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Politics

Rick Scott Insists He Took ‘Responsibility’ For Largest Medicare Fraud In History

Last night, during an appearance on CNN, Florida Republican gubernatorial candidate Rick Scott defended his stewardship of Columbia/HCA, a large for-profit hospital chain that pled guilty to 14 felonies and paid $1.7 billion in criminal and civil fines for defrauding Medicare. Scott explained that he invested his life savings in the business to “built the largest health provider in the world” and stressed that he “took responsibility for what went wrong”:

SCOTT: And what I tell people is, you know, when you’re in business, anything that goes wrong, you should take responsibility if you’re the CEO. I do. The difference is let’s think about where we are in the state. We have the highest unemployment on record. We have almost 50 percent of our home owns under water on their mortgages. We’re walking into a five-plus billion dollar deficit. Has any politician in the state taken responsibility for putting us in this position? No. What I tell people all the time is I’m a business person. I know, you know, you put up your money, you try to build your companies and you take responsibility for what goes wrong. I do. When I’m governor, I hope nothing goes wrong. If it does, I’ll show up, I’ll take responsibility and I’ll fix it.

Watch it:

Scott may certainly be sorry for what happened, but it seems that the only thing he took was “a $9.88 million severance package, along with 10 million shares of stock worth up to $300 million at the time” after he was ousted from the Columbia/HCA board in 1997. In fact, as the Wonk Room explains, during a deposition Scott gave in 2000 about his time as head of Columbia/HCA, “he invoked his Fifth Amendment right against self-incrimination 75 times.”

Update

Florida Attorney General Bill McCollum, who has called and congratulated Scott on his victory, says he still has questions about Scott’s past at Columbia/HCA: “I still have serious questions … about issues with his character, his integrity, his honestly, things that go back to Columbia/HCA and I have not had the occasion to really actually even get acquainted with him,” McCollum said.

Health

Stretched Budgets Encouraging States To Hasten Health Implementation

California has “passed two bills that provide the mechanisms and functions of the exchange” and separate legislation to boost adverse-event reporting among hospitals, leading the way in implementation of reform. The advances come in the midst of growing budget shortfalls and increasing number of uninsured, both of which are taxing the state’s health safety net programs.

A new report from the UCLA Center for Health Policy Research finds “8.4 million Californians were uninsured in 2009 — up from 6.4 million in 2007, a 31% surge in just two years.” “The sharp increase was driven by widespread job loss, as areas that reported higher unemployment figures corresponded to areas with the highest rate of uninsured residents.” A higher number of uninsured means that state funds will have to be stretched further, to cover more people. As California HealthLine points out:

However, state budget issues continue to raise red flags for health care stakeholders. The budget, which is now about two months late, currently threatens cuts to health and human services, which critics say would hamper access to Medi-Cal, reduce home health services and make other changes. The budget delay also means that community clinics are now going without Medi-Cal reimbursements, which represents 50% to 80% of their revenue, and could force clinics to scale back their hours and service.

But what’s interesting is that this ongoing economic crisis in the states may be motivating state governments to implement health care reform more quickly, apply for all of the available federal grants and pressure even reluctant politicians to comply with the law’s requirements. For instance, I’ve noted that at least 19 of the 22 states that are suing the federal government over health care reform are also applying for the law’s recently released rate review grants and some — like Utah — are actively working with HHS to ensure that the law meets their needs.

Shana Alex Lavarreda, Director of Health Insurance Studies at the UCLA Center for Health Policy Research tells me that California, which is currently setting up its high risk insurance pool program, is rushing to implement reform precisely because it would lessen the stress on state safety net programs. “It’s funny, politically they were talking about, the change was happening too quickly, we need to slow it down, we need to put it off, now that it’s actually passed, I’m hearing many more complains along the lines of, why isn’t this here yet, why isn’t it fully implemented, why aren’t we getting our subsidies now?” she observed.

Lavarreda said that from the federal prospective, an increase in the uninsured would result in higher costs, but argued that “from the state budget prospective, that’s actually a really good thing.” “More people might be going into the exchange, including the people that would otherwise be eligible for Healthy Families [the CHIP program]. If the adults are going into the exchange, they might not want their kids to be on Healthy Families — the CHIP program here in the state — and they might pull out their kids from that program, which would actually reduce state expenditures. It’s possible that the exchanges would pull people out of the public programs if they prefer to be in the private programs, receiving subsidies from the federal government instead.”

Some lawmakers have argued that implementation itself might stress the state budget, but for now, it’s still too early to tell if states will need more funding. “For us, [the economic downturn] has pushed it to the forefront of our current legislature’s agenda,” Lavarreda stressed. “The problem is not getting better, it’s getting worse right now and we’re going to be incredibly active in getting as much federal funding as possible given our budget situation right now.”

