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Howard Dean Loves McKinsey’s ‘Employer Will Drop Coverage’ Study | Via Julian Pecquet at The Hill, Howard Dean spoke out in favor of moving away from employer-sponsored coverage during a debate with Karl Rove and others today: “The biggest thing we can do for small businesses is get them out of the healthcare business,” Dean said. “If this bill does that, and all these small businesses dump their people into the exchanges, we will finally have broken the link between the employer and health insurance in this country … That’s going to help our business community more than anything else we’ve done in the past 25 years.”

NEWS FLASH

Bachmann: ‘Medicaid Is A Valuable Form Of Insurance’ | Rep. Michele Bachmann (R-MN) has decried Medicaid for swelling the “welfare rolls,” but after since it’s been discovered that Bachmann’s husband’s counseling centers accepted $137,000 in Medicaid payments, the Tea Party presidential candidate finds herself defending the program. Today, Bachmann released this statement: “Medicaid is a valuable form of insurance for many Americans and it would be discriminatory not to accept Medicaid as a form of payment.” –Sean Savett

Two Reasons Why The Lieberman/Coburn Medicare Proposal Is A Bad Idea

Yesterday, Sens. Tom Coburn (R-OK) and Joe Lieberman (I-CT) introduced a bill that would reduce Medicare spending by $600 billion over 10 years “through premium increases, gradually raising the eligibility age and other changes.” Those include: 1) increasing monthly premiums for enrollees in Medicare Part B by 2 percent a year for five years, 2) asking individuals making more than $150,000 a year and couples making more than $300,000 a year to pay full Part B premiums, 3) instituting one deductible for both Medicare Part A, which covers hospitalization, and Part B, which covers doctors’ visits, 4) raising the age for Medicare eligibility from 65 to 67 by 2025, and 5) patching up the sustainable growth rate to eliminate payment cuts to doctors for three years.

The most striking provision is No. 4, and it’s part of the the reason why House and Senate Democratic leadership have already dismissed the plan as “a bad idea” and “unacceptable.” And for good reason. As the Incidental Economist’s Aaron Carroll explains, life expectancy is a fairly complicated measurement that varies drastically across geographical and economic lines. Any proposal that increases the program’s eligibility age would disproportionately affect people in both the poorest states and lowest income brackets:

But the other obvious problem is the cost shift to seniors: increasing monthly premiums would force beneficiaries to pay more at a time when they’re just scraping by. According to a new study from the Kaiser Family Foundation and the Urban Institute, half of seniors “had income lower than $22,000 in 2010; 25 percent had income lower than $13,000. Only five percent had incomes above $85,000.” Their savings aren’t any better: “half of seniors have savings less than $50,000; a quarter have less than $8,400 money set aside. Ten percent had more than half a million dollars, half of those people had a million dollars or more.”

The problem is that even if you ask seniors to pay more, health care spending would still continue to rise unsustainably — it’s just that individual beneficiaries rather than the federal government would be footing more of the bill.

Justice

George W. Bush-Appointed States’ Rights Crusader Rejects Lawsuit Challenging Affordable Care Act

Sixth Circuit Judge Jeffrey Sutton

The most important part of today’s Sixth Circuit decision upholding the Affordable Care Act isn’t what the court said, although the court’s rejection of this utterly meritless challenge is quite significant. The most important part of today’s decision is who made it.

Judge Jeffrey Sutton is a George W. Bush appointee and a former law clerk to conservative Justice Antonin Scalia. He served as an officer in the conservative Federalist Society’s Federalism and Separation of Powers practice group, and was one of the nation’s leading crusaders for expanding the role of the states at the federal government’s expense. Prior to becoming a judge, Sutton devoted much of his career to preventing people with disabilities, religious minorities, and even children who are illegally deprived of Medicaid coverage from holding states accountable in federal court — even successfully arguing major states’ rights cases in the Supreme Court. So he is exactly the kind of person who would be extremely sympathetic to the conservative claim that the Affordable Care Act exceeds Congress’ lawful authority.

And yet, Sutton’s opinion today said something else entirely:

On the merits, this case presents two distinct questions: Does the individual mandate survive the substantial-effects test? And, if so, is there something about the novelty of this law—compelling the purchase of health insurance—that warrants striking it down nonetheless?

The initial question is the easier of the two, as the breadth of the substantial effects doctrine and the nature of modern health care favor the validity of this law. No matter how you slice the relevant market—as obtaining health care, as paying for health care, as insuring for health care—all of these activities affect interstate commerce, in a substantial way. [...]

