Discussing 'a $600 million dessert'

Updated: Friday, September 6, 2013
KALAMZOO, Mich. (NEWSCHANNEL 3) - In the days after the State Senate narrowly extended Medicaid coverage to nearly a half-million Michigan residents, it became clear that Senators want poverty-stricken people to help pay for their own health care.

Tonight, in Tom's Corner, Tom Van Howe says that by turning down more than a half-billion dollars in Obamacare reimbursements over the first quarter of next year, and then asking poor people to help make up the difference, paints a picture of a remarkably insensitive group of politicians.


The Michigan Senate Minority Leader, Gretchen Whitmer, explained her Republican colleagues' opposition to medicaid expansion, which is a part of the affordable care act, this way:

"It's because (expansion) is associated with Obamacare and because the tea party in Michigan is the tail that's wagging the dog in this chamber."

And I think she's right.

There is no other logic to the Senate, 26 of whom are Republicans, and 12 are Democrats, in delaying enrollment from January 1st to April 1st.

By doing so they knew full well that they were turning their backs on $7 million a day in federal money to be used for Medicaid.

That's a total of more than $600 million. Six-hundred-million that the state loses.

That's not a number pulled out of the air by some hand-wringing alarmist. It comes from Jim Haveman, the Director of this state's Department of Community Health.

In fact, yesterday he said his estimate may, in fact, be too low.

Republican response? Well, we probably won't get that many enrolled right away, so that figure may be too high.

So what's their best guess? They haven't got one.

Senate Majority Leader Randy Richardville, who to his credit, helped form the tiny coalition to get the matter through the Senate last week, doesn't even want to talk about it.

"It's like we had this really big dinner," he said. "We got the dinner done and people are going to ask for dessert.
“We're going to skip the dessert on this one. We're done. The legislature in total has gone through enough with this issue."

Dessert? He thinks $600 million is dessert? Sounds more like a main course of steak, potatoes, and choice of vegetable for a half-million people to me.

And of course during that same 90 day period state hospitals will continue offering what will amount to roughly a quarter of a billion dollars in expensive emergency room care to poor people.

Much of the cost of that gets picked up by the insured who pay higher premiums, and some of it gets picked up by federal reimbursement. But reimbursements will be reduced as of January 1, because that's ostensibly when people start signing up for Obamacare.

Look, you don't have to be a fan of Obamacare to take the money. Obamacare—even though it's the law of the land—may not work.

But the money is there for the taking. It's just smart government.

Phil Power, a former University of Michigan Regent, now a writer for Bridge Magazine, said yesterday he sometimes wonders if Republican lawmakers in Lansing would even vote against something called "Obamataxcut." Good point.

And then the icing on the cake. The Senate wants poor people, not just the new ones, the ones just above the poverty line, but all of them, to pay 5 percent of their income in copay fees.

So in addition to rent, food, transportation, clothing, and other things they can't afford, they have to fork over 5 percent in copay fees.

After four years it'll go up to 7 percent. Nobody knows how it'll get collected.

But its an intimidating little add-on that'll probably keep any number of qualified people from breaking the door down to enroll.

And those fees, all by themselves, could actually block the Medicaid expansion itself. The Center for Medicare and Medicaid Expansion has to approve Michigan's legislation.

And an expert said yesterday she thought the CMS would be taking a close look at Michigan's bill before giving it an okay.

Forget dessert. We may lose the whole enchilada.

In this corner...I'm Tom Van Howe.

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Last Update on November 27, 2015 18:34 GMT


CHICAGO (AP) -- A protest march has begun in Chicago's Magnificent Mile shopping district, with the Rev. Jesse Jackson in the middle of a crowd that's shouting, "What do we want? Justice. When do we want it? Now!"

Several hundred demonstrators have gathered in the drizzling rain, many with umbrellas and plastic-wrapped signs.

