John Edwards' Money and His Health Plan

[davidswanson]

By David Swanson

John Edwards has reported $29.5 million in personal assets to the FEC, of which his aides have told the Wall Street Journal $16.1 million is invested in Fortress Investment Group, a hedge fund that invests in Humana, the health insurance company that comes in for sharp criticism in Michael Moore's blockbuster movie "Sicko."

Edwards does not just invest in Fortress. It also invests in him, to the tune of $1.7 million in pay and investment income, including $479,512 in salary for a year of "part-time consulting" that began in October 2005. And then there are the campaign contributions. According to the Associated Press:

"Fortress was the single biggest employer of Edwards donors during the first three months of the year. Donors who listed 'Fortress' as their employer contributed $67,450 to Edwards' campaign and supporters who identified their employer as 'Fortress Investment Group' gave $55,200 to the campaign, according to Federal Election Commission records.

"While he resigned as an adviser to Fortress once he decided to run for president," reports the New York Times, Edwards "still has between $11 million and $24 million of his personal wealth invested in Fortress. This represents the bulk of his financial assets. In addition, employees of Fortress are also leading contributors to Mr. Edwards campaign."

Why did Edwards choose to do whatever it is he did for the half-million dollar salary? He told the Associated Press that he "worked for a hedge fund between presidential campaigns to learn about financial markets and their relationship to poverty."

Why did Fortress choose to employ John Edwards? Were his skills as a student that valuable?

The Nation magazine provides a little background on Humana:

"Before 2003 Humana, a regional company peddling health insurance, including HMOs, was hardly a household name. One of its policies had been a big money loser, and the company was struggling to dig its way out of a financial hole. Vice president Steve Brueckner called the MMA 'an unprecedented opportunity to establish relationships,' and his company made the most of it. Humana gained 4 million new policyholders and reported to stockholders in April that it had amassed 'record breaking revenues.' What's more, Humana has become a national brand poised to sell policies in the non-Medicare market, where people will increasingly be forced to buy their own health coverage, especially if an 'individual mandate' becomes a solution for the country's healthcare woes."

John Edwards' health plan would "require all American residents to get insurance" from private companies.

In "Sicko," Dr. Linda Peeno appears testifying before Congress that, when working for Humana, she made a decision to deny a Humana member treatment for a heart transplant, a decision that cost the patient his life but saved the company $500,000. Peeno says she was not punished, but rather rewarded, for such conduct. The money she saved the company was approximately the same amount paid to Edwards as salary.

Moore reported on Humana's policies at length in this video, which predates "Sicko". Watching it is one way to learn about financial markets and their relationship to poverty.

At Thursday's NAACP-hosted Democratic presidential candidates debate, Congressman Dennis Kucinich challenged Edwards on the issue of health care. Kucinich supports a not-for-profit single-payer system of health coverage. The benefits of such a system, which is used by most wealthy nations in the world, are highlighted in "Sicko."

The Associated Press reported an interesting exchange immediately following the debate:

"After the forum, Fox News microphones picked up Clinton and Edwards discussing their desire to limit future joint appearances to exclude some rivals lower in the crowded field. 'We should try to have a more serious and a smaller group,' Edwards said. Clinton agreed. 'We've got to cut the number. ... They're not serious,' she said, then thanked Obama and Ohio Rep. Dennis Kucinich as they walked by. Turning back to Edwards, she added that she thought their campaigns had already tried to limit the debates and 'we've gotta get back to it.'"

Watch this video of the exchange between Edwards and Clinton. Watching this may be yet another way to learn about financial markets and their relationship to poverty.

[calteacherguy]

1. How did Edwards get enough expertise to earn $479,000 in consulting fees for a hedge fund?

I mean, seriously. How does one get that kind of "job?"

[dk2]

11. He is paid for his experience and connections not

only here in the USA but world wide. HE has med with may world leaders in the past 2 years. He also has government experience.

Further more he isn't paid anywhere close to top advisors. A little more research on that and you may have seen that most make in the millions.

[Cameron27]

20. But what was he doing for them with his all his experience and

connections? He said he was there to learn about poverty, and yet they paid him close to half a million dollars. As far as I know, that's all the explanation he's given.

[NCarolinawoman]

19. From his Bidelburg connections, most likely.

Or is it "Bidleberg"? Not sure how to spell it.

John Edwards got paid for having to show up only a few times a month so it had to have something to do with who he knew/knows. It wasn't due to any business expertise. Even he said he was there to learn. But if he was getting paid to learn (which sounds really goofy), that Hedge fund, for sure, was getting something very important in return.

The weird thing to me, is that he said he should have asked more questions about Fortress before working for them because it was revealed they are involved in sub-prime (predatory lending). Yet, his millions are still tied up in this very organization that he condemned.

[skids]

2. Fortress != Humana

The big lie of this article is making it look like Fortress and Humana are the same thing.

This is not to say Edwards does not owe his supporters a bit more of a picture of what
his investments are in. We should know this from all candidates.

