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Reid’s Office Clarifies: No Floor Vote On Immigration Reform Before Memorial Day

reidtwoThis past weekend, Sen. Harry Reid (R-NV) told a rally of immigration activists that Congress would start work on immigration reform as soon as lawmakers returned from recess. In what appeared to be a turnabout this afternoon, Reid stated that immigration reform wouldn’t be on the Senate’s agenda this “work period,” or before Memorial Day. Many were as quick to assume that Reid’s comments spelled immediate doom for immigration reform as those who jumped to the conclusion that immigration was next on Congress’ docket based on the Majority Leader’s statements this weekend.

However, Reid’s Press Secretary Rodell Mollineau told Wonk Room in an email this afternoon that Reid was specifically referring to immigration reform not making it to the actual Senate floor for a vote before the end of May. Sens. Chuck Schumer (D-NY) and Lindsey Graham (R-SC) have been working on a bill that would first be introduced in the Senate Judiciary Committee. “It won’t be on the floor in the next seven weeks,” wrote Mollineau. “I can’t speak to the committee though.” The Reform Immigration for America Campaign also seemed confident that Reid’s remarks today had no effect on the prospects for immigration reform, indicating that the “path for comprehensive immigration reform remains unchanged.” Ali Noorani, Chair of the campaign, stated:

The legislative path forward to enactment of comprehensive immigration reform requires Senators Schumer and Graham to introduce their draft legislation by May 1st, allowing the Senate Judiciary Committee to “mark up” the legislation in May. This will clear the way for Senator Reid to take a bi-partisan bill to the Senate floor in the next Senate work period which begins after the Memorial Day recess.

Today’s remarks by Senator Reid about what items will be slated for action during the current work period referred to Senate floor action. Senator Reid cannot bring a bill to the floor until it is drafted, introduced, and marked up by the Senate Judiciary Committee. That is the urgent work that is required during the current work period.

We call on Senators Schumer and Graham to complete their bill so that the Senate can act.

Though Reid has by no means tabled immigration reform, getting a bill won’t be easy. The legislative calendar is packed and leaves little room for obstacles or distractions. Reid seems confident that he already has 56 votes, but he may be pressed to find the last few supporters he’ll need to get a piece of legislation past cloture. And while his statements seem to have left the prospects for reform unchanged, of more significance might be the fact that Graham was quoted today saying: “immigration is going nowhere this year.”

Security

The Successes Of The Long-Overdue Nuclear Summit

nuclear security summit 2The holding of a Nuclear Security Summit on the scale of the gathering that created the United Nations, is an event that should have happened immediately after 9-11, almost a decade ago. Despite claims that such a summit would merely be a talking shop, the fact is that tangible and far-reaching results were achieved.

Bilateral deals were struck with the Ukraine, Chile, Canada, Mexico — all agreeing to give up their stockpiles of highly-enriched uranium. Furthermore, Russia agreed to eliminate 68 tons of weapon grade plutonium, enough for 17,000 nuclear weapons. Other countries agreed to additional steps to improve port security and to address nuclear trafficking.

Additionally, the final communique from the summit achieves a consensus on the dangers of nuclear terrorism and it gets nations to make commitments to secure all their vulnerable nuclear materials within four years. Importantly, it lays out a “work plan” for countries to follow and to ensure countries live up to these pledges, South Korea will hold a follow-up nuclear summit in two years to put pressure on countries to follow through.

This is a monumental first step, a step that should have been taken nine years ago. Graham Allison has called nuclear terrorism the “ultimate preventable catastrophe.” This is because the way Al Qaeda would develop a nuclear bomb is by stealing or buying weapons-grade uranium or plutonium and these materials can be locked down and eliminated if all countries that possessed these materials made the effort. Yet, until this Nuclear Security Summit, a far-reaching effort, despite the devastating terror attacks after 9-11, was not made. The question is why wasn’t it?

