Showing posts with label Government/Politics. Show all posts
Showing posts with label Government/Politics. Show all posts

Tuesday, October 9, 2012

Lying Liars and the Lies They Tell

Dogberry on the Obama Campaign

They have committed false report;
moreover, they have spoken untruths;
secondarily, they are slanders;
sixth and lastly, they have belied a candidate;
thirdly, they have verified unjust things;
and, to conclude, they are lying knaves

If you stretch the facts a little and creatively manipulate data and statistics to make your point, you are called an obfuscator, which is a fancy word for being not exactly accurate. If you transition into telling blatant falsehoods, you are called a liar. If you double down on those lies by calling the person exposing your lies the real liar, you are a lying liar. And if you persist in perpetuating those lies even though they have been universally refuted by objective fact checkers, you get the prestigious Dogberry award for being the lyingest lying liar of them all. Congratulations to President Obama and his campaign team, the newest Dogberry recipients for their unashamed and persistent lies about Mitt Romney's tax plan despite all facts to the contrary
We were in Iowa this last weekend for a wedding and, Iowa being a battleground state, we were bombarded by presidential political ads on t.v. (We get no such ads in MN since it seems clear our home state will continue the Democrat zombie walk it has engaged in since Carter.) The Obama campaign's post-debate ads continue promoting the claim that Romney’s tax reform plan will give a $5 trillion dollar tax cut* to the wealthy funded on the backs of the middle class. This blatant lie is perpetuated despite being rebutted by Romney himself in the debate, and soundly debunked by every fact-check that has addressed the issue. Why do I care, if it is so patently false a claim? Well, I’ll tell you.

Unfortunately, I have many friends and relations that only get their news from MSNBC or the propaganda firm of Colbert, Stewart, and Maher. They only read liberal rags like the New York Times, Washington Post, or our own Minneapolis Star and Sickle…er…Tribune. And they only follow left wing hack columnists like Andrew Sullivan, Ezra Klein, E.J. Dionne, and Paul Krugman. So they only hear the lying liars' lies claiming Romney lied in the debate. Hence they will believe these ads without giving any scrutiny to Romney’s actual plan. Luckily, despite all the misinformation they are absorbing, they may, due to our relationship, tolerate and give some credence, however slight, to a blog post from me. So my friends, here is the truth.

Mitt Romney has proposed a 5 point plan for creating 12 million new jobs. Anyone can look at this plan on the Romney web site. I suggest everyone look at Romney’s full plan and judge its merits on its face, not based on what Romney’s enemies say about it. Here is the link to the plan, so you have no excuse for remaining ignorant: http://www.mittromney.com/jobsplan.

The tax proposal which is being mischaracterized by the left is part of point 5 of the plan: “Champion Small Business”. The pertinent bullet point is: “Reduce taxes on job creation through individual…tax reform”. (There are corporate, capital gains, and other tax components to the proposal, but it is the individual tax rate reduction that is the focus of the “$5 Trillion tax break for the wealthy” claim.) The specific proposal has two parts: “Reduce individual marginal income tax rates across-the-board by 20 percent” and “Broaden the tax base to ensure that tax reform is revenue-neutral”.

In the debate, Romney expanded on the “broaden the tax base” part of the plan. Not only is he counting on increased employment and production to bring in more tax revenue but he also stated that he would close loopholes and remove deductions in an effort to reform the tax code and eliminate tax avoidance (not tax evasion, which is illegal, but tax avoidance, which is the legal tax gymnastics which help reduce an individual’s tax burden, a practice which overwhelmingly favors the wealthy). He stated two absolutes about these effects. 1) They would net to a near zero reduction in taxes for the wealthy, and 2) they would not result in net tax increases for the middle class. In fact, he said he would not sign any legislation, no matter how closely it followed his plan, if it raised taxes on the middle-class or did not result in net deficit reduction. In essence, he is saying he will only do it if it does what he says it will do - lower taxes AND increase revenue with a net effect of reducing the deficit.

“How can you do both?” you might ask (especially if you only listen to the left who say that it is impossible). Well, the simple answer is “the same way Reagan did”. Most people will recognize this as supply side economics. You know, that form of economics employed by Ronald Reagan which ushered in the longest sustained period of peace time economic expansion in the country’s history. It works because, combined with the other elements in Romney’s 5 point plan, it will increase employment and domestic production dramatically. Tax reductions for both corporate and individual small business owners will encourage hiring and expansion. Tax reductions for the middle class will increase household income and spur purchasing, leading to more production. More people working and more companies producing means more tax revenue. The tax cuts will be “paid for” by economic growth, as well as by the tax reform that will eliminate tax loopholes for the rich, which ironically, is exactly what the left has wanted for years.

Now, people can disagree about the feasibility of this plan. Many people still don’t believe that Reagan’s economic policies worked (despite all the empirical evidence to the contrary). Others will say that deficit reduction is impossible even with such economic growth. (Please read the whole Romney plan, as this is only one part which contributes to, but is not the be-all-end-all of, deficit reduction.) That may all turn out to be true, but this post is not an argument for the Romney plan. I simply want to point out how the Obama campaign is lying about the Romney plan. There is nothing in this plan that produces a $5 trillion tax cut for the wealthy, or increases taxes in any way on the middle class. In fact, the plan will be implemented in such a way as to minimize the NET tax benefit for the wealthy while maximizing it for the middle class. Anyone who claims otherwise is blatantly lying or woefully ignorant.

This brings up a more serious point regarding the campaign. The Obama camp is claiming that Romney lied in the debate and that he has reversed course from policies he has been touting for over a year. Yet you can read the plan for yourself. You can see that Romney portrayed the plan accurately in the debate and that the plan has been in place for a good deal of time. On the other hand, it is clear that the Obama campaign is purposely perpetuating a bold faced lie in their campaign ads. Is that the kind of President we want?

*The $5 trillion figure is based on the projected tax savings which result from the 20% reduction in individual marginal tax rates. The figure is cumulative over 10 years, even though the Obama campaign ads make it seem like it is an annual savings. Nobody disputes this figure, but it is only one half of the equation.

For more fun on the Obama campaign’s attempt to keep you in the dark on the facts, read this new article from “Iowahawk”: White House Scientists Struggle to Contain Outbreak of Scrutonium. A teaser:
WASHINGTON DC - Engaged [in] a relentless battle against time and fatigue, a select group of message scientists assembled by the White House's Center for Narrative Control say they will take "all steps necessary" to contain a recent outbreak of scrutonium, a deadly poll-eating supervirus that attacks the immuno-hope system, leaving victims vulnerable to material facts.

Monday, October 1, 2012

Minnesota Amendment 1 - Why I'm Voting "NO"


Update 11/7/2012: The Amendment failed. Also see update to note 5 below regarding this issue and the courts.

I admit for the longest time I wasn’t sure how I would vote. I thought maybe that I wouldn’t make up my mind until I got into the booth. But some serious discussions, and some serious introspection, have led me to the conclusion that, to stay true to myself as well as my faith, on this issue, in this context, I have to vote “no”.

Some who know me (mostly the afore-mentioned family and friends), will be baffled that this is even a question to be pondered. To them, a “yes” vote is a no brainer, and they would expect that I would concur(1). Many others who know me just as well will not be surprised at all that I am voting “no”. In particular, my younger daughter will applaud this decision (having voted similarly on the California proposition) and consider it to be an encouraging turning point in my Libertarian development. Neither side, I suspect, will appreciate the deliberation I went through to get to this point. So in order to avoid disownment (or misplaced praise), and hopefully provide a little enlightenment, I offer this post.

This will be a long post so I will summarize first. You can slog through the arguments at your leisure. 

Biblical marriage and civil marriage are not the same institutions. Since the government has decided to regulate certain civil unions, including bestowing certain privileges and imposing certain obligations on the participants, they should do so without prejudice. The fact that government has decided to use the term “marriage” to describe these licensed, contractual arrangements is irrelevant (or maybe, unfortunate), and certainly does not justify limiting those arrangements on a gender basis any more than it would justify limiting them on a racial or religious basis. Regardless, it has no bearing on the biblical institution for which religious people use the same term and therefore is of no consequence to our citizenship in God’s Kingdom. Never-the-less, as Christians we are sent into this world to witness even though we are not “of the world”, and part of that witness is upholding the laws of the world, often in spite of our personal opinion on their worthiness.

Some background information for those who aren’t familiar with the amendment or me:

Minnesota already has a law that defines marriage as being between one man and one woman. The purpose for enshrining this into the MN Constitution is to avoid what happened in Iowa a couple of years ago, where the Iowa Supreme Court struck down the similar Iowa statute. Minnesota conservatives want to make sure that “the courts” do not circumvent “the will of the people” of Minnesota. I don’t disagree with this course of action on a fundamental, constitutional basis. 

