Obamacare Future – The Wrongologist

Monday Wake Up Call – June 11, 2018

The Daily Escape:

Interior, Cuba’s Capitol Building, Havana – 2018 photo by Conor Morrissey

Two things to address on Monday. Take a look inside the program that separates the families of asylum seekers. The WaPo reports that:

A Honduran father separated from his wife and child suffered a breakdown at a Texas jail and killed himself in a padded cell last month, according to Border Patrol agents and an incident report filed by sheriff’s deputies.

The death of 39 year-old Marco Antonio Muñoz, had not been publicly disclosed by the DHS, and did not appear in any local news accounts. Muñoz was found on the floor of his cell May 13 in a pool of blood with an item of clothing twisted around his neck:

According to Border Patrol agents…Muñoz crossed the Rio Grande with his wife and three-year-old son on May 12 near the tiny town of Granjeno, Texas. The area is a popular crossing point for Central American families and teenagers who turn themselves in to apply for asylum in the United States.

Soon after Muñoz and his family were taken into custody, they arrived at a processing station in nearby McAllen and said they wanted to apply for asylum. Border Patrol agents told the family they would be separated. That’s when Muñoz “lost it,” according to one agent…

Unruly detainees are taken to local jails where they can be placed in more secure settings or isolation cells. Border Patrol agents found a vacant cell for Muñoz 40 miles away at the Starr County Jail in Rio Grande City. Muñoz was booked into the jail at 9:40 pm. He remained combative, and was placed in a padded isolation cell. Guards said they checked on Muñoz every 30 minutes, and observed him praying in a corner of his cell the following morning.

A guard who walked by the cell at 9:50 am said he noticed Muñoz laying in the center of the floor, unresponsive and without a pulse. Local sheriff’s deputies recorded the incident as a “suicide in custody.” But the capper is this remark by an ICE agent: (emphasis by Wrongo)

Another agent familiar with what happened said he couldn’t understand why Muñoz “would choose to separate himself from his family forever” by taking his own life.

This asshole’s salary is paid by you and me! It’s time we see these agents for who they really are.

Second, last week the DOJ filed a brief urging a Texas court to invalidate the Affordable Care Act’s crucial insurance reforms, including the prohibition on refusing to cover people with preexisting conditions. In their complaint, states (including Texas and other red states) point out that since Congress has repealed the penalty for going without insurance, the freestanding requirement to get insurance, which is still on the books, is therefore unconstitutional. And because it’s unconstitutional, the courts must invalidate the entire ACA. From the Incidental Economist:

There’s a strong argument to be made in the ACA’s defense. And the Justice Department has had a durable, longstanding, bipartisan commitment to defending the law when non-frivolous arguments can be made in its defense.

If the Justice Department can just throw in the towel whenever a law is challenged in court, it can effectively pick and choose which laws should remain on the books. That’s a flagrant violation of the President’s constitutional duty to take care that the laws are faithfully executed. More:

The President has a duty to take care that all the laws are executed, not just the ones he likes. And while there are cases in which the Justice Department has deviated from that principle, they are extremely rare.

The Trump administration has just announced that it doesn’t care that a law was passed by Congress and signed into law by the President. All that matters is that it hates the law and has a (weak) argument for casting it aside.

Time to wake up America! There is a revolution underway, and we’re being fed the elephant of authoritarianism one little slice at a time. This time, the revolution is televised every day, but we’re not connecting the dots quickly enough.

To help America wake up, here is Iris DeMent with “Living in the Wasteland of the Free”, from her 1996 album, “The Way I Should”:

This song is 22 years old, but still rings true. Iris says: “The poor have now become the enemy” and “Let’s blame our troubles on the weak ones“.

Today, both are true, and are simply sickening.

Those who read the Wrongologist in email can view the video here.

