Friday, December 2, 2011

The feds will run Arkansas insurance exchanges

Posted by Max Brantley on Fri, Dec 2, 2011 at 10:07 AM

It's official. The federal government will run Arkansas health insurance exchanges established under the health care reform. Unified Republican opposition to state control beat the more sensible idea of taking federal planning money so that Arkansas insurance regulators could set up a plan tailored to Arkansas. Yes, Republicans are in the minority in the legislature, barely. But they were prepared to hammer every Democrat on the ballot with Obamacare had the money been taken. (They'll do it anyway, so you could also argue that Gov. Mike Beebe should get a backbone and take the money and run with it.)

Roby Brock reports on Insurance Commissioner Jay Bradford's final decision and the blame-placing on Arkansas Republicans. Sorry, GOP. You can't have it both ways. You can't get what you wanted and then blame federal control on the Democrats, too.

Bradford notes that the decision could do more than cost Arkansas control. It could cost millions in insurance premium revenue, depending on how the program is implemented.

This one is simple and should have been bipartisan, but Republican dogma is a "massive resistance" strategy against all Democratic initiatives. Shades of the civil rights era.

If the health care reform law is to be upheld, it makes sense for the state's to maximize control and federal money. A number of Republican governors in other states have made this precise conclusion and taken the money, while still decrying Obamacare. That was the correct call here, by both Beebe and Republican legslators. But Arkansas Republicans, gauging the depth of dislike for the black president, have decided to oppose anything and everything to do with him, no matter the damaging consequences to Arkansas people. They are working out of an ALEC playbook on this. It's cynical and damaging to Arkansas people. In short, they would have been critical whichever way this went. Beebe is merely a wimp for caving and trying to provide protection to nervous Democratic colleagues.

PS — Party hacks and flacks are debating this endlessly on Twitter trying to blame each other. It remains simple. Just because the law is under challenge is not an excuse to put off implementing it, as pizza magnate Mark Darr contends To say otherwise is to say you'd have fought federal desegregation law, the People With Disabilities Act, the Family Medical Leave Act or Women's Suffrage until the last dog died. (Wait, Republicans probably would have.) As a practical matter, Republicans have sufficient numbers to tie up the Insurance Commission's budget if Beebe moves ahead getting the money so he has a practical reason not to move forward without them, including providing a scant bit of political cover for Democrats. I still think Beebe could fight the fight, but he's been more successful at politics than I have been. Republicans are having their cake and eating it. Unlike Republicans in other states, they've blocked health insurance exchange planning for needy Arkansans. The feds will do it now. The Republicans are getting their way and they want to blame Democrats for federal control. Crazy.

Why are Arkies so pig-headed? Who knows. Here's a rundown on all states and planning money. Something like 38 have decided to participate. Even states that have sued to stop HCR are taking the money. What do Mark Darr and Jason Rapert know that those good Republican states don't know?

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Yes, Beebe should get a backbone. But his cowardice may pay an unintended dividend. I'd suspect Arkansans will benefit more from a Federal plan as opposed to one crafted by our ineffective Legislature.

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Posted by PVNasby on 12/02/2011 at 10:29 AM

The polls show that Arkansans do not support the individual mandate. The states don't support obamacare because it mandates greater coverage that significantly impacts state medicaid plans that are paid for by the state. Medicaid costs are already putting many states into fiscal difficulties because they can not deficit finance as the federal government. Posturing about your concern for the uninsured looks good but it doesn't address the real problem of paying for it and the subsequent cuts that will occur in other state programs when the 'chickens come home to roost'.

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Posted by SHolmes on 12/02/2011 at 10:44 AM

It is indeed odd how our legislators' positions change depending on whether it is a white Republican or a black Democrat proposing the exact same thing*

When something is OK for a white person to do but not OK for a black person to do... if that is not racism, what is?

* Unless you believe that our legislators would have also refused to go along with Nixon, Ford or Gingrich.