The Bush administration inexplicably failed to aggressively prioritize nuclear security. Following the 9-11 attacks, the United States had a unique opportunity where it had the overwhelming support of almost every nation in the world to push for aggressive multilateral action on this front. Yet this moment not only was not seized, but was quickly squandered through the invasion of Iraq. Instead, of focusing on the real and present nuclear danger of a nuclear terrorist attack, the Bush administration manufactured a nuclear threat and took the United States to war to remove nuclear weapons from a regime that had none.

Fundamentally, advancing nuclear security requires a concerted multilateral effort. The US cannot unilaterally eliminate or secure nuclear materials. Instead, it requires US global leadership in order to convince countries to treat this issue as a major global priority. Yet the Bush administration’s approach was built around unilateralism — whether that was the creation of a “coalition of the willing” in Iraq or by sending UN hater John Bolton to be America’s ambassador to the world. Thus nuclear security was an issue that the Bush administration was not ideologically built to tackle.

As a result, years have gone by, more nuclear materials have gone missing, and the dangers of nuclear attack against the United States has grown.

Health

Consumer Reports Watchdog Urges Congress To Fix 10 Problem Areas In The New Health Care Law

Consumer Watchdog has identified at least 10 problem areas “in the new federal law that, if not addressed, will be exploited by health insurers and drug companies looking to charge more for less health care.”

From what I can tell, the list is pretty good, and makes me wonder why the organization wasn’t calling on Congress to fix the bill before it became law. Many of these issues have been covered on this blog and so I’m highlighting the main points and adding some commentary below, but the full letter is certainly worth reading.

- Lack of Insurer Rate Regulation. The federal law fails to adequately limit what insurers can charge American families and business owners for coverage, even though tens of millions of Americans are required to purchase private health insurance policies. Without the strongest possible review and prior approval of health insurance rates insurers will be able to raise rates nearly without limit and use rate-setting as a vehicle for continuing to cherry-pick the healthiest customers.

Unfortunately, there is little stopping insurers from increasing premiums before 2014. Lawmakers were unable to include Sen. Dianne Feinstein’s (D-CA) national rate review board in the reconciliation package — even though it had some loopholes in it that would have allowed insurers to transfer premium hikes into higher deductibles and co pays — and it’s unclear that Congress has the will to pass it as a separate bill. Without a national board, the rate review authority falls to the states.

- Weakening of benefits. Pre-emption of stronger state benefit requirements by so-called Nationwide and Multi-state plans will threaten the survivability of the state Exchanges and eliminate key health and consumer protections in many states. This is a “race to the bottom” provision that may allow insurers to sell highly profitable bare-bones policies under the guise of cutting costs. Consumers who fall seriously ill would suffer the consequences.

To be clear, the bill permits insurers to sell national plans or semi national plans in three ways. 1) States can form health care choice compacts and allow insurers to sell policies in any state participating in the compact. Insurers selling policies through a compact would only be subject to the laws and regulations of the state where the policy is written or issued (the states participating in the compact designate a primary state for the benefit mandate standards and rate regulations). Compacts may only be approved if it is determined that the compact will provide coverage that is at least as comprehensive and affordable as coverage provided through the state Exchanges. 2) Insurers can also sell nationwide plans that only comply with the benefit requirements of the state from which the coverage is sold. 3) Insurers can sell multi-state plans that comply with the new federal rules but ignore state based consumer protections.

Either way, the concern is the same. The federal rules provide a floor of regulations, but insurers will have every incentive to sell coverage from the states with the worst consumer protections and pressure compacts to declare the state with the lowest standards as the primary state. This will allow insurers to lure younger and cheaper individuals into national policies, driving up health care costs for everyone else (particularly the exchanges).

- Continued rescission. The federal law allows insurers to define the terms of future coverage rescissions when customers fall seriously ill in the fine print of their policies. The law limits rescission of health policies to instances of fraud or “intentional misrepresentation,” however no new regulatory oversight of rescission is provided to ensure that omissions or errors are indeed fraudulent or intentional, rather than innocent mistakes.