As for me personally, it should be clear from many posts on this blog that I actually do consider marriage, at least in the biblical sense of the word, to be strictly between one man and one woman. In fact, as far as the bible is concerned, “gay marriage” is an oxymoron at the very least, if not a completely nonsensical term, and the “one man/one woman” structure of marriage is a simple, unalterable fact. As a Christian, my personal position on marriage unwaveringly reflects the text of the proposed amendment. With that in mind, here are my reasons for voting “no”.

In this world but not of it

When Jesus was praying to the Father for his followers, he described his disciples as being sent into the world but not being of the world (John 17:14-17). This is understood as the “dual citizenship” of the Christian. We simultaneously exist as citizens of secular society (Minnesota-America-Earth) and of God’s kingdom. We are to keep these citizenship spheres distinct from each other, and as long as they don’t conflict, we are to maintain a balance between the two. Only when society imposes upon us rules that violate our faith are we allowed to disobey.

As citizens of these two worlds, we have two primary guides to inform our behavior. As a citizen of the world, I have the law, and specifically in America, the Constitution. As a citizen of God’s kingdom, I have the Bible. And while the law has very little to say about the Bible (thankfully), the Bible has plenty to say about the law. Paul and Peter make it very clear that, as citizens residing in this world, we are to obey all of the laws and the authorities. Jesus is truly our model for this behavior, as he obeyed the law of the land (Roman law at that!) even while being falsely accused and sentenced to death. None of the New Testament writers ever called upon the Church to write the law or even make any effort to change the law, regardless of how good or bad, moral or evil, the law was. Significantly, neither did Jesus. Indeed, this indifference to affecting the law is what we see in the early church. Only after Constantine did the church and the state become intertwined, to everyone’s detriment.

Sometimes, society and the Christian disagree on principal. That is alright as long as neither tries to impose their will on the other. I am perfectly comfortable with society defining marriage differently than I do, as long as they don’t require me to believe their definition. As long as the Church is not being required by law to marry gay people, it is of no concern to us as citizens of God’s kingdom. We may be required to extend certain civil rights to those married gay people, but that is part of our societal citizenship and we are obligated not only by law but by scripture to comply.

As a society, America provides the best possible environment for us to exercise our dual citizenship. Nowhere on earth is it as permissible for me to outwardly disagree with the law (note - disagree does not mean disobey) than here. Society cannot legislate my faith. But, that freedom from intrusion by society into my godly citizenship is a two way street, because my faith also cannot legislate society. In our free society, if I am free to believe what I believe about marriage, then others are as free to believe something else about marriage. This is the blessing and curse of liberty. As long as the law doesn’t dictate either of our beliefs, and neither of our beliefs tramples on the rights of the other’s, liberty is preserved. 

As Christians, we need to face two facts: society has decided to involve itself in the marriage business, and gay people have marriage-like relationships. To be fair, as far as our marriages are concerned, the first fact doesn’t much impact us as our definition of marriage is inherently part of the regulatory scheme. What we need to decide is whether or not other civil marital arrangements harm us in either citizenship realm. If they harm us societally, then the scales of justice are tipped and the law is unconstitutional. If they harm us spiritually, then society is intruding on our godly citizenship and we are allowed to disobey. If we are not harmed in either way then, like it or not we are compelled to obey the law. 

Frankly, I don’t see how gay marriage impacts me at all, either positively or negatively. Some Christians will argue that it corrupts society(2). Maybe so, but what is that to us? We are not of this world! We should expect corruption in society. We are to be the antidote for that corruption (how are we doing BTW, hmmm). That is why Jesus sends us into the world. Moreover, and this is crucial to understand, our calling is NOT to overturn the worldly law, even if it allows actions we consider corrupt, or even that we simply disagree with, as long as it doesn’t corrupt US. I repeat – Jesus NEVER directed us to change worldly law. To attempt to do so in the name of Jesus…well…I won’t say more other than to say there is no justification in scripture for such activity(3). We are required to obey laws (or lack of laws) that may lead to societal corruption as long as they do not corrupt US.  Frankly, if there were no corruption, there would not be much point in us remaining here to show the world a better way.

More to the point, what possible impact can the attachment of a word to a relationship have on any corruption that relationship may bring? If you view two gay people in a relationship as a corrupting influence on society, does it matter what you call their relationship? Does the word alter the relationship’s impact on society in any way? As Christians we are sent into this world to be salt and light with the full expectation that we will be living amongst people who conduct their lives in ways that we abhor. Who gives a rip what words are used?

Others worry that allowing gay marriage in society will start us down a slippery slope where eventually, we will be forced to perform and recognize gay marriages in our churches (although some already do). I don’t fear this slippery slope as long as the Constitution remains in place. I also see no evidence that gay rights activists want to strip the Church of its right to define marriage its own way. But let’s say that we do plummet down that slippery slope. What that fundamentally would mean is that the Constitution’s protection of religious liberty has been removed. If that ever happens, all bets are off(4).

All of the above might lead me to simply not vote at all on the amendment (equivalent to a “no” vote), but I have to consider one more issue. As Americans who are compelled by Scripture to obey the law, what is our duty to that law? Let’s not forget, in America we live in a society which believes in liberty and equal protection under the law for all people. If this society is going to regulate certain civil relationships with certain obligations and privileges, it needs to do so without prejudice. We need to support that principle. How can we claim liberty for ourselves but deny it for others? What is “Christian” about that? We may believe that there is no such thing as “gay marriage” in the biblical sense, but we are blind if we believe there are no such things as gay unions. People in those civil unions deserve the same legal rights as people in parallel civil unions. That includes the right to use the same terminology(5,6). If Christians should be mad at anything, they should be mad that government co-opted the term “marriage” for heterosexual civil unions in the first place. This would all be a moot point if all such contracts were called “civil unions” from the beginning. But they aren’t. We need to let it go.

One last word about that pivotal word: “marriage”. Very few Christians are aware of an obscure biblical fact. The word “marriage” does not exist in the Old Testament, and doesn’t really occur in the context we are using it here even in the New Testament(7). Simply put, the word we are making such a fuss over is actually never used in Scripture. Oh, to be sure, the relationship to which we attach the word is abundantly present in the Bible. But we have done the attaching; it isn’t a native biblical term. It should be neither shocking nor concerning to us that other people use the word for other relationships. In fact, the term “marriage” is used figuratively for many kinds of paired relationships outside of the intimate human context. Christians, (or more correctly, religious people), do not own this word, nor is it particularly religious in its breadth of meaning. And to reiterate, it isn’t even biblical.

Notes:

(1)    I have heard many of my fellow brothers and sisters recount interactions they have had or witnessed with “no” voters. In those recollections, they shared some of the arguments given by the opponents of the amendments – arguments that, to me, seem rather sound and at least worthy of consideration. But my friends summarily dismissed those arguments without, seemingly, giving them a fair hearing at all. Truly, to many conservative Christians, this is a no brainer.

(2)    This is often aggravated by the “homosexuality”=”super sin” mentality of many in the Church. I would argue that divorce and fornication (both legal) are equally if not more corrupting on society yet the Church has a disturbing tolerance for those two activities, probably because of the rampant practice of them within the Body.

(3)    Those who want to legislate Christian morality need to be careful what they wish for. Ask yourself first which Christian sect gets to make the rules. If it is the Catholics, birth control would be banned. If it is the Baptists, dancing might be prohibited and prohibition returned. Even more conservative denominations may try to outlaw even more activities most of us consider amoral, or impose activities to which we object. If it is the Mormons (I know, not Christians), coffee and coke are off the menu. And what if another religion takes the reins? Want to live under Sharia law? God tried a Theocracy once and humans made a horrible mess of the whole thing. We are ultimately too fallen to agree on a universal moral code. Some people think that the legal system in America is based on biblical principles and morality. They are wrong. The legal system in America is based on a balancing of rights. It is secular, and should remain so. If you don’t believe that, ask the Danbury Baptists and Thomas Jefferson.

(4)    Of course, we Christians know that this persecution against the Church will come someday, but we also know that gay marriage is not going to be the cause. Besides, the persecution is unavoidable, regardless of how anyone votes on this cosmically trivial amendment.

(5)    UPDATE 12/7/2012: The SCOTUS has indeed agreed to hear both gay marriage cases this term. The docket numbers are 12-144 and 12-307. TTatOT will be paying close attention as this makes it way to the court.

UPDATE 6/10/2013: Oral arguments on the cases were heard March 26th.
The Supreme Court will eventually deal with this issue and I firmly believe that they will affirm the use of “marriage” as a legal term of art for gay civil unions, thereby striking down state gay marriage bans, just as in the past they struck down laws banning inter-racial marriage and laws refusing to recognize marriages of couples from non-Judeo-Christian faiths. It could come up as soon as this next judicial term with the California Proposition 8 case.

