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GOP Congressional Campaign Committee Has No Plans To Defend Its Asian-American Members

In 2008, Rep. Joseph Cao (R-LA) became the only Asian-American in the Republican caucus. The GOP leadership quickly embraced him, with House Minority Leader John Boehner (R-OH) penning a memo titled, “The Future is Cao.” In May, another Asian-American, Rep. Charles Djou (R-HI) joined Cao, winning a special election in a heavily Democratic district. Now in the GOP caucus, in addition to Cao and Djou, there is “first-generation Filipino” Steve Austria, three Cuban-American members (Lincoln Diaz-Balart, Mario Diaz-Balart, and Ileana Ros-Lehtinen), and one Native American (Tom Cole). Republican National Committee Chair Michael Steele has also said one of his major objectives is to increase diversity in the GOP.

Today, however, Politico reports that the National Republican Congressional Committee’s (NRCC) 2010 blueprint for winning back Congress leave Cao and Djou out in the cold. Republicans are pursuing an “offensive effort,” buying ads mostly in districts currently held by Democrats:

Cash-flush Democrats have used their deep pockets to invest in several competitive seats where national Republicans have yet to signal their intention to compete aggressively. The NRCC has so far bypassed a handful of open or otherwise reasonably competitive seats that offer some promise for GOP gains. [...]

Notably, the NRCC has yet to announce plans to defend several imperiled GOP incumbents who rank high on Democratic target lists. Rep. Charles Djou (R-Hawaii), Rep. Joseph Cao (R-La.)—the two incumbents widely considered to be the most endangered Republicans—were left off the NRCC roster. Rep. Charlie Dent (R-Pa.), who is thought to be in better shape, was also not included.

Both Djou and Cao have occasionally broken from the party line, which may have angered the Republican leadership. Djou has criticized his party’s attempts to change the 14th amendment and supports efforts to repeal Don’t Ask, Don’t Tell. Cao was the only House Republican to vote for health care reform. Austria’s OH-7 district is also not on the NRCC’s target list.

Health

Gaming The Exchanges And Mini Health Insurance Plans

Yesterday, Aaron Carroll noted how private HMOs participating in Medicare successfully pushed sicker individuals off their rolls and suggested that insurers’ knack for manipulating the system holds important lessons for health reform implementers. Indeed, many are already raising alarms about a little noticed provision in the health care law that would allow insurance companies to lure younger and healthier Americans out of the exchanges and into so-called mini health plans, which have low annual limits and very modest benefits.

As Ken Terry explains, if an insurer can prove that “switching to comprehensive coverage would lead to significant premium increases or force employers to drop insurance benefits,” they can continue to offer low-cost, low-benefit plans:

This lack of universality could cause the same kind of “death spirals” that occurred in the small-business health insurance purchasing alliances of the 1990s. If healthy people tend to buy low-cost insurance outside of the exchanges, the increasing proportion of sick people in the exchanges could force rates up and induce carriers to withdraw from them. [...]

This is where the HHS determination on waivers comes in. A restrictive approach would mean that most plans offered outside of the state exchanges would have to be similar to those inside of them. This offers the best chance for the exchanges to survive: Because people would receive federal subsidies only for insurance purchased through an exchange, healthy people would be less likely to leave the state-sponsored market to buy a policy that was nearly identical to one offered through the exchange. But if HHS takes a looser stance, and mini-plans endure, many healthy people and firms with healthy employees will buy their insurance outside the exchanges, even without subsidies. If so, the exchanges will become unprofitable for insurance companies to participate in.

HHS certainly has its hands full — allowing insurers to offer mini plans outside of the exchanges could undermine the entire foundation of the law; cutting them off would force some businesses to drop coverage all together and push some beneficiaries into more comprehensive and more expensive coverage. But health experts and consumer advocates I spoke to believe that in some ways the problem is overstated. They claim that beginning in 2014, demand for the mini plans will naturally diminish since these policies won’t offer the standard benefit packages or meet the actuarial value of creditable coverage — the insurance that complies with the individual mandate requirements. The problem is in the interim. As younger and healthier individuals continue to buy these subprime policies, they will fall victim to the fine print and annual limits and abdicate their eligibility in more comprehensive programs like Medicaid.

