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Health

Orrin Hatch Wants To Lower The Deficit By Increasing It

Inside Health Policy’s Sahil Kapur notices that Sen. Orrin Hatch (R-UT) is arguing that Congress should repeal the health care law in order to reduce the deficit, dismissing the debt savings from the measure and the Congressional Budget Office’s projections that eliminating the law would “would worsen the budget outlook.” From Hatch’s press release:

With the national debt more than $14.5 trillion and unemployment still over nine percent, U.S. Senator Orrin Hatch (R-Utah) called for the repeal of ObamaCare to be considered as a means to reduce the deficit and create jobs.

“We all knew that ObamaCare was going to be disastrous for our economy and every day that goes by proves that point,” Hatch said. “Whether it be the trillions of dollars in tax hikes or the sheer number of job losses directly from ObamaCare itself, it’s clear that repealing ObamaCare must be on the table during any talks to slash our nation’s debt and create much-needed jobs.”

When Kapur confronted Hatch’s office with CBO data which found that repeal would increase the deficit by $230 billion over 10 years, raise the number of uninsured by 32 million, eliminate subsidies, and force millions of American families to pay higher premiums, and increase premiums for employer-based coverage, Hatch spokeswoman Julia Lawless called its projections “gimmicks.” “That includes all of ObamaCare’s gimmicks,” she said in an email. “The true cost of the bill is $2.6 trillion and that’s a real budget-buster.”

Morning CheckUp: August 30, 2011

Regulators to shame insurers in rate review process starting Thursday: The Obama administration and states “will automatically scrutinize any proposed health-premium increase of 10% or more as part of the 2010 health-overhaul law” but won’t have the authority to block insurers from charging the higher rates. [WSJ]

HHS official compares health law to civil rights movement: “Jay Angoff, special adviser to HHS Secretary Kathleen Sebelius, drew parallels between the two contentious efforts during a panel presentation in Baltimore. He said pushback from state governors over implementation of the law mirrors the acrimony held by many state lawmakers decades earlier when they had to adopt the civil rights package.” “I don’t want to say that the health care law is as important as the civil rights law,” Angoff said. “But there really are some analogies.” [Politico]

Obama administration steps up anti-fraud efforts: “New government statistics show federal health care fraud prosecutions in the first eight months of 2011 are on pace to rise 85% over last year due in large part to ramped-up enforcement efforts under the Obama administration.” [USA Today]

Employees are not willing to sacrifice to pay less for health insurance: Only 27 percent of people with insurance provided through their employer said they would accept a more restricted list of doctors and hospitals in their networks, according to the latest monthly poll from the Kaiser Family Foundation. Less than a third of those polled were willing to pay more for brand name drugs or pay higher deductibles in return for lower premiums. [Kaiser Health News]

Huckabee to headline personhood event: Huckabee will be the keynote speaker kickoff a campaign in support of a “personhood” initiative that is slated to appear on the November ballot in Mississippi. The initiative seeks to define a “person” as a being at the point of fertilization. [Clarion Ledger]

VA abortion clinics see licensing regulations as an “attack”: “Officials at abortion clinics around Virginia said Monday that their offices do not meet building standards in draft state regulations, with one arguing that the move is “an attack on reproductive rights” intended to force clinics to close, not enhance safety as some proponents suggest.” [Pilot Online]

Docs urge research center not to consider cost effectiveness: The Patient Centered Outcomes Research Institute (PCORI), a new medical research body created by the health care law, should not consider the cost of treatments when evaluating them, the nation’s largest physician lobby argues. [Julian Pecquet]

Economy

Thune: Top Message I Got From Town Halls Is ‘Don’t Cut My Social Security And Medicare’

As Republican lawmakers held constituent meetings in their home districts over the August recess, they were often confronted for taking hard-right positions on everything from taxes to entitlement reform, sending a message that at least Sen. John Thune (R-SD) seems to have noticed. Thune said the main things he heard from constitutes was frustration over Congress’ inability to work together and opposition to cuts to social safety net programs, the Argus Leader reports:

“Do something,” Thune said Wednesday after a town hall meeting at the Brandon Municipal Golf Course. “Why can’t you work together? There’s a high level of frustration with the inaction, and there’s a lack of confidence in the country and the economy. They want to see us get something done.”

That’s one of the major insights he’ll take back to Washington, D.C. after the August recess, he said.

It ranks behind “don’t cut my Social Security and Medicare. I’ve heard that quite a bit,” Thune said.

