Category Archives: Medicaid

Let the Railroading Commence

24 Sunday Jul 2011

Posted by in budget, Congress, economy, Medicaid, Medicare, Social Security

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I sense that the railroading of the American public will commence shortly. That August 2nd deadline for either raising the debt ceiling or facing economic crisis has now been moved up to 4pm today, so says Speaker Boehner and Treasury Secretary Geithner.

“House Speaker John Boehner (R-Ohio) told his GOP rank-and-file that congressional leaders are working round the clock on a deal set for release before the Asian markets open on Sunday at 4 p.m., a source tells The Hill.”

“The speaker and other leaders started their day at the White House, where Treasury Secretary Timothy F. Geithner warned of possible trouble in the markets if policymakers don’t announce a viable plan for raising the debt limit before Asian exchanges open Sunday evening, according to people familiar with the meeting.”

Add that to remarks by John Chambers, managing director of Standard and Poor’s, in an interview last week:

“Chambers added…that even if the parties agree to raise the debt ceiling, it may not be enough to avert a [credit rating] downgrade. Chambers said the country must implement a plan to reduce the annual budget deficit by roughly $4 trillion over 10 years, which makes the debt manageable over the long term.”

Since when do the ratings agency crooks who aided and abetted the banksters—and profited handsomely from doing so—leading up to the mortgage meltdown, get to dictate economic policy? But I digress.

That sort of ‘we have to do something big and do it now, or else’ mentality leads to “solutions” like proposing a “Super Congress”:

“Debt ceiling negotiators think they’ve hit on a solution to address the debt ceiling impasse and the public’s unwillingness to let go of benefits such as Medicare and Social Security that have been earned over a lifetime of work: Create a new Congress.

This “Super Congress,” composed of members of both chambers and both parties, isn’t mentioned anywhere in the Constitution, but would be granted extraordinary new powers. Under a plan put forth by Senate Minority Leader Mitch McConnell (R-Ky.) and his counterpart Majority Leader Harry Reid (D-Nev.), legislation to lift the debt ceiling would be accompanied by the creation of a 12-member panel made up of 12 lawmakers — six from each chamber and six from each party.

Legislation approved by the Super Congress — which some on Capitol Hill are calling the “super committee” — would then be fast-tracked through both chambers, where it couldn’t be amended by simple, regular lawmakers, who’d have the ability only to cast an up or down vote.”

It would also require only a simple majority vote. Isn’t it amazing how that 60-vote filibuster thingy isn’t an obstruction when it comes to what Congress really really wants to do? Like screw us over.

If this all sounds a bit familiar, it’s because we’ve been here before. Remember TARP? Get ready for TARP 2.0. Yves Smith at naked capitalism:

“We commented last night on the parallels between the pressure tactics used to railroad the passage of the TARP and our current contrived debt ceiling crisis. The similarities have increased in a predictably bad way. Even worse than the economic toll radical budget cutting will impose on ordinary Americans is the continued undermining of basic democratic processes.

The foundation was set with the TARP’s radical power grab…[H]ere is the truly offensive section of an overreaching piece of legislation:

“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”

[…]

As with the TARP, we have the drumroll of a purported threat to public safety, namely the possible Destruction of the Financial System as We Now Know It. John Boehner is stoking the panic by saying there needs to be a deal by the opening of trading in Asia or the Market Gods will take their vengeance. Turbo Timmie will no doubt warn of dire consequence of the failure to ink a deal by the supposed drop dead date of August 2 when he makes the rounds on Sunday TV.”

“I hear the train a comin’, it’s rollin’ ’round the bend…”

All the Bad News That Fits

23 Saturday Jul 2011

Posted by in Afghanistan, budget, Congress, economy, Iraq, Medicaid, Medicare, Obama, Politics, Social Security, Unemployment, Wall Street

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“I met a girl who sang the blues, and I asked her for some happy news. She just smiled and turned away.”

In the latest episode of “As the Debt Ceiling Turns”; Boehner walks, Obama has a hissy fit, and Pelosi throws yet another plan into the mix:

“House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to avoid a default that involves up to $2.5 trillion in spending cuts — without agreed-upon new tax revenues — if Medicare, Medicaid, and Social Security are protected from the debt limit brinksmanship.”

Yes, by all means, let’s cut spending. Never mind this:

“Companies are laying off employees at a level not seen in nearly a year, hobbling the job market and intensifying fears about the pace of the economic recovery.

Cisco Systems Inc., Lockheed Martin Corp. and troubled bookstore chain Borders Group Inc. are among those that have recently announced hefty cuts, while recent government numbers underscore how companies have shifted toward cutting jobs.

The increase in layoffs is a key reason why the U.S. recorded an average of only 21,500 new jobs over the past two months, far below the level needed to bring down unemployment, which now stands at 9.2%.”

