Open Thread: Top Romney Aide Made Millions from Obamacare

Best buds Mike and Mitt

Lots of corporate news sources were buzzing over the weekend about Romney’s appointment of former Utah Governor Mike Leavitt to head up his transition team. It’s also assumed that Leavitt would have the inside track to get the plum role of Chief of Staff in a Romney administration. Leavitt is also the guy who hired Romney to turn around the scandal-plagued Winter Olympics in 2002.

According to Utah Rep. Jason Chaffetz, a Romney adviser, Leavitt is “the ideal candidate” for the transition job because of:

his three terms as Utah governor as well as serving as administrator of the Environmental Protection Agency and secretary of Health and Human Services under President George W. Bush.

“Mike Leavitt checks every box. It’s a combination of experience and personal relationship,” Chaffetz said. “He can help outline the parameters of what a transition would look like.”

Leavitt has been on board with the Romney campaign throughout the primaries; he has his own office at the Boston headquarters. He and Romney are close, says Politico, and they’re “a lot alike.”

One Romneyland figure said Leavitt’s influence is derived from the fact that he is a spoke in many of the concentric circles around the candidate. Leavitt is part of Romney’s orbit of Mormon associates, but he also sits in the realm of the policy gurus, political counselors, fellow governors and veterans of the Salt Lake Olympics.

So with little fanfare, he has become one of the most influential advisers to the candidate this election cycle. He has an office at the Boston headquarters, travels with Romney at times, has been summoned to rally donors and is tight enough with the high command that he scored an invite to campaign manager Matt Rhoades’s engagement party last month.

He’s also a surrogate and has headlined health care policy discussions at $10,000 per-person Beltway fundraisers for Romney.

Romney officials say Leavitt is often circumspect but has an E.F. Hutton-like effect when he does speak up; many in Boston believe he offers much of his advice directly to Romney — something Leavitt suggests is accurate.

Mike Leavitt

Although it happened following Leavitt’s tenure, Utah was the second state after Massachusetts to institute universal health care. And Leavitt is the health care business–and he’s made millions in profits from Obamacare. At Salon, Alex Seitz-Wald writes:

Leavitt, who served as Health and Human Services secretary under George W. Bush, leads a firm that has positioned itself as a leading consultancy to help implement the Affordable Care Act (PDF), and it’s already won contracts to do so.

Just two weeks ago, the company was awarded a $1 million contract with the state of New Mexico to help it build its exchanges, and Politico reported that the “size of his firm, Leavitt Partners, doubled in the year after the bill was signed as they won contracts to help states set up the exchanges funded by the legislation.”

On its web site, Leavitt Partners features prominently its “Health Insurance Exchange Intelligence Team,” an entire section of the business that advises clients on how to implement and respond to the health insurance exchanges created by Obamacare.

“The passage of the Patient Protection and Affordable Care Act (PPACA) altered many of the fundamentals of healthcare coverage and financing,” the company’s website states. “Our team has a deep background and understanding of exchanges, from the policy side to the technical requirements and infrastructure necessary to operate an exchange. Our team members have unique experience in building exchanges and analyzing health insurance markets.”

Today, the right wingers have suddenly awakened from the collective trance that followed their reluctant recognition that Romney’s their guy now. And they are not happy about the Leavitt appointment. From TPM:

The Wall Street Journal reported last year that Leavitt “strenuously backed the core piece of President Barack Obama’s health-care law and urged the states to move forward together in adopting health insurance exchanges.” And his stance hasn’t changed: “We believe that the exchanges are the solution to small business insurance market and that’s gotten us sideways with some conservatives,” Leavitt’s top aide Rich McKeown told Politico.

“We’re troubled by it,” Dean Clancy, who runs health care advocacy for the Dick Armey-led conservative group FreedomWorks, told TPM Monday via email. “We’re very concerned. The tea party grassroots have always feared that Gov. Romney would be a weak standard bearer because of RomneyCare. This choice only reinforces those doubts. Tapping a high-profile ObamaCare profiteer is disturbing, there’s no way around it. … The tea party has been fighting exchanges in state after state.”