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Posted by ChildeRolandReturneth on 12/02/2011 at 10:53 AM

SHolmes you really need to get out of the house more often.

>>Medicaid costs are already putting many states into fiscal difficulties because they can not deficit finance as the federal government. <<

Now, explain to us how Tex Gov Rick Perry managed to get his state into $20 Billion of deficits? California is strapped with large deficits and State of NY is also strapped with deficits. Last time I looked those were the three largest states in the Union.

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Posted by eLwood on 12/02/2011 at 11:00 AM

Very easy to explain. SOME states can deficit finance. MOST can not including Arkansas. California has been deficit financing for years. However, if I were you I wouldn't use California as any example of fiscal integrity. They are expecting the federal government and the American taxpayer to bail them out so that they can continue to be fiscally irresponsible with you paying the tab.

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Posted by SHolmes on 12/02/2011 at 11:26 AM

So then, SHolmes, why are Repubs also against the efforts to control Medicaid and private insurance healthcare costs by changing the reimbursement structure from fee-for-service? Just check 'em off for agin' agin' against it.

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Posted by BrotherWolf on 12/02/2011 at 12:23 PM

>>However, if I were you I wouldn't use California as any example of fiscal integrity. They are expecting the federal government and the American taxpayer to bail them out so that they can continue to be fiscally irresponsible with you paying the tab.<

You haven't a clue do you. Arkansas is fiscally balanced because the Federal Government already BAILS us out. We're a welfare state, a leading one at that.
All the Red, Southern states are Welfare states, they take in much more from the feds than they pay out. Republican Alaska is #5 in the Welfare Ranks.

P.S. California and NY are unWelfare States, they pay in more than they get.

http://taxprof.typepad.com/taxprof_blog/20…

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Posted by eLwood on 12/02/2011 at 1:25 PM

ALL states receive federal monies so your argument is inconsequential. If you cut off the federal spigot they ALL would scream. California is already facing certain bankruptcy. However, the impact on a state like Arkansas to increased coverage under Medicaid is not insignificant. The legislature is already facing unsustainable growth projections for medicaid and with obamacare additional drastic cuts will be necessitated in other budget items. Controls are imposed as to how the state can modify this program. I noticed that you conveniently and carefully avoided the issue of having to cut the state budget in other areas----such as education---in order to accomodate increased costs of medicaid.

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Posted by SHolmes on 12/02/2011 at 2:16 PM

Sorry, Max. I think I trust the Feds a lot more than the Arkansas GOP. May have been the best decision, by default, that Beebe has made as Governor.

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Posted by cecil on 12/02/2011 at 2:33 PM

Thanks for teeing it up Holmes...the cost to the state for the first two years of Medicaid coverage for newly eligibles under the Act is paid for 100% by the feds and scales down to the current Medicaid match (roughly 75/25) until 2020. Seems like a pretty good deal for the Arkansans currently with insurance coverage whose premiums are inflated by 8% to pay for the use of healthcare by those who are uninsured. Or, as you wish, we can continue to pay for that in an inefficient way and let the feds keep Arkansans' tax dollars.

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Posted by BrotherWolf on 12/02/2011 at 3:25 PM

>>ALL states receive federal monies so your argument is inconsequential.<

Pretty easy to see you've never been in bidness. You can't distinguish between the amount that comes in vs the amount that goes out.

Bro Wolf just knocked down your argument about Medicaid costs.

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Posted by eLwood on 12/02/2011 at 3:52 PM

Max, why do you mention the skin color of the President when you refer to him, are you implying that Republicans are racist? I'm a Republican and I am not racist, nor do I know of any other Republicans who are or say racist things. The skin color is irrelevant.

Also, Bebee did not need ANY approval to set up an Arkansas Insurance exchange. That was all a charade to make Republicans look like obstructionists and to give Bebee cover for not doing it.

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Posted by ViresInMedius on 12/02/2011 at 6:02 PM

I'd bet that some of viresinmedius' best friends are black.

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Posted by plainjim on 12/02/2011 at 10:12 PM
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