Buffett: Focus on Lower Health Care Costs, Not Corporate Taxes

The Daily Escape:

Ribbon Chapel, Onomichi Japan – photo by Koji Fujii

Andrew Ross Sorkin wrote about Warren Buffet and the Berkshire Hathaway annual meeting in Omaha. Thousands of people attend these meetings, which are known as “Woodstock for capitalists.” Sorkin reports that Buffet made this comment:

The tax system is not crippling our business around the world.

Sorkin said that Mr. Buffett, was blunt and pointed, implicitly rebuking his fellow chief executives, who have been lobbying the Trump administration and Washington lawmakers to lower corporate taxes. Buffett said that those who have been single-focused on seeking relief from their tax bills would be smart to shift their attention to health care costs, which are growing and swallowing evermore corporate profits. The Kaiser Family Foundation reports that 49% of Americans, about 156 million, are insured by their employer. More from Sorkin:

The need for corporate tax relief has become the lodestar of the corner office, with CEOs rhapsodizing over President Trump’s plan to try to stimulate growth by cutting tax rates for businesses.

But as Mr. Buffett pointed out, these chief executives are missing the bigger issue: As a percentage of our GDP, the cost of maintaining our American health care system is rising at an alarming rate. And Corporate America pays a big (and growing) chunk of that bill.

Buffett wasn’t talking about the cost of health insurance, which is a fraction of the total cost of health care. He suggests that today’s corporate tax rates are a distraction, not a true impediment to growth:

If you go back to 1960 or thereabouts, corporate taxes were about 4% of GDP…And now, they’re about 2 % of GDP.

While tax rates have fallen as a share of gross domestic product, health care costs ballooned:

About 50 years ago, health care was 5% of GDP, and now it’s about 17%.

Buffett is a smart guy. He raises an argument for focusing on the underlying costs of our health care system, something that goes far beyond the debate around the Affordable Care Act, or what will replace it. Buffett says that our global competitiveness has fallen largely because our businesses were paying far more for health care — a tax by another name — than those in other countries.

As Buffett said: (brackets by the Wrongologist)

When American business talks about [corporate taxes] strangling our competitiveness, or that sort of thing, they’re talking about something that as a percentage of GDP has gone down…While medical costs, which are borne to a great extent by business, have swelled.

Here are the facts:

In 1960, corporate taxes in the US were about 4% of GDP. The percentage fell steadily, reaching a bottom in 1983 before rising slightly over the last few decades. Today, it is 1.9%.
In the meantime, health care costs as a percent of GDP have skyrocketed. Today our health care costs are 17.1% of GDP, up from 13.1% in 1995.
Germany’s cost is 11.3%, up from 9.4% during the same period. Japan’s is 10.2%, up from 6.6%. Britain’s health care costs are 9.1% of GDP, up from 6.7% percent in 1995.

That makes our health care cost disadvantage far greater than our tax differential. It harms American companies in particular, since they bear such a large share of those costs, which firms in our competitor countries do not. US Corporations spend $12,591 on average for coverage of a family of four, up 54% since 2005, according to a study by the Kaiser Family Foundation.

But Congress avoids the issue, and CEOs don’t talk about it. A final quote from Warren:

It’s very tough for political parties to attack it…it’s basically a political subject…

In fact, Buffett’s partner, Charlie Munger, is the rare Republican (Buffett is a Democrat) who has advocated for a single-payer health care system. Under his plan, the US would enact a sort of universal type of coverage for all citizens — perhaps along the lines of the Medicaid system.

Which brings Wrongo to his final point: Medicaid expansion is the one part of Obamacare that can be said unequivocally to work. It’s a single payer program funded by the Federal government. So it’s bitterly ironic that the Republican’s reaction to Obamacare is to assault and roll back an existing Federal program, from LBJ days.

Of course, kicking poor people who benefit from Medicaid will always be popular with Republicans. So, Republicans, by making Medicaid worse, will try to restore their natural order of things.