UPDATE 4/28/2015: The beginning of the end.
The Supreme Court hears argument today on four consolidated cases brought by states asking the court to uphold traditional marriage. Virtually all commentators expect the court to, instead, uphold gay marriage on 14th amendment grounds, thereby making it the law of the land and striking down any state laws and constitutional amendments which define marriage as only a heterosexual union.

(6)    To be fair, I also do not buy the outrageous outrage on the part of gay marriage advocates over not being able to use the word “marriage”. It is equally as silly. They claim that using separate terms for gay vs. heterosexual unions is tantamount to the “separate but equal” policies of racial segregation. I find little merit in that argument.

(7)    Some translations will use the English word “marriage” for certain Hebrew and Greek words, but further word study reveals that these translations are presumptuous paraphrases. The relationships described might be marriages, but the actual Hebrew and Greek words used are not those languages’ equivalents of the English word “marriage”. In fact, the creation of a particular equivalent of “marriage” in the source languages may be a post biblical event.

Tuesday, September 11, 2012

The Big Lie About Heartless, Greedy, Eeeeeeevil Health Insurers

A couple of posts back I did a brief series on some big lies related to executive salaries and taxes. A recent post on Facebook elicited a response from an old friend that highlights another "big lie" I believe needs debunking - that of the heartless, greedy, eeeeevil insurance company that only cares about its bottom line and its shareholders.

Let's start with the post and my friend's response. I posted the following quote "diagnosing" ObamaCare from a Dr. Barbara Bellar, who is running for the IL state Senate:
So, let me get this straight. This is a long sentence. We’re going to be gifted with a healthcare plan that we’re forced to purchase and fined if we don’t, which purportedly covers at least 10 million more people without adding a single doctor but provides for 16,000 new IRS agents, written by a committee whose chairman says he doesn’t understand it, passed by a Congress that didn’t read it but exempted themselves from it, and signed by a President who smokes, with funding administered by a Treasury chief who didn’t pay his taxes, for which we will be taxed for four years before any benefits take effect, by a government that has already bankrupted Social Security and Medicare, all to be overseen by a Surgeon General who is obese, and finally, financed by a country that’s broke.
I got this response from a high school friend in which he offers a "defense", of ObamaCare, I think, based on an apparent disdain for those heartless, greedy insurance companies:
The only thing I can offer in defense is that it is recklessly foolish, naive, and dangerous to assume that any privately owned or publicly held insurance corporation would ever have your best interests in mind when it comes to your health, your ability to pay, or your circumstances. They exist purely to service their shareholders and their corporate officers. I, for one, have no desire to see my health, my life, and the lives of my children in the care of companies that behave little better than sociopaths.
Ouch! Considering I work for the country's largest, and therefore I assume most heartless, greedy, and eeeeeeevil, health insurer, I felt quite taken aback (ok - not really, but still, I think a response is necessary). I would like to assure my friend that he is quite wrong, and even more importantly, the alternative is significantly worse. So here goes.

Starting at the end, my friend says: "I, for one, have no desire to see my health, my life, and the lives of my children in the care of companies that behave little better than sociopaths". Putting aside actual health insurer behavior for the moment, let's consider the alternative. Would you rather put your and your family's health and life in the hands of a bureaucracy that views healthcare as simply a line item on a budget - easily discarded or cut if the cost of that care goes into the red? (Note - there is a significant difference between insurance and government run healthcare(1)). I can't think of anything more heartless than that. Granted, insurance companies may have conflicting priorities when it comes to their money (we shall soon see), but can a person really claim that government is more warm and caring? That certainly isn't my experience or anyone's I know.

Whose "care" do you put your health and life in anyway? People seem to have a mixed up view of who does what in the health care industry. There are providers and there are payors. The insurance company doesn't "provide" your healthcare, they simply pay for it. While they do exercise some control over what they are going to pay for, and how much, that is outlined in your policy and known (if you bother to read it) up front before you buy their product. The horror stories that people tell are very rare exceptions (and in virtually all cases, explainable and/or avoidable if one understands their policy). Bottom line, your health and life are not "in the care of" the insurance company, they are in the care of your doctor. The insurance company simply pays your doctor for that care according to your policy.

Now let's talk about accountability? Certainly insurance companies are accountable to their stockholders but it doesn't end there(2). They are also accountable to state insurance and health departments which require proof of financial responsibility and customer satisfaction on a yearly basis in order to retain their license to sell their products. And, as a provider of a service, they are also accountable to their customers. That may not translate directly into care, but it ultimately leads to that as customer satisfaction is directly related to the patient experience. If you don't provide good service for your customers, you won't have any customers.

Conversely, how accountable is government? Ever heard of anyone getting a complaint resolved when it comes to their Medicare or Medicaid coverage? I haven't. You are a captive audience with no choices when it comes to government run health care. If you don't like it, you can't simply change carriers as you can in the private sector. You are stuck and if the government fails to "have your best interests in mind when it comes to your health, your ability to pay, or your circumstances", it's tough luck.

So now we return to, and address, the beginning of my friend's "defense" of ObamaCare - cold, uncaring, greedy corporations. To refresh, he claims that insurers do not "have your best interests in mind when it comes to your health, your ability to pay, or your circumstances. They exist purely to service their shareholders and their corporate officers." Do insurance companies want to make money? Of course they do. So do doctors and hospitals and so do the patients who are seen by them. This is, after all, a capitalist nation. Does a profit motive, though, make an insurer "little better than sociopaths"? I don't know - does it make your doctor that? Does it make you that? Just because a company, any company, designs products to make themselves money doesn't mean that they don't care about the customers who consume those products. It would be suicidal to have such an attitude. So let's take a look at how profit motives and consumer "best interests" are BOTH "in mind" to a health insurance company.

Do insurance companies have your best interests in mind when it comes to your health? From a certain perspective, it can be argued that your health is the insurers primary concern. Why? Because an unhealthy customer is a less (or non) profitable customer and a dead customer is a lost customer. I will grant that a profitable bottom line is the end result of a healthy customer base, but to say that patient health is not in the best interests of the insurer is actually the more naive belief. Why else would health insurers in the 80's and 90's begin introducing concepts like preventative care benefits for adults and best practice guidelines? Why else would HMO's have designed the gatekeeper model of health plan to better triage and direct patients to the most appropriate level of care? All of these innovations and many more have been born out of, and continue primarily to be driven by, the payor side of the industry. Insurers are VERY interested in their customers' health and finding ways to improve it. One can cynically say that a profit motive underlies all of those efforts, but that doesn't change the fact that consumers are better off, health-wise, because of it.

Even today, the payor side of the industry leads the way in innovation. My employer, and many other insurance and managed care companies across the country, are continually working with providers, states, and local communities to better ensure that the right care is delivered at the right time in the right setting by the right provider at the right price. We work with Medicaid plans in a number of states to create community health centers that cater to local needs, even going as far as putting "boots on the ground". We are developing pilot projects with large provider contingencies in several states on a new "collaborative care model" which better coordinates care and communication between local providers and hospitals. The payor side of the world will ALWAYS be on the forefront of improving patient health because, frankly, it is in the best interests of both us and our customers to do so.

Do insurance companies have your best interests in mind when it comes to your ability to pay? My first question back would be "pay what"? If the issue is your ability to pay for your health care, then, I would answer that that is in fact the purpose of insurance. It insures you against unforeseen costs. It ensures your ability to pay for health care services that would normally be beyond your means. So, obviously, your best interests related to ability to pay for your health care is the essence of the insurer's product and therefore certainly "in mind" to the insurer (unless you think insurers design their products mindlessly).

Or is the issue your ability to pay for the insurance itself? That is a bit trickier, but the answer is still that the consumer's best interests are in mind. Put simply, if an insurer can't create affordable products, they won't be in business very long. I don't believe people know how very competitive this industry is. I also don't think people realize how low the profit margins are in health insurance. (see my first "Big Lies" post for more info.) Insurers are constantly striving for ways to reduce both their administrative costs and their claims costs, as well as design more tailored products, so that they can offer more competitive pricing. ObamaCare, actually, will curtail these efforts (don't believe the hype about lowering the cost curve) by mandating "one size fits all" insurance products and implementing counterproductive cost controls (counterproductive because they will drive providers out of the industry, creating lower supply and higher demand, and therefore driving costs up). There are free market ways to make insurance even more affordable. The key to implementing them is not to heap more government regulation on an already overregulated industry, but to get government out of the way to let the innovators and entrepreneurs lead.

Do insurance companies have your best interests in mind when it comes to your circumstances? I'm going to assume that this has something to do with covering pre-existing conditions. That does pose a dilemma for the insurer, but it is no different than the problem "pre-existing conditions" pose for any type of insurance. The thing to keep in mind is that this is insurance. The insurer takes risk based on certain underwriting assumptions about the costs a certain person or population will present. The more costly the insured, the higher the risk, the more expensive the insurance product.

