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Graham, Barrasso Want States To Opt-Out Of Medicaid Expansion

Citing increasing costs, Sens. Lindsey Graham (R-SC) and John Barrasso (R-WY) have introduced the Medicaid Flexibility for States Act, which would allow states to opt out of the Affordable Care Act’s expansion of the Medicaid program and effectively deny health insurance coverage to the poorest Americans:

“I’m confident that if given the chance a large number of states would opt-out of Obamacare’s forced Medicaid expansion,” said Graham. “In South Carolina, expansion of Medicaid under Obamacare will add an additional $1 billion in state matching funding requirements. When fully implemented nearly 30 percent of South Carolinians will be eligible for Medicaid. States like South Carolina can simply not afford this burden. Our bill takes the issue out of Washington and puts it back in the states. I would hope every Senator, regardless of party, would give the people of their home state a chance to be heard.”

Supporters of reform have always found this position a bit bizarre, since Medicaid expansion — up to 133 percent of the federal poverty line in the ACA — provides states with a lot of extra cash, insures more residents and allows states to reduce their uncompensated care costs. Under the Affordable Care Act, the federal government pick up the entire tab of Medicaid expansion between 2014 and 2017 and will pay for 95 percent of the expansion in 2017, 94 percent in 2018, and 93 percent in 2019. Beginning in 2020, the states will still receive a 90 percent match for the expanded population.

Yes, they’ll have to kick in some of their own funds, but the increases in state spending are small compared to increases in coverage and relative to what states would have spent if reform had not been enacted. In fact, as a recent report from the Robert Wood Johnson Foundation concluded that while state spending will rise by $80 billion on new enrollees, “the federal government will largely offset these costs with an anticipated $66 billion in new federal spending on existing Medicaid enrollees.” Also, state spending on uncompensated care could fall by 12.5–25 percent, “saving the federal government up to $87 billion, while states would collectively save $52 billion.”

NEWS FLASH

Ad Hits GOP Over ‘Let Him Die’ Debate Moment | As the GOP presidential hopefuls prepare to debate in Orlando, Florida this evening, the group Protect Your Care is out with a new ad highlighting the now-infamous “let him die” moment from last week’s CNN/Tea Party debate. The ad condemns the candidates for standing idly by as the audience “cheered at the idea of a man dying because he lacked health insurance.” Watch the ad:

Justice

Affordable Care Act Faces It’s Toughest Panel To Date Tomorrow

Judge Brett Kavanaugh

Nearly two centuries of precedent support the constitutionality of the Affordable Care Act — and most judges understand that they do not have the authority to ignore such a well established line of Supreme Court decisions simply because they wish the law were otherwise. Of the nine judges to hear court of appeals cases challenging the Affordable Care Act, only three believe that they are not bound by these precedents. Tomorrow, however, a very conservative panel of the very conservative United States Court of Appeals for the District of Columbia Circuit will hear an Affordable Care Act challenge — and DOJ has good reason to be nervous that the panel will not follow established law.

The senior judge on the panel is Judge Harry Edwards, a Carter appointee who is unlikely to throw centuries of law under the bus. He is joined, however, by Judges Laurence Silberman and Brett Kavanaugh, both of whom have a long record of conservative activism.

  • Judge Silberman
  • A former banking executive and official in the Nixon, Ford and Reagan Administrations, Silberman is a close personal friend of Justice Thomas and encouraged a reluctant Thomas to accept his first appointment to the federal bench. Although Silberman’s position as a judge prevented him from being the public face of support for Thomas’ confirmation to the Supreme Court, Silberman worked actively behind the scenes — including with opposition researchers tasked with undermining Thomas’ opponents. Silberman reportedly speculated that Professor Anita Hill accused Thomas of sexual harassment because she was a lesbian “acting out,” and he insisted that Thomas would have never asked Hill out because Hill “had bad breath.”

    Silberman overturned Oliver North’s felony conviction in the wake of the Iran-Contra scandal, but his most significant opinion is probably Parker v. District of Columbia, which struck down DC’s handgun law on Second Amendment grounds. Like the Affordable Care Act, the DC gun law was supported by many years of Supreme Court precedent. In its 1939 decision in Miller v. United States, the Court held that the Second Amendment only protects the right to keep and bear arms for the purpose of serving in a state militia–lawmakers were free to regulate firearms used for non-militia purposes. Miller was binding Supreme Court precedent at the time Silberman decided the Parker case, so he should have upheld the DC law.