Does the Commerce Clause contain an action/inaction dichotomy that limits congressional power? No—for several reasons. First, the relevant text of the Constitution does not contain such a limitation. To the extent “regulate,” “commerce,” “necessary” and “proper” might be words of confinement, the Court has not treated them that way, as long as the objects of federal legislation are economic and substantially affect commerce. [...] Second, the promise offered by the action/inaction dichotomy—of establishing a principled and categorical limit on the commerce power—seems unlikely to deliver in practice. Level of generality is destiny in interpretive disputes, and it remains unclear at what level plaintiffs mean to pitch their action/inaction line of constitutional authority or indeed whether a workable level exists.

To translate a bit, Sutton concluded that the heart of the assault on the Affordable Care Act — the claim that a law encouraging people to buy insurance is unconstitutional because Congress cannot compel people to take this unwanted action — has no basis in the “text of the Constitution,” and it rests on a legal distinction that is utterly incoherent. And this comes from one of the most conservative members of the federal bench.

To be fair, Sutton also rested his decision on something known as the facial/as-applied distinction. The Supreme Court allows two kinds of challenges to a law: “facial” challenges, that claim the law must be effectively striken from the books, and “as applied” challenges, which claim that the law cannot be applied to a particular person or entity. In order to bring a facial challenge, a party must show that “no set of circumstances exists under which the Act would be valid,” and Sutton floated the possibility that someone who has achieved the miraculous task of avoiding the national health care market altogether may be able to exempt themselves from the law through an as-applied challenge brought at a future date. But Sutton’s harsh words for the basic legal theory underlying the plaintiffs’ case is a body blow to these lawsuits.

The case against the Affordable Care Act is so weak that one of the court of appeals’ most conservative judges — a judge who devoted much of his life to shrinking federal power — just rejected it. Now would be a good time for the nation to collectively stop pretending that these lawsuits have any merit whatsoever.

Ohio Republicans Argue For ‘Heartbeat’ Abortion Bill: Abortion Makes Teens Smoke Pot

Yesterday, the Ohio Assembly passed the “heartbeat abortion bill,” a measure that would prohibit doctors from performing abortions if a fetal heartbeat can be detected, thus outlawing the procedure as early as “six to seven weeks into pregnancy.” Republicans admitted that the measure would likely fall to a constitutional challenge, but offered a myriad of wacky reasons for rolling back a woman’s right to choose:

– REP. ROBERT MECKLENBORG: The easiest way is also to look at it in the context of Nazi Germany, where during the 1920s, these were the arguments postulated by the proponents of abortion as the Third Reich was growing in power. Note they will sound very similar to you because they are exactly the same arguments put forth to support the current positions in support of the abortion laws as we have them on the books.

– REP. RON YOUNG: I’m afraid in 1973, the Supreme Court took a different tact [and didn't consider life.] If fetuses had been allowed to vote, if they had formed a voting block and they were organizing in front of the court house that day, the vote probably would have been much different.

– REP. CHRISTINA HAGAN: Teens who aborted were also three times more likely to report having trouble sleeping and nine times more likely to report subsequent marijuana use.

Watch a compilation:

Unfortunately, the heartbeat bill — which is one of the most radical anti-abortion bills in the country — was just one of three anti-abortion measures to pass the House. Lawmakers also approved legislation outlawing abortion after 20 weeks and prohibited insurers from offering abortion coverage in the health care exchanges established under the Affordable Care Act.

NEWS FLASH

The Consequences Of Indiana’s Planned Parenthood Defunding | Via RH Reality Check: “The Indiana law that was supposed to ‘defund Planned Parenthood’ may be on hold while a judge rules on it, but some consequences were already seen in the state. According to Indiana news outlets, some doctors confused by the murky language of the law stopped performing abortions all together, even for women who had non-viable fetuses or who’s health were in danger, afraid that any abortion could put their ability to assist women on Medicaid at risk.”

NEWS FLASH

BREAKING: 6th Circuit Upholds Constitutionality of Affordable Care Act | The majority writes: “We find that the minimum coverage provision is a valid exercise of legislative power by Congress under the Commerce Clause and therefore AFFIRM the decision of the district court.” Key passage:

By regulating the practice of self-insuring for the cost of health care delivery, the minimum coverage provision is facially constitutional under the Commerce Clause for two independent reasons. First, the provision regulates economic activity that Congress had a rational basis to believe has substantial effects on interstate commerce. In addition, Congress had a rational basis to believe that the provision was essential to its larger economic scheme reforming the interstate markets in health care and health insurance.