It’s not surprising that Americans are voicing their concern about cuts to Medicare and Social Security, considering that the programs are overwhelmingly popular and that Republicans have threatened to cut them, most notably with the House’s passage of Budget Committee Chairman Paul Ryan’s (R-WI) Medicare-replacement budget. Numerous polls show Americans oppose cutting these social safety net programs as means to rein in the deficit, while 63 percent say they want to see revenue raised through increased taxes on the wealthy or with a millionaires surtax. Meanwhile, Americans are frustrated with Republican lawmakers’ intransigence grinding Congress to halt, as Thune notes.

Thune’s comments are particularly noteworthy in light of the fact that Texas Gov. Rick Perry (R) has made criticism of Social Security — which he has called unconstitutional — a central part of his campaign. (HT: Rachel Weiner)

NEWS FLASH

Report: Health Reform Provision Is Lowering Premiums, Reducing Administrative Costs | An Affordable Care Act provision that requires insurers to spend 80 to 85 percent of premium dollars on health care coverage — the so-called medical loss ratio (MLR) — is leading some insurers to lower premiums, a new Government Accountability Office (GAO) report concludes. Insurers interviewed by GAO said “they are considering reducing premiums in 2012 partly in response to the PPACA MLR requirements” and state regulators reported that some companies “have not applied for premium increases and are making adjustments to lower premiums as a strategy to increase their MLRs.” Most of the insurers are also reducing brokers’ commissions in an effort to lower administrative spending and meet the MLR benchmarks. Companies that exceed the limits are required to rebate their beneficiaries.

Justice

Timeline: Rick Perry’s Shifting Positions On The Constitutionality Of Medicare and Social Security

Poor Rick Perry. Just nine months ago, he published a book arguing that Social Security and Medicare are unconstitutional, only to learn that opposing the nation’s two most popular and successful federal programs doesn’t inspire very much confidence in your fitness for the White House. Ever since the Perry campaign learned this hard lesson, they have been tripping over themselves to distance the candidate from his own most radical views without painting him as flip-flopper. It isn’t going so well.

For anyone who is having trouble keeping track of whether Rick Perry will admit that he thinks Medicare and Social Security are unconstitutional this week, ThinkProgress is pleased to provide this handy timeline. And if you don’t like Perry’s most recent answer, don’t worry! Just wait a few days and he is certain to say something completely different.

  • Nov. 6, 2010: In an interview on CNN, Perry proposes letting states opt their citizens out of Social Security. This proposal is economically impossible to implement, because workers who are too young to receive Social Security benefits would move to an opt-out state to avoid paying Social Security taxes — and then promptly move to a state with Social Security benefits the moment they became eligible. Eventually, the entire system would collapse under the weight of too many Social Security beneficiaries who had not paid into the system.
  • Nov. 15, 2010: Perry publishes Fed Up!, his manifesto against letting the federal government do pretty much anything other than invade foreign nations and maybe deliver the mail. Fed Up! attacks Supreme Court cases permitting “federal laws regulating the environment, regulating guns, protecting civil rights, establishing the massive programs and Medicare and Medicaid, creating national minimum wage laws, [and] establishing national labor laws,” and it argues that we have Social Security “at the expense of respect for the Constitution and limited government.”
  • Aug. 12, 2011: The Daily Beast publishes an interview with Perry from shortly after he released his book. In it, Perry reiterates his view that Medicare and Social Security violate the Constitution. “I don’t think our founding fathers when they were putting the term ‘general welfare’ in there were thinking about a federally operated program of pensions nor a federally operated program of health care. What they clearly said was that those were issues that the states need to address.”
  • Aug. 13, 2011: Perry announces that he is running for president. His campaign announcement echoes a central theme of Fed Up!, that Perry is on a mission to set America “free from the shackles of overbearing federal government.”
  • Aug. 14, 2011: At his very first campaign stop in Iowa, Perry is asked how he would handle entitlement programs such as Social Security and Medicare if elected president. Perry responds, “Have you read my book, ‘Fed Up!’ Get a copy and read it.”
  • Aug. 15, 2011: Perry cites Fed Up! again on the campaign trail, this time pointing to the book’s harsh stance on federal education programs. “I don’t think the federal government has a role in your children’s education.”
  • Aug. 18, 2011: Angry protestors confront Perry at a campaign stop in a New Hampshire restaurant with chants of “hands off Social Security and Medicare!” When a voter reminds Perry that he “said Social Security is unconstitutional,” Perry refuses to respond. Instead, he stuffs a large piece of popover — a hollow egg batter roll similar to a Yorkshire pudding — into his mouth and insists that he can’t answer because “I’ve got a big mouthful.”
  • Later That Day: Perry’s communications director Ray Sullivan tells the Wall Street Journal that “‘Fed Up!’ is not meant to reflect the governor’s current views” on Social Security and that Perry’s nine month-old book is “not in any way [] a 2012 campaign blueprint or manifesto.”
  • Aug. 27, 2011: Perry undisavows Fed Up!. At a campaign stop in Iowa, ThinkProgress’ Scott Keyes asks Perry whether states-rights supporters should be worried that “as governor you said that Social Security is not something that falls in the purview of the federal government, but in your campaign, [you] have backed off that.” Perry is incredulous at the suggestion that his communications director’s nine day-old statement disavowing Fed Up! actually reflects the governor’s current views. “I haven’t backed off anything in my book. Read the book again, get it right. Next question.”
  • Five Minutes Later: Perry un-undisavows Fed Up!. Just a few short minutes after re-embracing Fed Up!‘s claim that Social Security is unconstitutional, Perry tries to distance himself from this view once again. “Those that have said that I said [Medicare and Social Security are] unconstitutional, I’m going to have them read the book. That’s not what I said.”