Michael Cannon, who directs health policy for the libertarian Cato Institute, reacted to the Leavitt choice in a blog post he penned: “Romney’s appointment of Leavitt is a first step toward flip-flopping — or Etch-a-Sketching, or Romneying(TM), or whatever — on ObamaCare repeal.”

The right wing blogs are in a tizzy too. Time to break out the popcorn!

Hey Righties! Haven’t you noticed? Willard’s a pathological liar. And besides, he just not that into you. He’s all about amassing more money and power for Willard, not you or your pathetic, rage-filled party.

Thursday Reads

Good Morning!!

Most of the commentators seem to think it doesn’t look good for the health care bill. At SCOTUS Blog, there’s an index of yesterday’s coverage.

The New York Times editorial addresses the “test” the Supreme Court faces in their decision on this case.

In ruling on the constitutionality of requiring most Americans to obtain health insurance, the Supreme Court faces a central test: whether it will recognize limits on its own authority to overturn well-founded acts of Congress.

The skepticism in the questions from the conservative justices suggests that they have adopted the language and approach of the insurance mandate’s challengers. But the arguments against the mandate, the core of the health care reform law, willfully reject both the reality of the national health care market and established constitutional principles that have been upheld for generations.

The Obama administration persuasively argues that the mandate is central to solving the crisis in America’s health care system, which leaves 50 million people uninsured and accounts for 17.6 percent of the national economy. The challengers contend that the law is an unlimited — and, therefore, unconstitutional — use of federal authority to force individuals to buy insurance, or pay a penalty.

That view wrongly frames the mechanism created by this law. The insurance mandate is nothing like requiring people to buy broccoli — a comparison Justice Antonin Scalia suggested in his exasperated questioning of Solicitor General Donald Verrilli Jr. Congress has no interest in requiring broccoli purchases because the failure to buy broccoli does not push that cost onto others in the system.

It’s really frightening to think of the possible implications of the justices overturning this law. Will the right wingers challenge Medicare and Social Security next? Dahlia Lithwick says the right wingers on the Court seem to want to return the country to “freedom” circa 1804.

The fight over Obamacare is about freedom. That’s what we’ve been told since these lawsuits were filed two years ago and that’s what we heard both inside and outside the Supreme Court this morning. That’s what Michele Bachmann* and Rick Santorum have been saying for months. Even people who support President Obama’s signature legislative achievement would agree that this debate is all about freedom—the freedom to never be one medical emergency away from economic ruin. What we have been waiting to hear is how members of the Supreme Court—especially the conservative majority—define that freedom. This morning as the justices pondered whether the individual mandate—that part of the Affordable Care Act that requires most Americans to purchase health insurance or pay a penalty—is constitutional, we got a window into the freedom some of the justices long for. And it is a dark, dark place.

But the “conservative” justices, who are covered by government subsidized health insurance appear to think freedom means the right to let people die if they can’t pay for health care.

[Sonia] Sotomayor…pondering whether hospitals could simply turn away the uninsured, finally asks: “What percentage of the American people who took their son or daughter to an emergency room and that child was turned away because the parent didn’t have insurance—do you think there’s a large percentage of the American population who would stand for the death of that child if they had an allergic reaction and a simple shot would have saved the child?”

But we seem to want to be free from that obligation as well. This morning in America’s highest court, freedom seems to be less about the absence of constraint than about the absence of shared responsibility, community, or real concern for those who don’t want anything so much as healthy children, or to be cared for when they are old. Until today, I couldn’t really understand why this case was framed as a discussion of “liberty.” This case isn’t so much about freedom from government-mandated broccoli or gyms. It’s about freedom from our obligations to one another, freedom from the modern world in which we live. It’s about the freedom to ignore the injured, walk away from those in peril, to never pick up the phone or eat food that’s been inspected. It’s about the freedom to be left alone. And now we know the court is worried about freedom: the freedom to live like it’s 1804.

