How Obamacare Premiums Are Set

The only way to Constitutionally free us from Obamacare - is through the Health Care Compact. 

When the OH House starts back in session, be on the look out for our Action Alerts regarding the Health Care Compact efforts in Ohio (HB 227). Already passed out of Committee, we will be pushing for a full vote on the House Floor.

From Heath Care Compact.Org --

Merrill Matthews of Forbes describes the push and pull behind rate setting under Obamacare. What? The rates are set for a free market? Ok, not quite, but there are some bureaucratic ‘forces’ affecting them. And here are some that Matthews discusses:

Throw away your risk tables. “Actuaries set premiums for the upcoming year based on several factors, including the estimated ratio of sick and healthy people in the pool … However, actuaries had ZERO experience with Obamacare’s “metal plans” (bronze, silver, gold and platinum), plus the Department of Health and Human Services (HHS) and President Obama were making up or changing the rules as they went along—and still are.”

Shoot first, ask questions later. “So if some insurers announce lower-than-expected premium increases for 2015, it may be because they overpriced policies the first time—not because Obamacare is holding costs down.”

Game the price controls. “HHS has a 10 percent red-flag cap. Under Secretary Kathleen Sebelius HHS had warned insurers that if they raised premiums more than 10 percent in one year, the agency would closely scrutinize their justifications. That’s because such increases would undermine Obama’s affordability promise.” So insurers played games like having 9% increases two yerars in a row or increasing premiums against a rainy day, knowing they could not adjust prices in the future.

Politicians and bureaucrats are pressuring insurers to keep premiums down. We saw this in Massachusetts shortly after the passage of Romneycare. Health insurers asked for a premium increase and the state rejected the request. Then Governor Deval Patrick leaned on the insurers to lower their rates, which they did—a tactic that can only work a few times before there’s no more margin to give.

Unfortunately this also forces costs up. The firms make irrational decisions based on a strategy of minimizing bureaucratic caprice. All the classic outcomes of central planning -- hoarding, shortages, misallocation -- show up in the so-called markets. There is also the tactic of putting the premium in the fine print, by loading it onto the deductible.

Obamacare premiums are so expensive that many participants are choosing very high deductible plans. Health Pocket Inc. found the average deductible for an individual in a Bronze plan was $5,081 ,and $10,386 for a family. It was $2,907 for an individual in a Silver plan, and $6,078 for a family.

Matthews says this is actually good because the real proxy price of a policy migrates to its deductible. “That’s actually a very positive step. High deductibles dramatically lower health care utilization and, just as importantly, they encourage patients to seek value for their health care dollars by making them cost-conscious and shopping around for a better price. That practice puts downward pressure on premiums.”

The result is that the premiums contain only a fraction of the price information. Cheap could mean ‘unavailable’. Expensive could be ‘unavailable’ also because it was too cheap last year. Central planning has never worked well, not even when they were not called central planning.

Common Core: Louisiana Gov. challenges it, Ohio Republican embraces it

Art credit: blog.heartland.org

From cleveland.com, our Republican legislators at work:

Efforts to repeal the Common Core educational standards in Ohio are a disheartening "circus" that needs to fail, State Sen. Peggy Lehner said in a speech at the City Club today that was also filled with praise for Cleveland's school improvement efforts and attempts to create more preschool opportunities for city children.

Lehner, a Dayton-area Republican who chairs the Senate's education committee, blasted House Bill 597 as political maneuvering filled with several "hidden agendas." The bill, which had hearings in the Ohio House the last two weeks, would kill the multi-state Common Core standards if passed.

The packed room, filled mostly with educators and school supporters, applauded when she called the bill and its hearings a circus.

"It would be downright silly if it wasn't so sad," said Lehner, a longtime supporter of the standards that the state school board adopted in 2010.

Lehner has repeatedly said that the standards improve greatly on Ohio's old ones and will raise expectations of students, which will give them greater chances to be successful in life.