For the record, Perry is not telling the truth when he claims that he’s never said Social Security and Medicare are unconstitutional.

NEWS FLASH

MAP: 10 States Have Signed Legislation Establishing Health Exchanges | The Center on Budget and Policy Priorities (CBPP) offers this handy map showing how far the states have come in implementing the insurance exchanges that are part of the Affordable Care Act. The summary: 38 states and DC have introduced some form of legislation promoting exchange implementation, 10 states enacted such bills into law, 6 states and DC have exchange establishment legislation that remains pending, 16 states failed to pass establishment legislation, 12 states have not introduced legislation, 9 states
are not interested and at least 2 states have either executed an Executive Order establishing an exchange or have moved forward with setting up the exchange within an existing state program.

Americans Are Against The Health Law Because They Don’t Know What’s In It

The Hill’s Sam Baker pulls out this nugget from the latest Kaiser Family Foundation tracking poll:

People seem to be forgetting what the healthcare reform law does, according to a new poll from the Kaiser Family Foundation.

The monthly tracking poll found a sharp decline in the number of people who are aware that the new law will offer financial help to people who must buy insurance on their own, rather than getting it from an employer. Last summer, 72 percent of those polled were aware of that benefit. Now it’s down to 58 percent.

Fewer than half of the respondents knew the law expands Medicaid, down from two-thirds just over a year ago. Only 29 percent knew that the law eliminates cost-sharing for some preventive services, and half said the law did not provide that benefit.

When all you hear about are the lawsuits challenging the constitutionality of reform and fear-mongering about increased costs and erosion of coverage, naturally you’d be reluctant to support reform. Which is why Nancy Pelosi’s now infamous statement — “We have to pass the bill so you can find out what is in it” — may not be the most eloquently expressed sentiment, but remains true: the real test of the measure’s support will come once it is implemented and Americans actually experience its benefits.

The same, by the way, holds for all of the employer surveys about dumping coverage. Asking businesses what they’ll do about a provision that doesn’t go into effect until 2014 today — when some 40 percent are unfamiliar with its details — is just begging for the worst-case scenario that’s grounded in rumors about “big government regulation” than any serious consideration of the actual provisions in the text of the law.

Kansas Tries To Keep Abortion Regulation Process A Secret

Last month, a federal judge blocked Kansas from enforcing a state law imposing overly rigorous licensing standards on abortion providers pending the resolution of a lawsuit filed by two doctors who perform abortions in the state. Attorneys representing the Kansas abortion providers are alleging that officials drafted the regulations “without independently compiling data or studies on how the new rules would make the procedures safer for the women seeking them,” but they may have a hard time proving their point, since the state is now “battling to keep from revealing details about how it developed” the new rules:

Lawyers for the Kansas Department of Health and Environment and the attorney general want to prevent two abortion clinics from learning how the rules were crafted, as well as the mind-set behind them, according to their court filings.

They are asking a judge to limit the scope of what is shared with the clinics’ lawyers to prevent overly broad requests that don’t lead to relevant evidence, the court documents say.

The state also has denied open-records requests from The Kansas City Star and The Associated Press, which asked for documents that could have shed light on the drafting of the rules.