They're protesting the fatal shooting of a black teenager by a white police officer last year. The recent release of a video showing the fatal shooting of 17-year-old Laquan McDonald has set off days of largely peaceful protests.

Protesters sought high visibility by taking the demonstrations to the city's main shopping area on what's traditionally one of the year's biggest shopping days.

An association representing hundreds of high-end retailers, hotels and restaurants in the district says it's confident authorities will maintain order for thousands of Black Friday shoppers. The Magnificent Mile Association represents 780 businesses on Chicago's North Michigan Avenue.


UNDATED (AP) -- "Black Friday" may no longer represent an early start on holiday shopping. For some, it may be too late.

One woman in Harrisburg, Pennsylvania, says her $200 budget today was the same as last year, but that it didn't buy as much because the best bargains were on Thanksgiving night.

Ashley Walton says the day for bargains is now "Black Thursday." She says she didn't go shopping on Thanksgiving because she was in what she calls a "turkey coma."

A Kmart shopper in Denver this morning had nearly the entire store to herself, and found it "sad." Susan Montoya said it's "no challenge" when no one else is shopping. She says people must have gone out yesterday or be shopping online.

Early numbers aren't out yet on how many shoppers headed to stores on Thanksgiving Day. The National Retail Federation expected about 30 million to shop on Thanksgiving, and 99.7 million on Black Friday.


BERLIN (AP) -- A closely-watched survey shows German consumers are losing confidence amid growing concerns of an economic slump.

The GfK research group said Friday its forward-looking consumer climate index dropped for the fourth month in a row to 9.3 points in December, from 9.4 in November.

GfK says consumers' willingness to buy rose, but that was offset by drops in both their income and economic expectations, partially linked to the growing number of asylum seekers pouring into the country.

Germany is set to receive more than 1 million refugees and other migrants this year and some 40 percent of consumers surveyed told GfK they believed unemployment would soon rise, most of them saying the newcomers would hurt the labor market.

GfK's monthly survey is based on some 2,000 consumer interviews.


BRUSSELS (AP) -- Greece and its creditors are close to sealing a deal on conditions that Athens must respect to obtain the next slice of rescue money.

The country has already received this week approval for a 2 billion euro loan, and is negotiating on more economic measures needed to get another 1 billion euros.

European Commission spokeswoman Mina Andreeva said Friday the sides have "agreed broadly the second set of milestones."

She said that when the details are ironed out "this of course would unlock the disbursement of the final one billion euros still available."

That would also allow for an important review of Greece's handling of its austerity program, which is required to secure international credit.

Andreeva said the implementation of pension reforms "is a key part of the first review."


GENEVA (AP) -- A Swiss court has convicted in absentia a former employee with international bank HSBC for economic espionage and sentenced him to five years in prison.

Herve Falciani -- seen by some as a crucial whistleblower -- had refused to travel from his native France to appear before the Swiss Federal Tribunal in Bellinzona in proceedings that began in October.

France does not extradite its own citizens and Falciani appears unlikely to serve the sentence.

Falciani was on trial for leaking bank data that led to a worldwide wave of tax evasion probes against prominent clients in France and elsewhere.

He was charged with illegally obtaining data, economic espionage, breach of business confidentiality and breach of bank secrecy while working at a Swiss HSBC subsidiary between 2006 and 2008.


Glitch causes bank customers to see billions in charges

HONOLULU (AP) -- A technical glitch meant some First Hawaiian Bank customers logged on to their accounts to find that they appeared to be billions, or sometimes more than a trillion dollars in the red.

KHON-TV reports that bank officials say the glitch was visible to customers who logged on to their accounts during a 20-minute window Wednesday. They say no actual customer information or balances were affected by the issue.

Customers who logged in at that time saw outstanding balances of at least $710 billion.

Kauai resident George White says when he saw the error all he could think was, "Well, my wife is going to kill me."

First Hawaii Bank said in a statement that the issue was resolved quickly and that the bank apologized to customers who were inconvenienced.

Washington Times