Let me illustrate with an example that people might be far more familiar with: car insurance. Should a car insurer be forced to sell an insurance policy at the same price to two individuals, one who has a perfect driving record and another who has had several accidents and DUI's? Even with a rudimentary understanding of insurance, I would hope that the common sense answer from anyone would be "no - obviously they should be able to sell the product at higher premium to the driver who poses the higher "risk" of incurring a claim." Insurance 101.

The same principal holds true for health insurance. The solution in the insurance world is "risk pooling". You put together a group of people, some who are high risk and some who are low. They "average out" to a risk level that allows pricing that is somewhat higher for some people and somewhat (sometimes significantly) lower for others. Overall, if designed right, it should be "affordable" for everyone. ObamaCare attempts to force this scheme on the industry by means of the individual mandate. If everyone has to have insurance, insurers can spread their risk and collect premiums across a greater pool of consumers and therefore be able to offer plans to people with pre-existing conditions at an affordable cost. This is actually true. Of course, most people weren't told that ObamaCare was essentially a subsidy to the insurance industry. What? You thought ObamaCare was designed to punish those greedy insurers for their draconian practices? Buwahahahahaha! Not!

Anyway, although the individual mandate is one way of spreading risk and bringing about more affordable insurance for everyone, it is certainly not the only way. Again, free market approaches could have been applied to accomplish the same goals without government intervention and without forcing you, the consumer, to buy a product you may not want or need and penalize....oops, sorry...tax you if you don't.

In the end, I can say without reservation, working in the industry, that insurance companies really do have their customer's best interests in mind when it comes to their health, ability to pay, and circumstance. There may be a profit motive behind that, to be sure, but profit is not bad. More importantly, a healthier, more prosperous America is very good. ObamaCare will not bring about a healthier or more prosperous America. All it will do - and here is another long sentence - is force people to buy a product they don't want, with benefits they don't need, at an ever increasing cost, brought about by greater demand for services, due to an increased patient pool, coupled with a shrinking supply of providers, due to doctors leaving the market because of reduced reimbursements, resulting in the wrong care, at the wrong time (if you get it at all), in the wrong setting, by the wrong provider, at the wrong price.

Notes:

1. The important distinction between insurance and a government run program is that the insurance company has to pay for their liability, regardless of whether they have the money in revenues to cover the cost (that is why insurers are required to have "reserves" - money held back to cover excess costs). That is the "risk" that the insurance company bears. The government, on the other hand, simply rations care if there is not enough in the "budget" to cover care. Need your gallbladder out? If there is no money in the budget for it this year, you go on a waiting list. And heaven forbid you get too old to make that surgery cost effective. "Here's another pain pill - live long and prosper".

2. It should be noted that not all health care payors are out for profit. For example, in my (and my friend's) home state, HMO's must be non-profit.

Thursday, June 28, 2012

"Individual Mandate Survives as a Tax"

The headline jumped off the scotusblog.com live blog and you could hear the cyber *gasp* from the nearly 1 million viewers getting the first hand news of the most anticipated Supreme Court decision in decades. A few posts later, the even more shocking news came to light. The swing vote in the 5-4 majority was not Anthony Kennedy, as most expected, but George W Bush appointee Chief Justice John Roberts. Immediately on the open thread at hotair.com, the Roberts bashing began. "John Roberts sucks", "Roberts is now a bigger scoundrel than Souter", "Another Bush Justice lets Conservatives down and moves left", "Roberts stabs Constitution in the back", "Roberts you socialist scumbag", "Drop dead, Roberts", "Roberts can kiss my a**", "Roberts is a red", and many more unrepeatable comments were spewed out by the downcast and disillusioned conservative community. But is this a correct judgement of the Chief Justice and his opinion? I'm not so sure.

In fact, John Roberts may be sly as a fox.

The more I think about it, the more I think this decision actually accomplishes several things for conservatives.

1. The Commerce Clause power is checked. Both the Robert’s opinion and the dissent state clearly that there must be positive commercial activity before the Commerce Clause can be invoked. This was the argument against the mandate all along – that it regulated inactivity, not activity. The ruling basically affirms that argument and should preclude the Federal Government from successfully enacting any more such mandates.

2. The left cannot use the “court is illegitimate and political” argument now. That will bode well for decisions down the line. I really think that Roberts knew that a 5-4 decision against the law would seriously damage the court’s credibility, at least with the left half of the country (which includes the media and academia). If he couldn’t get at least 6 votes against the law, he was bound and determined to side for the law but write a very narrow opinion that wouldn’t hurt the cause of liberty or do violence to the Constitution. He actually, in a way, succeeded on that front even though this will be viewed generally as a setback.

3. Roberts has basically called Obama a bold faced liar for promising no taxes in the 2008 campaign. The breaking of the “No new taxes” pledge by Bush senior is what doomed his reelection bid and it may very well doom Obama’s too. If this is a “win” for Obama, it is a pyrrhic one. 

4. The decision will energize conservatives and independents to turn out and vote for Romney in the upcoming election as they will see repeal as the only way to get rid of this very unpopular law. While I don’t think that is the only alternative left (see next point), it matters not if it causes another Republican tsunami in November.

5. The decision now opens the door to challenge the tax as illegal. There are many flaws in the “mandate penalty as a tax” argument and I suspect the law suits are already being written to overturn it on those grounds. And since the court also declared that the tax could be challenged before the tax takes effect, we don’t have to wait 2 years before those law suits can be filed. So Roberts basically “kicked the can down the road” a little ways, but so be it. In the end, he may have provided even a more solid basis for challenging the law.

(update) 6. As many commentators are pointing out, the shift of the mandate to a tax makes the entire law that much easier to repeal or at least gut. Tax votes in the Senate require only a 51% simple majority, and are therefore filibuster proof. Now only the Presidency and a pick up of 4 Senate seats by the Republicans is needed to send ObamaCare to the trash heap of history.

The bottom line is that this decision may have doomed Obama’s reelection and doesn’t ultimately protect the law. Pretty clever...if it turns out that way. Only (more) time will tell.

UPDATE - Some pertinent quotes from the Chief Justice's opinion:

The power to regulate commerce presupposes the existence of commercial activity to be regulated. If the power to “regulate” something included the power to create it, many of the provisions in the Constitution would be superfluous.

The proposition that Congress may dictate the conduct of an individual today because of prophesied future activity finds no support in our precedent.

The Commerce Clause is not a general license to regulate an individual from cradle to grave, simply because he will predictably engage in particular transactions. Any police power to regulate individuals as such, as opposed to their activities, remains vested in the States.

No matter how “inherently integrated” health insurance and health care consumption may be, they are not the same thing: They involve different transactions, entered into at different times, with different providers. And for most of those targeted by the mandate, significant health care needs will be years, or even decades, away.

The text of a statute can sometimes have more than one possible meaning...And it is well established that if a statute has two possible meanings, one of which violates the Constitution, courts should adopt the meaning that does not do so.

Rather, it makes going without insurance just another thing the Government taxes, like buying gasoline or earning income. And if the mandate is in effect just a tax hike on certain taxpayers who do not have health insurance, it may be within Congress’s constitutional power to tax. The question is not whether that is the most natural interpretation of the mandate, but only whether it is a “fairly possible” one.

The Government asks us to interpret the mandate as imposing a tax, if it would otherwise violate the Constitution. Granting the Act the full measure of deference owed to federal statutes, it can be so read, for the reasons set forth below.

It is of course true that the Act describes the payment as a “penalty,” not a “tax.” But while that label is fatal to the application of the Anti-Injunction Act, supra, at 12–13, it does not determine whether the payment may be viewed as an exercise of Congress’s taxing power.

...taxes that seek to influence conduct are nothing new.

Neither the Act nor any other law attaches negative legal consequences to not buying health insurance, beyond requiring a payment to the IRS.

Our precedent demonstrates that Congress had the power to impose the exaction in §5000A under the taxing power, and that §5000A need not be read to do more than impose a tax. That is sufficient to sustain it.

Sustaining the mandate as a tax depends only on whether Congress has properly exercised its taxing power to encourage purchasing health insurance, not whether it can.

The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax. Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness.

But the statute reads more naturally as a command to buy insurance than as a tax, and I would uphold it as a command if the Constitution allowed it. It is only because the Commerce Clause does not authorize such a command that it is necessary to reach the taxing power question. And it is only because we have a duty to construe a statute to save it, if fairly possible, that §5000A can be interpreted as a tax.

Thursday, August 18, 2011

The Big Lie About Deficit Reduction and Taxing the Rich

Following up on my post about Health Insurance Companies and Executive pay, I thought I would take a look at another liberal meme related to “the rich” and the budget deficit. This takes one of three forms: the rich are tax dodgers who use loopholes and other “tricks” to get out of paying taxes, the rich do not pay their “fair share” and can afford to pay more, or the Bush tax cuts, especially for the rich, are what are causing our large deficits. I’ll tackle each of these in turn.

