ThinkProgress Logo

Health

Large Employers Set To Implement Corporate Exchange Coverage Models

In a major shift within the employer-sponsored health benefit model, Sears Holdings Corp. and Darden Restaurants Inc. will begin offering employees a choice of health plans on “corporate exchanges” beginning in 2013.

Although spokesmen for both companies have been quick to point out that, at this point, the firms will still be providing their employees with health benefits and not just a pile of cash with which to buy insurance, the move is largely seen as the first step towards a benefits system in which employers play a less direct role in employees’ coverage, and could influence thousands of other firms to follow suit if succesful. As the Wall Street Journal reports, the basic idea is that by offering employees more flexibility in choosing plans, both workers and employers can save on health costs:

“It puts the choice in the employee’s hands to buy up or buy down,” said Danielle Kirgan, a senior vice president at Darden. The owner of chains including Olive Garden and Red Lobster will let its approximately 45,000 full-time employees choose the new coverage in November, to kick in Jan. 1. Darden says that employees with families to cover will be given more money to buy insurance than employees covering just themselves.

The hope is that insurers will compete more vigorously to get workers to sign up, which will lower overall health-care costs. Darden and Sears are both currently self-insured, meaning that the cost of claims each year comes out of company coffers. [...]

“Within the next two or three years, it’s going to be mainstream,” said Ken Goulet, executive vice president at WellPoint Inc. The insurer will roll out a product next year called Anthem Health Marketplace that lets employers offer a variety of its plans to workers, paired with a fixed contribution. Mr. Goulet said it is close to signing up more than 30 midsize and large employers for early next year, including one with more than 50,000 workers.

This method has innate risks to it, the biggest being the possibility that employer contributions won’t keep up with medical inflation, thus shifting costs onto consumers. But if the corporate exchange model pans out as advocates hope, then it could be a sign of good things to come for similar exchange-driven models, including Obamacare.

NEWS FLASH

U.S. Children Drink 7 Trillion Calories From Soda Each Year | The average American child consumes about 270 calories from sugary soft drinks and juices each day, which adds up to a total of about 7 trillion calories each year, according to a Harvard researcher. At the Obesity Society’s annual meeting last week, Dr. Steven Gortmaker, who compiled the calorie statistics, pushed for government intervention to keep sugar-loaded drinks from children because of rising obesity rates. There are more than 70 million Americans between ages 2 and 19, about 17 percent of whom are obese. A previous study found a link between soda consumption and obesity.

NEWS FLASH

University Of Georgia Administrators Seek Domestic Partner Benefits | The University of Georgia’s University Council, which consists faculty, students, and staff, has approved domestic partner benefits for faculty and employees. The proposal now falls to UGA President Michael Adams, who must consult with the Board of Regents, which regulates health insurance policy for all of the state’s public universities. If the Regents do not approve, the plan calls for UGA to pay for the health benefits. Universities across the country offer similar benefits, which adds to their competitive ability to attract distinguished faculty candidates.

Economy

Kansas Governor Wants To Blame Europe For His Deep Spending Cuts

Gov. Sam Brownback (R-KS)

Gov. Sam Brownback (R-KS) recently signed into law massively regressive tax cuts that were so huge that many Republicans in the state opposed them. Budget analysts have found that Kansas will have to gut important public services for low-income Kansans and their children in order to pay for the tax cuts.

But Brownback has a plan if Kansas residents start to complain about the impact of those budget cuts — blame Europe:

Gov. Sam Brownback’s administration already has developed talking points to deflect anticipated criticism of the newly enacted massive income tax cuts should Kansas face significant budget problems next year. [...]

The administration is fashioning a narrative that suggests budget cuts may be necessary because the nation’s economy may remain stagnant. Europe’s financial crisis also looms as a potential threat.

“There are forces beyond the state’s control,” Brownback spokeswoman Sherriene Jones-Sontag said last week. “There’s still a great deal of uncertainty with the economy.”

Citizens for Tax Justice reacted to the governor’s plan by saying, “looks like the ‘spin room’ in Topeka has been busy lately.” After all, no one (and particularly no one in Europe) forced Brownback to sign a huge tax cut. Brownback justified the move by saying it would boost the Kansas economy, though there is scant evidence to back up that assertion.

Under Brownback’s plan, the richest Kansans will receive tax breaks worth about $20,000, while the poorest residents will actually see their taxes go up due to the elimination of tax credits that aid the poor.

Health

Thousands Of Uninsured Americans Line Up For Free LA Health Clinic

An estimated 4,800 people will receive care from a free four-day Los Angeles health clinic next week, The Lead Type reports. The clinic will run from next Thursday to Sunday to provide a variety of health services — including immunizations, women’s health screenings, dental cleanings, and eye exams — to Americans who don’t have medical insurance and can’t usually access this type of care:

Some people began lining up as early as Friday to ensure they obtain a wristband, which will be required for admission to the clinic. Distribution of the wristbands is expected to begin at 1 p.m.

Care Harbor has run several similar clinics in the Los Angeles area over the past few years. A four-day event last October at the Sports Arena was attended by about 5,000 people.

Medical practitioners who take part in the event volunteer their time and services. Care Harbor officials said they are still looking for additional volunteers for this week’s clinic.

The sheer number of participants in the Care Harbor clinic paints a harrowing picture of the human suffering wrought by a broken, Darwinian health care system. Stories like this serve as a reminder that every time the GOP votes to repeal Obamacare, they are voting to deprive Americans of essential screening and public health services — and forcing inadequately insured men, women, and children such as these to resort to desperate measures for fulfilling their medical needs.

