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ObamaCare bailout


Posted: Apr 2, 2011

Here's a simple question:  Why on earth, after a year, are we STILL finding what's in it?  How long is it going to take to find all these "little-known provisions?

Transparency - the promise that keeps on breaking.



Uncovered: New $2 billion bailout in Obamacare

By: Byron York 03/31/11 11:02 PM

Investigators for the House Energy and Commerce Committee have discovered that a little-known provision in the national health care law has allowed the federal government to pay nearly $2 billion to unions, state public employee systems, and big corporations to subsidize health coverage costs for early retirees.  At the current rate of payment, the $5 billion appropriated for the program could be exhausted well before it is set to expire.

The discovery came on the eve of an oversight hearing focused on the workings of an obscure agency known as CCIO -- the Center for Consumer Information and Insurance Oversight.  CCIO, which is part of the Department of Health and Human Services, oversees the implementation of Section 1102 of the Affordable Care Act, which created something called the Early Retiree Reinsurance Program.  The legislation called for the program to spend a total of $5 billion, beginning in June 2010 -- shortly after Obamacare was passed -- and ending on January 1, 2014, as the system of national health care exchanges was scheduled to go into effect.

The idea was to subsidize unions, states, and companies that had made commitments to provide health insurance for workers who retired early --  between the ages of 55 and 64, before they were eligible for Medicare. According to a new report prepared by the Department of Health and Human Services, "People in the early retiree age group…often face difficulties obtaining insurance in the individual market because of age or chronic conditions that make coverage unaffordable or inaccessible."  As a result, fewer and fewer organizations have been offering coverage to early retirees; the Early Retiree Reinsurance Program was designed to subsidize such coverage until the creation of Obamacare's health-care exchanges.

The program began making payouts on June 1, 2010.  Between that date and the end of 2010, it paid out about $535 million dollars.  But according to the new report, the rate of spending has since increased dramatically, to about $1.3 billion just for the first two and a half months of this year. At that rate, it could burn through the entire $5 billion appropriation as early as 2012.

Where is the money going?  According to the new report, the biggest single recipient of an early-retiree bailout is the United Auto Workers, which has so far received $206,798,086.  Other big recipients include AT&T, which received $140,022,949, and Verizon, which received $91,702,538.  General Electric, in the news recently for not paying any U.S. taxes last year, received $36,607,818.  General Motors, recipient of a massive government bailout, received $19,002,669.

The program also paid large sums of money to state governments.  The Public Employees Retirement System of Ohio received $70,557,764; the Teacher Retirement System of Texas received $68,074,118; the California Public Employees Retirement System, or CalPERS, received $57,834,267; the Georgia Department of Community Health received $57,936,127; and the state of New York received $47,869,044.  Other states received lesser but still substantial sums.

But payments to individual states were dwarfed by the payout to the auto workers union, which received more than the states of New York, California, and Texas combined.  Other unions also received government funds, including the United Food and Commercial Workers, the United Mine Workers, and the Teamsters.

Republican investigators count the early-retiree program among those that would never have become law had Democrats allowed more scrutiny of Obamacare at the time it was pushed through the House and Senate.  Since then, Republicans have kept an eye on the program but were not able to pry any information out of the administration until after the GOP won control of the House last November.  Now, finally, they are learning what's going on.

;

Who is Byron York? - sm

[ In Reply To ..]
What are his credentials? What organization is he writing on behalf of?

A portion of his article states, The legislation called for the program to spend a total of $5 billion, beginning in June 2010 -- shortly after Obamacare was passed -- "

"Obamacare" as some are so fond of calling the proposed healthcare reform bill, has not been "passed." This article is riddled inconsistencies.

York - sm

[ In Reply To ..]
Wait, the healthcare reform bill has not passed? How did I miss that?

Where are the inconsistencies in the OPs posted article? When you read the article, it says who he is writing for and you can certainly look at his credentials if you want. A poster (no1joe?) said that listing that kind of stuff clogs up the post. You can't have this both ways.