In 2014, the more pronounced opportunity for cherry picking is in the structure of the Bronze plan. Under the law, insurers that participate in the exchange are required to market the Silver and Gold tier plans in the exchanges but are exempt from marketing the Bronze plans to exchange beneficiaries. Insurers could therefore sell the lower-cost/high deductible Bronze plan outside of the exchange or stay out of the exchanges altogether and attract healthier people into the non-exchange nongroup market. Some states like California are trying to avoid this outcome by requiring insurers “to provide the same types of policies inside and outside of the exchanges.” But as expected, they’re receiving a lot of opposition from the insurance industry.

Politics

19 of the 22 states suing government over ObamaCare accept grant money from health care law.

Yesterday, the Department of Health and Human Services announced that 45 states and the District of Columbia “will receive $1 million in grant funds to help improve the review of proposed health insurance premium increases, take action against insurers seeking unreasonable rate hikes, and ensure consumers receive value for their premium dollars.” The $46 million are part of the $250 million in rate review grant dollars authorized by the new health care law. Indeed, interest is so high that states that oppose the health law applied for grants. As the Wonk Room points out, 19 of the 22 states that are suing the federal government over the constitutionality of the health care law will receive $1 million each to improve their rate review capabilities. Below is a sampling:

– ARIZONA: “The State intends to improve their filing review process by hiring an actuarial consultant to review 95% of submissions for compliance and make recommendations regarding whether filings are unjustified or excessive.”

– VIRGINIA: “Virginia will expand the information required to be submitted with rate filings and will develop a procedures manual for the review of rate filings.”

– FLORIDA: “The State will expand the scope to include large group and out-of-State products.”

The Wonk Room argues that this disconnect highlights the growing divide between state health commissioners’ implementation efforts and political rhetoric.

Economy

Chamber Of Commerce Reprises 1993 And 1983 By Fearmongering About Tax Increases

chamberlogoEver since the Obama administration came into office, the Chamber of Commerce has been fearmongering about its plans to close certain corporate tax loopholes. And now the Chamber is also wading into the debate over the administration’s plans to allow the Bush tax cuts for the wealthy to expire on schedule, with the its chief economist, Martin Regalia, saying that bringing tax rates back to where they were under President Clinton “is a corporate bullet in the head”:

That’s what you’re suggesting, is a corporate bullet in the head. That is going to be a bullet in the head for an awful lot of people that are going to be laid off and an awful lot of people who are hoping to get their jobs back.”

Regalia also said that allowing the Bush tax cuts for the richest two percent of the population to expire — saving $830 billion over the next ten years — is a “fool’s error” and “accused the Obama administration of acting ‘as if the upper class aren’t part of the economy’.”

The “Voice of Business” is explicitly going to bat for the rich here, as the personal income tax has little to do with the corporations that the Chamber represents. But this outlandish rhetoric is just part and parcel of the usual response from the Chamber of Commerce to a tax increase.

In 1993, when President Clinton proposed his tax increase, the Chamber said “the considerable goodwill that the President had, despite the skepticism that business normally shows toward a Democrat, is largely gone.” The Chamber also criticized President Reagan’s tax increase of 1983, saying, “no doubt that it will curb the economic recovery everyone wants.”

The reality, of course, has been much different. Under President Clinton, the country experienced the longest period of sustained economic growth in its history. And as far as the business community is concerned, Clinton’s economic policies resulted in more business investment as a percentage of GDP than President Bush’s. Michael Ettlinger and John Irons ran the numbers:

[Business investment] was 2.8 percent in the seven-year period beginning in 1981 and 2.7 percent in the period beginning in 2001. In the period with higher taxes beginning in 1993, the growth rate was 10.2 percent. In the parallel portions of the business cycles following the tax changes of 1981, 1993, and 2001, investment grew faster under the 1993 tax regime than under either supply-side regime. The average rate of growth was 10.5 percent post-1993, 1.4 percent post-1981, and 6.1 percent post-2001.

With its fearmongering about tax increases, the Chamber of Commerce is much like the Republican party, which also excoriated Clinton’s plan. But that actually makes sense, considering that the Chamber’s board “is overwhelmingly Republican, having contributed six to one to conservative over liberal politicians.”

Politics

Hate Radio Host Mark Levin Attacks Gov. Chris Christie Over Mosque Comments: ‘Absolutely Dead Wrong’

Yesterday, New Jersey Gov. Chris Christie (R) warned fellow Republicans to stop “overreacting” to the proposed Islamic cultural center near Ground Zero. He said that while some degree of “deference” must be shown to some 9/11 families who don’t want the center nearby, “it would be wrong to so overreact to that, that we paint Islam with a brush of radical Muslim extremists that just want to kill Americans because we are Americans.”

