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Health

Here We Go: Insurers Begin Blaming Health Law For Premiums Increases

On Friday, the News & Observer in North Carolina reported that Blue Cross Blue Shield of North Carolina — the largest insurer in the state — would be increasing premiums to keep up with medical inflation and the requirements of the new health care law:

“With everything that’s been added, you can’t really expect costs to go down,” he said.

The situation isn’t likely to improve any time soon. As more provisions of the health overhaul law take affect in 2014, Blue Cross officials said they expect rates to rise further.

“We do expect significant premium volatility in 2014 as the industry moves to an entirely new rating structure,” said Patrick Getzen, Blue Cross’ chief actuary.

But aside from allowing dependent coverage and eliminating annual limits, BCBSNC is also taking early steps to implement other provisions of the health law. The company is starting to move people into a single risk pool and is slowly eliminating the rating bands that many insurers are so infamous for. That sounds good, but it means that younger people who now pay relatively little for individual policies will pay substantially higher premiums, with some rates going up as much as 30%.

Adam Linker, a policy analyst with the N.C. Justice Center’s Health Access Coalition, doesn’t think that policy holders should have to bear the brunt of the issuer’s decision to adopt early changes, particularly since they’ll have to pay higher premiums without the added benefit of the law’s subsidies or Medicaid expansion (both of which don’t begin before 2014). He believes that if BCBSNC wants to institute a policy of early compliance, then it should pay for these changes itself. After all, the issuer does has an unusually high amount of money set away in its reserves and could certainly afford it.

“I’d like to see insurers take a small hit now and then figure out what adjustments they need to make in 2014,” when federal subsidies will help the uninsured afford coverage, Linker said. At that point, health insurers also will get a boost in business from new members.

But what’s really interesting about this approach is that BCBSNC is trying to get its policyholders to pay for its early compliance efforts and any “premium volatility in 2014″ — the very same kind of “volatility” that early compliance is presumably designed to reduce. The problem is that the health care law provides many insurers with an easy scapegoat, even if actuaries have estimated that the initial provisions (dependent coverage and eliminating annual limits) would increase costs by as little as 1%. They can raise premiums higher and blame all the increases on the taxes and coverage provisions of the new health law.

Politics

Charles And David Koch Exposed For Insidious Role In Crafting The Modern Right

Fred Koch

Fred Koch

This morning, the New Yorker’s Jane Mayer published an explosive investigative piece detailing the role of the Koch family in orchestrating not only the Tea Party movement, but much of the modern right-wing infrastructure. The brothers David and Charles Koch, heirs to the oil and chemical conglomerate Koch Industries, have founded or funded dozens of conservative or libertarian publications, think tanks, and attack groups. Their father, Fred Koch, similarly fueled the paranoid right-wing movements of the fifties and sixties through his financing of the John Birch Society.

Mayer’s piece builds off the original reporting conducted by ThinkProgress since the very beginning of the Tea Party movement. Here’s a review of what we’ve reported:

– In April 2009, ThinkProgress revealed that Americans for Prosperity, a group founded by David Koch, was helping to plan dozens of the first national Tea Party rallies. Americans for Prosperity staffers organized events, from making reservations, to providing talking points and signs, to calling activists to encourage them to participate.

– In August 2009, ThinkProgress obtained an exclusive memo from a Tea Party group supported by Koch’s Americans for Prosperity. The memo outlined various ways for Tea Party activists to intimidate Democratic lawmakers and disrupt their town hall meetings on health reform. ThinkProgress published half a dozen articles exposing the role of Koch-funded groups like “Patients United” in encouraging opposition to health reform. For instance, in Virginia, a Koch-funded operative Ben Marchi assisted a birther who followed Rep. Tom Perriello (D-VA) around, yelling at him at town hall meetings.

– In May 2009, the Wonk Room published a detailed history of Tim Phillips, an astroturf lobbyist Koch appointed to run his Americans for Prosperity front. Phillips had served as a business partner to Jack Abramoff and Ralph Reed.

– Writing in the Boston Globe, ThinkProgress commented on the similarities between David and Charles’ Tea Party movement to their father’s efforts to attack President John Kennedy through the John Birch Society.

– The Wonk Room reported on thirty years of Koch Industry environmental front groups. The timeline showed how Koch tried desperately to smear the cap and trade system set up to address acid rain with a “grassroots” group without a single grassroots member.

– At Rep. Michele Bachmann’s (R-MN) “House Call” rally, ThinkProgress produced a video report exposing Koch for paying for dozens of buses for anti-health reform activists to reach DC. We also captured the picture of a large banner comparing health reform to the Holocaust.