Lazy, uninformed voters = Lazy, uninformed legislators = Lazy, uninformed policy.

It’s that simple.

Saturday Soother – March 18, 2017

The Daily Escape:

(Ancient Pagoda in Myanmar – photo by Steve McCurry. McCurry is best known for his iconic 1984 National Geographic magazine photograph “Afghan Girl”.)

This isn’t the millennium we thought we’d have. The 21^st century was supposed to be a time of enhanced social justice, and a push toward further global integration. We thought that the arc of history bent unmistakably toward a bright Information Age.

Instead, where are we? Lurching forward towards the second decade of the century with the reins of government in the hands of an ultra-nationalist, someone who wouldn’t shake hands with Angela Merkel, the Chancellor of Germany at the close of their meeting. We also learned more about the tin ear that Republicans have when it comes to enacting a health insurance program. Here is the topper: In a conversation with the National Review’s Rich Lowry, Speaker of the House Paul Ryan (R-WI) bragged about how conservatives now have a once-in-a-generation opportunity to take health coverage away from the most vulnerable Americans:

So Medicaid…sending it back to the states, capping its growth rate. We’ve been dreaming of this since I’ve been around — since you and I were drinking at a kegger…I’ve been thinking about this stuff for a long time. We’re on the cusp of doing something we’ve long believed in.

Not the college experience that most of us had, but for Ryan, it was a time to dream about how, someday, he would take health care away from millions of poor people. The media thinks that this guy is the best and brightest that the Republicans have, and cover him like a serious, sober policy wonk focused on reducing deficits and poverty in market-oriented ways. They refuse to believe that a major elected official would devote his life to the Randian belief that the poor deserve what’s coming to them because they lack the brilliance of a John Galt. It’s one thing to have these thoughts at 20, and an entirely different thing to still have them at 47 years old.

To reiterate what we talked about earlier this week, Speaker Ryan’s health bill, if enacted, would lead to 24 million fewer people having health insurance by 2026, according to the Congressional Budget Office. Of those 24 million, 14 million would lose health coverage because of the changes Ryan wants to make to the Medicaid program.

No wonder Charlie Pierce calls Ryan the “zombie-eyed granny starver”. Many Americans voted for this. Perhaps they now understand buyer’s remorse.

Time to get soothed, if it is possible this week. Grab a cup of Hula Daddy Kona Coffee (just $100/Lb. via the web), sit in the sun room with Wrongo, and watch the 20” of snow melt on the fields of Wrong.

We’ll listen to Dvořák’s “Romance for Violin and Orchestra” performed by Tanja Sonc with the Slovenian Philharmonic, conducted by Keri-Lynn Wilson. Dvořák originally composed this in September and October 1873 as the slow movement of a string quartet in F minor. He re-scored it for violin and orchestra sometime before December 1877. Here is Romance of Violin and Orchestra, Opus 11:

Those who read the Wrongologist in email can view the video here.

Monday Wake Up Call – Repair and Replace Edition

Where is the GOP plan for repealing and “replacing” Obamacare? It has been moved to an off-ramp on the Trump highway. Why? WaPo’s Greg Sargent explains: (emphasis by the Wrongologist)

For weeks now, Republicans have employed a range of tortured talking points designed to push one idea: The GOP repeal-and-delay plan will not leave anyone without health coverage, and is merely designed as a transition that will ultimately move us seamlessly to the new, improved health care system Republicans envision, with the details to be worked out later.

The GOP’s problem is that several red states could be taken out of the individual insurance market completely. The Congressional Budget Office recently examined a version of the GOP repeal-and-delay bill (one passed by Republicans in 2015 and vetoed by Obama), and concluded that insurers would exit the market, and 10% of Americans could be living in an area that had no participating insurers at all.

And that 10% of the population is concentrated in Republican areas.