Are you suggesting that a poster has to list the resume of a writer and list their credentials? Give me a break.

sigh - icedT

[ In Reply To ..]

What are the inconsistencies? Obamacare was passed on March 19, 2010, so I'm not sure what you mean by saying that it's not passed.


Anyway, here's the Press Release from the House and Energy Committee site. There is a link at the site where you can read the Energy and Commerce Staff Report. I will not, however, gather the credentials for the Energy and Commerce Staff--you can do that on your own if you want.

http://energycommerce.house.gov/news/PRArticle.aspx?NewsID=8427

Press Release
Uncovered: New $2 billion bailout in Obamacare

April 1, 2011

Investigators for the House Energy and Commerce Committee have discovered that a little-known provision in the national health care law has allowed the federal government to pay nearly $2 billion to unions, state public employee systems, and big corporations to subsidize health coverage costs for early retirees.  At the current rate of payment, the $5 billion appropriated for the program could be exhausted well before it is set to expire.

The discovery came on the eve of an oversight hearing focused on the workings of an obscure agency known as CCIO -- the Center for Consumer Information and Insurance Oversight.  CCIO, which is part of the Department of Health and Human Services, oversees the implementation of Section 1102 of the Affordable Care Act, which created something called the Early Retiree Reinsurance Program.  The legislation called for the program to spend a total of $5 billion, beginning in June 2010 -- shortly after Obamacare was passed -- and ending on January 1, 2014, as the system of national health care exchanges was scheduled to go into effect.

The idea was to subsidize unions, states, and companies that had made commitments to provide health insurance for workers who retired early --  between the ages of 55 and 64, before they were eligible for Medicare. According to a new report prepared by the Department of Health and Human Services, "People in the early retiree age group…often face difficulties obtaining insurance in the individual market because of age or chronic conditions that make coverage unaffordable or inaccessible."  As a result, fewer and fewer organizations have been offering coverage to early retirees; the Early Retiree Reinsurance Program was designed to subsidize such coverage until the creation of Obamacare's health-care exchanges.

The program began making payouts on June 1, 2010.  Between that date and the end of 2010, it paid out about $535 million dollars.  But according to the new report, the rate of spending has since increased dramatically, to about $1.3 billion just for the first two and a half months of this year. At that rate, it could burn through the entire $5 billion appropriation as early as 2012.

Where is the money going?  According to the new report, the biggest single recipient of an early-retiree bailout is the United Auto Workers, which has so far received $206,798,086.  Other big recipients include AT&T, which received $140,022,949, and Verizon, which received $91,702,538.  General Electric, in the news recently for not paying any U.S. taxes last year, received $36,607,818.  General Motors, recipient of a massive government bailout, received $19,002,669.

The program also paid large sums of money to state governments.  The Public Employees Retirement System of Ohio received $70,557,764; the Teacher Retirement System of Texas received $68,074,118; the California Public Employees Retirement System, or CalPERS, received $57,834,267; the Georgia Department of Community Health received $57,936,127; and the state of New York received $47,869,044.  Other states received lesser but still substantial sums.

But payments to individual states were dwarfed by the payout to the auto workers union, which received more than the states of New York, California, and Texas combined.  Other unions also received government funds, including the United Food and Commercial Workers, the United Mine Workers, and the Teamsters.

Republican investigators count the early-retiree program among those that would never have become law had Democrats allowed more scrutiny of Obamacare at the time it was pushed through the House and Senate.  Since then, Republicans have kept an eye on the program but were not able to pry any information out of the administration until after the GOP won control of the House last November.  Now, finally, they are learning what's going on.

Byron York is a writer for United Features Syndicate. Here's another recent article - Backwards Typist

[ In Reply To ..]


Other than that, I have not looked up his credentials but I read him all the time in my local newspaper.