The licensing rules — which are far more stringent and specific than what the state currently requires of hospitals and ambulatory surgical centers — established new standards for exits, lighting, bathrooms, and equipment and would allow the states to fine clinics or go to court to shut them down. The state had initially denied licenses to two of the three abortion providers, but all are now operating until the lawsuit against the regulations is resolved.

The public timeline suggests that the new rules — which are only a small part of Kansas’ effort to eradicate abortion in the state and create a direct court challenge to Roe v. Wade — were issued hastily with little time to study their effectiveness or need. The state legislature passed the standards in April and Gov. Sam Brownback (R-KS) signed it into law on May 16. Kansas’ Department of Health and Environment issued the final version on June 17 and informed clinics that they would have to comply with the rules by July 1.

The GOP’s ‘Jobs Plan’ And Health Care Regulations

House Majority Leader Eric Cantor has identified the Affordable Care Act’s so-called grandfather rules — that exempt health insurance plans in existence before the law went into effect from many of the new benefits standards and consumer protections that new plans now have to abide by — as one of 10 job destroying regulations Republicans will try to repeal as they “continue to focus on the jobs crisis”:

Grandfathered Health Plans (November/December): We all remember when President Obama promised Americans that if they liked their health care plan they could keep it. Now, the Obama Administration has been issuing further restrictions against those previously protected plans. The result, by the Administration’s own estimates, will be a loss of 49 to 80 percent of small employer plans, 34 to 64 percent of large employer plans, and 40 to 67 percent of individual insurance plans. Meanwhile, employers losing their grandfathered status will face steep penalties, increasing their costs and negatively affecting wages and job growth. The Energy and Commerce, Ways and Means, and Education and Workforce committees will soon be working on legislation to repeal these ObamaCare restrictions.

Conservatives love to use Obama’s “keep your coverage” statement against him, but realistically employers change their health care plans all the time — they did before reform and will continue to do so after. What the administration has tried to do is discourage employers and insurers from avoiding the standards in the law and dramatically changing their plans: cutting benefits, raising co-pays, or lowering the employer contribution.

Employers can make some changes — but they don’t have a blank check to increase costs and reduce benefits. In fact, HHS has loosened these regulations, not tightened them. On Nov. 15, 2010, the Department of Health and Human Services accepted employers’ concerns and updated the rules to allow more plans to keep their grandfather status. Under the original regulation, for instance, some group insurance plans would have been penalized for making small administrative changes, but the updated standards allowed “plans to switch insurance companies and shop for the same coverage at a lower cost while maintaining their grandfathered status.”

Eventually, most plans will lose these protections — and that’s a good thing. The whole point of grandfather rules is to serve as a bridge to gradually move everyone into plans that are required to meet a basic floor of standards. The GOP’s effort to repeal the rules would allow carriers and employers to drastically change their plans and deny insured beneficiaries the benefit of the law’s new consumer protections.

Justice

VIDEO: Rick Perry Flip Flops On Medicare, Claims He ‘Never Said It Was Unconstitutional’

ThinkProgress filed this report from Des Moines, Iowa.

When Texas Gov. Rick Perry (R) released his book Fed Up! in late 2010, one of his main critiques was that, over the past 50 years, the federal government has misconstrued the Constitution to establish “the massive programs of Medicare and Medicaid.” Now that he’s running for president, Perry is trying to sing a different tune on Medicare.

In an interview with the Daily Beast’s Andrew Romano, Perry explained why he thinks Social Security and Medicare are unconstitutional:

I don’t think our founding fathers when they were putting the term “general welfare” in there were thinking about a federally operated program of pensions nor a federally operated program of health care. What they clearly said was that those were issues that the states need to address. Not the federal government. I stand very clear on that.

Yesterday, at a Polk County GOP fundraiser, the Des Moines Register’s Jennifer Jacobs asked Perry to further explain why he believes Medicare is unconstitutional. In a moment of amnesia, the Texas governor declared, “I never said it was unconstitutional.” Perry went on to state, “[t]hose that have said that I said [Medicare and Social Security are] unconstitutional, I’m going to have them read the book.”

JACOBS: You talked about Social Security, can you clarify why you think Medicare is unconstitutional?

PERRY: I never said it was unconstitutional.

JACOBS: Okay, so clarify your position on Medicare.

PERRY: I look at Medicare just like I look at Social Security. They’re programs that aren’t working and we ought to have a national conversation about it. Those that have said that I said they’re unconstitutional, I’m going to have them read the book. That’s not what I said. I said that we need to have a conversation, how are we going to have programs that actually work.