The quotes from Scalia and Kennedy in Lithwick’s piece are unbelievable. Please go read the rest at the link.

There were some bombshells in the Trayvon Martin case last night. ABC news obtained video of George Zimmerman arriving at the police station after he shot Trayvon Martin. Zimmerman had no visual signs of injury, no bandages, no sign of grass stains on the back of his jacket, no sign of a broken nose, no blood on his nose or the back of his head.

Last night on MSNBC’s The Last Word, Lawrence O’Donnell spoke to the funeral director who prepared Martin’s body for burial. The funeral director saw no sign of damage to Martin’s knuckles or any other part of his body that would indicate he had been in a fight. The only damage this man observed was a gunshot wound to Martin’s chest.

O’Donnell also had as a guest Cheryl Brown, the mother of a 13-year-old boy who witnessed the shooting. He couldn’t see much, because it was getting dark, but the boy told the 911 dispatcher that he saw a man lying on the ground and another man standing over him. One of the men was crying out for help, and then there was a gunshot and the crying stopped.

Another issue that arose last night on both MSNBC’s The Ed Show was that the police report on the incident listed Trayvon Martin’s full name and address; yet police listed him as a John Doe for three days. When Sanford police finally informed Trayvon’s father that his son was dead, the man who came to the house was Chris Serino, the investigator whom we recently learned wanted to charge George Zimmerman with manslaughter on February 26, the night of the shooting. Serino told Tracy Martin, Trayvon’s father, that he (Serino) didn’t believe Zimmerman’s story.

I don’t have any links, as I write this late on Wednesday night. I will try to add them in the morning when news articles become available.

The autopsy on Trayvon Martin’s body will obviously be key in determining what happened that night, but the autopsy is currently under seal.

The autopsy on Trayvon Martin was performed by a medical examiner who works for the Volusia County government, and therefore Byron has been in the loop regarding the autopsy, which has not yet been released as the investigation into the killing is ongoing.

“In Florida when a death is being actively investigated by any agency … the autopsy information is shielded under the Florida public records law until the investigation becomes un-active, or inactive,” Byron told the IBTimes via phone Wednesday morning. “So in this case I think we can all agree this is an active death investigation, so what I need to do is refer all calls to the State Attorney’s Office in Jacksonville.”

The LA Times reported yesterday that: Black residents in Sanford, FL say they’re often harassed by police. Here’s one example from the article:

To many black residents of Sanford, the escalating national anger over how local police have handled the [Trayvon Martin] case reflects years of tension and frustration over their treatment by authorities.

Murray Jess, for one, can’t shake the memory of an evening two years ago, as he drove through Sanford at dusk, heading home after attending an art show with his fiance and his 14-year-old nephew.

A police cruiser began following Jess’ silver-gray 1996 Mercedes. Two unmarked police cars blocked the road in front of him, forcing Jess into a Pizza Hut parking lot. An officer got out of a van and pointed a video camera at the bewildered Jess as another officer, his hand on his gun, approached the car.

Jess asked the officer why he had been stopped. “He said, ‘We’ve had a lot of reports of these kinds of cars being stolen lately,’ ” said Jess, a black Sanford resident and business owner whose voice still shakes with rage.

I have several other news links for you on a variety of subjects that I’ll give you in what Minkoff Minx and Wonk the Vote call a “link dump.”

On Tuesday, Minx reported that a group led by Magic Johnson has purchased the LA Dodgers. The team has been in limbo for the past couple of years after the former owner, Frank McCourt went through an expensive divorce that drained his funds. Actually, McCourt really never had enough money to be the owner of an MLB team. The LA Times reports on Dodger fans’ reactions.

The Pope visited Cuba and met with Fidel Castro.

Pope Benedict called for an end to the U.S. trade embargo against Cuba and met with revolutionary icon Fidel Castro on Wednesday as he ended a trip in which he urged the communist island to change.