Even though Christie included obligatory digs at Democrats and President Obama for somehow “playing political football” with the issue, his comments were still apparently too much for right-wing hate radio host Mark Levin. He unleashed on Christie last night during his radio show, and called the governor “absolutely dead wrong” and questioned Christie’s conservative credentials:

“Just because you clobber public sector unions, and you fight to cut your state’s budget, does not necessarily mean you are presidential material. He will see….It’s a matter of right and wrong. If the 9/11 families hadn’t stood up, if some of the most, you know, outspoken individuals in conservative media hadn’t spoken up, many, many people not only wouldn’t know about it, they wouldn’t care about it. And this is something we should care about. This is fundamental. So, sorry governor. You’re absolutely dead wrong. It’s not a political football game.

Listen:

Levin is right that Christie has been extremely conservative on budget issues: his budget proposal this year refused to extend a tax on earners over $400,000 — which would have generated $900 million for the state — but it did cut $820 million to public schools. He also vetoed a tax on residents with incomes over $1 million, which was designed to help fund property tax relief for senior citizens and the disabled, among other programs. According to the non-partisan Office of Legislative Services, due to Christie’s veto, “a retired couple living on a fixed income of $40,000 would see an increase of $1,320 in taxes under the governor’s plan while a family making $1.2 million would receive a tax cut of $11,598.”

Christie has been mentioned as a 2012 Republican nominee for president, and even Rush Limbaugh recently asked: “Is it wrong to love another man? Because I love Chris Christie.” Still, Christie does not appear to pass Levin’s notoriously strict litmus test for conservatives.

Justice

GOP Candidate For Iowa State House Suggests AIDS Is Punishment For Homosexuality

The Iowa Independent’s Jason Hancock catches Jeremy Walters, a Republican candidate running for the State House in Iowa, quoting biblical verses saying that gay people should be “put to death; their blood shall be upon them” and suggesting that AIDS is a punishment for their sins:

JeremyWaltersFaceBook

As the Independent notes, Walters has run for office “three times in three different legislative districts” and does not mention social issues on his campaign website. Ironically, he does pledge to protect Iowans’ “rights and freedom”: “The State Government should not have the right to tell us where or when we can or can’t do something like. For example enforcing the National Identification Card and telling us how to raise our children,” he writes.

Walters’ Facebook page also reveals that he is a Birther, a devotee of radio host Alex Jones, and a Ron Paul supporter. ” Once removed, all acts performed by Obama can be declared “null and void ‘ab initio’” and then we can declare RON PAUL the only lawfully elected president and all of Obama’s cabinet can be declare in one fell swoop improvidently appointed! Get rid of this autocratic and corrupt regime now!!,” he wrote in a posting from June 10th.

One Iowa, the state’s largest lesbian, gay, bisexual, transgender (LGBT) advocacy organization, is calling on the Republican Party of Iowa to disavow Walters’ comments. “Jeremy Walters’ comments are offensive and they have no place in this year’s election,” Carolyn Jenison, the group’s executive director, said. “We call on the Republican Party of Iowa to denounce Walters’ comments immediately. HIV/AIDS is an epidemic that does not discriminate. It’s a matter of life and death for many Iowans.”

Update

Jeremy Walters has told me that he has removed the post from Facebook and he regrets posting it.

Yglesias

Homeownership vs Big Homes

real-estate-investment-property-foreclosure-reo 1

I didn’t go to today’s big housing policy pow-wow, but one thing to keep in mind in this regard is that as we think about housing policy we should distinguish between policies that encourage people to buy houses as opposed to renting them and policies that encourage people to buy expensive houses as opposed to less expensive ones. If you told everyone that they could deduct the cost of buying a car from their taxes, that would tend to boost car ownership marginally. But the biggest impact it would have would be to encourage people—particularly prosperous people—to buy more expensive cars.

A lot of our current housing policies have that character—encouraging people to increase the share of income spent on housing—but fly under the banner of encouraging ownership. That was all part of a postwar industrial policy focused on suburbanization, highway building, and the domestic auto industry that I think was always fairly misguided but certainly produced some decent results. The cost in ecological sustainability has been high, however, and its left the country uniquely vulnerable to oil price shocks. It also seems very unlikely that we can derive much further benefit from pushing people to live in even bigger houses when Americans already enjoy the biggest houses in the world.