Politics

Fox News Ignores Ken Mehlman’s Coming Out, Runs Zero Segments On Story

When Judge Vaughn Walker struck down Proposition 8, Fox News barely mentioned the story and its most prominent conservative commentators ignored it entirely. Yesterday, after the Atlantic’s Marc Ambinder reported that former RNC Chairman Ken Mehlman — who had orchestrated President Bush’s gay-bating 2004 re-election campaign — was coming out as gay, Fox News remained similarly mum and as of this posting has yet to run a single segment on the story.

A Wonk Room review of Critical Mention reveals that CNN mentioned the name “Mehlman” 19 times, MSNBC reported on it 12 times (searches for “gay” and “Ken” produced similar results, with Fox News stuck at 0):

mehlmanmention

It’s unclear why Fox News ignored the story, since some Republicans have embraced Mehlman’s coming out. The Wonk Room argues that Fox has a history of ignoring stories that undermine conservative causes.

Cross-posted from The Wonk Room.

Update

Politico received this response from Fox News:

Michael Clemente, senior vice president of News Editorial at Fox News, responded by pointing to the website’s coverage of the story. “We reported it on Fox News.com,” he said. “We don’t report every one of these public statements on television and have not for some time now.”


Update

,Mediaite notes that Fox did in fact report on Mehlman, but fails to note that this occurred AFTER ThinkProgress’s post.


[updat

Security

Is Immigration Reform The Logic Behind Lindsey Graham’s 14th Amendment Madness?

grahamImmigration advocates and anti-immigrant zealots alike have been scratching their heads ever since Sen. Lindsey Graham (R-SC) went from working with Sen. Chuck Schumer (D-NY) on crafting an immigration reform bill to walking away from negotiations and suggesting that the 14th amendment should be amended to deny the U.S.-born children of undocumented immigrants from automatically becoming citizens upon birth. In an interview with Politico on who might be the “Republican standard-bearer for immigration reform” after the fall elections, GOP political consultant Ana Navarro suggests that there could be a method to Graham’s 14th amendment madness:

While many believe McCain is a lost cause on reform, GOP strategist Ana Navarro hasn’t written off one of the senator’s closest allies, Graham, who rolled out a reform proposal with Sen. Chuck Schumer (D-N.Y.) in March that included a path to citizenship for the nation’s estimated 12 million illegal immigrants. [...]

“There is a logic to his madness,” said Navarro, who fled Nicaragua at age 8 during the Sandinista revolution. “What he was trying to do is put something in the pot, to sweeten the pot so he could attract some of the right wing to reach a compromise on comprehensive immigration reform.”

Meanwhile, Graham’s spokesperson neither confirmed nor denied Navarro’s speculations:

Graham spokesman Kevin Bishop said border security remains the senator’s No. 1 concern but that other issues — including employment verification, a guest worker program, birthright citizenship and a plan to deal with the illegal immigrants already in the country — also need to be looked at.

If Navarro is right, it would make the task of achieving effective and humane immigration reform that both sides can agree on pretty difficult. While immigration reform that includes a path to legalization together with an updated visa system would go a long way in eliminating most undocumented immigration, it’s hard to say whether the phenomena would disappear altogether. If not, changing the 14th amendment would cause a manageable problem to grow larger and larger in size every time an undocumented mother gives birth in the U.S.

It’s unclear that “sweetening the pot” by changing the Constitution would be enough to bring right-wingers to the table without causing pro-immigrant lawmakers to walk away from it. It didn’t work very well last time. In 2007 lawmakers crafted a bipartisan piece of legislation that was the last immigration reform bill that made it to the Senate floor. Though the legislation included a legalization program, it also contained a provision that replaced the green card system with a problematic “point system” that ignored labor needs and would’ve essentially changed the demographics of future immigration by prioritizing high-skilled immigrants over lower-skilled ones. Labor unions abandoned the bill when a temporary worker program was added without any path to permanent residence. At the time, The Council on Foreign Relations wrote, “the current bill will address the presence of millions of undocumented workers — no small feat. Yet without consideration of these underlying structural issues, the fundamental goals of immigration reform will remain elusive.” The bill didn’t make it past cloture.

It’s far too early to speculate as to what Graham would want in his immigration bill or if he’s even willing to work on one again. However, if his current 14th amendment politics are any indication, the compromise reached in 2007 would pale in comparison to what Graham has in mind now.

Politics

An Irksome Arrangement: Glenn Beck Uses Charitable Donations To Pay For Restoring Honor Rally

beckThis Saturday, the polarizing Fox News pundit Glenn Beck is hosting his Restoring Honor Rally in Washington, DC. Even though conservative celebrity and “potential 2012 presidential candidate” Sarah Palin will speak and Tea Party darling Rep. Michele Bachmann (R-MN) will attend, Beck is pitching the rally as a “non-political, non-partisan event” to “honor the troops, unite the American people under the principles of integrity and truth, and make a pledge to restore honor within ourselves and our country.”