Wisconsin labor fight far from over

If you're a Republican, it's a scenario straight out of "Alice in Wonderland." Fourteen Wisconsin state senators, all Democrats, flee the state for three weeks, bringing government to a halt in an effort to stop Gov. Scott Walker's budget bill. After three weeks, the fugitive Democrats return in failure. And then, when a rich and highly organized effort to punish lawmakers is launched, it's directed not at the Democrats who ran away but at the Republicans who stayed home and did their job.

That is precisely what is now happening in Wisconsin. Local and national labor organizations, enraged by the successful Republican effort to limit the collective-bargaining powers of public-employees unions, are pouring money and manpower into petitions to recall GOP state senators. At the same time, Republican drives to recall runaway Democrats -- while rich in volunteer spirit -- are working with far less money and organized support.

On the Democratic side are the AFL-CIO, the big public-worker unions, party organizations and activist groups like MoveOn.org, which have already raised millions of dollars online. On the Republican side are one national GOP group, a few Tea Party organizations and not a lot more.

"They're off to a quicker start," Wisconsin Republican Party executive director Mark Jefferson says. "We have some structural disadvantages because taxpayer groups and volunteer organizations are more loosely put together than a union syndicate."

Officially, there are eight Republicans and eight Democrats facing recall petitions. But it appears the most serious challenges involve three on each side. Democrats are working hard to knock off Republican senators Dan Kapanke, Alberta Darling and Randy Hopper. Republicans are targeting Democratic senators Robert Wirch, Jim Holperin and Dave Hansen.

Wisconsin law requires recall petitioners to gather thousands of signatures before an actual election is held. The specific number, based on voting in the most recent elections, is different for each district but ranges from about 15,000 to 22,000.

That's where the organizing strength of the AFL-CIO and its unions come in. Labor and its Democratic allies realize that Wisconsin is a critical battle and are desperate to make sure that other states do not follow Wisconsin's lead. Republicans, meanwhile, seem less aware of the stakes.

"If Republicans do not take this very seriously, they could be in trouble here," says Steve Baas of the Metropolitan Milwaukee Association of Commerce, which supports Walker's budget reforms.

The imbalance of power might be alarming to national conservatives, but it doesn't seem to worry the troops on the ground trying to recall Democratic senators.

"I think it's a huge advantage for us because we are really, really grass roots," says Dan Hunt, an out-of-business real-estate developer in the Kenosha area who heads Taxpayers to Recall Robert Wirch. While the other side has more money, Hunt says, "We haven't had a problem raising funds. We're fully funded as of now. We're getting national support; it's just national individual support."

Beyond organization, there is a difference in the two recall efforts. The conservative drive to recall Democratic senators began in outrage over the Democrats' flight from the state. How could lawmakers who took an oath of office do that? The liberal drive to recall Republicans began as an effort to pressure those senators to vote against Walker's budget bill. Now that the bill has passed, it's an effort to make examples of the senators who supported it.

For Hunt, it's about principle.

"I'm doing it because my senator didn't represent me in Madison," Hunt says. "He left, and I think that is the worst thing that can happen in a legislative democracy. People who choose to leave their post on purpose, just to avoid a vote on a bill -- that's an egregious act that requires citizen reaction."

Both sides have a few more weeks to gather signatures. After that, there is a period for legal challenges of the petitions and then another period before the actual recall election, which could come in mid to late summer. Will the intensity of union activists last until then? And just as important, will the intensity of ordinary citizens, the people who are volunteering for Hunt's group and others like it, stay alive as well?

Unions are good at things like gathering signatures and chartering buses to take people to the polls. But don't rule out the team that's fighting on principle.


Other than that, I have not looked up his credentials but I read him all the time in my local newspaper. He has interesting articles.

Wisconsin labor fight far from over
If you're a Republican, it's a scenario straight out of "Alice in Wonderland." Fourteen Wisconsin state senators, all Democrats, flee the state for three weeks, bringing government to a halt in an effort to stop Gov. Scott Walker's budget bill. After three weeks, the fugitive Democrats return in failure. And then, when a rich and highly organized effort to punish lawmakers is launched, it's directed not at the Democrats who ran away but at the Republicans who stayed home and did their job.