– The Wonk Room investigated Koch Industries’ role in the effort to repeal AB 32, the landmark California climate change clean energy law. The Wonk Room’s video report revealed how Koch Industries’ reliance on high-carbon Canadian crude would become less profitable if similar laws like AB 32 are enacted around the country.

– ThinkProgress reported how a variety of right-wing fronts supported by the Koch family and its political deputies not only helped overturn nearly a hundred years in campaign finance law in the Supreme Court’s Citizens United ruling, but also is lobbying aggressively against the DISCLOSE Act, which would provide transparency into the campaign spending for plutocrats like the Koch family.

– The Wonk Room’s Brad Johnson reported extensively on the multiple climate-denying campaigns orchestrated by the Koch family. Johnson has lampooned some of the Koch family’s more ridiculous attempts at billionaire populism.

– ThinkProgress partnered with Climate Progress to investigate David Koch’s funding of the Smithsonian Institute. We spoke to the Smithsonian director, who continued to express gratitude to Koch, and whitewashed Koch’s role in distorting public knowledge of climate science. Similarly, we have long chronicled the “Swift Boat” style attack campaign conducted by Koch’s various anti-science fronts.

– The Wonk Room reported on how Koch-backed groups and media outlets spread the myth that the so-called “Climategate” e-mails showed that scientists had concealed climate data from the public.

Mayer’s article sheds light on many other ways in which the Koch family has intertwined its business interests with its investment in right-wing groups. She also exposes a serious conflict of interest with David Koch’s position as a board member to the National Cancer Institute, an honor granted to him by President Bush. Mayer notes that while David Koch has been “casting himself as a champion in the fight against cancer, Koch Industries has been lobbying to prevent the E.P.A. from classifying formaldehyde, which the company produces in great quantities, as a ‘known carcinogen’ in humans.”

Politics

Judge Suspends All Federal Funding of Embryoic Stem Cell Research

stem-cell-harvestEarlier today, a federal trial judge in D.C. suspended all federal funding of embryonic stem cell (ESC) research during ongoing litigation, claiming that such funding is illegal. According to Chief Judge Royce Lamberth, a Reagan appointee, such funding violates the Dickey-Wicker Amendment, which prohibits the use of federal funds for “research in which a human embryo or embryos are destroyed”:

ESC research is clearly research in which an embryo is destroyed. To conduct ESC research, ESCs must be derived from an embryo. The process of deriving ESCs from an embryo results in the destruction of the embryo. Thus, ESC research necessarily depends upon the destruction of a human embryo.

Despite defendants’ attempt to separate the derivation of ESCs from research on the ESCs, the two cannot be separated. Derivation of ESCs from an embryo is an integral step in conducting ESC research. Indeed, it is just one of many steps in the “systematic investigation” of stem cell research. Simply because ESC research involves multiple steps does not mean that each step is a separate “piece of research” that may be federally funded, provided the step does not result in the destruction of an embryo.

Essentially, Judge Lamberth claims that all ESC research cannot be funded because it requires scientists to build upon previous research that involved the destruction of an embryo, but it’s difficult to square this decision with Supreme Court precedent. Under Chevron v. NRDC, judges are normally supposed to defer to an agency’s reading of a federal law unless the agency’s interpretation is entirely implausible, and the Obama administration quite plausibly read the Dickey-Wicker Amendment to only prohibit federal funding of the actual destruction of an embryo — not federal funding of subsequent ESC research.

Indeed, Lamberth’s decision moves the law to a worse position than it was during the Bush administration. President George W. Bush allowed federal funding for research on existing embryonic stem cell lines, but would not allow new lines to be created. Today’s opinion even forbids such entirely uncontroversial research.

Justice

Why Can’t The Military Seem To Get The Tone Of The DADT Surveys Right?

Servicemembers United has now released a 5 page reaction memo to the Pentagon’s survey of military spouses about repealing Don’t Ask, Don’t Tell. This survey is now the second document to come under fire from LGB groups for making “insulting and derogatory assumptions and insinuations about gays and lesbians.” Below are the group’s chief concerns:

- Secretary of Defense Robert Gates’ introductory letter states that by responding to the survey, spouses “will help us assess the impact of a change in” DADT. SU argues that this kind of statement “sets the stage for the survey taker by immediately suggesting that there will be an impact, presumably negative, on ‘family readiness’ and recruiting and retention from a change in this law and policy.”

- Use of the term “homosexual.” SU argues that “the unnecessary use of this clinical term can introduce bias into a survey. This is a well known phenomenon, and it is the reason that those opposed to gay equality almost always opt for the term in their rhetoric.”