He also spoke at a public Mass in Havana’s sprawling Revolution Square where the Vatican said 300,000 people gathered to hear the 84-year-old pontiff.

In a trip laced with calls for change in Cuba, his last message was aimed at the United States, its longtime ideological foe, which for 50 years has imposed a trade embargo trying to topple the Caribbean island’s communist government.

Speaking in a departure ceremony at a rainy Havana airport, Benedict said Cuba could build “a society of broad vision, renewed and reconciled,” but it was more difficult “when restrictive economic measures, imposed from outside the country, unfairly burden its people.”

A terrible wildfire has been burning in Colorado. Authorities believe the fire was started by a “controlled burn.”

Colorado Governor John Hickenlooper suspended prescribed burns used to mitigate fire danger on Wednesday after a controlled blaze apparently ignited a wildfire west of Denver that killed an elderly couple and destroyed some two dozen homes.

“Through this suspension, we intend to make sure that we have the procedures and protocols in place so that prescribed fire conditions and management requirements are understood and strictly followed,” Hickenlooper said in a statement.

Although the origins of the so-called Lower North Fork Fire are officially under investigation, the Colorado State Forest Service has said that a controlled burn it conducted was the likely source of the fire.

A Jet Blue pilot who apparently had a psychotic break during a flight has been charged with a crime.

U.S. authorities filed criminal charges on Wednesday against a JetBlue Airways pilot who yelled incoherently about religion and the 2001 hijack attacks and pounded on a locked cockpit door before passengers subdued him in a midair uproar.

Flight 191 was diverted to Amarillo, Texas, on Tuesday, following what authorities described as erratic behavior by Capt. Clayton Frederick Osbon, who allegedly ran through the cabin before passengers tackled him in the galley….

The Justice Department filed a complaint charging Osbon with interfering with the crew. It is unusual for a commercial airline pilot to be charged in this way, and a U.S. official said he could not recall a similar case in recent years.

Osbon, 49, remains in a guarded facility at a hospital in Amarillo, and U.S. Attorney Sarah Saldana said he faces up to 20 years in prison if convicted.

The man sounds mentally ill to me. I’ll be interested to learn more about what happened.

If you’re interested in some juicy gossip from Arlen Specter’s new book, you can find it at The Washington Post and Huffpo. There appears to be quite a bit in the book about naked Senators–including Ted Kennedy. I think I’m going to pass on reading this book.

Sooooo… what are you reading and blogging about today?


ObamaRomneyCare

The boosters, of whom Krugman is a lucid example, have been talking up new health care law, generally called the Affordable Care Act (ACA). They make good points. Some people with pre-existing conditions are covered who weren’t before. Those under-26 year-olds whose parents are insured are able to retain coverage on their parents’ policies. These are good things.

They are also drops in the bucket. After two years of weeping, wailing, and gnashing teeth, the richest country on earth managed to extend a bit of expensive complicated coverage to a fraction of its population. And that’s the good news. The point at which we all become captive customers of the insurance industry is still two years down the road. That’s when we find out what the tiny expansion of coverage is going to cost us.

The indications so far are not good. For instance, in the case of honest — or strictly regulated — insurance, providing it to everyone is cheaper because healthy people are in the pool as well as sick people. That should lower the currently stratospheric US premiums. In addition, the law has a number of stipulations that would limit insurance companies’ ability to raise premiums at will once the law goes into full effect in 2014. So what do they do? Raise premiums at utterly absurd rates before that. That way they can have high rates and captive customers after 2014. Wheee!

We are also reassuringly told that everything will continue as before, except the uninsured will be covered. It’s to be expected that some employers near the financial edge will drop their current coverage and their workers will have to use the ACA pools. The Congressional Budget Office estimated how many might do that. Initially it was around 2%, later updated to be slightly higher. A year later, a poll by IPSOS asked employers what they planned to do. The numbers came back: 30%-50% of employers said they planned to drop coverage.

That number was disputed. Some commissioned their own survey from a company called Avalere. They said a more realistic number was -0.3% to 8.5%.