Meanwhile, Cheryl K. Chumley of The Washington Times reports that in Louisiana:

Louisiana Gov. Bobby Jindal said he was filing a lawsuit on Wednesday against the Obama administration over alleged manipulation of grant money to force states to accept Common Core as their school standards.

Mr. Jindal is also accusing the White House of manipulating the regulatory process to compel states to take the much-disputed educational program, The Associated Press reported.

The U.S. Department of Education used its $4.3 billion grant program and waiver policy to press states into accepting the same educational testing and standards program. Mr. Jindal said that action “effectively forces states down a path toward a national curriculum,” which violates the 10th Amendment of the Constitution — state sovereignty, AP said.

Mr. Jindal also alleged the action breaks federal laws that ban the federal government from taking control of school and educational content.

He was planning to file the complaint in federal court in Baton Rouge.

AP was provided a draft copy of the suit.

“The federal government has hijacked and destroyed the Common Core initiative,” Mr. Jindal said in a statement reported by AP. “Common Core is the latest effort by big government disciples to strip away state rights and put Washington, D.C., in control of everything.”

At least Gov. Jindal is now actively challenging a policy he once supported. And he is getting blasted in the press for doing a 180 on a policy he was for, before he was against it. 

The federal government should have NO say in education; that is what parents and teachers are supposed to do. Cleveland Tea Party Patriots thank all Ohio patriots who submitted testimony at the recent hearings in Columbus. 

Cuyahoga County Council Candidate John Currid Calls on Sunny Simon to Prevent County Funds From Being Used For Federal Relocation of Illegal Immigrants

Cuyahoga County Council candidate for District 11, John Currid, has challenged the incumbent Sunny Simon to put the concerns and well being of Cuyahoga County citizens first by preventing any county funds or services being used to facilitate or support any attempts of the federal government to relocate illegal immigrants in Cuyahoga County.

Simon, who has previously stated that "she does not care how county spending will impact resident's lives," has yet to respond....

From Cuyahoga County Council Candidate John Currid --

Cuyahoga County Council nominee John J. Currid called on Councilwoman Sunny Simon to introduce legislation to prevent county funds or resources from being used to support federal relocation of illegal immigrants. He is concerned that the United States government would relocate illegal immigrants to Cuyahoga County in a similar fashion to what has been done in other areas. His concern is heightened by the fact that Cleveland has a Federal Immigration Court.

Mr. Currid recently sent Ms. Simon a letter calling on her to to introduce legislation that would prevent county funds from being appropriated to support illegal immigrants that would be relocated to Cuyahoga County by either the federal government or private “hosting/fostering” organizations. The proscription would include the use of any county resources, including personnel, for such purposes.

Currid stated: “The federal government has failed in its mission on the southern border, and that burden should not be shifted to states, counties, and cities. As the nominee to represent the people of the Eleventh District of Cuyahoga County, I feel a responsibility to ensure that the children, elderly, and families of this county are our first priority. I have asked the councilwoman to join me in this effort to immediately ensure the residents she was elected to represent are her number one priority as well.”

While the underlining issue is immigration, candidate Currid made it clear that his request of Ms. Simon comes from a broader concern about the use of limited resources, and the prioritization of the residents of Cuyahoga County over illegal immigrants. He believes that immigration is a federal issue, and one in which the county has no role. Unfortunately, in too many instances, the federal government transfers the financial burden of its failed policies to local and state governments. By being proactive and passing this legislation, Currid believes Cuyahoga County will be in front of an important issue, and will protect the use of the county’s limited resources for local county residents.

Currid believes, “diverting resources or funds away from needy children or families at this critical time would be both irresponsible and unacceptable.”

Read More: Currid: “Cuyahoga County Residents Need to be Our Priority”

Read More: John Currid’s Letter to Councilwoman Sunny Simon

County Council candidate for District 11 John Currid should be applauded for his speaking out, standing up and putting the citizens of Cuyahoga County first.

Now let's see what County Councilwoman Sunny Simon says! 