Or this:

“Initial weekly unemployment claims increased to 418,000. The 4 week moving average is 421,250. A weekly average above 400,000 does not indicate job growth and we now have a pattern of perpetual disaster for U.S. citizens trying to earn a living.”

About that default deadline, is it August 2, August 10, or August 15? Nobody seems to know for sure.

The Money Party has some questions and answers on Obama’s handling of the budget never let a good crisis go to waste. Here’s just one:

“Question:  Why did President Obama put Social Security and Medicare on the table in the budget negotiations when 80% of the people oppose cuts to these programs?

Answer:  The president is not in office to represent those people.  He was selected, funded and carried over the finish line by corporate America.  Look at the appointment of Wall Streeter Timothy Geithner, the bailouts, and the failure to prosecute any of the crooks who caused the current recession. He’s serving the people who put him in office.  Those people don’t need Social Security and Medicare.”

Not only serving the people who put him in office, but serving those who he is depending on to keep him there:

“Among big fundraisers, Obama has drawn close to a third of his money from people in the finance industry, up from 20% during his 2008 campaign, according to an analysis by the Center for Responsive Politics.

The amount raised so far is more than two-thirds what Wall Street elites helped Obama raise in his entire 2008 campaign. And it is enough to make the finance world the single largest source of big-ticket donations for Obama.”

While we cut the social safety net out from under our most vulnerable at home, billions are going unaccounted for in Afghanistan:

“SIGAR [Special Inspector General for Afghanistan Reconstruction] found that U.S. agencies have limited visibility over U.S. cash that enters the Afghan economy — leaving it vulnerable to fraud and diversion to the insurgency…”SIGAR auditors found that U.S. agencies have not done all they can to safeguard U.S. funds, and the Afghan government has not provided the cooperation needed to build a strong, secure financial system.”

Also on the Endless War front, the State Department is telling the Special Inspector General in Iraq to mind his own business when it comes to State’s mercenary army in that country:

“By January 2012, the State Department will do something it’s never done before: command a mercenary army the size of a heavy combat brigade. That’s the plan to provide security for its diplomats in Iraq once the U.S. military withdraws. And no one outside State knows anything more, as the department has gone to war with its independent government watchdog to keep its plan a secret.

Stuart Bowen, the Special Inspector General for Iraq Reconstruction (SIGIR), is essentially in the dark about one of the most complex and dangerous endeavors the State Department has ever undertaken, one with huge implications for the future of the United States in Iraq. “Our audit of the program is making no progress,” Bowen tells Danger Room.

For months, Bowen’s team has tried to get basic information out of the State Department about how it will command its assembled army of about 5,500 private security contractors. How many State contracting officials will oversee how many hired guns? What are the rules of engagement for the guards? What’s the system for reporting a security danger, and for directing the guards’ response?

And for months, the State Department’s management chief, former Ambassador Patrick Kennedy, has given Bowen a clear response: That’s not your jurisdiction. You just deal with reconstruction, not security. Never mind that Bowen has audited over $1.2 billion worth of security contracts over seven years.”

To be continued…unfortunately.

Obama Hearts the “Gang of Six” Plan

20 Wednesday Jul 2011

Posted by in budget, Congress, economy, health care, Medicaid, Medicare, Obama, Politics, Social Security, Taxes, Unemployment

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President Obama was quick to endorse the latest deficit reduction plan, the one from the so-called “Gang of Six” released yesterday, calling it a “very significant step” and “broadly consistent with the approach he has advocated.” This without knowing the details. But the details weren’t really important, because all the major elements are indeed consistent with what the president wants in this deficit reduction shell game.

* Medicare, Medicaid, and Social Security cuts.
* Further cuts in the top marginal income tax rates. (So much for that pledge to let the Bush tax cuts expire).
* Corporate tax cuts.
* The continuation of Reaganomics and Bushonomics. That would be the supply-side, tax cuts equals increased revenue and economic growth nonsense that we all know works so well.

The broad strokes of the “Gang of Six” plan (and just as an aside I wonder why Sen. Sanders is never included in any of these gangs? Not bi-partisany enough, I assume) are as follows:

An immediate $500 billion “down payment” on deficit reduction. All spending cuts, all from unnamed programs. A brilliant idea in a recession. The other $3.2 trillion in savings would be decided by various committees at some later date, enforced by spending caps. Congress would be required to get a 2/3 vote to exceed those caps. IOW, when the next recession hits, anybody looking for any assistance is SOL. David Dayen at Firedoglake:

“Simply put, this is a recipe for depression. When the economy suffered and stimulus would be required to increase aggregate demand, the 2/3 vote needed would simply put a stop to it. The New Deal would have been out of order under this regime. Same with the Recovery Act. Any spending from the federal government would be restricted as much as it is in the states. So there could only be the status quo or contraction in fiscal policy in the event of a recession, which is a perfect way to create a depression.”