- Asking spouses about how they’d like to be informed about the policy changes: “The answer choices for this question also unnecessarily hype up the potential impact of repeal. The choices pro-actively suggest and legitimize the possible need to flyer military communities, set up special websites, create special information sessions and courses, and provide counseling and spiritual support in response to this policy change. Such suggestions are ridiculous and offensive. ”

- SU argues that the question about how a spouse would react “If a gay or lesbian Service member lived in your neighborhood with their partner” does not belong in the survey, since “repeal does not create federal recognition of same-sex marriages – a requirement for qualification for on-base family housing.” “Troops with partners, girlfriends, or boyfriends, even if long-term, are not given on-base housing. This question is both misleading of the survey taker, in that it suggests that repeal would permit gay and lesbian couples to live in on-base housing, and wholly unnecessary in a survey on the impact of repeal, because this scenario would not be a result of repeal.”

Read the entire memo here, and you’ll see how the Pentagon could have done a better job of developing some of these questions. Part of the problem could be that the people who write these surveys have internalized a lot of society’s assumptions and biases about gay people and have inadvertently inserted them into the questionnaire. Only when they’re identified by a group that’s attune to them, do they shine like white under a black light.

The other possibility is that the military feels like it has to ask these questions in this way to minimize disruption once the policy is repealed and so it doesn’t think it’s necessary to consult with LGBT groups before mailing the document. Or, perhaps even more cynically, the Pentagon is feeling pressure to appear less friendly or considerate towards gay servicemembers and so it either consciously or carelessly drafted questions that would piss off groups on the left while appeasing those on the right. What do you think?

Politics

Gingrich Won’t Explain Why He’s Backing Out Of Participating In 9/11 Anti-Mosque Rally

Gingrich4 Last week, the right-wing group Stop Islamization of America announced that former GOP House Speaker Newt Gingrich was a “confirmed” speaker for the group’s September 11th protest against the proposed Park 51 Islamic center near ground zero, in New York City. Other speakers included former U.S. Ambassador to the United Nations John Bolton, right-wing media tycoon Andrew Breitbart, and, notably, the far-right Dutch Parliamentarian Geert Wilders, best known for his self-described “hate” towards Islam.

Last week, however, Gingrich spokesperson Joe DeSantis told Politico that the Gingrich — who has been an outspoken opponent of the Islamic center — “is not scheduled to be at this rally. He is not speaking.” DeSantis said Gingrich’s staff had only agreed to send a video message, not make an appearance, but that too has now been canceled, but Gingrich won’t say why:

But a spokesman for Gingrich, a possible 2012 presidential candidate, told The Hill that the former leader of the House had never confirmed his appearance. Instead, one of Gingrich’s staff had agreed to send a video message from him to be shown at the Sept. 11 rally.

That has since been canceled.

The confusion is at least partially our fault,” said Joe DeSantis, a spokesman for Gingrich. “A staff member mistakenly promised a video message, though not an appearance. However, we are not sending a video. We informed them earlier this week.”

DeSantis did not comment on why Gingrich was no longer planning to send a video message to the rally, and attempts to contact the organizers of the rally were unsuccessful.

Given Gingrich’s extreme rhetoric on the issue and self-appointed leadership role in the opposition, it’s surprising that he would pass up this opportunity.

Rep. Peter King (R-NY) is also listed on the event’s website as an “invited speaker,” but a spokesman for King said he was not planning to attend because he “will have so many 9/11 commemorations [to attend] in his district.” King has also spoken out against the Islamic center, but his rhetoric has been more temperated than Gingrich’s, and he even publicly condemned the former Speaker for “making a Nazi comparison” about the center. “It was wrong,” King said of Gingrich’s comment that the center’s organizers are “radical Islamists” who are seeking “supremacy,” much like “Nazis.”

However, protesters will still hear from Wilders, who tweeted, “I booked a flight and a hotel. Great feeling. Important speech. No one can stop me. No mosque at ground zero!” On Wilders’ website, he touts the would-be appearance with Gingrich, calling the duo “two eagles” who will come together to heighten awareness and stop the mosque.

Economy

Almost Half The Enrollees In Treasury’s Anti-Foreclosure Program Don’t Receive A Permanent Loan Modification

The Home Affordable Modification Program (HAMP) — which is theoretically the Obama administration’s signature foreclosure prevention program — has been sputtering along, with far more enrollees being dropped from the program than receiving a permanent mortgage modification. In July, the numbers got truly ugly, with fewer than 17,000 trial modifications getting underway and more than 100,000 borrowers being bumped from the program. In all, nearly half of the borrowers who began the program, about 1.3 million, have not received a permanent modification.