That is precisely what is now happening in Wisconsin. Local and national labor organizations, enraged by the successful Republican effort to limit the collective-bargaining powers of public-employees unions, are pouring money and manpower into petitions to recall GOP state senators. At the same time, Republican drives to recall runaway Democrats -- while rich in volunteer spirit -- are working with far less money and organized support.
On the Democratic side are the AFL-CIO, the big public-worker unions, party organizations and activist groups like MoveOn.org, which have already raised millions of dollars online. On the Republican side are one national GOP group, a few Tea Party organizations and not a lot more.


"They're off to a quicker start," Wisconsin Republican Party executive director Mark Jefferson says. "We have some structural disadvantages because taxpayer groups and volunteer organizations are more loosely put together than a union syndicate."
Officially, there are eight Republicans and eight Democrats facing recall petitions. But it appears the most serious challenges involve three on each side. Democrats are working hard to knock off Republican senators Dan Kapanke, Alberta Darling and Randy Hopper. Republicans are targeting Democratic senators Robert Wirch, Jim Holperin and Dave Hansen.


Wisconsin law requires recall petitioners to gather thousands of signatures before an actual election is held. The specific number, based on voting in the most recent elections, is different for each district but ranges from about 15,000 to 22,000.


That's where the organizing strength of the AFL-CIO and its unions come in. Labor and its Democratic allies realize that Wisconsin is a critical battle and are desperate to make sure that other states do not follow Wisconsin's lead. Republicans, meanwhile, seem less aware of the stakes.


"If Republicans do not take this very seriously, they could be in trouble here," says Steve Baas of the Metropolitan Milwaukee Association of Commerce, which supports Walker's budget reforms.


The imbalance of power might be alarming to national conservatives, but it doesn't seem to worry the troops on the ground trying to recall Democratic senators.


"I think it's a huge advantage for us because we are really, really grass roots," says Dan Hunt, an out-of-business real-estate developer in the Kenosha area who heads Taxpayers to Recall Robert Wirch. While the other side has more money, Hunt says, "We haven't had a problem raising funds. We're fully funded as of now. We're getting national support; it's just national individual support."


Beyond organization, there is a difference in the two recall efforts. The conservative drive to recall Democratic senators began in outrage over the Democrats' flight from the state. How could lawmakers who took an oath of office do that? The liberal drive to recall Republicans began as an effort to pressure those senators to vote against Walker's budget bill. Now that the bill has passed, it's an effort to make examples of the senators who supported it.
For Hunt, it's about principle.


"I'm doing it because my senator didn't represent me in Madison," Hunt says. "He left, and I think that is the worst thing that can happen in a legislative democracy. People who choose to leave their post on purpose, just to avoid a vote on a bill -- that's an egregious act that requires citizen reaction."


Both sides have a few more weeks to gather signatures. After that, there is a period for legal challenges of the petitions and then another period before the actual recall election, which could come in mid to late summer. Will the intensity of union activists last until then? And just as important, will the intensity of ordinary citizens, the people who are volunteering for Hunt's group and others like it, stay alive as well?


Unions are good at things like gathering signatures and chartering buses to take people to the polls. But don't rule out the team that's fighting on principle.

Factcheck on Byron York's Article - mbmt

[ In Reply To ..]
Half true.
Which half? - nm
[ In Reply To ..]
nm
enlighten - sm
[ In Reply To ..]
Please enlighten us on the errors. We have been waiting for a while now. If you don't have anything to say other than "half true," where's the credibility in that?

Why should a union get ANY of this money? - Isn't the employer

[ In Reply To ..]
responsible for the insurance premiums? Isn't that part of their bennies package?

That stinks on SO many levels....smells like using OUR tax dollars to line the unions' (probably largest donators to the DNC) pockets...a rather large kickback to say thanks for the support in getting the albatross passed in the first place.

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