    Instead, Silberman took a gamble that the Supreme Court would overrule Miller — and he was right. DC appealed Silberman’s decision, and a 5-4 Supreme Court affirmed Silberman in its landmark DC v. Heller decision. So Silberman has already flouted precedent once in a successful bid to get the Roberts Court to change longstanding law. It is easy to see him trying to spin the wheel again on the Affordable Care Act.

  • Judge Brett Kavanaugh
  • Kavanaugh’s partisan credentials make Silberman look like Ted Kennedy. Kavanaugh served as an Associate Counsel under Clinton inquisitor Ken Starr, and was a principal author of the Starr Report to Congress on the Monica Lewinsky affair. Kavanaugh then served in the Bush White House, where he worked on President Bush’s effort to fill the federal bench with conservative judges. At one point, Kavanaugh also advised the Bush Administration on the likelihood that the Supreme Court would allow it to deny detainees access to lawyers — although he later testified in his confirmation hearing that “I was not involved and am not involved in the questions about the rules governing detention of combatants and so I do not have any involvement in that.”

    As a judge, Kavanaugh is a reliably conservative vote — especially in detainee treatment cases. He also recently penned a dissent claiming that Exxon could not be held accountable when it hired people who engaged in torture and other crimes against humanity in Indonesia because, as a corporation, Exxon is immune from a law allowing private parties to be sued for some of the most atrocious violations of international law.

  • The Silver Lining
  • So the Affordable Care Act is in for a rough ride tomorrow, but there are at least two silver linings for the law. The first is the fact that the panel recently requested additional briefing on whether the law counts as a tax and therefore must be upheld under Congress’ power to levy taxes. To date, two of the three courts of appeals hearing ACA cases have issued such letters, and in each case the request for additional briefing telegraphed how a key member of the panel intended to reject the challenge to the law.

    The second silver lining is the possibility of a surprise decision. A 2-1 decision with Silberman and Kavanaugh striking down the Affordable Care Act would merely confirm what anyone familiar with these two judges expects to happen. If just one of them voted to uphold the law, however, it would be extremely unlikely that one of the Supreme Court’s conservatives won’t do the same.

    Is Obama Pulling The Plug On Health Reform’s Long-Term Care Program?

    The actuary in charge of the Affordable Care Act’s Community Living Assistance Services and Supports (CLASS) program has “sent an email to colleagues Thursday informing them that HHS is closing down his office on Friday,” The Hill’s Julian Pecquet reports. The news, which the administration is publicly denying, comes after a Republican investigation revealed that economists had warned HHS about the program’s insolvency.

    If true, the demise of CLASS represents a substantial setback for the nation’s long-term care structure. Americans spend more than $200 billion a year on long term care services in nursing homes, at home, or in assisted living facilities. With limited private insurance options, “Medicaid is now the largest single provider of long-term care costs — it spent more than $100 billion last year, over one-third of its budget” and “paid more than 40 percent of the nation’s total long-term care bill.” By mid-century, the Congressional Budget Office predicts that Medicaid will use 16 percent of anticipated federal revenues to fund care for the baby-boom generation.

    Impairment is generally very hard to anticipate or save for (about four in 10 people who need long-term care are actually under the age of 65), and families rarely purchase coverage or falsely assume that Medicare will cover their needs. Add to that the fact that the private long-term care market is highly unstable and expensive and as a result individuals often spend down to “$2,000 in financial assets” to qualify for Medicaid coverage.

    CLASS, originally championed by Ted Kennedy, sought to fix the system by establishing a national insurance program financed by voluntary payroll deductions. The benefit was to be meaningful but limited — an average of at least $50 per day that recipients could use to pay for home-based or institutional service without becoming impoverished. But from the very beginning, economists worried that the program would have a hard time attracting healthier applicants and eventually pay out more in claims that it would collect in premiums. Secretary of Health and Human Services Kathleen Sebelius had responded to the criticism by reassuring Congress that “the program will not start unless we can absolutely be certain that it will be solvent and self-sustaining into the future” — a promise that, if this latest development is true, she is intent on keeping.