Refer to the chart below. It gives revenue data from the IRS for 2009 (the most current year available). I have broken the data up into three income classes: poor, middle, and rich. The “rich” are classified as making $200k and above in adjusted gross income (AGI). The poor are classified as making $25k or less and the middle making everything in between. (Click on the chart to see it full size.)


The first complaint about “the rich” is that they use accounting tricks, loopholes, and down right criminal actions to dodge paying their taxes. Actual IRS reporting of the taxes paid by people making over $200k AGI shows this to be completely false. Let’s look at two concrete proofs.

Look at the column under Income Tax labeled “As Percent of AGI”. This is the actual tax paid as a percent of AGI. Note that EVERY income bracket pays less in actual tax percent of AGI than the tax bracket they are in. But “the rich” pay far more than any other class overall. Moreover, when looking at the gap between actual percent of tax paid versus tax bracket, “the rich” are much less “tricky” in reducing their tax liability than any other income group. Clearly, “the rich” are not evading paying taxes.

Even more conclusive is the column under Taxable Returns labeled “As Percent of Returns in AGI Category”. This is the actual returns that had payable tax as a percent of all returns filed in the income bracket. EVERY “rich” income bracket has payable tax on greater than 99% of the tax returns filed. The percentages drop dramatically from there. Clearly, the rich are not using accounting tricks to avoid having any tax on their income.

So, it is a lie to say that “the rich” are avoiding paying their taxes. But are they paying their fair share of taxes? We turn to that charge next.

As noted above, “the rich” pay between 19 and 26% of their AIG in taxes – far more than any other income bracket. But what is their overall contribution? Just because they pay a “larger” share of income doesn’t mean it is a proportional share compared to the revenue burden carried by the other classes?

Look at the following columns. Under Total Returns, look at “As Percent of Total Returns”. Under Income Tax, look at “As Percent of Total Revenue”.

The first column shows what percent the tax filers are in a particular income bracket or class of the total tax filing population. “The rich” make up roughly 3% of all tax filers.

The second column shows what percent the taxes paid are of total revenue. “The rich” paid roughly 50% of all taxes (actually, just over 50%).

The standard way of putting this is “the rich” make up only 3% of the tax payers but pay over 50% of the taxes. Put another way, a very small minority of tax payers bear more than 50% of the tax burden. Is that fair? It is a very subjective question. But by any measure, it is very clear that “the rich” pay a significant “share” of taxes. Their “share” of the tax burden is enormous. In fact, their “share” constitutes “most” of the taxes paid.

Conversely, the poor make up 42% of tax payers but their “share” of the tax burden is only 1%. Is that fair? Again, it is a subjective question.

Moving on to those evil Bush tax cuts. Another claim is that the ballooning deficit is due primarily to these reductions in tax rates for middle and upper income tax payers. We will see in a moment exactly what that impact is, but let’s deal with the cuts first.

The tax cuts provided a 5% reduction for most low income earners, a 3% reduction for most middle income earners, and a 4.6% reduction for most upper income earners. In theory, these cuts were to be offset by increased economic activity and therefore, essentially, they would pay for themselves. This is classic supply side economics. There is no direct way to really measure if they did in fact pay for themselves, although general income tax revenues went up each year from 2003-2007. At best, we can probably say only that the impact, if negative at all, was only slightly so.

In general, it is at best unfair and at worst a complete lie to say that “the rich” are avoiding paying taxes, don’t pay their fair share of taxes, or benefited to the detriment of the country from the Bush tax cuts. Even still, our annual budget deficits are out of control. Surely if the rich (and to a lesser extent all other tax payers) were taxed more we would be able to bring our budget into balance, wouldn’t we? Let’s see. Please refer to the last three columns in the chart where I analyze the impact of two revenue increase scenarios on the budget deficit.

The column labeled “Eliminate Bush Tax Cuts” looks at the revenue increase if we adopted Presidents Obama’s approach during the budget debates of 2010 and eliminated the bush tax cuts for the middle and upper income brackets. What I have done is increased revenue in the “middle” class by 3% and the “rich” class by 4.6% to approximate the effect. The total reduction in the deficit brought about by this increase in revenue would be $400B. That is a pretty big number, until you realize the deficit in 2009 was $1.41T. So, the Presidents proposal would only cut the deficit by apx. 28%.

The next column labeled “All Pay ‘Fair Share’” takes an even more drastic approach, at least for the lower and upper classes.

For the lower class, I increased their tax rate another 1%. Considering the majority of “the poor” pay zero in taxes (only 25% percent of filers have any tax payable) and the most any of them pay of AGI is about 1%, I think this is only fair. After all, how can $0 be considered a “share” of anything, let alone a fair share.

For “the rich”, I doubled what they pay. That means that most people earning over $200k AGI would be paying just under HALF of every dollar they make to the government (and getting little to nothing in return for it). Is that fair? I certainly don’t think so, but, after all, they can afford it so why not.

What is the impact of this “fair” revenue collection? The total reduction in the deficit brought about by this increase in revenue would be $758B. Now we’re talking! Yet that still only reduces the deficit by a little more than half. In fact, in order to eliminate the deficit through revenues, you would have to increase tax rates on the rich by more than 3 times their current level to roughly 77% of AGI, a level that even socialist, nanny state Sweden would be ashamed of.

What is the moral of this story? Our deficit is NOT A REVENUE PROBLEM. The reason the deficit is out of control is we are spending way too much. Eliminating the Bush tax cuts won’t solve it. Heck, even imposing ridiculous tax rates on “the rich” and making “the poor” pay way more than they ever have won’t do it. Unless we significantly reduce our spending, we will never have a balanced budget in this country and each year we will get closer and closer to being the Greece of the Western Hemisphere.

Wednesday, August 10, 2011

The Big Lie About Health Insurance Companies and Executive Compensation

We were visited this week by my wife's brother and his wife and in the course of the many conversations we have had we were at one point subjected to the classic "health insurance companies are evil and their executives are greedy crooks who raise premiums to line their pockets" meme. My brother-in-law, of course, knows that my wife and I work for the biggest, baddest, most evil healthcare company of them all. And I know, of course, that he is just repeating what he has been told by the liberal media and elites without actually doing the math. But still, he believes it, and neither my wife nor I had a chance to offer a rebuttal. So I thought I would do it here.

Now, before I start, I want to lay some groundwork. I know that executives in healthcare companies, like many industries, make a boat load of money. Our chief executive last year earned $1.3M in salary, $3.5M in bonuses, and $6.0M in stock and option grants, for a total 2010 compensation of $10.8M. That is a LOT of money. We can debate whether or not his and other executive's compensation is deserved. (We could have the same debate about athletes, movies stars, most of the members of congress, of course the President, and, oh, btw, tv news anchors(1).) But that isn't the accusation being leveled by my BiL. The specific charge is that health insurance company greed in general, and executive compensation in particular, are a DIRECT cause of premium increases.

So, I set out to determine exactly what contribution executive compensation makes to premium cost. I looked at the top executives of our employer because, as mentioned before, we are the biggest healthcare company of them all in terms of revenue and therefore, presumably, are the biggest crooks of all when it comes to compensating our executives on the backs of the little people we insure. I also looked at the general financials of our company to see if we really are gouging our customers to pad our bottom line. Below are the results. (Click on the chart to see it full size.)


As you can see in the chart above, if we were to completely eliminate the compensation of our top 5 executives and use that savings to reduce premiums, we would be able to reduce premiums by only 4/100ths of a penny per dollar of premium or roughly 4 cents per hundred dollars.

But total compensation doesn't paint the correct picture. Stock and Option grants are not taken out of revenue and therefore have zero impact on premiums charged. The correct analysis involves only salary and cash compensation, i.e. executive "pay". If we take this metric against revenue, we see that eliminating all executive "pay" would amount to only a 1/100th of a penny reduction per dollar of premium or 1 cent per $100 dollars, or even more dramatic, just a dime per $1,000 of premium. The fact is, the money we pay to our executives is a very small fraction of a percent of premium dollars and in no way influences premium increases.

Of course, I know this to be true already. I work in finance and see exactly how premium dollars are spent. Look at the item in the chart labelled Medical Loss Ratio (MLR). This is the amount of premium dollars that goes directly out to paying members' medical bills. It is around 80%, and has remained consistently in that range year over year(2). When we do analysis to support rate renewals, this is the item that we focus on. Premium increases (or decreases) are directly proportional to the movement of MLR year over year. The fact is that any increases in premiums that we issue are A DIRECT RESULT of increases in medical costs that we must pay out.

And what of the charge that we hoard all those premium dollars to increase our profits? Well, as again can be seen in the chart, our profit margin for 2010 was 5.4%. I think anyone would agree that this is a very modest profit. In fact, profit margins in the 4-6% range are the norm across the entire health insurance industry. The fact is that the health insurance industry is one of the most competitive, least profitable industries(3) in this country. We simply can't raise premiums to pad our profits for if we did, we would get outbid for business.