Watch it:

In Fed Up!, Perry explains on page 51 how Medicare is a misreading of the Commerce Clause. On page 48, he calls Social Security “by far the best example” of a program that “violently toss[es] aside any respect for our founding principles.” And on page 50, he says that we have Social Security “at the expense of respect for the Constitution and limited government.”

For Perry to claim that he “never said” Medicare and Social Security are unconstitutional is either a blatant flip-flop or a significant case of amnesia. In either case, with statements like these, one has to ask: has Rick Perry read his own book?

Perry’s Anti-Abortion Law Takes Effect This Week, Requiring Women To Get A Sonogram 24 Hours Before An Abortion

Perry signs a controversial abortion bill into law.

This Thursday marks the beginning of Texas’ new fiscal year, and with it a slew of conservative legislation signed by Gov. Rick Perry (R) takes effect.

Among those laws is the highly controversial sonogram law Perry signed in May, forcing pregnant women seeking abortions to undergo a medically unnecessary ultrasound at least 24 hours before an abortion and to hear a description of the fetus:

One new law requires a doctor to attempt to show a woman seeking an abortion a sonogram of the fetus, to describe the image and to provide the sound of the fetal heartbeat before the procedure. Federal Judge Sam Sparks is expected to rule before Thursday on a challenge to the law by the Center for Reproductive Rights.

This law is intrusive, patronizing to women and unconstitutional,” said Julie Rikelman, the center’s lead attorney on the case. She said patients should be given only the information and medical tests appropriate for the circumstances and that a doctor should not have to act as a “government agent.”

The sonogram law is a transparent attempt by anti-abortion activists to chip away at women’s constitutional right to end a pregnancy. The Senate sponsor of the bill, Dan Patrick (R) hailed it as “the beginning of the end for abortions,” and said he was so proud that he was “inspired to wear my cowboy hat” when Perry signed the bill.

Perry, a self-described “small government” conservative, has no problem inserting the government between women and their doctors. Facing the state’s worst budget crisis in modern history, he dubbed the sonogram bill an “emergency priority” that allowed the legislature to expedite its passage. Texas conservatives initially refused to include exceptions for cases of rape, incest, and fetal abnormality in the bill.

In the last legislative session, Perry also approved drastic cuts of $74 million to family planning services in Texas, which experts say will result in tens of thousands of additional unwanted pregnancies in coming years. The cuts could also result in 180,000 Texans losing access to cancer screenings and basic contraception.

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Virginia To Require Existing Abortion Clinics To Comply With Regulations Intended For New Construction

On Friday, Virginia state health officials released draft regulations requiring existing state abortion providers to meet the physical plant requirements of hospitals. The new rules — the result of a TRAP (Targeted Regulations Against Abortion Providers) law passed by the General Assembly this spring — threaten to shut down Virginia’s abortion clinics, which only handle first-trimester abortions and are currently subject to the same regulations as physician practices.

The draft guidelines were formulated through an ‘emergency’ process that bypasses the normal public notice and rely on standards that were only “intended for brand new construction in the process of being built,” not existing clinics for whom compliance would be completely cost prohibitive. From the Virginia Coalition to Protect Women’s Health:

In particular, the draft regulations require existing women’s health centers in Virginia to meet extensive, significant physical plant requirements found in the 2010 Guidelines for Design and Construction of Health Care Facilities – including Guidelines for Outpatient Surgical Facilities, otherwise called ambulatory surgical facilities. These Guidelines are intended for brand new construction in the process of being built. These standards were never intended for existing health care structures and are not intended to apply to office-based surgical procedures. By relying on the 2010 Guidelines and imposing them on existing structures, the Virginia Department of Health would force substantial architectural changes by women’s health centers in order to be in compliance. Rather than protect women’s health, the regulations could endanger women because they could limit access to safe abortion by driving legitimate providers out of practice, which could place the health of women in Virginia in jeopardy.

The proposal also “allows the state’s health commissioner to suspend or revoke a clinic’s license, requires that a facility has an infection prevention plan and mandates that anesthesia be administered by a doctor.” The state’s Board of Health will vote on the rules on Sept. 15 and they will go into effect on Dec. 31. These “emergency rules will remain in effect while permanent regulations are crafted.”

Meanwhile, it is already difficult to access abortion services in the Commonwealth, “with 86 percent of Virginia’s counties lacking any abortion providers at all.”