    Update

    The administration admits is reducing staff at the CLASS office: “While the staff of the CLASS office has been reduced, reports that the CLASS office is closing are not accurate. We are continuing our analysis of this program. As we have said in the past, it is an open question whether the program will be implemented. A CLASS program will only be implemented if it is fiscally solvent, self-sustaining, and consistent with the statute.”

    Public Health Care Programs Kept Millions From Becoming Uninsured

    For all of the GOP’s efforts to demonize and underfund public health care programs, Medicaid, the Children’s Health Insurance Program (CHIP), and Medicare have played an absolutely crucial role in filling the gaps in America’s very broken health care system. They’ve kept millions of people from becoming uninsured and have helped “offset the continuing decline in job-based coverage”:

    As this CDC report demonstrates, children have also greatly benefited from CHIP, which has actually picked up the slack from private insurers:

    These are pictures to keep in mind the next time GOP offers drastic cuts to public insurance or argue for the repeal of the Affordable Care Act, which would only strengthen safety-net providers and expand Medicaid eligibility.

    The Right’s Latest Anti-Abortion Gimmick: Performing Ultrasounds On Capitol Hill

    Radical anti-abortion groups including the Christian Defense Fund have come up with another over-the-top spectacle to try to shame pregnant women and make anti-choice legislators feel self-righteous. This time they’ve chosen Capitol Hill as the venue for the stunt, called “Voices from the Womb,” where the public and all 535 representatives are invited to the Capitol Visitors Center Auditorium to witness the groups performing live ultrasounds on pregnant women.

    The Christian Post reports on the event, which they describe as “Pre-Born to ‘Speak’ Through Live Ultrasounds on Capitol Hill”:

    Through the use of “real time” ultrasounds performed on women in the first through third trimesters of pregnancy, the public and members of the Congress will be able to hear for themselves what the beginning of life sounds like, straight from the womb.

    Beginning at the Congressional Auditorium in Washington, D.C., “Voices From the Womb” will launch its national campaign in October “to let the children of America ‘speak’ for themselves about ending abortion,” according to a statement.

    The Oct. 13 event, which is sponsored by The Stanton Project, the Christian Defense Coalition and the National Pro-life Center, is open to all 535 members of Congress and the public to witness history in the making.

    The “show” on Capitol Hill is just the first step for the groups, which plan to take “Voices from the Womb” on the road with a “tour performing ultrasounds throughout nation, in schools, churches, state capitals, parks and legislative hearings.” Christian Post chirps that thanks to technological advances, “ultrasound machines are now much more compact and mobile than ones made previously” so the organization can “take its message to the streets, giving the unborn a unique opportunity to ‘speak’ for themselves.”

    ThinkProgress contacted the Capitol Visitors Center to find out more information about the event. According to Director of Communications Tom Fontana, outside groups cannot use the Capitol Auditorium unless they’ve secured the sponsorship of at least one member of Congress. This suggests that “Voices From the Womb” is being hosted and attended by at least one elected official, although Fontana couldn’t comment on which members might be sponsoring the event, or even confirm it was happening.

    That anti-abortion groups and lawmakers would be comfortable making a spectacle out of pregnant women in front of crowds belies their claim to care about the dignity of life.

    NEWS FLASH

    Study: Care Coordination For Dual Eligibles Can Save $125 Billion Over 10 Years | The Department of Health and Human Services acknowledged that it’s still figuring out how best to controls spending for so-called dual eligibles — individuals who are eligible for both Medicare and Medicaid coverage — during a subcommittee hearing yesterday, but a new study finds that care coordination could provide at least part of the answer. A report from Ken Thorpe of the Partnership of Fight Chronic Disease, shows that the government could save $125.5 billion over 10 years if all dual eligible beneficiaries are enrolled in evidence-based care-coordination models. Dual eligibles comprise 18 percent of Medicaid enrollees but consume 46 percent of total program spending. Similarly, dual eligibles make up 16 percent of Medicare enrollees, but consume 25 percent of total Medicare spending.