Is Simon willing to stand up for the citizens she was elected to represent? Or will Simon simply remain silent, giving tacit approval, of supporting and putting illegal immigrants over the Cuyahoga County citizens of District 11 she was elected to represent?

Cuyahoga County Residents Need to be First Priority

From Cuyahoga County Council Candidate John Currid --

There is a crisis on our southern border and although we watch the news coverage from afar, I fear a situation where the failure of Washington, D.C. will have a dramatic impact right here in Cuyahoga County. This is why I recently wrote a letter to Councilwoman Sunny Simon asking her to immediately introduce legislation that would prevent county funds, resources, or personnel from being used to support a federal relocation program of illegal immigrants. Although the Councilwoman and I are opponents in November, I felt we needed to stand together on this issue. While we might disagree on many issues, making Cuyahoga County residents our priority should be one we can agree.

So what does this have to do with Cuyahoga County and its residents? The federal government could relocate some of illegal immigrants to Cuyahoga County to utilize the Federal Immigration Court located in Cleveland or for some other unrelated reason. Recently in Tennessee their governor only became aware of thousands of illegal immigrants relocated to his state after the fact through news reports. The federal government is bussing illegal immigrants to counties and states nationwide especially to states currently facing real hardships. I recently watched a report identifying four relocation locations in Michigan; meanwhile the state’s largest city, Detroit, is under state control, is in default, and going through bankruptcy. The city’s public water service is $6 Billion in debt and almost 100,000 accounts are past due. While I do not condone the past due balances any resources or funds the city, county or state might have should go to secure basic civil services for low-income families who could soon go without water or sewer service instead the state is now burdened with the federal governments own failure.

I want to ensure that if the federal government does relocate illegal immigrants here in our county, it is clear that Cuyahoga County is not left paying the cost or diverting resources away from the mission of serving the county residents. As I travel through the six cities in the eleventh district of Cuyahoga County, I hear many wonderful stories of hope and success. However, it is also apparent that many of our neighborhoods have seen misfortunate and are going through tough times. The children, the elderly, and the low-income residents of Cuyahoga County deserve our undivided attention. We have our own crisis occurring on many streets, in schools, and throughout many neighborhoods of this county. Anything short of our undivided attention would be irresponsible and not acceptable.

The people who are on the front lines of serving the needy and under-privileged children and families of Cuyahoga County are members of the faith community, non-profit leaders, and other local leaders. When I meet with them one of the first concerns they share with me relates to the delays, red tape, and inefficiencies they face when working with county departments. While I believe the county is working hard to provide better services to its residents, we have a lot of work to do; now is not the time to redirect resources away from these departments. 

I want to be clear, this is not an issue about immigration; this is an issue about county resources and county residents. In my opinion, elected officials of Cuyahoga County government should make you, the residents, their first priority when allocating resources and funds. While the overall immigration situation is a crisis and deserves our full attention, immigration is ultimately a federal issue. Senators Portman & Brown as well as our local Congressman or Congresswoman are the folks we should be addressing those opinions. For this specific issue I am calling on Councilwoman Simon to stand with me and prioritize the children and families of this county above illegal immigrants should the federal government attempt to pass off their responsibility. 

LETTER I SENT TO COUNCILWOMAN SUNNY SIMON

Common Core testimony in Columbus

Image credit: greenecountyteaparty.ohio.org

Gov. Kasich is still supporting Common Core, but the cleveland.com report on hearings and testimony in Columbus has a lot of useful links:

CLEVELAND, Ohio – The state legislature continues its debate about the Common Core educational standards this week, following a week that saw opponents of the Core criticize them, Gov. John Kasich weighing in on the debate and two national polls offering varying national looks at support for the Core.

Testimony started last week on a bill that would kill the multi-state education standards in Ohio. It resumed Tuesday and continues with testimony both Wednesday morning and evening, with an afternoon break.

Testimony continues Wednesday with Eric Gordon, chief executive officer of the Cleveland schools, and Alan Rosskamm of the Breakthrough charter school networkscheduled to testify in support of the Common Core.