Judge Jeffrey Sutton, one of the judges who voted to uphold the act, clerked for Scalia, and was nominated by George W. Bush.

Check out a detailed analysis of the decision here.

HHS Announces New Data Collection Plan To ‘Fully Understand And Meet The Needs’ Of The LGBT Community

Sexual orientation and gender identity questions are not currently asked on most national or state health surveys, and that lack of standardized data collection makes it “difficult to estimate the number of LGBT individuals and their health needs” and severely “hampers both government and community-based efforts to identify, track, and address health disparities among LGBT people.” But today, the Department of Health and Human Services unveiled a plan to change all that. For the first time, the federal government will start to “integrate questions on sexual orientation into national data collection efforts by 2013 and begin a process to collect information on gender identity.” The new effort is the result of section 4302 of the Affordable Care Act:

The proposed standards for collection and reporting of data on race, ethnicity, sex, primary language and disability status in population health surveys are intended to help federal agencies refine their population health surveys in ways that will help researchers better understand health disparities and zero in on effective strategies for eliminating them. [...]

“These new data standards, once finalized, will help us target our research and tailor stronger solutions for underserved and minority communities,” added HHS Director of the Office of Minority Health, Dr. Garth Graham. “To fully understand and meet the needs of our communities, we must first thoroughly understand who we are serving.”

“Data really drives everything. You can’t have a conversation about priorities, about funding, about where attention should be about, about what we should be working on unless we have the data to show what the issues are,” CAP’s Kellan Baker told the Metro Weekly’s Chris Geidner. Baker will offer a comprehensive analysis of the proposed rules in this space tomorrow. To read his report on LGBT health and the Affordable Care Act click here.

LGBT advocates and health organizations have long lobbied for comprehensive data collection. Professional bodies such as the American Medical Association, the American Public Health Association, and the American Psychological Association have all “issued statements in support of standardized data collection on sexual orientation and gender identity.”

What It Takes To Create A Pro-Consumer Health Exchange

Democrats and Republicans are working to implement the health insurance exchanges in the Affordable Care Act, but are looking to different states for guidance in how to best structure a marketplace that would allow consumers to compare and purchase comprehensive insurance beginning in 2014. Red states are typically guided by Utah’s flea-market type approach, in which almost any insurer can offer coverage in the exchange and is held to few standards or regulations, while blue states are following the Massachusetts model of prudent purchasing and price negotiation.

Today, the U.S. Pirg has published a blueprint “for creating a strong, pro-consumer exchange that lives up to its promise of a better marketplace” that could offer a more comprehensive guide to the states:

It should be run and overseen by representatives drawn from the consumer and small business communities that the exchange is designed to serve, not insurers or providers who could benefit financially from the exchange’s decisions.

– That means it must have the authority to exclude plans that fail to deliver robust consumer protections, quality care, and reasonable costs, particularly if the plan has a history of unreasonable rate increases. And because the bigger the exchange, the greater its negotiating power, the state should plan to open the exchange to employees of large businesses as soon as possible, and work to enroll as many eligible consumers as possible.

– The exchange should provide a special “seal of approval” for the plans that do the best job at providing high quality care, and provide consumers with easily understandable information about what these reforms mean and how consumers can best make use of them.

– The state should prohibit insurers or brokers from steering people either onto or off of the exchange, through setting different broker commissions, adopting targeted marketing strategies, or by any other method. And because a larger exchange will have more stability, states should conduct strong outreach and enrollment and widen the eligibility rules for the exchange.

– The state’s system should obtain updated information from enrollees in both public programs and the exchange each year, and if the enrollee’s eligibility has not changed, their coverage should be automatically renewed.

As the CBPP’s Dave Chandra has pointed out, “virtually every state has made at least some progress toward setting up [the] health insurance marketplaces,” including states like Indiana, Mississippi, and Alabama — which are also challenging the the constitutionality of the health law. In total, 16 states have “passed exchange-related legislation,” 39 states have introduced exchange legislation this year, and “48 states (all except Louisiana and Florida) plus the District of Columbia are engaged in some level of exchange planning.” So far, “only Louisiana has publicly announced that it won’t set up an exchange.”

The Department of Health and Human Services is expected to release its exchange regulations sometime around July 7.

