sign letters to Congress that press for legislation.” The firm helped orchestrate “grassroots” support for President Bush’s push to privatize Social Security, and helped manage online efforts for the right-wing attack group Freedom’s Watch. DDC is headed by B.R. McConnon, a former associate of Jack Abramoff’s lobbying partners, and a former employee of the Koch-funded astroturf organization known as Citizens for a Sound Economy.

Citizens for a Sound Economy — which has also received funds from private health insurers in the past and played a critical astroturf role in killing reform under Clinton — eventually split, with one wing forming Americans for Prosperity in 2003, and another forming FreedomWorks in 2004. Both organizations, which are still funded by the Koch Industries empire, were instrumental in organizing the anti-Obama tea party protests, and have been spreading misinformation and anger at the current health reform effort. Americans for Prosperity’s anti-health reform front group, Patients United, has hosted speakers comparing the House health reform bill to the Holocaust.

Curiously, DDC servers also host anti-health reform letters from the Chamber of Commerce and Rep. Charles Boustany (R-LA), as well as continual news updates about the reform debate. All three documents are under a subsection titled WellPoint.

Given the stealthy nature of astroturf lobbying firms, it is difficult to discern the extent to which DDC is managing AHIP’s efforts. UnitedHealth, another large insurer, was caught recently using a call center to direct people to a radical tea party anti-health reform protest outside of the offices of Rep. Zach Space (D-OH).

Already, the health insurance industry has flexed its muscle to water down reform. After spending millions on lobbying, advertising, and direct contributions to lawmakers, the Senate Finance Committee made a major concession allowing insurers to reimburse only 65% of medical bills (down from the 76% proposed requirement). And indeed, although AHIP has made grandiose promises of self regulation, many insurers have recently broke promises made by AHIP President Karen Ignagni. On June 16, despite Ignagni’s pledges of commitment, insurance executives from UnitedHealth Group, Assurant, and WellPoint specifically refused to “commit” to ending the controversial practice of rescinding coverage after an applicant files a medical claim.

With DDC’s stealth lobbying assistance, AHIP may well kill the public option too.

Update At the Wonk Room, Pat Garofalo reports that DDC also maintains an anti-Employee Free Choice Act website supported by the Independent Women’s Forum (IWF). The IWF, which is running anti-health reform ads, is another Koch Industries-funded front group that for a five year period operated out of the same office as Americans for Prosperity. DDC not only serves the health insurance industry, but plays a vital role for the constellation of Koch front groups.

Remember Obama's announcement Monday that insurance companies were going to cut the rate of health care spending? It was all over the news:

“These groups are voluntarily coming together to make an unprecedented commitment,” Mr. Obama said. “Over the next 10 years, from 2010 to 2019, they are pledging to cut the rate of growth of national health care spending by 1.5 percentage points each year — an amount that’s equal to over $2 trillion.”

Now they're clutching their pearls, insisting they never said such a thing!

Health care leaders who attended the meeting have a different interpretation. They say they agreed to slow health spending in a more gradual way and did not pledge specific year-by-year cuts.

“There’s been a lot of misunderstanding that has caused a lot of consternation among our members,” said Richard J. Umbdenstock, the president of the American Hospital Association. “I’ve spent the better part of the last three days trying to deal with it.”

Nancy-Ann DeParle, director of the White House Office of Health Reform, said “the president misspoke” on Monday and again on Wednesday when he described the industry’s commitment in similar terms. After providing that account, Ms. DeParle called back about an hour later on Thursday and said: “I don’t think the president misspoke. His remarks correctly and accurately described the industry’s commitment.”

The Washington office of the American Hospital Association sent a bulletin to its state and local affiliates to “clarify several points” about the White House meeting.

In the bulletin, Richard J. Pollack, the executive vice president of the hospital association, said: “The A.H.A. did not commit to support the ‘Obama health plan’ or budget. No such reform plan exists at this time.”

Moreover, Mr. Pollack wrote, “The groups did not support reducing the rate of health spending by 1.5 percentage points annually.”

And yet, here's what went up on the lying bastards' industry's faux-grassroots website:

Health care stakeholders came together at the White House today to present ideas on how to lower health care costs and create real savings for American families. President Obama hosted representatives of a group that included AdvaMed, American Hospital Association (AHA), American Medical Association (AMA), America's Health Insurance Plans (AHIP), Pharmaceutical Research and Manufacturers of America (PhRMA) and Service Employees International Union (SEIU).

The six groups submitted a letter to the President outlining a framework for slowing the growth of spending throughout the health care system, making it more efficient and more sustainable. Read the letter that was sent to President Obama.

By reducing the rate of growth in health care spending by 1.5% each year, the nation can achieve a savings of $2 trillion over the next decade. This effort will have a direct effect on the budgets of individuals and families and will also go a long way in ensuring that every American have access to affordable, high-quality health care. Stay tuned for more information on this important initiative in the weeks and months ahead.

Read a complete account of President Obama's remarks at the White House today.

America's Health Insurance Plans released a statement today that expressed strong support for the framework that all the stakeholders have presented. Read the full statement.