The Indicator from Planet Money

Episode•June 9, 2025•9 min

How doctors helped tank universal health care

A debate has been raging over universal health care in the U.S. since the 1940s. Back then, a formidable opponent emerged to dump a lot of money into ensuring it wouldn't happen. That opponent was doctors. Today on the show, Sally Helm, a Planet Money reporter, comes to us in her capacity as the host of HISTORY This Week to detail how doctors helped tank single pay healthcare back then and the role communism played in the fight. A longer version of this episode is available at HISTORY This Week (https://open.spotify.com/episode/5ofcvwaH9KjFJFp2y45I2r) from the History Channel. Related episodes: Why do hospitals keep running out of generic drugs? (Apple (https://podcasts.apple.com/us/podcast/planet-money/id290783428?i=1000674496824) / Spotify (https://open.spotify.com/episode/5wRVxiLH8CASbmiQsnZaBx?si=006db814e2e84a93)) Socialism 101 (https://www.npr.org/2021/03/26/981686254/socialism-101) For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org (http://plus.npr.org/). Fact-checking by Sierra Juarez (https://www.npr.org/people/g-s1-26724/sierra-juarez). Music by Drop Electric (https://dropelectric.bandcamp.com/). Find us: TikTok (https://www.tiktok.com/@planetmoney), Instagram (https://www.instagram.com/planetmoney/), Facebook (https://www.facebook.com/planetmoney), Newsletter (https://www.npr.org/newsletter/money). To manage podcast ad preferences, review the links below: See pcm.adswizz.com (https://pcm.adswizz.com) for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences. Learn more about sponsor message choices: podcastchoices.com/adchoices (https://podcastchoices.com/adchoices) NPR Privacy Policy (https://www.npr.org/about-npr/179878450/privacy-policy)

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Transcript

0:00

Npr. Health care.

0:12

Health care. Adrian Pretty much everyone agrees it's not going well. US healthcare outcomes often rank near the bottom.

0:19

And of course, there have been a lot of attempts to fix this, a lot of politicians proposing to overhaul the system, we should emulate what goes on around the rest of the world and guarantee health care to all people. And there have also been a lot of criticisms of those attempts.

0:34

Congressional Democrats embrace crazy Bernie's socialist health care takeover.

0:39

That particular rhetoric basically calling these health care plans socialism. It really takes off at a particular historical moment back in the 1940s.

0:50

That's right. This is the indicator from Planet Money. I'm Adrian Ma, and we today includes the friend of the show, Sally Helm.

0:57

Hello, Adrian. I am very glad to be here.

0:59

Today on the show we speak with a doctor and economist who's researched this history about how doctors actually helped tank single payer health care in the 1940s and the role communism played in the fight. In the fall of 1944, California Governor Earl Warren comes down with a kidney infection. He's hospitalized and Warren, while he's recuperating, he starts reflecting on just how much this treatment cost. And it cost a lot.

1:27

Marcela Alshon is an economist at Harvard and a physician herself. She has a working paper on this.

1:34

The motivation behind Earl Warren's interest in this is much more direct, related to his own medical care issue with the kidney infection and not really realizing the high cost of medical care up until that point.

1:50

At this time, most Americans do not have health care. They just pay for medical costs out of pocket. But now Warren is on a personal mission to change the whole system. In his State of the State address the following January, he announces California will be creating its own compulsory health insurance plan.

2:08

And you know who is not wild about this? Doctors.

2:12

Doctors. They're worried about being told how they can treat patients and they're also worried about their paychecks.

2:19

Yeah, in the first half of the 20th century, medicine, medicine changed a lot. In the old days, your local doctor kind of just did everything. But medical knowledge has expanded and specialties have emerged.

2:32

And so you have the rise of the specialists. We see their wages, their incomes rise, which makes sense.

2:39

I mean, these specialists have really valuable skills and knowledge. But now doctors don't want to lose

2:46

that money, and so they fight back. Through an interest group, the California Medical

2:51

association, these California doctors enlist the help of a company called Campaigns Inc. Essentially, it's the first political consulting firm in the country.

3:01

They were husband, wife, team Clem Whitaker Jr. And Leon Baxter. She was a young widow who worked at the Chamber of Commerce at a local municipality.

3:12

Clem was a kind of fast talking journalist type who'd become an ad man. Leon had been working for the Reading California Chamber of Commerce promoting something called a water carnival. And yet she is destined for even bigger things, if that were possible. She and Clem first end up working together on a campaign about a major public works project in California.