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Morning CheckUp: August 29, 2011

GOP radio address attacks Democrats for ‘lying’ about entitlement reform: “Let’s stop the lies about who wants to end Medicare or eliminate Social Security and fix both programs now,” Sen. Dean Heller (R-NV) said. “Every member of Congress knows these programs are unsustainable in their current state. They will not be around for our generation or the next unless Congress takes the necessary steps to strengthen these programs. They can be fixed, but the lies have to stop. Nobody is proposing that we end Medicare or Social Security.” [USA Today]

Perry’s malpractice claims debunked by Politifact: “The wholesale transformation that Perry describes is not backed up by the numbers. Perry said Texas has 21,000 more doctors thanks to tort reform. That’s flat out wrong. Texas has only about 13,000 more doctors in the state and the historic trends suggest that population growth was the driving factor. We rate his statement False.” [NPR]

Insurance industry may see less profit as a result of reform: “According to a new projection from the Boston Consulting Group, insurance industry revenues are expected to double to more than $1.2 trillion from 2011 to 2019 as an influx of previously uninsured people buy coverage. However, the industry’s profit margin could decline from nearly 5% to below 3% during that time period.” [MedPage Today]

Medicaid managed care could lead to gains: “With the expansion of Medicaid managed care underway in at least 20 states and the surge of enrollment in 2014, insurers expect $60 billion in new annual revenue.” [Washington Post]

Although it’s unclear that it can generate savings: “The National Bureau of Economic Research published this month the first national report on Medicaid managed care and cost savings. It’s verdict: moving Medicaid recipients into managed care ‘did not lead to lower Medicaid spending during the 1991 to 2003 period.’” [Sarah Kliff]

Kansas committee will still pursue exchanges: “A committee working on establishing a health insurance exchange in Kansas decided on Wednesday to continue its efforts even though Gov. Sam Brownback rejected a $31.5 million federal grant to set up the exchange, and many in the Legislature want nothing to do with it.” [LJWorld]

Texas sonogram law goes into effect this week: “One new law requires a doctor to attempt to show a woman seeking an abortion a sonogram of the fetus, to describe the image and to provide the sound of the fetal heartbeat before the procedure. Federal Judge Sam Sparks is expected to rule before Thursday on a challenge to the law by the Center for Reproductive Rights.” [Express News]

California passes key health reform legislation: The California Senate passed legislation dealing with rate regulation and limiting the amount of premium dollar that could be spent on insurer profit. The bills now head for a final vote and must pass the full legislature in the next two weeks. [California Progress Report]

Drug supplements may contain deadly ingredients: Americans spent $28.1 billion on drug supplements last year, up from $21.3 billion five years ago. But some of these products “contain amphetamines, synthetic steroids, laxatives and compounds like the active drug in Viagra” and “can cause heart attacks and strokes, and can damage the kidneys and liver.” [NYT]

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Economy

Rep. Hensarling Says ‘Everything Is On The Table’ For Supercommittee, Even Tax Increases

Rep. Jeb Hensarling (R-TX), the co-chair of the joint supercommittee that will attempt to negotiate a debt deal this fall, told the Dallas Chamber of Commerce today that he will not take any policy options off the table before the committee begins negotiating. That includes new taxes, even though Hensarling personally opposes them, the Dallas Morning News reports:

If I start to take something off the table, then maybe Senator [Patty] Murray takes something off the table and the talks fail before they even get started,” Hensarling said, referring to the Washington state senator who co-chairs the panel. [...]

“I have an open mind, but it is not an empty mind,” Hensarling said before addressing the Dallas Regional Chamber.”

In prior negotiations, the GOP held steadfast to its no taxes pledge, a stance that is not only opposed by a majority of Americans but also played a significant role in the downgrade of the nation’s credit rating earlier this month. Republican representatives who stonewalled every attempt to raise revenue, even as corporations and the wealthy pay low taxes and oil companies continue to benefit from huge government subsidies, have come under fire during the August recess as voters slam them for signing nonsensical tax pledges instead of listening to their constituents.

The fact that Hensarling isn’t immediately discarding the possibility of new revenues is progress, but the chance that he or the GOP have had a major change of heart on revenues is likely slim. House Majority Leader Eric Cantor (R-MD) has urged his colleagues to ignore the implications of Standard & Poor’s downgrade report, falsely claiming that it did not smack Republicans for refusing any and all forms of revenue. More likely, Hensarling, who supports the GOP’s radical Balanced Budget Amendment and wants the supercommittee to revise the Affordable Care Act, is just positioning himself at the bargaining table before the supercommittee convenes for the first time.