The liberal media love to throw out whole dollar amounts to shock people into thinking that health insurance companies and their executives are robber barons. I'm sure if ALL you ever heard was that United collected $85 BILLION in premiums or made $4.6 BILLION in profit, or that its chief executive made $10.8 MILLION in compensation, you would be shocked. And without being told what those dollar amounts were as a percent of revenue, you would be inclined to think that my employer is indeed the epitome of evil "big business" greed. But I implore you, before you jump to conclusions based on the slanted stories you read and see: "do the math". Yes, those are large dollar amounts. But are they a result of gouging our customers? Absolutely not.

Notes:
(1) Bill O'Reilly and Keith Olbermann made apx the same amount in 2010 as Steve Hemsley, President and CEO of UnitedHealth Group. The next time one of these "news" anchors goes on a rant about evil greedy corporate executives, ask yourself who has earned their salary more: some bloviating tv talking head or the head of a multi billion dollar international company responsible not only for helping manage and deliver care to 75 million Americans but also watching over and guiding the 80,000+ employees who serve those Americans.

(2) The federally mandated MLR in ObamaCare is 85% for large group insurance, and 80% for small group and individual insurance, and we are currently restructuring our products to meet that guideline. Still, this increased MLR over the 80% "norm" in the industry will cause many, many people to actually LOSE their insurance coverage because, frankly, companies can't remain profitable at an 85% MLR. We are big enough to survive and absorb the increased hit to our finances. But this change will cause some health insurance companies to go out of business (it has begun already) and others to terminate some plans and members.

(3) In the most recent data available, the Accident and Health Insurance industrial group ranked 96th , and the Health Care Plans group ranked 144th, out of 216 Industries on the Yahoo Business ranking of profitability.

Monday, November 1, 2010

What Will They Be Singing Come Wednesday

So, I was thinking about the quintessential song for the day after the election.
...
  • I suppose "It's The End of the World As We Know It" would be fitting, especially for Republicans who will crow the tag with glee: "...and I feel fine".

  • Democrats may be more inclined to sing "There's Got To Be A Morning After" from The Poseidon Adventure. Certainly they will feel like their ship has been flipped by a Republican tidal wave.

  • And Independents will probably be belting out "I Did It My Way", considering they have been the determining group for both the Democratic waves in '06 and '08 and now the Republican über-tsunami in 2010.

  • Nancy Pelosi and Harry Reid will surely be crying on each other's shoulder as they moan "Nobody Knows the Trouble I Seen".

  • But most sorrowful will probably be the President's song. I can hear it now, softly wafting over the grounds of the White House, that Grandpa Jones classic: "Nobody Loves Me Anymore"

Wednesday, March 24, 2010

Health Care Reform Lawsuits

I will keep an updated list of lawsuits against the new healthcare reform law in this post with comments on progress.

last updated 11/14/2011
Breaking News - Supreme Court Agrees To Hear ObamaCare Cases.


The Score Card

Total number of lawsuits - 28
Active - 21
    Undecided - 7
    Decided with Appeals - 11
    Decided pending appeal - 3
Decided-Closed - 7

Decided - 21
    Dismissed/Judgement for Defendant - 18
    Judgement for Plaintiff - 3

Decided Appeals - Circuit Court - 5
    Upheld/Overturned or Dismissed for Defendant - 4
    Upheld or Overturned for Plaintiff - 1

States that are actively or about to sue (29):
(FL et al) AK, AL, AZ, CO, FL, GA, IA, ID, IN, KS, LA, MI, ME, MS, ND, NE, NV, OH, PA, SC, SD, TX, UT, WA, WI, WY (individual suits) VA, MO, OK

States that will not (as of today) sue (22):
AR, CA, CT, DC, DE, HI, IL, KY, MA, MD, MN, MT, NC, NH, NJ, NM, NY, OR, RI, TN, VT, WV

State Lawsuits

State of FL et al v. US DHHS et al
3:2010-cv-00091 (PACER Locator - login required) (Link to Complaint)
3/23/2010 filed - Current plaintiff states (26): FL, SC, NE, TX, UT, LA, AL, MI, CO, PA, WA, ID, SD, IN, ND, MS, AZ, NV, GA, AK, IA, KS, ME, OH, WI, WY
National Federation of Independent Business also added
Additional interested state parties via briefs
For the plaintiffs
Govenors: MN, RI
For the defendants
States' Attorneys General: OR, IA, VT
Govenors: CO, MI, PA, WA (in conflict with their AG's)
10/14/2010 Motion to Dismiss denied on counts 1 (individual mandate - Commerce Clause) and 4 (medicaid impacts - 10th Amendment)
12/16/2010 Hearing on motion(s) for summary judgement
1/18/2010 GA AG Joins (Govenor was part of original states), IA Govenor Joins (in conflict with AG). KS, ME, OH, WI, WY Join.
1/31/2011 Summary Judgement for Plaintiffs on count 1 (individual mandate) - Individual Mandate struck down as unconstitutional
2/28/2011 Appealed to 11th Circuit by non-party petitioner. 11-10894-H
3/2/2011 Judge stays order......contingent on the defendants submitting a motion for expedited appeal with the appelate court or SCOTUS within 7 days.
3/8/2011 Appealed to 11th Circuit by defendants. 11-11021.
6/8/2011 11th Circuit: oral arguments
8/12/2011 Upheld in Favor of Plaintiff

Commonwealth of VA v. Sebelius
3:2010-cv-00188 (PACER Locator - login required) (Link to Complaint)
3/23/201 filed
8/2/2010 Motion to dismiss denied
10/18/2010 Hearing on motions for summary judgement
12/13/2010 Summary judgement for Plaintiffs - Individual Mandate struck down as unconstitutional
1/19/2011 Both parties appeal to the 4th Circuit (11-1057, 11-1058)
1/20/2011 Appeals case consolidated into 11-1057
1/26/2011 Expedited briefing granted and oral argument scheduled for May 10-13, 2011. Case will be argued in conjunction with Liberty University, Inc. et al v. Geithner et al
2/9/2011 Petition to SCOTUS by Plaintiff 10-1014
4/25/2011 Petition to SCOTUS denied
9/8/2011 4th Circuit: Dissmissed - Standing

Kinder et al v. Department of Treasury et al
1:2010-cv-00101 (PACER Locator - login required)
7/7/2010 Filed - suit by MO Lt Gov Kinder and others both as a private citizen and in his official capacity of Lt. Gov. as the government advocate for the state's elderly.
7/9/2010 Motion to intervene and for partial dismissal filed by MO AG claiming only he can advocate legally for the MO state government.
8/20/2010 Motion to intervene withdrawn
1/18/2011 Motion to Dismiss
4/26/2011 Dismissed - Jurisdiction
4/29/2011 Appealed to the 8th Circuit 11-1973
10/17-10/21/2011 8th Circuit: oral arguments

Pruit v. Sebelius et al
6:2011-cv-00030 (PACER Locator - login required)
Oklahoma suit
1/7/2011 Announced
1/24/2011 Filed
3/28/2011 Motion to Dismiss

Individual Lawsuits

Thomas More Law Center, et al v. POTUS et al
2:2010-cv-11156 (PACER Locator - login required) (Link to Complaint)
3/23/2010 Filed
10/21/2010 Dismissed
12/15/2010 Appealed to 6th Circuit 10-2388
6/29/2011 Upheld in Favor of Defendant
7/27/2011 Appealed to SCOTUS 11-117

Liberty University, Inc. et al v. Geithner et al
6:2010-cv-00015 (PACER Locator - login required) (Link to Complaint)
3/23/201 Filed
10/22/2010 Hearing on Motion to Dismiss
11/30/2010 Dismissed
12/3/2010 Appealed to 4th Circuit 10-2347
1/26/2011 Oral argument scheduled for May 10-13, 2011. Case will be argued in conjunction with Commonwealth of VA v. Sebelius
9/8/2011 4th Circuit: Dissmissed - Standing

New Jersey Physicians, Inc. et al v. Obama et al
2:2010-cv-01489 (PACER Locator - login required)
3/24/2010 Filed
7/28/2010 Motion to dismiss
12/7/2010 Dismissed
12/14/2010 Appealed to 3rd Circuit 10-4600
6/22/2011 3rd Circuit: oral arguments
8/3/2011 Upheld in Favor of Defendant

Baldwin et al v. Sebelius et al
3:2010-cv-01033 (PACER Locator - login required)
5/14/2010 Filed
8/27/2010 Dismissed
9/1/2010 Appealed to 9th Circuit 10-56374
9/17/2010 Petition to SCOTUS 10-369
11/8/2010 Petition to SCOTUS denied

Mead et al v. Holder et al
1:2010-cv-00950 (PACER Locator - login required) (Link to Complaint)
6/9/2010 Filed - suit by the American Center for Law and Justice
8/10/2010 Plaintiff Motion for Summary Judgement
8/20/2010 Motion to Dismiss
1/31/2011 Hearing on Motion to Dismiss
2/22/2011 Dismissed
2/25/2011 Appealed to DC Circuit 11-5047
9/23/2011 DC Circuit: oral arguments