Politics

Rand Paul’s Answer To Kentucky’s Drug Epidemic: Help ‘Rich People’

rand-paul2Last week, Kentucky Senate candidate and Tea Party darling Rand Paul (R) told the AP of his desire to cut federal funding for undercover drug investigations and drug treatment programs that are “badly needed” in his state. While recognizing drugs as a “scourge,” Paul didn’t think Kentucky’s high-profile drug problem was “a real pressing issue.” His Democratic opponent and Kentucky Attorney General Jack Conway blasted Paul for being widely “out of touch with drug abuse woes” in the state, warning that “his policies would actually hurt the people of of Kentucky.” The AP suggested that he may lose votes over his stance.

In the face of the uproar, Paul is walking back his dismissal of the problem. In a local WYMT-TV interview yesterday, Paul insisted that, as “a physician and a father,” he is “very concerned” and thinks “we need to everything we can to stop drugs.” But, as the Washington Post’s Greg Sargent notes, “it’s unclear whether his clarification will help much.” Because Paul, in feeling that the government solution is “still failing,” went on to offer his own answer to drug problem – help rich people:

“I personally think we’ve been trying the government solution, and maybe there are some good aspects to it. But we’re still failing, and we’re not getting rid of the drug problem,” Paul said.

Paul says reinvesting money in the local economy will help ease the unemployment, which he says leads to more drug use.

You want rich people because that’s what creates jobs. If you punish people, they won’t expand or create jobs,” Paul said.

While Paul touts the magical remedies provided by the rich, it is the poor Appalachian residents in eastern Kentucky that are facing a tough reality where a “higher proportion of people abuse prescription pain killers that in the rest of the nation.” In fact, while trafficking in pain killers is the “largest drug problem” facing the region, Kentucky is also a prominent hotbed for marijuana, cocaine, and methamphetamine, according to the latest DEA study. This year, local officials reported 114 overdose deaths in the region within the first two months alone.

And, rather than failing, government-run programs are producing unprecedented success. Conway’s inter-governmental task force to cut prescription pill trafficking busted over 500 people in an interstate drug pipeline and was part of the “largest prescription pill bust in Kentucky history.” Kentucky law enforcement recognize the need for similar federal programs. State Fraternal Order of Police President Michael “Spike” Jones said he “would not be able to keep up with drug crime” without federal assistance to “pay overtime logged by tracking down drug dealers.” “It would be impossible to stop” drug traffickers “without federal assistance, because of the dire straits” state economies are in, said another Appalachian drug enforcement official.

But Paul seems deaf to their needs. In offering further clarification to Sargent, Paul now says that while prevention and enforcement are important, aiding the rich to ensure healthy employment is still a better cure. His insistence in remaining out of touch with his state’s epidemic even leaves members of his own party perplexed. “‘Apparently (Paul) just doesn’t know, or he wouldn’t make that statement’ about drugs not being a pressing issue” said former County Judge-Executive Tommy Slone (R). “It’ll hurt him if he says that because there’s a lot of people up here that’s been affected by these drugs.”

Yglesias

Mysteries of Deflationary Bias

Guest hosting for Rachel Maddow last night, Chris Hayes brought complaining about the Fed to a new medium:

Visit msnbc.com for breaking news, world news, and news about the economy

He’s the TV expert, not me, but I actually think explaining this through analogies makes it more complicated than it needs to be. The Fed controls the money supply. If you create too much money, the money becomes worthless and we get inflation. But right now the price level is way below its trend rate, so we need more money to create more inflation to stabilize the economy.

Meanwhile, the main arguments against more aggressive action are twofold. One is the (incorrect) argument that it can’t work, and the other is the argument that if the Fed creates more inflation to save the economy then we’ll . . . have more inflation which is bad because . . . well . . . because of some reason. But all we’re talking about is creating the inflation rate we had when it was morning in America and nobody thought inflation was out of control.

Joe Gagnon offers some specifics as to what could be done.

Meanwhile, it would be nice if the Fed’s Open Market Committee actually took proper votes. I wonder to what extent the inaction is being driven by regional Fed Presidents who are appointed by private, for-profit banks and then given policymaking authority.

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