I fear this will become a problem. After all, insurers are already required to renew policies in the individual health insurance market under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), but often “do not follow federal standards and instead follow state laws that offer weaker consumer protections.” It’s unclear which agency will implement the federal standards.

Existing law already stipulates that in “most cases, that employers or individuals who purchase health insurance can renew the coverage regardless of any health conditions of individuals covered under the insurance policy.” The exceptions to guaranteed renewability are: non-payment of premiums; “fraud or other intentional misrepresentation”; if the insurer is leaving the market; if an individual or employer moves out of geographic area of the plan; or, in the case of an association policy, if an individual has left the association contracting with the plan.

- Definition of medical expenses.  Consumer Watchdog has called on the Obama Administration and the Department of Health and Human Services (“HHS”) to probe insurance giant WellPoint Inc. in light of a message to its investors describing how WellPoint would simply re-label administrative costs as “medical care” in response to the new health reform law. HHS must narrowly define what constitutes medical care to block gaming of the new medical loss ratio requirement by health insurers.

These definitions will certainly become critical and HHS is currently asking the National Association of Insurance Commissioners (NAIC) and the public comment for input on how to define these terms.

 

Politics

Fifty-five years after Brown v. Board, Mississippi county schools ordered to stop school segregation.

Today, a federal court ordered a county in Walthall County in Mississippi to “stop segregating its schools by grouping African American students into all-black classrooms and allowing white students to transfer to the county’s only majority-white school.” From the Justice Department’s press release:

“More than 55 years after Brown v. Board of Education, it is unacceptable for school districts to act in a way that encourages or tolerates the resegregation of public schools,” said Thomas E. Perez, Assistant Attorney General in charge of the Justice Department’s Civil Rights Division. “We will take action so that school districts subject to federal desegregation orders comply with their obligation to eliminate vestiges of separate black and white schools.”

According to the motion, the district’s practice of permitting hundreds of students — the vast majority whom are white — to attend schools outside their assigned residential attendance zone without restriction prompted a disproportionate number of white students to attend a single school in the district, leaving a number of other schools disproportionately black.

Indeed, evidence in the case suggested that the community regarded certain schools in the district as “white schools” or “black schools.” The United States also asserted that officials in certain district schools grouped, or “clustered,” white students together in particular classrooms, resulting in large numbers of all-black classes at every grade level in those schools.

After being confirmed as attorney general, Eric Holder said that he would make sure the Justice Department’s Civil Rights Division return to its traditional role of pushing “high-impact civil rights enforcement against policies, in areas ranging from housing to hiring, where statistics show that minorities fare disproportionately poorly.” During the Bush administration, officials — who were hired for their “strong conservative credentials” rather than their civil rights experience — “discouraged such tactics.”

Economy

Grassley Dares Democrats To End Senseless Tax Break For Hedge Fund Managers

Senate Democrats, in order to raise revenues “for a variety of must-do tax break extensions,” are reportedly looking, once again, at ending a senseless tax break for hedge fund managers. Both the Obama administration and the House of Representatives have embraced the change, but it has yet to make its way through the Senate, in part due to the intense lobbying of the hedge funds’ lobbyists.

Today, Sen. Chuck Grassley (R-IA), the ranking member of the Senate Finance Committee, dared Senate Democrats to follow through and actually adopt the change, essentially asserting that they don’t have the stomach:

Senate Finance ranking member Chuck Grassley said he didn’t think Democrats would let things get that far. “The House first voted to change the taxation of carried interest almost two-and-a-half years ago, and has passed legislation three times,” Grassley said. “Senate Democrats must have concerns, since the Senate hasn’t adopted the change in that timeframe. So the policy appears to be controversial with Senate Democrats.