“Avalere offers three reasons for why employers will continue providing insurance: 1) to recruit and retain employees, 2) historically there has been no viable alternative for employees to obtain comprehensive coverage on their own, and 3) boost worker productivity. “

Yes. And the Tooth Fairy leaves you silver dollars these days. I’ll take the points in turn.

  • 1) Attracting or retaining workers is not a factor I’ve ever noticed except in high-paying private-sector jobs. Restaurant workers, academic temps (well over half the faculty at most institutions), baggage handlers, truck drivers, don’t have the problem of choosing between job offers with enticing benefit packages.
  • 2) The whole point of ACA is that now there will be an alternative. Officially. “Affordable” really needs quotes around it, but, officially, there’s an alternative. So I’m not sure what kind of sense it makes to say employers won’t dump workers into alternative insurance plans because there aren’t any when you’re talking about an alternative insurance plan.
  • 3) Boost worker productivity. Indeed, good health benefits are proven to boost productivity, as are shorter work weeks, on-site day care, and flexible leave policies. Have you noticed all the employers vying to provide them? Give me a minute to stop laughing uncontrollably.

http://www.iconarchive.com/show/emoticons-icons-by-artdesigner.html

Okay. I’m back.

Then, just today, I saw yet another scam in the making which I’d never imagined. “[H]ealth insurers offering new type of self-insurance for firms with as few as 25 workers are gaming the system and may undermine a key goal of the federal Affordable Care Act.” More quotes from the LATimes article:

Self-insurance is attractive for many reasons, particularly the prospect of lower costs. It’s exempt from state insurance regulations such as mandated benefits….

Self-insured plans have an immediate cost advantage since there’s no state tax on insurance premiums being passed along by an insurer. Starting in 2014, they will also avoid additional fees levied on health insurers to help pay for the federal healthcare law.

Small businesses switching to self-insurance do gain more insight into why their medical costs might be rising so fast because they have access to detailed claims data. … [C]ompanies like the ability to see whether their employees’ use of healthcare is above average and to make changes in the benefit package to bring those costs in line.

What could possibly go wrong?

None of this even gets into the whole individual mandate rat’s nest, which the Supremes will start to address on Monday. I’m a liberal with a head so pointy you could hurt yourself on it. I believe the government must regulate and support lots of things. I have no problem with paying taxes that go to Medicare or Medicaid. But even I have a problem being told to fork over money to private companies over whom I have zero control. Not even the miniscule control of not buying their product, after ACA goes into effect. And that for the same industry imposing 60% price increases when it thinks it can get away with them.

That health law mess was the “realistic,” “politically feasible,” “doable” path. Not like Medicare for All. That would simply cover everybody at half the price. That’s just Not Done.


Why We Should Worry about Michele Bachmann

Michele Bachmann and supporters at Tea Party Rally

According to Roll Call, Michele Bachmann and three other right-wing Congresspeople used money from the their Congressional office accounts to pay for equipment and a sound system for a tea party rally on November 5, 2009 that was organized to protest President Obama’s health care bill.

According to House expense reports, Bachmann and three conservative GOP colleagues — Reps. Tom Price (Ga.), Steve King (Iowa) and Todd Akin (Mo.) — each paid $3,407.50 that day, a total of $13,630, to a sound and stage company called National Events, apparently for the sound system used at the rally.

The money came from the Members’ taxpayer-funded office accounts, despite House rules prohibiting the use of these funds for political activities. Bachmann’s office insists the expense was a proper use of official funds.

Bachmann billed the event as a “press conference,” which can be funded from official accounts. But no questions were taken from the press and, unlike most press conferences, it opened with a prayer, the national anthem and a recitation of the Pledge of Allegiance.

A press conference? According to the article, Bachmann also hyped the rally on Fox News and Minnesota Public Radio and posted an announcement of the event on her House website, which is also against House ethics rules. She apparently also used these funds for travel expense to media appearances and to pay political consultants and a speechwriter for her “response” to the State of the Union address.