But FIG is not "a hedge fund" they are a diversified investment group that
has about 1/3rd of their assets in hedge funds:

As of September 30, 2006, the most recent date for which figures were available before Fortress Investment Group's IPO the firm held around $17.5 billion in private equity, around $9.4 billion in hedge funds and managed two publicly-traded investment companies:

http://en.wikipedia.org/wiki/Fortress_Investment_Group

... so they have less than half their assets in hedge funds, and who knows if Edwards even has money in Humana -- he'd have to be a customer of one of the accounts that invests in that company.

I don't trust any well known politician these days, mind you, even Edwards, but this article is a bit premature.

[1932]

3. True.

I also have a problem with the implication that Edwards is only looking after his wallet.

If Edwards wanted to make another 20 million for his family, he wouldn't have been an advisor to and an investor in Fortress. He would have been doing the thing for the last four years that he did to make the first 20 million he got -- he'd be a trial lawyer again. He'd also be sitting on corporate boads like most Republican and a lot of other Democratic ex-senators and their spouses raking in big fees for doing nothing, that are really little more than bribes and thank yous for the work they did as Senators.

[calteacherguy]

6. I will ask you the same question: Why were his opinions worth $479,000 to them?

How were the opinions of a trial lawyer worth that much to them? What is your theory?

[jsamuel]

4. THIS IS A LIE!!! A big hit piece.

The whole thing is obviously biased, but I will highlight one major point that is the most substantive.

"John Edwards' health plan would "require all American residents to get insurance" from private companies."

FALSE!!!!

John Edwards' health plan would "require all American residents to get insurance" FROM THE GOVERNMENT LIKE MEDICADE-MEDICARE or, if they wish, from a private company.

Excluding that part makes this whole post a complete farce. The part that is omitted is WHAT MAKES IT UNIVERSAL HEALTH CARE! But that didn't go with the agenda of the writer.

[calteacherguy]

5. why did they pay him $479,000? Why were his opinioins worth that much to them? nt

[KoKo]

7. I'd like to know that, also. What opinions could he give? Was it legal advice or

something else. That's alot of money for a Hedge Fund to pay a guy whose for universal health insurance. :shrug:

[calteacherguy]

9. Yes, this raises many profound and disturbing questions. Who is John Edwards? nt

[dk2]

13. Well for one thing - he is smart.

I am sure that thought that was worth something. In the grand scheme of hedge fund earnings - Edwards would be a small - very small fish in a big ocean - why does it bother you?

I might worry if he was up with the top producers making in the $100 million range - but you aren't even talking half of 1 million.

[calteacherguy]

14. Were did he get expertise in this line of work worth $479,00? Its an obscene amount of money. nt

[rinsd]

16. Swanson works for the Kucinich

In April 2007, Swanson began consulting part-time for Kucinich for President 2008.

[jsamuel]

21. No principles at all! This is total bull and they don't care that they are lying through their teeth

Say what you will about Clinton, Edwards, and Obama, but at least they don't lie like this about their opponents.

[FrenchieCat]

8. Stinks thus far!

According to the article......"Humana has become a national brand poised to sell policies in the non-Medicare market, where people will increasingly be forced to buy their own health coverage, especially if an 'individual mandate' becomes a solution for the country's healthcare woes."

John Edwards' health plan would "require all American residents to get insurance" from private companies.

Edwards' plan according to his website:

Creating regional "Health Care Markets" to let every American share the bargaining power to purchase an affordable, high-quality health plan, increase choices among insurance plans, and cut costs for businesses offering insurance.

Once these steps have been taken, requiring all American residents to get insurance.
http://johnedwards.com/about/issues/health-care-overview.pdf

According to Michael Moore, in reference to Edwards' plan,....Moore said the plan offered by candidate John Edwards _ which is both detailed and far-reaching _ "is not good because it supports putting our tax dollars into private, profit-making companies.?
http://michaelmoore.com/words/latestnews/index.php?id=9920

That said, Edwards plan is not a bad one if looked upon on a "curve" when compared to the other candidates, although not as good as Dennis Kucinich's proposal.

In reference to Edwards' Fortress gig, I would like to know what John Edwards "did" on a part-time basis to "earn" nearly a half million dollars in a very short time. His answer about "learning about how Hedge Funds affect Poverty" is not credible.

We're the "deciders"!

[EFerrari]

10. When something seems too good to be true, it usually is.

I hope Edwards has a good response to this.

[dk2]

12. Fortress donors are no different than the usual employee

who donates to a candidate.

Take the Real Estate industry - the majority of them may give to one candidate - During 2004 they were heavily courted by BUSH. If they had given to him and showed a majority their total would have been great and a high percentage of donations. But their are thousands of real estate agents, thousands, that would look like a large amount from one group. But, the whole picture is deceptive, just like what you try and smear Edwards with.

[rinsd]

15. Are you still working for Kucinich?

In April 2007, Swanson began consulting part-time for Kucinich for President 2008.

If so, you should identify yourself as such.

[davidswanson]

18. no

uh-uh

[rinsd]

22. But you were working on his campaign within the last 3 month weren't you?

With this and your Pelosi pic thread I think its safe to say you're not very ethical.

[defendandprotect]

17. We should just expand Medicare to everyone --

and end any privatization of it -- i.e., drugs by Bush should be reversed to eliminate insurance companies.