Senate Democrats should do their best to prove Grassley wrong, as this tax break is nothing more than a gift to the super-rich.

At stake is a provision of the tax code pertaining to “carried interest.” Hedge fund managers are typically paid in a couple of ways: a set fee and then a percentage of the fund’s profits. Currently, the second part — the carried interest — is subject to the capital gains tax rate of 15 percent, which is far below the top income tax rate of 35 percent.

We have a lower tax rate on capital gains because people earn capital gains from investing their own money. To encourage some risk taking, and thus more investing, we’ve decided that profits from such investments are subject to a lower tax rate. But hedge fund managers are not investing their own money. They’re managing other people’s money. Yet, for tax purposes, we treat their income as if it was their own money at risk.

Of course, making the change means overcoming a heavy dose of spending and lobbying. As Politico noted today, “the nation’s 10 richest hedge fund managers have dumped nearly $1 million into campaign accounts over the past several years — with much of it going to senators who’ve given them a friendly reception on Capitol Hill.” This is a drop in the bucket for this industry, as the top 25 hedge fund managers last year made a combined $25.3 billion (yes, billion with a b). The smallest payout amongst those was $350 million.

Security

Conservatives Fight Each Other On Obama’s Nuclear Agenda

In an interesting twist, the Wall Street Journal oped page today chose to highlight the split between moderates and extremists within the Republican foreign policy establishment.

The WSJ published the thoughts of six former senior Nixon, Reagan, and Bush W. national security officials on Obama’s nuclear agenda. The result was a debate that clearly demonstrates that opposition to Obama’s nuclear agenda is only really coming from the far-right neoconservatives. Half the authors were firmly in support (George Schultz, Richard Burt, and Fred C. Iklé), one was lukewarm (James Schlesinger), and two were negative (Paul Wolfowitz and Richard Perle). Collectively, these pieces expose a conservative national security movement that is completely cracking.

On the one hand, the traditional realist conservatives, such as Schultz, Kissinger, Powell, Scowcroft, Lugar, have all come out in support of Obama’s nuclear agenda. This has left conservative opponents to Obama’s agenda — either motivated by political or ideological reasons — scrambling to find an adequate response. The result has been a completely incoherent and divided lines of attack, with opponents making two contradictory arguments: that Obama’s efforts are either so effective that they are destroying US security and endangering America or that they are entirely insignificant.

Paul Wolfowitz and Richard Perle in the Journal both essentially go for the latter approach, arguing that the actions on the nuclear agenda insignificant and argue that the focus should be on Iran. Wolfowitz writes that:

The relatively modest additional reductions agreed to by Presidents Obama and Medvedev do little to change that fundamental picture… To be serious about a world without nuclear weapons, we must face some serious questions—questions that have nothing to do with U.S. or Russian numbers.

Richard Perle echoed:

But no one believes the threat we face today comes from Russia’s arsenal. It simply does not matter how many weapons Russia has. What does matter, as we face increasing danger from nuclear powers like North Korea now, and Iran all too soon.

Arguing that New START is not significant or “modest” is not an argument against the treaty. Furthermore, the other major thrust of Wolfowitz and Perle’s pieces are that a New START treaty won’t solve the North Korea or Iran problems. But again, this is not an argument against Obama’s nuclear agenda. This is merely a diversionary argument, since no one is arguing that a New START or the Nuclear Posture Review or the Nuclear Security Summit will solve these problems. All neoconservatives are left with are baseless and un-serious claims about missile defense.

The weakness and incoherence of these arguments demonstrates not just that neoconservatives have little to argue, but that there opposition is driven largely not about the merits of the New START treaty, but about ideology and politics. The fact that the two opponents of Obama’s nuclear security agenda in the Wall Street Journal debate were two of the most prominent neoconservative architects of the Iraq war and the disastrous first term foreign policy of the Bush administration is not a coincidence. Instead, this is a reflection of where the opposition to Obama’s nuclear agenda is coming from.