The Huffington Post’s Shahien Nasiripour has a nice chart detailing the carnage. The blue line is canceled modifications, while orange is newly started trial modifications. Under the program, orange should turn to red after the borrower has successfully made three months of payments:

“The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications,” said Mark Zandi, chief economist at Moody’s Economy, who predicts that the program will ultimately help only 500,000 homeowners. Currently, “one in seven mortgages is delinquent or in foreclosure.”

Treasury is aware that the program is producing such lackluster results and has initiated some new, small programs targeted at the states hit hardest by the foreclosure and unemployment crises. But as Mike Konczal reported, Treasury officials are also “sticking by HAMP“:

The narrative seemed to change from helping homeowners to spacing out the foreclosures. I asked them to repeat it, because the idea that billions of taxpayer dollars are being spent to smooth out foreclosures for banks struck me as new narrative – it’s explicitly extend-and-pretend, and also fairly cynical.

Steve Waldman at Interfluidity added, “officials pointed out that what may have been an agonizing process for individuals was a useful palliative for the system as a whole. Even if most HAMP applicants ultimately default, the program prevented an outbreak of foreclosures exactly when the system could have handled it least.” The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) issued a report criticizing HAMP as a program “that merely kicks the proverbial foreclosure can down the road,” and it seems like Treasury is confirming that it knew this would happen all along.

According to analysts at Morgan Stanley, “without more intervention, the housing market will continue its ‘slow motion’ adjustment that will continue to inhibit economic growth and drag down consumer spending.” The lack of urgency when it comes to finding a solution for this very real problem affecting people all over the country is incredibly discouraging.

Yglesias

Most People Don’t Graduate From College

A persistent problem with MSM coverage of young people is the fairly relentless focus on attendees and graduates of selective colleges. So I think Jamelle Bouie’s response to the latest NYT Magazine article on twentysomethings is spot on. There’s good in the piece, but:

That said, my main problem with the piece was simply the fact that there wasn’t much of an attempt at making class distinctions. It delves into the “extended adolescence” of relatively sheltered graduates from major universities, but what about the mass of 20-somethings who either didn’t go to college, or pursued degrees at community colleges and local universities? I graduated from a high school of roughly 2,400 people in 2005, and judging from the Facebook profiles of those I graduated with, many of my former classmates have built fairly adult lives for themselves. Most have jobs and live independently of their parents. Some have spouses or long-term partners, a few have children. For those who do live with their parents, it has less to do with maturity, and more to do with the terrible job market. Obviously, anecdotes can’t substitute for statistical data, but I’d wager that the above is true for many 20-somethings of modest means.

Most Americans don’t have bachelor’s degrees, and this is true at all age cohorts. What’s more, most Americans who do go to college don’t go to schools with selective admissions. Obviously, lots of people with BAs from selective schools have problems in life, and their problems (our problems, my problems) count in the moral scheme of things. But the less-privileged have more pressing problems and are also more numerous.

Politics

Cuccinelli Authorizes Same Anti-Abortion Regulations He Failed To Enact As State Senator

Ken CuccinelliAs a state senator, Virginia Attorney General Ken Cuccinelli consistently “supported bills that would have treated abortion clinics as ambulatory surgery centers and required them to meet hospital-type regulations with regard to equipment and space,” but none of these bills ever became law. Now that he is Attorney General, however, Cuccinelli has decided that he does not need such legislative authority to act. In an opinion issued late last week, Attorney General Cuccinelli determined that the state already has the power to do what State Senator Cuccinelli failed to accomplish in the legislature:

In addition to applying regulations governing medical facilities and health care providers in general, the relevant agencies are authorized to impose regulations particular to abortion services. … In this circuit, the parameters within which states may constitutionally regulate first trimester abortion services were articulated by the United States Court of Appeals for the Fourth Circuit in Greenville Women’s Clinic v. Bryant. The Court upheld South Carolina legislation and regulations that, in essence, extended the rules already imposed on facilities offering second trimester abortions to establishments in which five or more first trimester abortions were performed. The regulations at issue concerned licensing requirements; staffing rules; specified drug, equipment and laboratory availability; detailed record keeping and reporting duties; maintenance, safety and emergency policies; sterilization procedures; and design and construction standards.

At the very least, Cuccinelli’s opinion opens the door for Virginia to enact the very same kind of restrictive regulations that are already the law in South Carolina. Moreover, as Igor Volsky points out at the Wonk Room, Cuccinelli’s opinion could lead to even more aggressive use of the kind of “so-called TRAP (Targeted Regulation of Abortion Providers) legislation that’s been passed in states across the country.” In a nutshell, TRAP laws attempt to cut off a woman’s constitutional right to choose an abortion by driving up the cost of the procedure through intentionally burdensome regulations.