Marsha Mockabee, president of the Urban League of Cleveland, is also scheduled to testify.

Linda Gojak, a mathematics professor at John Carroll University who is the immediate past president of the National Council of Teachers of Mathematics, testified for the new standards on Tuesday. See her written testimony HERE.

Also testifying Tuesday on behalf of the standards was Char Shryock, director of curriculum for the Bay Village schools. See her written testimony HERE.

Last week's Common Core opponents from Northeast Ohio included state school board member Sarah Fowler, who represents Ashtabula, Geauga, Portage and Trumbull counties, along with portions of Lake and Summit counties. See her written testimony HERE.

Kasich last week said Ohio needs stronger standards than the ones it has used the last several years. While not backing the Common Core by name, Kasich supported the state's new standards – standards that are mostly the Common Core.

He said that local districts need the freedom to set their own curriculum to meet those standards and that he believes they have that ability.

Kasich said he has not seen enough evidence to kill the standards – as House Bill 597 now being debated would do – but could re-evaluate his position if the hearings in the House find any new information.

Here are a few news accounts of Kasich's comments, given in response to a question when he was on the road.

Governor Kasich Responds To Common Core Critics In Beavercreek

Kasich expresses support for Common Core standards

Here is a recording of the short news conference where he discussed the Core, provided by Kasich's office: Kasich on Common Core July 2014.m4a

Spokesman Rob Nichols made one key clarification to Kasich's remarks: "In that second sentence – he said: 'We want local school boards to develop the curricula to "set" those standards, advised by parents who live in those districts.'  He should have said 'meet' those standards, not 'set' those standards."

Nationally, two polls dominated Common Core discussion, with their results showing increased awareness of what the Common Core is, but mixed feelings about whether schools should use the standards.

Here's what an annual poll by Phi Delta Kappa and Gallup found, according to the two groups:

"Last year, almost two-thirds of Americans had never heard of the CCSS. This year, 81 percent said they had heard about the CCSS and 47 percent said they had heard a great deal or a fair amount. And what they're hearing has led to opposition: 60 percent of those questioned said they oppose the CCSS, with the biggest factor being a belief that the standards will limit the flexibility of teachers to teach what they think is best."

Another poll by Education Next, a magazine published by the Hoover Institution at Stanford University, found declining support for the Common Core, but supporters still outnumbering opponents.

From the Education Next website:

Although a majority of the public continues to support the standards set by CCSSI, and supporters outnumber opponents by a two-to-one margin, trend lines show serious erosion in support. In 2013, no less than 65% of the general public favored the standards, but that portion is now just 53% (see Figure 1). Meanwhile, the opposition has doubled from 13% to 26%. (The share taking no position on the issue has remained essentially unchanged, at 21% in 2014.)

See also this report by Education Week on the Education Next poll and this National Public Radio report on how wording of poll questions may have influenced the results.

- - - -

For more background, go here for some good resources. Michelle Malkin reported on the maneuvering next door in Indiana earlier this year. Indiana parents are winning, and Ohioans Against Common Core can too.  

The solution to bureaucratic meddling in healthcare: more bureaucracy

Art credit: lonelyconservative.com

Last week, a Cleveland.com editorial reported that

Ohio's range of welfare programs resembles a row of silos. Each caches valuable services. But each stands alone. Both for welfare clients and Ohio's budget managers, that kind of architecture guarantees problems.

Now, an Ohio Office of Human Services Innovation, recently created by the General Assembly and backed by Gov. John Kasich, will aim to "break down [those] silos" to coordinate service delivery. Leading the office will be Douglas Lumpkin, a highly experienced administrator who has run both the state and Franklin County's Job and Family Services departments.

So in order to get past the obstacles and inefficiencies produced by bloated and inefficient bureaucracies, the General Assembly and Gov. Kasich propose to create . . . . another level of bureaucracy.