Abortion Providers Sue Over Kansas Licensing Law: ‘This Is Like Living In A Communist Country’

As Kansas regulators prepare to shut down the state’s only three abortion clinics for failing to “meet the requirements to get a license under a law that takes effect Friday,” doctors and clinics that perform abortions have filed or are preparing lawsuits to block the new licensing law. The measure, which was signed by Gov. Sam Brownback (R) just last month, establishes overly rigorous standards that abortion providers must meet in order to continue operating and is part of a broader Republican effort to effectively eliminate abortions in the state.

The Center for Reproductive Rights filed a suit in federal district court yesterday “on behalf of the Center for Women’s Health” (and physicians Herbert Hodes and Traci Nauser) and another abortion provider, Aid for Women in Kansas City — which was denied a license after acknowledging it would need extensive renovations to comply with the new regulations — is expected to challenge the law today. “Planned Parenthood of Kansas and Mid-Missouri’s abortion clinic in Overland Park was inspected last week and has a license application pending, though it also is considering a legal challenge“:

In their lawsuit, Hodes and Nauser said the new regulations are stricter than rules for other health care providers. The suit claims the state violated their right to due legal process. [...]

Court documents show that Hodes sent an email June 21 asking the health department to consider waiving some of the rules and granting a provisional license while the idea was considered. A department official replied in 12 minutes, saying the law didn’t permit either step.

“This is like living in a communist country, the way I was treated,” Hodes told The Associated Press.

These suits come on the heels of a separate legal action filed on Monday that challenges a separate “provision in the new state budget blocking Planned Parenthood of Kansas and Mid-Missouri from tapping into federal Title X funds to operate nonabortion clinics in Hays and Wichita.”

The lawsuits will only increase costs to taxpayers, who are already paying an “absurd” amount of money — $67,000 a year for six inspections at three clinics — to challenge Roe v. Wade and chase abortion providers out of the state.

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Morning CheckUp: June 29, 2011

Welcome to Morning CheckUp, ThinkProgress Health’s 7:00 AM round-up of the latest in health policy and politics. Here is what we’re reading, what are you?

Administration halts snooping patients: “The Obama administration said Tuesday that it had shelved plans for a survey in which ‘mystery shoppers’ posing as patients would call doctors’ offices to see how difficult it was to get appointments.” [NYT]

Obama trying to work in blended rate’ Medicaid reforms into the debt ceiling: “In the budget blueprint unveiled in April, President Barack Obama proposed adjusting the way federal matching funds paid to the states are calculated for Medicaid and its companion, the Children’s Health Insurance Program. Sources close to the administration tell POLITICO that White House officials have been trying to develop the idea into a version that could become part of a deal in the ongoing deficit reduction talks.” [Lester Feder]

Religious groups speak out against the Medicaid cuts: “The nation’s largest Jewish organization announced Tuesday that it’s convening other religious groups to fight Medicaid cuts, the same day a nonpartisan coalition of providers and health plans separately launched an ad campaign against the cuts.” [The Hill]

Dems reject Lieberman/Coburn Medicare plan: Senate Majority Leader Harry Reid (D-NV) termed it “a bad idea.” House Minority Leader Nancy Pelosi (D-CA) called it “unacceptable.” [Washington Post]

Seniors see drug savings from health reform: “Almost half a million seniors on Medicare had saved a combined $260 million on their medicines by the end of last month thanks to the healthcare reform law, the Obama administration announced Tuesday.” [The Hill]

Where the health savings are: “About 5 percent of the population is responsible for almost half of all health care spending in the United States and for rising premium rates, according to a new report from the National Institute for Health Care Management Foundation.” [National Journal]

PA enacts new tort reform measure: “Pennsylvania Gov. Tom Corbett on Tuesday signed into a law the so-called Fair Share Act, which limits the financial responsibility of defendants in multidefendant civil suits to only each defendant’s share of a judgment under most circumstances.” [Business Insurance]

Indiana will appeal Planned Parenthood ruling: Last week, U.S. District Court Judge Tanya Walton Pratt “granted a preliminary injunction to block enforcement of the ban on Planned Parenthood offices in Indiana receiving reimbursement for Medicaid claims.” [Reuters]

Pediatricians urge ban on junk food ads: “U.S. pediatricians want to ban junk food ads aimed at children, saying that they conspire with sedentary activities like watching television and playing video games to make kids.” More than one in six children and teenagers in the United States are obese. [Reuters]

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