Physician Hospitals of America, et al v. Sebelius
6:2010-cv-00277(PACER Locator - login required)
6/3/2010 Filed - Another provider initiated lawsuit
8/17/2010 Motion to Dismiss and Defendant Motion for Summary Judgement
9/29/2010 Hearing on Motion to Dismiss and (defendant) Motion for Summary Judgement
11/24/2010 Bench Trial Cancelled.
2/15/2011 Plaintiff Motion for Summary Judgement
2/18/2011 Motion to Dismiss denied (jurisdiction issue only)
3/31/2010 Summary Judgement for Defendant
6/9/2011 Appealed to the 5th Circuit 11-40631

Purpura et al v. Sebelius et al
3:2010-cv-04814 (PACER Locator - login required) (Link to Complaint)
9/20/2010 Filed
10/7/2010 Case reassigned
12/9/2010 Motion for summary judgement (plaintiffs)
1/17/2011 Cross Motion to Dismiss
1/18/2011 (postponed) Motion for summary judgement to be decided
2/22/2011 (sched) Motion for summary judgement and any motion to dismiss to be decided
4/22/2011 Dismissed - Standing
5/12/2011 Appealed to 3rd Circuit 11-2303

U.S. Citizens Association et al v. Obama et al
5:2010-cv-01065 (PACER Locator - login required) (Link to Complaint)
5/12/2010 Filed
8/12/2010 Motion to Dimiss
9/1/2010 Ammended Complaint
9/16/2010 Second Amended Complaint
10/8/2010 Motion to Dismiss
11/23/2010 Motion to Dismiss count 1 (Individual Mandate unconstitutional) denied. Counts 2-4 dismissed.
1/24/2010 Cross Motions for Summary Judgement
2/28/2011 Court issues final judgement on counts 2-4 so that they may be immediately appeal, if desired. Count 1 remains open.
3/18/2011 Dismissal of counts 2-4 appealed to 6th circuit. Count 1, Individual Mandate, still remains before district court.
4/27/2011 Case suspended "pending a ruling by the Sixth Circuit in Thomas Moore Law Center vs. Obama"
7/1/2011 Summary Judgement for Defendant per precedent of 6th Circuit decision in Thomas Moore Law Center vs. Obama
7/27/2011 Appealed to 6th Circuit 11-3798

Peterson v. USA et al
1:2010-cv-00170 (PACER Locator - login required)
5/4/2010 Filed - Claims assumed reductions in Medicare benefits and increased costs are unconstitutional.
8/16/2010 Motion to dismiss
12/20/2010 Ammended Complaint
3/10/2011 Hearing on Motion to Dismiss
3/30/2011 Dismissed - subject matter jurisdiction

Bellow v. US DHHS et al
1:2010-cv-00165 (PACER Locator - login required) (Link to Complaint)
3/24/2010 Filed - First private citizen lawsuit
11/29/2010 Motion to Dismiss
12/20/2010 Plaintiff Motion for Summary Judgement
3/21/2011 Magistrate Judge recommends dismissal
6/20/2011 Dismissed - subject matter jurisdiction

Goudy-Bachman et al v. US DHHS et al
1:2010-cvs-00763 (PACER Locator - login required)
4/9/2010 Filed - 2 Pennsylvania residents
6/14/2010 Motion to Dismiss
1/24/2011 Motion to Dismiss denied as to jurisdiction, standing, and ripeness of the plaintiff's financial burden claims. Separate opinion on Motion to Dismiss as to constitutionality of the Individual Mandate forthcoming.
6/21/2011 Motion for Summary Judgement by Defendants
7/6/2011 Motion for Summary Judgement by Plaintiffs
9/13/2011 Summary judgement for Plaintiffs - Individual Mandate struck down as unconstitutional

Walters et al v. Holder, Jr. et al
2:2010-cv-00076 (PACER Locator - login required) (Link to Complaint)
4/2/2010 Filed - Three Mississippi residents
8/1/2010 Motion to dismiss
2/3/2011 Dismissed as to standing with a 30 day leave to ammend the complaint
3/4/2011 Amended complaint
4/12/2011 Motion to dismiss in part and for jurisdictional discovery

Association of American Physicians & Surgeons, Inc. v. Sebelius et al
1:2010-cv-00499 (PACER Locator - login required) (Link to Complaint)
3/26/2010 Filed
6/11/2010 Case Reassigned
7/29/2010 Motion to Dismiss
8/23/2010 Ammended Complaint
9/13/2010 Second Amended Complaint
11/12/2010 Motion to Dismiss
11/22/2010 Amended Motion to Dismiss
3/30/2011 Case reassigned

Calvey et al v. Obama et al
5:2010-cv-00353 (PACER Locator - login required)
4/7/2010 Filed - 16 Oklahoma residents
4/8/2010 Case Reassigned
8/6/2010 Ammended suit to allow class action (currently 1,162 plaintiffs)
2/15/2011 Motion to Dismiss
4/26/2011 Dismissed in part. Only some claims (related to mandate) for only the uninsured plaintiffs remain to be adjudicated.

Sissel v. US DHHS et al
1:2010-cv-01263 (PACER Locator - login required) (Link to Complaint)
7/26/2010 Filed - suit by the Pacific Legal Foundation
11/15/2010 Motion to Dismiss
6/3/2011 Case Reassigned
8/9/2011 Case suspended pending a ruling by the DC Circuit in Mead vs. Holder

Coons et al v. Geithner et al
2:2010-cv-01714 (PACER Locator - login required) (Link to Complaint)
8/12/2010 Filed - suit by the Goldwater Institute
11/15/2010 Motion for Preliminary Injunction
3/10/2011 Motion for Preliminary Injunction withdrawn
3/11/2011 Amended Complaint
4/18/2011 Motion to Dismiss
5/10/2011 Ammended Complaint
5/31/2011 Motion to Dismiss
6/13/2011 Motion to Dismiss found moot
6/20/2011 Motion for Partial Summary Judgement by Plaintiffs
8/10/2011 Motion for Summary Judgement by Defendants

Enloe et al v. Obama et al
5:2011-cv-00026 (PACER Locator - login required)
2/11/2011 Filed. This is basically the Shreeve case refiled in another district
5/31/2011 Motion to Dismiss

Potential Lawsuits

Closed Lawsuits

Taitz v. Obama
1:2010-cv-00151 (PACER Locator - login required) (Link to Complaint (applicable amended section begins page 5))
Amended filing to a "birther" lawsuit.
Motion filed to consolidate suit with St of FL et al.
4/8/2010 Motion denied
4/14/2010 Amended suit dismissed

Shreeve v. Obama et al
1:2010-cv-00071 (PACER Locator - login required)
4/8/2010 Filed - 10th Amendment case brought by an individual - interesting. Names Reid and Pelosi as defendants. (This is the suit from the TN State Rep Candidate Van Irion, who is acting as the plaintiff's attorney)
7/19/2010 Motion for peliminary injunction
7/19/2010 Suit becomes national class action w/ 25,000+ plaintiffs (including my daughter)
8/27/2010 Motion to dismiss
11/4/2010 Dismissed

Fountain Hills Tea Party Patriots, L.L.C. v. Sebelius et al
2:2010-cv-00893 (PACER Locator - login required)
4/22/2010 Filed - The Tea Party joins the fight
6/17/2010 Dismissed

Burlsworth et al v. Department of Justice et al
4:2010-cv-00258 (PACER Locator - login required) (Link to Complaint)
4/27/2010 Filed - This is the Secure Arkansas suit
8/3/2010 Motion to dismiss
9/8/2010 Plaintiffs withdraw complaint

Independent American Party of NV et al v. Obama et al
2:2010-cv-01477 (PACER Locator - login required)
8/31/2010 Filed
1/19/2011 Case Reassigned
3/7/2011 Dismissed - no proof of service

Archer v. U.S. Senate - dismissed 4/12/10. This was a complaint against "the cornhusker kickback". Case was dismissed because plaintiff did not pay fee.

Mackenzie v. Shaheen - dismissed 5/26/10. This was a suit originally filed in county court in New Hampshire and then moved to Federal District Court, which claims denial of plaintiff's due process rights by his elected representatives in relation to the "unfair means" in which the ObamaCare bill was written, debated, and voted upon. Dismissed as defendants, the plaintiff's US Senator and Congresspersons, have "legislative immunity from suit based upon legitimate legislative activities".

Additional suits listed on m.whitehouse.gov blog. I do not include any of these in the totals because I either can find no record of them or they are not ObamaCare cases.
Sollars v. Reid - dismissed 4/2/10. I find no record of this case on PACER
Heghmann v. Sebelius - dismissed 5/14/10. I find no record of this case on PACER
Coalition for Parity Inc. v. Sebelius - dismissed on 6/21/10. This is a case against the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity
Act of 2008, not ObamaCare.