3:34

And by the time California governor Earl Warren proposes his new health care law, Whitaker and Baxter are hitting their stride. Through their various campaigns in the 1930s and 40s, they've developed a philosophy people do not want to think.

3:48

The quote is, the average American doesn't want to be educated. But there are ways you can interest him in a campaign that we have ever found successful. You can put up a fight or you can put up a show.

4:01

So Whitaker and Baxter, they put up a show. And when the California Medical association comes to them and says, can you help us defeat this bill? They say, oh yeah. And they kind of have an extra reason to do so.

4:15

They kind of had a little vendetta against Earl Warren. He had used them briefly in his campaign for governor and then was turned off by some of their tactics and released them.

4:27

Yeah, Whitaker and Baxter could be pretty cutthroat. And when it comes time to take down Earl Warren's healthcare bill, they give it their all.

4:35

They buy ads in more than 400 newspapers pushing against the state insurance plan proposal. The they also create pre written postcards constituents can send to their representatives.

4:44

The postcards read, certainly we don't want to be forced to go to a state doctor. That system is quote, part and parcel of what our boys are fighting overseas. In 1945, Earl Warren's bill fails by one vote.

5:00

This is a big victory for Whitaker and Baxter, but an even bigger fight is still ahead.

5:06

Yes, in 1948, Harry Truman is elected president.

5:10

And for the American Medical association, this victory is a real problem.

5:14

It's a self described Armageddon moment. It's described in that way by the

5:19

AMA president because Truman has made it clear he wants government sponsored health insurance for all. At this point, 1948, America's closest ally, Great Britain, has just put something like this in place. The National Health Service and Americans seem to want something similar. When Truman first proposes this plan, it has a 60% approval rating.

5:44

But the American Medical association, they're ready to fight back. And they actually take a page from California's playbook. They hire Whitaker and Baxter, this time

5:54

for a national campaign based on their own stated playbook. They're not about informing individuals. They're going to go out and say national health insurance, or as they call it, compulsory health insurance is socialism.

6:11

Remember this is right at the beginning of the Cold War and fears of communism are really taking root in the American psyche. So Whitaker and Baxter use this to their advantage. They're successfully tying this healthcare fight to this huge ideological fight that taking place across the country, making this all about freedom.

6:29

Yep. During this campaign, Clem Whitaker tells a conference of 200 doctors, compulsory health insurance will mark the beginning of the end of free institutions in America. Those doctors carry that message on to their patients.

6:45

The idea here is if doctors can sell private insurance approved by the ama, then their patients won't want Truman's option, the national health insurance. And remember, the whole idea of health insurance is still relatively new. So doctors are selling to new customers, handing out pamphlets produced by Whitaker and Baxter to try to get patients to buy in.

7:09

One pamphlet is titled the Voluntary Way is the American Way. There's a giant bald eagle on the front.

7:16

Gotta have the eagle and the menacing slogans, you know, a message from your doctor. If you want to protect yourself and your family and liberty, read inside this, this indictment of socialized medicine.

7:27

The basic tactic, fear.

7:30

Fear is going to move people away from state sponsored health insurance and going to increase take up of this substitute private health insurance.

7:42

And according to Marcela's research, it works. She finds that exposure to the campaign made people more likely to sign up for private insurance.

7:51

And in the face of all this lobbying, the White House basically has no effective way to fight back. Truman's proposal never even made it to a vote at the end of his presidency. Approval of his health care plan had dwindled to just 24% over the following decades.

8:07

The AMA continues to oppose single payer healthcare, but whether doctors support it is another story. Back in the 50s, the AMA represented about 75% of America's doctors. Today it's more like 15% of practicing physicians. By the way, Marcela Alshon, she is one of them. She's a member of the ama.

8:27

And some surveys suggest a lot of American doctors today actually support single payer health care. One survey a few years back put the number at 2/3. So we asked the AMA for their current stance on single payer and they told us one of their guiding principles is that concentration of market power is bad for doctors and patients. So they oppose it.

8:48

And the terms freedom of practice and freedom of choice still appear in AMA literature. Just like Whitaker and Baxter would have wanted.

9:00

Sally, thank you so much for bringing us this story.

9:02

Adrian, it is my pleasure.

9:04

You can hear more stories like this on Sally's podcast History this week from the History Channel. We'll leave a link in the show notes.

9:12

This episode was produced by Cooper Katz McKim and Ben Dickstein. It was engineered by Robert Rodriguez. It was fact checked by Sierra Juarez. Cake and Cannon edits the show and the Indicator is a production of NPR.

How doctors helped tank universal health care

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