The Hill says that, while the use of taxpayer funds for political purposes is questionable, it isn’t absolutely clear that she did anything wrong. But certainly this shows that Bachmann may have a tendency to cut corners when it comes to ethics.

On Saturday, the Guardian published a profile of Bachmann following her appearance at the New Hampshire Republican Debate.

They quote Stillwater, MN blogger Karl Bremer on a particularly troubling episode in Bachmann’s political history:

“She has got plenty of skeletons in her closet,” he said. One of those skeletons could be her relationship with Frank Vennes, a man who served time in jail for cocaine distribution and money-laundering after being convicted in 1987. After his release, and apparently after finding God while in prison, Vennes became a friend of Bachmann and a big campaign donor for her elections. However, Vennes has recently been indicted on charges stemming from a Ponzi scheme and could end up behind bars again.

That is a juicy story. As are Bachmann’s links to the mysterious “Bobby Charles Thompson”, who disappeared after the collapse of his apparently fraudulent fundraising organisation, which had been portrayed as a navy veterans’ group. Arrest warrants have now been issued for Thompson, whose real identity is not known. But what is known is that Thompson’s group donated campaign funds to Bachmann.

Then there is the issue of the Bachmann family farm in Wisconsin. The large rural property has been the recipient of considerable government largesse in the form of agricultural subsidies, despite the fact that Bachmann is a vociferous critic of government handouts. Yet Bremer’s blog has reported that the farm has reaped the Bachmanns about $154,000 of government cash since 2001. That is obviously not illegal but – given Bachmann’s virulent dislike of state welfare – it could make for some interesting headlines.

But will the media cover Bachmann’s “skeletons,” or are they going to give her a pass like the one they gave Obama in 2008? Frankly, I’m worried about it. It’s easy to dismiss Bachmann and treat her as a joke, and she deserves that. But she is driven and a very hard worker; the tea party crowd find her charismatic and inspiring; and she is one of the best fund-raisers around.

In three congressional terms, presidential contender Michele Bachmann has made a name for herself as a formidable fundraiser. As of her latest filing with the Federal Election Commission, Bachmann had $2.8 million cash on hand (compared with, say, veteran Ron Paul’s $1.6 million). And she took in $13.5 million in the 2010 election cycle, out-raising the leader of her own party, John Boehner, by almost $4 million and making Bachmann the most prolific fundraiser in the House. So how is she getting all that money?

Bachmann is increasingly getting money from individuals making smallish donations, a feat that helps solidify her status as a grass-roots, Tea Party–fueled outsider rather than another Establishment fixture. Of the $1.7 million she reported raising last quarter, only $1,500 came from non-individuals, and the average donation was just $619.34.

The Washington Post reports today that Bachmann is increasingly using a new fundraising technique for which is is uniquely qualified, called “money blurts.”

Here’s how it works: An up-and-coming politician blurts out something incendiary, provocative or otherwise controversial. The remark bounces around the blogs and talk shows and becomes a sensation.

And in the midst of it all, the politician’s fundraisers are manning the phones and raking in the donations.

Consider Rep. Michele Bachmann (R-Minn.), the tea party favorite and newly minted presidential candidate, who has made a specialty of raising money in the wake of bold and well-placed remarks. Shortly after accusing President Obama of having “anti-American views” during one cable-news appearance, for example, Bachmann took in nearly $1 million.

I’ve spent the past few days reading extensively about Bachmann’s personal and political history. I’ve learned two important things from all this reading: 1) Bachmann is a dangerous extremist with serious psychological problems; and 2) She should never be underestimated.

I will continue to write about her, because I think that with the dearth of exciting Republican candidates, the growing strength of the crazy right, and the increasing tendency for the media to ignore facts and accept lies at face value, she could actually win the nomination. We can ridicule her all we want, but we dismiss her chances at our peril.

Here’s some video of Bachmann’s “press conference” on November 5, 2009.