Beck’s newfound commitment to “absolutely no politics” is not just rhetoric, but a contractual matter for the non-profit foundation co-sponsoring the event, the Special Operations Warrior Foundation (SOWF). Founded in 1980, SOWF is a successful charity that provides college scholarships for children of special operations personnel killed in action or in training. Any fundraiser, including the Restoring Honor Rally, cannot be political and SOWF has required that speakers at the rally, including Palin, sign an agreement to that effect. SOWF guidelines also insist that “money needed for expenses (space rental, deposits, etc) must be supplied by the party” sponsoring the event. While the costs of such the rally, slated to approximate $2 million, were initially daunting, Beck found an easy answer: pay for it with the donations.

According to Beck’s rally website, “all contributions made” to SOWF “will first be applied to the costs of the Restoring Honor Rally taking place on August 28, 2010. All contributions in excess of these costs will then be retained by the SOWF.” As Mother Jones first reported, this arrangement was enough to irk ABC’s George Stephanopoulos to pull his donation to Beck’s rally earlier this month:

Cathie Levine, vice president for media relations at ABC News explained, “We get hundreds of these solicitations from charities every year and try as much as possible to fulfill them as long as they are meet our standards including that the proceeds go to charity.” A few days later, she reported back that, “We sought assurance that the auction money would go directly to charity and while we were told the rally costs were covered and that funds raised from our specific item would go to Special Operations Warrior Foundation, it didn’t sufficiently meet our standards. So we withdrew our auction item and George will make a personal donation directly to the SOWF.”

As SOWF spokeswoman Edie Rosenthal told Time’s Kate Pickeret, they have “never had an event that cost this much.” While Beck’s promotion brought in more than enough to pay for the “non-political” rally, he raised the money by auctioning off distinctly political prizes last month, including an autographed copy of tea party leader Sen. Jim DeMint’s (R-SC) book “Saving Freedom,” a lunch with Karl Rove for $7,500, or a Capitol tour with Bachmann for up to $13,000. When asked whether SOWF is concerned that associating with such right-wing politicos like the “divisive Beck” will tarnish their non-political reputation, Rosenthal said Beck is doing “something for the fallen” despite “whatever else he does” and “as crazy as he gets.”

Beck’s efforts have certainly raised an unprecedented amount for SOWF. But the financing arrangement behind the event colors it less as a charitable endeavor and more as a “symbiotic relationship.” As Pickeret notes, while SOWF “gets the largest influx of donations in its history,” Beck “gets to headline a donor-funded $1 million rally in Washington, DC.”

Justice

Fox News Ignores Ken Mehlman’s Coming Out, Runs Zero Segments On Story

When Judge Vaughn Walker struck down Proposition 8, Fox News barely mentioned the story and its most prominent conservative commentators ignored it entirely. Yesterday, after the Atlantic’s Marc Ambinder reported that former RNC Chairman Ken Mehlman — who had orchestrated President Bush’s gay-bating 2004 re-election campaign — was coming out as gay, Fox News Channel remained similarly mum and as of this posting has yet to run a single segment on the story.

A Wonk Room review of Critical Mention reveals that CNN mentioned the name “Mehlman” 19 times, MSNBC reported on it 12 times (searches for “gay” and “Ken” produced similar results, with Fox News stuck at 0):

mehlmanmention

It’s unclear why Fox News ignored the story, since some Republicans have embraced Mehlman’s coming out. Current Republican Party chairman, Michael Steele, for instance, issued a supportive statement: “His announcement, often a very difficult decision which is only compounded when done on the public stage, reaffirms for me why we are friends and why I respect him personally and professionally.” Mehlman has also said that President Bush has been “incredibly supportive” of his coming out.

Ignoring stories which undermine conservative causes, however, is the norm at Fox. Earlier this month, Fox News refused to run a single segment on Dr. Laura Schlessinger’s racially-charged rant, after which she resigned from talk radio.

Politics

Half Of The Spending Cuts In Blunt’s Jobs Plan Aren’t Actually Spending Cuts

Last week, Rep. Roy Blunt (R-MO), who is running for his state’s open Senate seat, proposed a “jobs plan” that included what he has claimed is $2 trillion in spending cuts. “In this plan, Roy identified over two trillion dollars in cuts right off the bat that can be taken out of government,” said former Missouri treasurer Sarah Steelman, who has endorsed Blunt’s campaign. But in what he charitably calls an “accounting error,” the Kansas City Star’s Dave Helling notes that fully one half of Blunt’s spending cuts aren’t actually spending cuts at all:

A look at that plan shows half of those savings — $1 trillion — would come from Blunt’s proposal to repeal the health care reform package…Repealing health care reform would eliminate $1 trillion in spending, but it would also eliminate the $1 trillion in tax and fee increases and Medicare reductions that are in the law as well. The net effect of health care repeal on the federal deficit is, roughly, zero.