Also in the down payment would be the institution of chained CPI, aka a cut in SS benefits, and repeal of the CLASS Act, which was a part of health care reform that the insurance lobby fought tooth and nail. From the New York Times, December of 2009:

“The Class Act, which the late Sen. Ted Kennedy considered his legacy, would allow people to buy long-term care insurance through payroll deductions and to receive cash if they’re later disabled, regardless of their age or of a previous health condition. “This is the best chance the baby boomers have to protect themselves from impoverishment if they need long-term care,” Mr. [Jim] Firman [president of the National Coalition on Aging] said.”

That is Part One. Part Two calls for an additional $200 billion in “healthcare savings,” aka Medicare and Medicaid cuts, and an $80 billion cut in the defense budget. That’s $80 billion over ten years, pocket change for the Pentagon. Gotta love that shared sacrifice.

In Part Two, the Finance Committee…

“…would be required to reduce tax rates to three tax brackets of rates: of 8-12 percent, 14-22 percent and 23-29 percent. The current top marginal rate is 35 percent. The corporate tax rate would be between 23 percent and 29 percent…”

And this little goodie for corporations as well:

“…tax reform would cease taxation of overseas profits.”

The corporate behemoths had been lobbying to get the tax on overseas profits reduced, allegedly under the guise of returning these profits for use in job creation, but that’s not how it worked before:

“Congress and the Bush administration gave companies a similar tax incentive, in 2005, in hopes of spurring domestic hiring and investment.

While the tax break lured 800 companies into bringing $312 billion back to the United States, 92 percent of that was used for dividends and stock buybacks, according to the nonpartisan National Bureau of Economic Research. The study concluded the program “did not increase domestic investment, employment or research and development.”

Indeed, 60 percent of the benefits went to 15 of the largest U.S. multinational companies — many of which laid off domestic workers, closed plants and shifted even more profits and resources abroad in hopes of cashing in on the next repatriation holiday.”

So let’s just eliminate the tax entirely. Nice.

More on the tax “reform” aspects of this plan:

“Coburn said the plan would reduce the deficit by $3.7 trillion over the next 10 years and increase tax revenues by $1 trillion by closing a variety of special tax breaks and havens. He also noted, however, that the Congressional Budget Office would score the plan as a $1.5 trillion tax cut because it would eliminate the Alternative Minimum Tax.”

I’m not sure how that works. How is $1 trillion in revenue increases scored as a $1.5 trillion tax cut? But I know for sure how this works, it doesn’t:

“It would generate a significant amount of revenue out of tax reform and reduction of tax rates, which authors believe would spur economic growth.”

And I believe in the Tooth Fairy and the Easter Bunny.

Shared Sacrifice, 2011 Style

06 Wednesday Jul 2011

Posted by in budget, Medicaid, Medicare, Obama

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In light of this:

“Before Medicare was implemented—as a social-welfare program designed not just to deliver care but to poverty—one in five Americans lived below the poverty line. After the program was implemented, and after related “War on Poverty” initiatives were developed, that number was cut almost in half. Poverty among seniors dropped by two thirds.

Why? Before Medicare, millions of elderly Americans could not afford to buy healthcare. They did not have access even to basic care. When they needed treatment for the inevitable ailments that are associated with aging, they and their families spent down what meager savings that retained and a stumble into poverty soon followed.

Medicare broke the vicious cycle for the elderly, as Medicaid did for disabled Americans and their families. “For more than four decades, Medicare has kept millions of our senior citizens from living out their days in poverty,” explains one of the program’s steadiest champions, Congresswoman Tammy Baldwin, D-Wisconsin.

Medicare continues to serve the purpose for which it was created. Indeed, so much good continues to come of this program—and of Medicaid—that it is difficult to imagine why anyone would seek to dismantle the program.”

What the hell is up with this?

“Obama administration officials are offering to cut tens of billions of dollars from Medicare and Medicaid in negotiations to reduce the federal budget deficit, but the depth of the cuts depends on whether Republicans are willing to accept any increases in tax revenues.

Administration officials and Republican negotiators say the money can be taken from health care providers like hospitals and nursing homes without directly imposing new costs on needy beneficiaries or radically restructuring either program.”

Yeah, right. Now tell me the one about Goldilocks and the bears.

“Before the talks led by Vice President Joseph R. Biden Jr. broke off 12 days ago, negotiators said, they had reached substantial agreement on many cuts in the growth of Medicare, which provides care to people 65 and older, and Medicaid, which covers lower-income people. Those proposals are still on the table when Congress reconvenes this week, aides said, and are serious options that Democrats could accept in exchange for Republican concessions that raise revenues.”

So in exchange for tens of billions of cuts to Medicare and Medicaid Republicans might “concede” on the much over-hyped tax break for corporate jet owners, which amounts to a whopping $300 million a year.

Shared sacrifice, 2011 style.