Jeanne Lambrew, a former Obama administration official involved in implementing the ACA, conducted an analysis to determine where that 10% percent resides. Using data furnished by the Kaiser Family Foundation, Lambrew singled out counties that met two criteria:

They have low populations
They currently only have one insurer serving individual market customers

It’s a big list. The states include: Alaska, Utah, Wyoming, Oklahoma, Texas, Missouri, Mississippi, Alabama, Tennessee, Georgia, South Carolina, Kentucky, and West Virginia. In addition some at risk counties are in swing or blue states like North Carolina, Nevada, Ohio, Pennsylvania, Wisconsin, and Illinois. And in a few cases, entire states would lose coverage. In Oklahoma, Wyoming, Arizona, South Carolina and Alabama, individual markets would be completely eliminated.

In other words, Repealing and delaying Replacement could be a political bloodbath for Republicans, at least in the House in 2018. And the GOP knows it. At the GOP Strategy Meeting in Philadelphia, Tom McClintock (R-CA) said: (emphasis by the Wrongologist)

We’d better be sure that we’re prepared to live with the market we’ve created with repeal. That’s going to be called Trumpcare. Republicans will own that lock, stock and barrel, and we’ll be judged in the election less than two years away.

The judgement has already started. The LA Times reports that the execrable Rep. McClintock ran into a buzz saw at his raucous town hall meeting in Roseville CA:

The California congressman ultimately was escorted out by police.

KQED’s Katie Orr reported that the 200 seats for the town hall set up by the Republican in Roseville, CA were filled, and hundreds more people remained outside. More from the LA Times:

McClintock is one of many members of Congress who have been encountering protests at their district offices or town hall meetings since President Trump took office just over two weeks ago. Most protesters have been asking members to fight the possible repeal of the Affordable Care Act…

Some Republicans seem to be open to “repair” instead of replacing Obamacare. The term “Repair” was suggested by Republican wordmeister Frank Luntz. Luntz, according to Bloomberg, recommended the term because it:

Captures exactly what the large majority of the American people want…the public is particularly hostile about skyrocketing costs, and they demand immediate change.

Luntz understands that Americans want their health insurance to be both generous in terms of coverage, and affordable in terms of premiums. The ACA tries to deliver that by subsidizing poorer people’s premiums. Those subsidies cost money, and that money is partly funded by taxes on the rich.

But Republicans got elected by promising to reduce rich people’s taxes. This means whether they replace or repair, their plans involve rolling back the taxes paid by the rich. That leaves less money to subsidize insurance for the non-rich, and that means the non-rich will either pay higher premiums, or accept worse coverage.

Keeping voters in Red States on board with the GOP requires that they abandon repeal, or pass a repeal/replace bill that essentially leaves the law intact.

If they repeal the tax increases and use deficit financing, they could accomplish 90% of what their main constituents, plutocrats and the white working class, care about. Whether they are smart enough to go this route is questionable.

Time for Congress to wake up! Time is against them since they voted to repeal the ACA 50+ times, but STILL have no plan for replacing it. To help them wake up, here are Jeff Beck, Lizzie Ball (violin), Tal Wilkenfeld (bass) & Jonathan Joseph (drums), playing the Irish instrumental “Women of Ireland” live at the “Crossroads Guitar Festival” in Madison Square Garden NYC, on April 13th 2013:

https://www.youtube.com/watch?v=0ej_X2_SggQ

Those who read the Wrongologist in email can view the video here.

Saturday Soother – January 14, 2017

You may have noticed that the Wrongologist has not posted a column since Monday. Life intervened, as we began a to-the-studs kitchen renovation this week. Think about it, no kitchen in January in the Northeast. It’s like camping, but you sleep in your own bed, and use your own shower.

This week, the Trumpathon marched forward, with each day giving us something unique to consider, to react to with disbelief as our Overlord moves to fully take the reins of power.