Other News

10/26/2011 Health cases set for Nov. 10 SCOTUS Conference

Tuesday, March 23, 2010

I Feel Like Alice in Obamaland

Scotusblog opens commentary on pending healthcare reform lawsuits with this roundup

Commentators continue to speculate on the role of the Court in potential challenges to Congress’ passage of health care reform late Sunday. At the ACS blog, Simon Lazarus writes in an issue brief that mandating the purchase of health insurance is “lawful and clearly so” under the Commerce Clause and/or the General Welfare Clause. At Vanity Fair, Andrew Cohen predicts that in a possible 5-4 Supreme Court decision, Justice Kennedy and his swing vote would be “quite open and warm to the notion of federal intervention on health care.” At Jost on Justice, Kenneth Jost reviews relevant Supreme Court Commerce Clause jurisprudence and concludes that the bill is likely to survive potential legal challenges. Ashby Jones at the WSJ Law Blog also weighs in on the subject.

News organizations concur with a unified chorus of: "Legal experts say they [the lawsuits] have little chance of succeeding". Who are these legal experts and what Constitution are they looking at? I feel like I have stepped into a rupture in the space/time continuum and have been instantly transported to a much darker parallel America where Joe Biden has a gotee and the Commerce Clause of the constitution now reads:

"[The Congress shall have power] To COMPEL Commerce with foreign Nations, and among the several States"

Seriously, please, I beg of you, will some constitutional scholar come here to explain to my feeble mind how the individual mandate in Obamacare can be constitutional. I know you are out there because you keep telling everyone in the press that it is true. But I can't fathom it.

So what is next?

If the government decides that we need to emit fewer green house gases (a noble endeavor), can they now compel us to go out and buy wind generators, solar panels, and hybrid cars? I know they can incentivize us to make such purchases, but can they literally force us to? Apparently, according to the legal experts, that is simply "regulating" commerce. If the government decides that it is healthy to take some time off work each year (demonstrably true), can they now compel us to fly to Cancun for a week? I would love it if they would incentivize THAT but can they force it? It would appear so. And what if the government decides our population is too big (can you say china)? Can they compel us to purchase birth control, get sterilized, and have abortions for the general welfare? After all, those are simply different kinds of commerce.

I guess the founders had just such an exercise of federal power in mind when they wrote the commerce clause, because the legal experts all agree that such forced purchasing is in there somewhere. I can’t see it. But I’m no expert.

Monday, March 22, 2010

Would You Like a Glass of Kool-Aide?

From the “have a nice glass of kool-aide” Dept: Ha! For all of you who cheered the President’s constant sniping at the health insurance industry and bought his promise that Obamacare will end “evil insurance company practices”, this just in from Wall Street.

“The major health insurance and provider stocks leaped upward on the open, as expected. (They just acquired 32 million new customers in the most ideal way: it’s now illegal not to buy their products.)” (Francis Cianfrocca - redstate.com)

Thank you Obamacare supporters. Since I work for the largest (and, I suppose, inherently most evil) of those insurance companies you have given me job security for the foreseeable future. Of course, I hate this unconstitutional and despicable bill, but thanks to Speaker Pelosi and her kool-aide drinking Reps., I at least will enjoy gainful employment for the rest of whatever.

Wednesday, March 17, 2010

The "Price" of ObamaCare: Wait Times. A First Hand Example

One of the ways that health systems are measured is in terms of wait times for procedures. The knocks against government run systems is that wait times are painfully (literally) long due to inadequate doctor availability. This week, the New England Journal of Medicine published an article that predicts severe doctor shortages if ObamaCare is put into place. With the doctor availability (or lack thereof) side of the equation seeming to be inevitable, the question of wait times deserves a serious answer. If wait times truly will increase dramatically, the pain and suffering of American patients could increase proportionally. So, is it true that wait times are significantly longer in government run systems? I submit my gall bladder surgery as a case in point.

A few years ago, I finally had my gall bladder out. Although not life threatening, the status of my gall stones had come to a point where I was having painful attacks on almost a weekly basis. I could grin and bear it, but it had really come time to "get 'er done". I did not consider my situation urgent in a purely medical sense, nor did my physician consider it so. I will share the chronology of my surgery in our private health care system in a moment, but first let's look at how it might have been handled in another country.

It takes a little digging, but one can find average wait time statistics for surgeries in the various countries (or provinces) that have government run health systems. Here is a brief list of what I found for gall bladder removal (cholesystectomy):

New South Wales, Australia. Non-urgent, 3 months; urgent, 3 weeks. (2006/2007 data)
British Columbia, Canada. 3 months (No division by urgency. 2008 data)
England. 2-3 months (No division by urgency. 2004/2005 data)

Now, I know this is hardly an exhaustive study. But I think it is clear and very common knowledge that if you need an elective cholesystectomy in a government system, you are going to wait anywhere from a few weeks to a lot of months. So, what was my experience?

I had my gall stones diagnosis several years before my surgery. At that point in time, I was having only rare attacks and I could kind of manage things by diet. When the stones did cause irritation, it was often relieved with over the counter pain rememdies. That fairly quickly took a turn for the worse a few years ago. So I decided to go into the local clinic and see if I could have the problem taekn care of.

I called to set up an appointment with a general surgeon at the clinic. My wait for that appointment was...well...there was no wait. They asked if I could come in that day, and I could, and I did. The doctor did a standard physical and asked a few diagnostic questions. When he confirmed that I did indeed have gall stones and that it would be recommended that I have my gall bladder removed, we had the following conversation:

Doctor - "well I suppose you would like this done as soon as possible"
Me - "yup"
Doctor - "when are you available to have the surgery"
Me - "my schedule at work is pretty flexible, so really any time"
Doctor - "how about tomorrow"

Obviously, I agreed. Just as with my initial appointment, my wait time was virtually 0 days. But it gets even more impressive. The doctor said that I would need to have a pre-operative physical before surgery, and that would need to be done "today". He talked to the nurse coordinator, they scheduled the surgery at teh hospital of my choice (I had three to choose from), and then scheduled my pre-op physical at thier nearby sister clinic for an hour later.

Now, I know that my experience may also be a slight outlier. But I have no doubt it is fairly representative of how surgery gets handled here in America with our fully private system. My experience supports the anecdotal and statistical evidence that government run systems are far less responsive to patient needs, especially the needs for diagnostic testing and treatment. ObamaCare would change all of that, adversely altering wait times and a variety of other health care quality factors.

Friday, March 12, 2010

My Objections to Obamacare: an Open Letter to Congress

The people at capitolconnect.com have made it possible for anyone to email their representative and all of the blue-dog Democrats in the House of Representatives regarding President Obama and the Democrats' healthcare reform bill. They even allow you to edit the default message to make it a personal appeal. Here is what I wrote to congress:

I write to encourage you to oppose government-run health care and any legislation which might broaden the federal government's control over my health care. I hope that you fight against health care legislation that would drive up costs, diminish quality and limit access.

I am a person who has been touched by the healthcare industry all my life. My father was a physician - an anesthesiologist - who even in the 70's saw upwards of 20% of his gross income go to malpractice insurance premiums. In my youth I worked as a nursing assistant on the delivery side of healthcare, caring for patients in both hospital and long term care settings. My wife also worked in healthcare delivery at the practitioner level, running a doctors office for the first few years of our married life. For the last 25+ years, I have worked on the payer/managed care side of the healthcare equation. Currently, I am a financial analyst for one of the top 3 healthcare companies in the world. I not only manage forecasting and budget for a $500M piece of our business, but work with our actuaries to develop premium rates.

When I weigh all of this experience against the current proposed legislation, and more importantly, the rhetorical basis for that legislation, I am frankly shocked at both the inadequacy of the bill to address the REAL healthcare reform needs of this country and the deceitful and inaccurate claims about our wonderful healthcare system. At the core of my disgust is the failure of the bill to address the true problem in the current system - cost. Defensive medicine and out of control malpractice rewards are a large factor in driving costs up. These constantly rising costs in turn are the major contributor to insurance premium rate increases. Government regulation in the form of mandated benefits also adds to the cost equation. And a lack of competition because of rigid, state based obstacles to product marketing removes the last hope of pushing costs down.

The current bill not only fixes none of these real problems but will exacerbate a good many of them. As doctors flee the system because they can't survive financially, the quality of and access to care will go dramatically down and cause an actual increase in prices due to supply and demand dynamics. All of the “pork” in the bill simply heaps waste on top of bad policy.

For all of these reasons I implore you to take the sensible and responsible approach to the current healthcare bill and vote against it. I hope you get that opportunity soon so that you and your colleagues, our servants in the machine of government, can turn your attention to issues that really are affecting our country in this current tumultuous time – jobs and the economy.