Last week’s opinion is also only the latest example of Cuccinelli suddenly discovering that the law must agree with whatever his personal views are on an issue. When Congress enacted a health care law that Cuccinelli disagrees with, he immediately concluded — contrary to the Constitution and a wealth of legal precedent — that the law must be unconstitutional.  When the EPA began long-overdue steps to prevent global warming, Cuccinelli suddenly decided that EPA’s actions were illegal. When a UVA scientist conducted research contradicting Cuccinelli’s global warming denialism, Cuccinelli suddenly found that he has the legal authority to pursue a witchhunt against that professor. When a federal judge struck down Arizona’s unconstitutional anti-immigrant law, Cuccinelli responded two days later with an opinion authorizing Virginia to mimic Arizona’s failed law.  And, of course, it goes without saying that Cuccinelli forbids any kind of action which protects gay Virginians.

In other words, either the law magically bends to fit Ken Cuccinelli’s whims, or Cuccinelli doesn’t really care what the law says — he’ll just claim it does whatever he wants it to do.

Security

Small Nebraska Town May Raise Taxes To Defend Immigration Law

IMMIGRANT TUITIONThe Omaha World Herald reports that the Fremont City Council in Nebraska will consider a 2011 budget that includes property tax hikes to help pay for the defense of the city’s recently voted-approved anti-immigrant law which imposes a ban on hiring or renting property to undocumented immigrants in the small community of 25,000 people. Both the American Civil Liberties Union (ACLU) and the Mexican American Legal Defense and Educational Fund (MALDEF) sued on the basis that the ordinance is discriminatory. Officials have estimated that the cost of implementation, including defending it in court, will average $1 million per year. As a result, Fremont taxpayers are now facing a potential 18 percent increase in property taxes:

A proposed property tax hike to defend Fremont’s controversial immigration law is heading to the City Council. The council at its Aug. 31 meeting will consider a 2011 budget that includes $750,000 to help pay the projected annual cost of defending the voter-approved ordinance. The public will have an opportunity to comment. [...]

City Administrator Robert Hartwig said the council most likely will not vote on the proposed 18 percent increase in the city’s portion of the property tax rate until Sept. 14. If approved, the owner of a $200,000 house would pay about $116 more in taxes next year.

Fremont’s controversial ordinance was written and will be defended by the same lawyer who wrote Arizona’s tough immigration law, Kris Kobach of the Immigration Reform Law Institute (IRLI) — the legal arm of a designated hate group. Besides fluffing Kobach’s pay check, the city of Fremont will be expected to cover his travel and lodging fees, as well as outside assistance such as expert witnesses and support personnel.

Kobach, who is also running for Kansas Secretary of State, touts the role he has played in fighting ACLU lawsuits in Hazleton, PA and Farmers Branch, TX on his campaign website. However, what he doesn’t mention is the profit he has made off of the exorbitant costs associated with defending the legally questionable legislation he credits himself with writing. Farmers Branch, a small town of 30,000 people, has spent $3.2 million to repeal a federal district judge decision which deemed the town’s rental ban ordinance unconstitutional and may have to spend an additional $623,000 this year. It appears Hazleton will also be on the hook for the $2.4 million it has acquired in attorneys fees. A federal judge struck down Hazleton’s law and the city’s mayor, who “has no regrets,” predicts that costs could rise at least another $2 million if it loses at the federal appeals court level.

Politics

Kasich clueless about the cost of his budget-busting tax cuts: ‘I don’t have the revenues.’

John Kasich, the “former state senator, congressman, Fox News talk show host, and financial firm manager” running on the Republican gubernatorial ticket in Ohio, has taken to calling the Ohio budget a “disaster,” and plans to reinvigorate the state’s economy by completely eliminating both its income tax and its estate tax. But when asked how much his tax plan would cost the state in terms of lost revenue, Kasich admitted that he has absolutely no idea, as the Toledo Blade reported:

Ask specifics about how and when he’d follow through with his plan and where he’d reduce state spending to offset the potential loss of revenue, and the path becomes less clear. “All the specifics on this are all being constantly worked,” he told The Blade in a recent interview in his downtown Columbus campaign headquarters. “I will lay out a program whenever I feel I’m satisfied with the program, when we understand the revenue, when we’ve worked this effectively,” he said.

Kasich was even more forthcoming about his cluelessness two weeks ago, saying “people want to know the details of my plan. I don’t have the revenues.” The Wonk Room pulled up tables from the Ohio Department of Taxation to find just how much of a hole Kasich is ready to blow in his state’s budget.

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