Legislators and Gov. Kasich: why don’t you support and sign the Ohio Healthcare Compact? That would let Ohio decide for itself how best to delivery health care to Ohioans, without having to contend with onerous federal regulations and interference.

Another Self-Inflicted Wound for the GOP

Below is a great article by Emery McClendon (Tea Party Patriots State Coordinator for Indiana) on the shameful behavior of the GOP in Mississippi.....

From Breitbart --

Republican National Committeeman Henry Barbour gave black Americans a slap in the face when he orchestrated a cynical, race-baiting campaign targeting fellow Republican Chris McDaniel in the Mississippi Senate primary runoff against incumbent Sen. Thad Cochran. It was insulting to African-Americans, unfair to McDaniel, and dirty pool by any reasonable measure. But the refusal of the Republican National Committee to censure Barbour’s actions shows an astonishing tone-deafness by RNC Chairman Reince Priebus and portends continued failure by the GOP to attract black voters.

If Priebus wants to understand what’s happening in black communities and learn how to draw them closer to the GOP, I invite him to join me for a visit to Roger’s Barber Shop on Maumee Street in Fort Wayne, Indiana, where I’ve been getting my hair cut for the last quarter-century. It’s something of a landmark in the local African-American community, a hotbed of political discourse and a place where visitors are guaranteed to get an earful and an education.

What Priebus would learn at Roger’s is what black Americans actually think about politics. When many blacks hear of a candidate or party that wants to “prevent you from voting,” or eliminate particular social programs – as happened in Mississippi – a red flag goes up in their minds, reviving images of the civil rights era of the 1960s. It even happens among younger blacks who did not witness the tyranny of Bull Connor and George Wallace (both of whom were staunch Democrats) but learned the stories from their elders.

For many black Americans, there is an almost reflexive opposition to the GOP that surfaces any time there’s an accusation of racial bias by Republicans, a message Democrats have pounded on for decades. So when Republicans go out of their way to reinforce the lies told about their party, it plays right into the hands of liberals. Democratic National Committee Chairwoman Debbie Wasserman Schultz must be doing cartwheels for joy because of Henry Barbour’s actions.

Regardless of where they live, a lot of blacks don’t see Barbour’s racially incendiary campaign as an isolated, parochial incident. Instead, it is seen as validating the false narrative promoted by Democrats about Republicans, making it a lot tougher for black conservatives like me to explain and defend conservative principles among other blacks.

As one of the original members of the Tea Party, I have worked with hundreds of black community leaders across my home state since 2009, trying to educate and engage them on the critical issues confronting our nation and how Tea Party Patriots has proven, principled policies to tackle those issues.

But when we start getting a little traction, the Republican establishment pulls a stunt like we saw in Mississippi and we wind up losing momentum. The folly of Barbour’s antics is compounded when Priebus and other RNC members refuse to even entertain a motion censuring Barbour, indicating that what he did was just fine. Small wonder that some refer to the GOP as The Stupid Party.

There are vast numbers of African Americans who are willing to stand up against the Jesse Jacksons and Al Sharptons of the world and acknowledge that they do not speak for all black Americans. They are looking for political inspiration, and with black unemployment more than double the jobless rate of whites, many are dissatisfied with Democrat policies, providing a tremendous opportunity to advance conservative principles.

Instead, the opportunity is wasted because the chairman of the Republican Party would rather promote the falsehoods of the opposition than discipline a fellow member of the RNC. The only thing new about Barbour’s tactics is that they were set in motion by a Republican who simply borrowed a few pages from the Democrat playbook. But whether Barbour realizes it or not, his efforts smeared more than McDaniel; they smeared the entire Republican Party.

Republicans will fail to attract more blacks to their party as long as they abide by the cheap politics of race hustling and refuse to hear what the community is saying. Whether it’s in Roger’s Barber Shop or any of the thousands of others across America, Republicans need to start listening to what’s being said instead of administering more self-inflicted wounds.

Emery McClendon is the Tea Party Patriots state coordinator for Indiana.