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NEWS FLASH

The GOP Presidential Candidates On Health Care | The Kaiser Family Foundation has put together an invaluable table showing where all of the GOP presidential candidates stand on health care issues like Medicare, the insurance marketplace, health reform philosophy and Medicaid. Click over here for more, but suffice it to say, the party is looking to repeal the Affordable Care Act, deregulate the health industry, and shift more of the cost and risk of Medicare and Medicaid from the federal government and onto individuals and states.

NEWS FLASH

The Federal Government’s Poor High-Risk Pool Track Record Doesn’t Bode Well For The Exchanges | The federal government isn’t very good at enrolling people in high-risk insurance pools, a new Government Accountability Office report has concluded. The Hill’s Julian Pecquet reports that as of April 30, “27 states that operate their own pools had enrolled 15,781 people with pre-existing conditions. The federally-operated pool for the 23 other states and the District of Columbia, by contrast, only had 5,673 enrollees.” While the high-risk pools have long suffered from eligibility limitations, high premiums, and a lack of funding, this report can’t speak very well for the federal government’s ability to enroll people in exchanges by 2014, once some states opt out of building their own marketplaces.

$5.7 Billion Is A Small Number

The Incidental Economist has done some fantastic blogging explaining why the super committee should reject a proposal to raise the Medicare age from 65 to 67. The policy shifts costs to employers, beneficiaries, young people, and state governments, but most importantly the savings it generates are minuscule — $5.7 billion. Doesn’t sound all that small? Well, as Austin Frakt explains, “the Trustees of Medicare have estimated that the total spending by Medicare in that year will be $643.4 billion. Thus, the savings we might obtain by delaying eligibility until 67 is a mere 0.9% of total program spending”:

The point is that we can probably get much better savings — and actually reduce the rate of growth in health care — if we really step up the system modernization provisions in the health law.

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Byron York: Employers Dropping Coverage Will Lead To A Single-Payer Health Care System

Byron York is out with a new column touting an employer survey which found that some businesses will stop offering health insurance coverage as a result of the Affordable Care Act. He argues that this so-called employer “dumping” of employees into the new exchanges is all part of a Democratic conspiracy to move the nation towards a single-payer health care system:

So when it takes effect in 2014, the law will give employers a choice: Continue to offer increasingly expensive health coverage, or pay a relatively small fine, save a lot of money, and let employees buy their own subsidized coverage on the exchange. The incentive seems pretty clear.

Now, it should surprise no one that more and more companies are exploring the possibility of dropping their employee health coverage in 2014. A new study from the benefits-consulting firm Towers Watson finds that nearly 10 percent of midsized to large companies are seriously considering doing just that, and another 20 percent are thinking about it. Still others don’t know. “Many are uncertain how they will respond to the looming impact of state-based insurance exchanges in 2014,” says Towers Watson.

How many companies will actually drop their employee coverage? It’s impossible to say. But from the latest surveys — the Towers Watson report is just one of several that have found employers contemplating the move — it’s safe to say that some will, and more could follow….He couldn’t pass a single-payer system, or even a public-option system, even when he had filibuster-proof majorities in Congress. But he could enact a system that will take a slower route in that direction.

Employers have been dropping coverage since before the ACA became law and will continue to make changes after. What’s important is that academic studies and real world experiences with mandate policies have shown that health reform will have very little impact on coverage rates. For instance, when Massachusetts employers were working to comply with Romneycare in 2006, they were given a choice between paying a very low penalty or continuing to offer coverage. The majority of businesses decided that health benefits made up an important part of their compensation package and continued to provide the service, so much so that the number of employers with coverage increased since the law passed. Massachusetts ESI (employer sponsored insurance) rates are higher than the national average.

This is because employers aren’t only looking at the cost-benefit of offering coverage or paying a penalty. They’re considering the long history of using benefits to attract top-tier employees, the burden of increasing employees’ wages to make-up for the benefit loss and a whole host of other factors. As the Urban Institute has concluded, “[T]here is little scope for firms being able to save money from dropping ESI coverage except perhaps in firms where most workers have low wages as well as low family incomes, and these types of firms are the least likely to offer ESI today.”

But what’s particularly rich about York’s argument is his new found love for employer based insurance. Remember that this critique is emanating from the very people who just two years ago rallied around proposals to eliminate the employer based system entirely by converting the federal tax subsidy for employer-sponsored benefits into a tax credit for individuals and families to go out and buy coverage on the individual market. Now, they’re using the prospect of that erosion to stroke fears of yet another government-takeover.