    Update

    Don Taylor has some questions about Thorpe’s proposal, which would shift dual eligibles into private insurance. “I have suggested that dual eligible costs should be federalized (essentially making Medicare responsible for their total cost), with the main point being to put one payer in charge of all their care in order to incentivize cost reduction while increasing quality. Thorpe’s idea would achieve the same general goal using private insurance. There are many relevant details to discuss about Thorpe’s proposal (how would premiums for private plans be set?, what are realistic uptake estimates?, etc.), but it is clear that the current approach to caring for the dual eligibles is wanting both in terms of cost and quality. The only question is what changes should be undertaken to better care for them?

    Idaho’s GOP Governor Will Accept Federal Funds For State Health Exchange

    Idaho may be part of a multi-state lawsuit challenging the constitutionality of the Affordable Care Act, but that isn’t stopping Republican Governor Butch Otter (R) from applying for millions of dollars in federal funding to set up health insurance exchanges. Otter — who has previously tried to claim credit for that particular provision of reform — announced on Tuesday that his state would be better off building its own marketplace than turning it over to the federal government:

    It’s a difficult choice, but one I find far preferable to submitting to a federally established insurance exchange, with all the loss of control over our own destiny that entails,” Otter said in a statement. [...]

    “My goal is to establish a state-based exchange emphasizing free-market principles and create a competitive marketplace for individuals and businesses to obtain the coverage they need rather than imposing a one-size-fits-all solution that may not be suitable or even workable for Idaho.”

    Idaho has until Sept. 30 to apply for the funds, which will help the state construct a market place where individuals and small businesses can compare and purchase comprehensive insurance plans beginning in 2014. The Idaho Association of Commerce & Industry lauded Otter’s decision, saying, “By requesting the grant dollars, Idaho will have the ability to carefully evaluate the actual cost of the development of an exchange and will only use those dollars as necessary.”

    In 2010, 31 percent of Idaho residents between the ages of 18 and 34 lacked health insurance. Overall, 17 percent of Idahoans are uninsured, and years of rising costs have pushed the healthiest population to drop coverage.

    Morning CheckUp: September 22, 2011

    Growing number of young adults are taking advantage of ACA: “Data from the National Health Interview Survey (NHIS) shows that in the first quarter of 2011, the percentage of adults between the ages of 19 and 25 with health insurance increased by 3.5 percentage points, representing approximately 1 million additional young adults with insurance coverage compared to a year ago.” [HHS]

    Michigan pushes redundant partial-birth abortion ban: The federal government already has a so-called “Partial Birth Abortion” ban, but that’s not stopping Michigan lawmakers who approved measures Wednesday to criminalize the procedure [Detroit Free Press]

    Employers expecting smaller increase in health costs: “Employers project that their group health care plan costs will increase an average of 5.4% in 2012, a somewhat slower increase compared with recent years, according to a Mercer L.L.C. survey released Wednesday.” [Business Insurance]

    Consumer groups oppose Georgia’s MLA waiver: 17 Georgia consumer organizations have objected to the state’s request to delay a requirement that health insurers spend 80 percent of the money they collect from customers on claims, “saying that giving insurers more time to comply with the federal rule will rob Georgians of the value they should be getting from their health plans. Most Georgia insurers would not meet the threshold based on data submitted by the insurance commissioner’s office.” [AJC]

    California may be a testing ground for the ACA: “If you want to know what the future of health reform will look like, keep an eye on California. The state has pushed aggressively to set up the Affordable Care Act, only to run full speed into daunting obstacles that could derail its efforts.” [Sarah Kliff]

    HHS struggling with the so-called dual-eligibles: “A top CMS official on Wednesday (Sept. 21) urged lawmakers to give the agency more time to study ways to better handle dually eligible beneficiaries before stepping in with legislative reforms, making the plea as Senate Finance Committee members signaled strong bipartisan support for addressing the issue, which is also viewed as a potential cost-saving area by the debt law’s super committee.” [Inside Health Policy]

    Wyden is frustrated over the lack of progress: “We have been treading water on this issue, literally, for decades,” Wyden said during a Senate Finance Committee hearing. We’re “about where we were three decades ago, when I had a full head of hair and rugged good looks … and we were talking about exactly the same issues.” [Julian Pecquet]

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