Justice

Republican Party Paid $3.1 Million To Firm Under Investigation For Voter Registration Fraud

The Republican National Committee is cutting ties to Strategic Allied Consulting, a voter registration firm under investigation for turning in fraudulent voter registration forms in Florida. The RNC hired the firm to do voter registration drives for $3.1 million this year.

The firm’s founder, Nathan Sproul, is a longtime Republican strategist whose reputation was tarred by widespread accusations of voter registration fraud and attempts to suppress Democratic voter turnout. George W. Bush’s campaign reportedly paid Sproul over $8 million for his work in the 2004 election. Sproul, now under new scrutiny, claims he started Strategic Allied Consulting because the RNC wanted to hide his past:

Sproul said he created Strategic Allied Consulting at the RNC’s request because the party wanted to avoid being publicly linked to the past allegations. The firm was set up at a Virginia address, and Sproul does not show up on the corporate paperwork.

“In order to be able to do the job that the state parties were hiring us to do, the [RNC] asked us to do it with a different company’s name, so as to not be a distraction from the false information put out in the Internet,” Sproul said.

The committee is now scrambling to distance itself from Sproul after Florida launched a criminal investigation into the company. Strategic Allied Consulting submitted 106 “questionable” voter registration forms to the Palm Beach County Supervisor of Elections, and several other counties have discovered fraudulent forms as well. The Florida GOP fired the firm on Tuesday night.

Republicans have launched relentless efforts to prevent in-person voter fraud, which is exceptionally rare, yet seem to have ignored the real threat of voter registration fraud by their own consultant. In a twist one Florida Supervisor of Elections called “ironic,” Sproul’s organization was in fact registering dead voters as Republicans, even as Republican lawmakers all over the country justified discriminatory voter purges with the threat of dead voters showing up to the polls.

Media

Fox News Airs Suicide On Live TV, Apologizes

Fox News inadvertently showed a man commit suicide on live television Friday afternoon, leading host Shepard Smith to apologize to viewers.

The network had been covering its second car chase of the day, following a suspected carjacker as he sped down a California highway. After about an hour, the Dodge Caliber eventually made its way to a dirt road. The suspect got out of the car with a gun, ran several feet, and shot himself in the head. Fox News didn’t cut away in time, leaving Smith to apologize to viewers:

SMITH: Well, some explaining to do. While we were taking that car chase and showing it to you live, when the guy pulled over and got out of the vehicle, we went on delay. That is why I didn’t talk for about ten seconds. We created a five-second delay. As if you were to bleep back your DVR five seconds, that’s what we did, with the picture we were showing you.

So that we would see in the studio what was happening five seconds before you did, so that if anything went horribly wrong, we would be able to cut away from it without subjecting you to it.

And we really messed up. And we’re all very sorry. That didn’t belong on TV. We took every precaution we knew how to take to keep that from being on TV. And I personally apologize to you that that happened. Sometimes we see a lot of things we don’t let get to you, because it is not time appropriate, it is ininsensitive, it is just wrong. And that was wrong. And that won’t happen again on my watch. And I’m sorry.

Watch it:

Update

YouTube has removed BuzzFeed’s full video of the shooting.

Economy

GOP Senate Candidate Akin: ‘Free Enterprise’ Means Being Allowed To Deny Equal Pay To Women

Rep. Todd Akin (R-MO) has struggled with a well-established woman problem in his Senate campaign, ever since he claimed women could not get pregnant from “legitimate rape.” After he said his opponent, incumbent Sen. Claire McCaskill (D-MO), was not “ladylike,” her campaign released a video of Akin suggesting that businesses should be allowed to pay women less than men.

When a man asked him why he voted against the Lilly Ledbetter Fair Pay Act, Akin said he didn’t support the idea that “government should be telling people what you pay and what you don’t pay.”

AUDIENCE MEMBER: You voted against the Lilly Ledbetter Fair Pay Act. Why do you think it is okay for a woman to be paid less for doing the same work as a man?

AKIN: Well, first of all, the premise of your question is that I’m making that particular distinction. I believe in free enterprise. I don’t think the government should be telling people what you pay and what you don’t pay. I think it’s about freedom. If someone what’s to hire somebody and they agree on a salary, that’s fine, however it wants to work. So, the government sticking its nose into all kinds of things has gotten us into huge trouble.

Watch it:

The Lilly Ledbetter Fair Pay Act was the first bill President Obama signed into law and eases the burden on women to prove paycheck discrimination. Akin, along with all but three House Republicans, voted against the bill. Republicans blocked another pay equity bill, the Paycheck Fairness Act, earlier this summer; it would create larger penalties for employers who pay women less than men and strengthen protections for women who sue for equal pay.

NEWS FLASH

Kentucky Legislator Proposes Redundant Bill To Ban Abortion Coverage Under Federal Health Reform | Kentucky state Rep. Stan Lee (R) has proposed a bill to prevent abortion coverage from being included in plans offered through the state’s health insurance exchange under Obamacare, even though state officials have already assured Republicans that “elective abortions” will not be covered. After concerns from GOP lawmakers, the Kentucky Department of Insurance posted a notice on its website earlier this year that including the coverage “would be a violation of state law and has never been considered.” But Lee said he wants the ban on abortion coverage “just to make sure,” and is convinced his bill will fly through the legislature when lawmakers reconvene in January.

Older

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up