As the START treaty and the NPR is reviewed in Congress it will therefore give greater clarity over where the current GOP stands on national security. It is pretty clear, given the statements of Jon Kyl (R-AZ) and John McCain (R-AZ), that a large portion of the Senate GOP will stand with the neoconservatives like Wolfowitz and Perle. But others such as Lamar Alexander, Richard Lugar, and Bob Corker have tried to maintain a more moderate persona on national security. The question will therefore be whether moderates are able to moderate. The debate over START is therefore shaping up to be a debate not about the treaty itself, but about whether Republican foreign policy realists and moderates still have a place in the current GOP.

Politics

Disgraced Hospital Executive Rick Scott Launches Bid For Gov, Directs Contributions To His Investment Firm

Last year, Rick Scott emerged as the public face of the right-wing forces dedicated to stopping health reform. As first reported by the Wonk Room, Scott hired the same Republican public relations firm that managed the Swift Boat Veterans for Truth campaign against Sen. John Kerry (D-MA) in 2004 to organize his campaign against health reform. Scott’s Conservatives for Patients’ Rights ran nasty, fact-less attack ads against the public option, encouraged Tea Party groups to ambush lawmakers at town halls, and lobbied aggressively (with the support of insurers) to block reform legislation.

Just as his attack group seemingly disappeared from the public discourse, Scott launched a new effort: to become the next Republican Governor of Florida. Scott’s website already seems to have difficulty distancing himself from his shady business dealings. Scott neglects to mention his disgraced business history, instead portraying himself as a “conservative outsider.” His website directs visitors to send campaign contributions to the same office as his private investment firm. In the past, his firm has invested heavily in technology firms instrumental in helping repressive regimes in Saudi Arabia and Iran.

As ThinkProgress has reported, before Scott entered politics, he made a career out of buying up hospitals and downsizing them for profit. But his quest for creating the “McDonald’s Of Health Care” ended abruptly in shame. As detailed in our report, not only was Scott forced to resign from his HCA corporation after paying $1.7 billion in penalties for the largest healthcare fraud settlement in history, much of his exploitation of hospitals actually occurred in Florida:

– Maggie Mahar wrote in Money Driven Medicine that doctors in Scott’s hospital workers in Florida complained, “gloves come in only one size, and rip easily.” [Money Driven Medicine, pg. 119]

– Scott bought community and nonprofit hospitals and turned them into profit driven companies. In Destin, Florida, Scott bought the community hospital with the intention of shutting it down to diminish competition. [San Diego Union, 12/8/96]

– Nine of Scott’s hospitals in South Florida were charged for systematically double-billing the government in one of the largest Medicare fraud schemes in history. [Tribune, 2/17/00]

Watch ThinkProgress’ mini-documentary on Rick Scott’s history of putting profits ahead of patients:

Yglesias

A Woman of the People

sarah_palin_ap 1

Populism!

Six pages of the contract Palin’s handlers sent to Cal State Stanislaus were unearthed in a dumpster by students there this week, and one of the many requirements that must be met for the former vice presidential hopeful: two unopened bottles of still water and “bendable straws” must be waiting on a wooden lectern.

That was just one item among the pages of elaborate demands that must be met to land a contract for Palin to come speak at an event. More costly were the requirement for her travel – the venue must supply her with business or first class commercial airfare, or with a private plane. And not just any jet will do.

The private aircraft MUST BE a Lear 60 or larger (as defined by interior cabin space) for West Coast Events; or, a Hawker 800 or Larger (as defined by interior cabin space for) East Coast Events, and both are subject to the Speaker’s approval. The Speaker Reserves the right to change the flight plans at any time,” the contract states.

On some level, though, I can’t really blame here. It’s sort of my fondest dream to reach a level where I could realistically demand non-coach air travel. Meanwhile, this is a welcome reminder that private jets are a social and ecological menace and it would make a lot of sense to tax them heavily.

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