Actually, contrary to Helling’s assertion, repealing the Affordable Care Act wouldn’t have zero effect on the deficit: it would actively increase it. According to the Congressional Budget Office, repealing the bill would increase the deficit by $455 billion over the next ten years. But the point remains that the only way Blunt’s push for repeal works as a deficit reduction measure is if he plans to keep all of the tax increases and Medicare savings, without actually giving anyone any additional health care. And as The Wonk Room explains, Blunt’s other deficit reduction plans are equally unimpressive.

Economy

Half Of The Spending Cuts In Blunt’s Jobs Plan Aren’t Actually Spending Cuts

Last week, I pointed out that the “jobs plan” proposed by Rep. Roy Blunt (R-MO), who is running for his state’s open Senate seat, includes a provision permanently guaranteeing taxpayer giveaways to the real estate industry, which calls into question Blunt’s commitment to deficit reduction. But that’s not the only part of his plan that proves Blunt is fundamentally disinterested in addressing government spending.

Blunt included in the plan what he has claimed is $2 trillion in spending cuts, which would presumably be used to either reduce the deficit or to fund some of the massive tax cuts that he’s embraced. “In this plan, Roy identified over two trillion dollars in cuts right off the bat that can be taken out of government,” said former Missouri treasurer Sarah Steelman, who has endorsed Blunt’s campaign.

But in what he charitably calls an “accounting error,” the Kansas City Star’s Dave Helling notes that fully one half of Blunt’s spending cuts aren’t actually spending cuts at all:

A look at that plan shows half of those savings — $1 trillion — would come from Blunt’s proposal to repeal the health care reform package…Repealing health care reform would eliminate $1 trillion in spending, but it would also eliminate the $1 trillion in tax and fee increases and Medicare reductions that are in the law as well. The net effect of health care repeal on the federal deficit is, roughly, zero.

Actually, contrary to Helling’s assertion, repealing the Affordable Care Act wouldn’t have zero effect on the deficit: it would actively increase it. According to the Congressional Budget Office, repealing the bill would increase the deficit by $143 billion over the next ten years.

But the point remains that the only way Blunt’s push for repeal works as a deficit reduction measure is if he plans to keep all of the tax increases and Medicare savings, without actually giving anyone any additional health care.

Plenty of other spending cuts that Blunt suggests are equally ill-informed. He proposes repealing the remaining stimulus funds, including those dedicated to middle class tax cuts. He also says he’d cut an unidentified “wasteful welfare program,” which is presumably the Temporary Assistance for Needy Families Emergency Fund that House Republicans like to cite all the time. But it’s actually a successful work program that is supporting hundreds of thousands of jobs across the country, including 4,600 in Blunt’s own state.

Of course, Blunt is far from the only one who thinks that repealing the Affordable Care Act is a legitimate deficit reduction strategy. For instance, New Hampshire’s Republican Senate candidate, Kelly Ayotte, has made it the centerpiece of her deficit reduction plan.

Yglesias

Castine Civil War Memorial

A statue dedicated to those who died in the War to Preserve the Union dominates the lovely town square of Castine, ME:

IMG_1366

The lovely and talented Kate Crawford, with whom I’m traveling, is a Texan by birth and had never heard of this particular conflict. Fortunately, the Castine Historical Society is right nearby and able to fill her in on the limits of her Confederate education.

Politics

Despite Railing Against Government Subsidies, Ron Johnson Took Huge Government-Subsidized Loan

ron In an interview with local Wisconsin TV station 27 News last week, U.S. Senate GOP primary candidate Ron Johnson “railed against government subsidies for businesses and products.” Johnson explained that he is “in business” and that he has “never lobbied for some special treatment or for a government payment.” He continued, “When you subsidize things…it doesn’t work through the free market system very well.” Now, News 27 has discovered that Johnson, despite his invective towards government subsidies and praise of the free market, was the recipient of a $2.5 million industrival revenue bond from the Oshkosh Common Council, effectively a massive government subsidy:

According to a July 19, 1985, article published in the Oshkosh Northwestern, a $2.5 million industrial development revenue bond was approved by the Oshkosh Common Council on July 18, 1985. An article in the same newspaper, dated Feb. 16, 1986, said Pacur Inc., co-owned by Johnson, used the money to build a 40,000-square-foot addition.

Industrial development revenue bonds are issued by local governments to spur growth. Because the interest is normally tax-exempt, they are often repaid at below-market rates .

The primary is Sept. 14, and Johnson is widely considered to be the front-runner for the nomination.

Update

It has now been discovered that Johnson also was the beneficiary of a $75,000 HUD grant that was used to build a railroad line to a factory he owned.

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