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Yglesias

Ron Paul On Abortion: A Libertarian, As Long As You Don’t Think Women Count As People

Two sources of pushback on my post on Ron Paul’s anti-freedom view of abortion rights. Ann Althouse chooses for some reason to dispute that Ron “respecting the God-given right to life—for those born and unborn” Paul wants to ban abortion. Since she’s apparently incapable of reading between the lines of such proposals as “Defining life as beginning at conception by passing a Sanctity of Life Act’” she might be interesting in some other quotations from Congressman Paul such as:

Abortion on demand is the ultimate State tyranny; the State simply declares that certain classes of human beings are not persons, and therefore not entitled to the protection of the law. The State protects the “right” of some people to kill others, just as the courts protected the “property rights” of slave masters in their slaves. Moreover, by this method the State achieves a goal common to all totalitarian regimes: it sets us against each other, so that our energies are spent in the struggle between State-created classes, rather than in freeing all individuals from the State. Unlike Nazi Germany, which forcibly sent millions to the gas chambers (as well as forcing abortion and sterilization upon many more), the new regime has enlisted the assistance of millions of people to act as its agents in carrying out a program of mass murder.

He has also stated “I believe beyond a doubt that a fetus is a human life deserving of legal protection, and that the right to life is the foundation of any moral society” and noted that his states’ rights take on abortion law is purely opportunistic “It is much more difficult for pro-life advocates to win politically at the federal level.” This makes perfect sense. If you believed, as Paul and other abortion criminalizers do, that legal abortion is a form of mass murder comparable to the Nazi genocide you obviously wouldn’t believe in any principled way that the mass murder is fine as long as the perpetrators have to drive from Idaho west to Oregon in order to perpetrate it.

Second, some people want to tell me that if you accept the erroneous metaphysics of the anti-abortion movement, that then treating women who terminate pregnancies as criminals makes perfect libertarian sense. For one thing, I don’t accept the erroneous metaphysics of the anti-abortion movement. But even if you do, this doesn’t make sense. The “pro-life” position amounts to a conjunction of the proposition that a fetus is a moral person and that a pregnant woman has a strong legally enforceable rescue duty. But Paul doesn’t believe the state should tax people to feed the poor, or impose rescue duties in any other context. Rather, he simply seems to feel that pregnant women aren’t really people. Paul himself, I note, is a good deal clearer about his ideological positioning than are many of his friends on the Internet. He’s a social conservatives who sees his political views as an extension of his personal relationship with Jesus Christ running for president on a promise to “Restore America Now” to some past edenic state. The good news is that America would be a better place if Paul-style views on foreign policy carried more weight in Washington.

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Florida’s Rick Scott Is Happy To Implement A Health Care Exchange…As Long As It’s Not Part Of Obamacare

Inside Health Policy’s Rachana Dixit reports that Florida Gov. Rick Scott’s (R) opposition to establishing a state-based exchange may have more to do with partisan politics than the policy included in the Affordable Care Act. As it turns out, Florida is “slowly moving ahead to provide small group coverage to Florida’s small businesses,” but it’s doing so through 2008′s Florida Health Choices Act rather than the federal health care law.

Florida has refused to integrate the measure — which was spearheaded by then-state House Speaker Marco Rubio and expanded by Scott — into the requirements of the ACA, claiming that it is unconstitutional and does not “fit in with what we’re trying to do“:

An exchange consultant said Florida Health Choices, though created in 2008, has taken some time to get up and running. Rose Naff, Florida Health Choices’ CEO, told Inside Health Policy that the program is moving forward on planning a small group market pilot program that would test offering health insurance to small businesses for at least six months, and expects to have an estimated launch date soon. Participation in the choices program by employers is voluntary. [...]

But the exchange consultant said that the $1 million planning grant Florida denied likely would have been spent on things the state has already done in planning for Florida Health Choices. Florida Health Choices is not the Florida exchange but the consultant said it appears that nothing would preclude it from becoming that.

While Florida will likely have to adapt to the federal law’s more stringent requirements, the exchange does compliment (and could even benefit from) the provisions in the Affordable Care Act. So far, Rubio’s law to allow employers to offer employees access to health insurance plans has not sold any policies, despite receiving a $1.5 million appropriation from the state. In 2008, Rubio championed the plan in the rhetoric of health reform advocates, saying “it’s about competition, it’s about choice, and it’s about the marketplace.”

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