The commonly accepted story is that the Russians hacked Podesta and the DNC, and that might have helped Trump defeat Clinton. Then there is the “Dossier” of possibly incriminating info that the Russians may, or may not, have on Trump. The story could be false or true, and there is no solid evidence either way.

Trump’s plan to place his business in “trust” is ridiculous, but he has no plan to abide by the spirit of a blind trust, and he’s exempt from the rules for other public servants, so deal with it.

The Democrats didn’t lose to the Republicans because of a Russian conspiracy, but because they didn’t do a good job of governing, for two reasons: First, the economy hasn’t recovered for quite a few Americans. Second, Obama’s record on foreign policy is at best, mixed and is possibly a failure.

Despite his success with Obamacare, we should remember that insurance coverage is not health care. Consider that the US mortality rate is going up. And there is still considerable economic uncertainty: Elevate’s Center for the New Middle Class looked at how much money in the form of an unexpected expense would be a crisis for ordinary Americans. Their study asked 502 nonprime (credit score below 700) and 525 prime Americans (credit score of 700 or above) how they could handle an unexpected expense. They found that:

A bill becomes a crisis for nonprime Americans at $1,400. For Primes, it’s $2,900…

160 million Americans come under the nonprime category, according to the study. That’s half of our population who would have difficulty paying for a trip to the emergency room with a broken arm. Two-thirds of Americans would struggle to cover a $1000 emergency expense. Half of Americans find it hard to pay over $100 a month for health insurance, while the average price nationally in 2017 for a bronze plan is $311 per month for a 30-year-old nonsmoker who does not qualify for subsidies. That means without subsidies, half of America is at serious risk of being uninsured under repeal and replace.

This speaks to our uneven economic recovery better than any average wage or unemployment statistics.

In short, Democrats lost to a very flawed person because they (Dems) ran the country badly for people like those in this study, and those people are upset.

If that didn’t bring you down far enough, there are just six days until the inauguration.

Wow, with all this going on, we need something to help us relax. Today’s soother is Samuel Barber’s “Knoxville: Summer of 1915“, with soprano Dawn Upshaw and the Orchestra of St. Luke’s. Barber was a 20^th century American composer, perhaps our best. He was twice awarded the Pulitzer Prize for Music.

He wrote this piece in 1947, based on a prose poem by James Agee. Agee would later use the poem as a preamble to his Pulitzer Prize-winning book, A Death in the Family, published posthumously in 1957. Agee was also the screenwriter for the movie, the African Queen. Here is Knoxville: Summer of 1915:

While this feels operatic, the lyrics are in English. Here is a sample:

It has become that time of evening when people sit on their porches, rocking gently and talking gently and watching the street…People go by; things go by. A horse, drawing a buggy, breaking his hollow iron music on the asphalt; a loud auto; a quiet auto; people in pairs, not in a hurry, scuffling, switching their weight of aestival body, talking casually, the taste hovering over them of vanilla, strawberry, pasteboard and starched milk, the image upon them of lovers and horsemen, squared with clowns in hueless amber.

“Aestival” means of, or occurring in the summer.

Sunday Cartoon Blogging – January 8, 2017

Congress returned, and immediately shot itself in the foot by being against ethics before they were for them. That made no sense, even to Overlord Donald I, so Congress backed down. Then Congress got down to business: They revived a rule allowing them to reduce the pay of individual government workers, which was why they were building lists of pro-climate change bureaucrats. Now, they are working on the process for dismantling Obamacare. Dr. Pence nailed the GOP theme:

The GOP will try to baffle the people by guaranteeing “Universal Access”, to health care. That does not ensure that anyone actually has insurance:

The big story of the week was the Russian hacking. Trump was briefed on Friday. Wrongo is skeptical that it made any difference to the election result. Trump’s public skepticism that Russia was behind it is also troubling:

Don’t worry about Trump releasing any secret stuff. The hacking report is 50 pages long, so he’s not reading it. He’ll watch the declassified stuff on Fox News and tweet what he thinks: