On Obamacare Health Exchange, Beebe Is Back in the Straddle Again*

The Many Faces of Mike Beebe

Look, guys, let’s face it: You don’t want to keep reading about the Arkansas health insurance exchange, and I don’t want to keep writing about it. The thing is, we’ve posted a lot about that issue lately, and it’s kind of murky and confusing. Also, it’s growing increasingly difficult to find amusing or entertaining photos and images to illustrate the concept of a “health insurance exchange.”

That said, ugh, let’s talk a little more about the Arkansas health insurance exchange, dammit.

I’m reading this weekend piece from Arkansas News Bureau columnist John Brummett, who asks Gov. Mike Beebe just what he thinks about all this Obamacare business, anyway:

He has said all along, and continues to say, that he would have voted against the [Affordable Care Act] had he been in Congress. It is for the very reason that he’s a governor that he especially understands the new law’s vulnerability. It will put heavy strain on already stressed state Medicaid budgets. Some of his business friends tell him it could have the effect of prompting employers to discontinue their group health insurance plans and simply push their workers over into these new publicly established exchanges of private options (emphasis added).

But, as always, it’s the law and we must abide by the law. In that regard, it would be wise for the state to accept planning money for a state exchange because a state exchange would be better for us than a federal one.

The remarkable thing is that Beebe, even if finessing artfully, has sized up health care precisely. You don’t have to like everything about this law to accept that, unless overturned, it is the law and must be applied as efficiently as possible.

Note that, in the first graf, quoted above, Beebe via Brummett recounts some extraordinarily serious problems that will stem from the implementation of Obamacare. Bankrupting the already expensive and overburdened Medicaid system? Employers dumping health care coverage and dropping their employees onto the exchange? Those are huge issues just to sweep under the rug.

Having passingly acknowledged those problems, Beebe essentially follows up with a shrug. “Oh, well, the law is the law, and we must grimly accept our fate,” and a state-run exchange will be better than a federal exchange, although no one can really explain what the difference will be.

Brummett celebrates this mush-mouthed temporizing as a uniquely brilliant “straddle,” which is completely to be expected, because Brummett’s decades-long man-crush on Beebe is The Great Love Story of Our Age, unseemly though it may be.

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Don’t Forget That The Arkansas Unemployment Insurance Nightmare Is Still A Thing!

The nightmare that is the state unemployment insurance program has slipped from the front pages, so let’s check in to remind ourselves what’s going on there, and what happens next.

As you’ll recall, last month we learned that the federal government had identified an estimated $161 million in improper unemployment payments issued by Arkansas government from 2008-2011.

The state Dept. of Workforce Services, which administers the unemployment program, has argued that it wasn’t that high—they claim to have found “actual, verified overpayments of $23.8 million for the three year period in question. I suspect the DWS estimate is laughably low, given the gulf between the two totals, and I suspect a more thorough review will reveal some number in the middle. Regardless, we’ll still be talking about tens of millions of dollars in poorly administered taxpayer funds.

It’s worth revisiting these developments for two reasons:

1) Because the bleeding continues! The state borrowed more than $360 million from the federal government to meet demand for unemployment benefits. Just last week, on September 26, DWS made an interest payment of more than $10.1 million to the feds on that debt. That $10.1 million vig followed a payment on the debt earlier in the month of $29.1 million. The balance owed currently stands at around $330.8 million, according to the DWS spokeslady.

2) Because we may soon get more clarity on just how large the improper payments were! Two state lawmakers, Sen. Jonathan Dismang and Rep. Davy Carter, requested that the Division of Legislative Audit review the administration of the unemployment insurance trust fund (PDF) to provide a clearer picture of how DWS is administering the funds. That request has been approved, I’m informed, and Legislative Audit is preparing to undertake the review in the coming weeks.

We’ll be keeping an eye on this to see how it shapes up. You should, too.

 

Health Care Exchanges: Wait, Exactly Who’s the Dope in Beebe’s Rope-A-Dope Strategy?

Mike Beebe and Obamacare: Flatlining in Arkansas?

Democratic blogger Michael Cook at the Look Who’s Cookin’ blog weighs in today on the disputed matter of the Arkansas health insurance exchange. Last week, Gov. Mike Beebe elected to forgo pursuing a $3.8 million grant for establishing the state level exchange after receiving pushback from a handful of Republican lawmakers.

(Pushback = a two-and-a-half-page letter signed by six legislators arguing that they don’t think it’s such a great idea. Man, these Republicans play hardball!)

Cook is, predictably, certain that this is yet another of Beebe’s tactical masterstrokes, but that’s mostly because Beebe is the master and Cook’s job is to stroke him. “It’s a rope-a-dope strategy, see! Why, yessir, ole Mikey’s got them no-account Republicans on the ropes now, boy howdy!”

Except probably not.

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Political Maneuvering is the Preferred Pragmatism*

Arkansas health care reform word cloud“Boo! Booooooo! Boo, you Arkansas Republicans!” That is the message distinguished Arkansas News Bureau columnist John Brummett has for the six (6) Arkansas GOP lawmakers who stood firm this week against efforts of Gov. Mike Beebe’s administration to set up an Obamacare health insurance exchange in the state.

In a column published Saturday under the uncommonly compelling, informative and evocative headline “Obstruction is the preferred conservatism” (“Great headline writing! Nailed it! Time to call it a week.”—Arkansas News Bureau headline writer), Brummett takes those six (6) Republicans to task for “playing politics” on the issue of health care reform. The six (6) lawmakers took the extraordinary step of sending a letter to the governor politely explaining that they don’t think it’s a good idea to apply for federal grant money to plan the exchange.(Full letter here, PDF)

Of course, Brummett notes in his column that Beebe is also playing politics on the issue, since, as he reports

I’m told that Beebe believes the politics of all this could play to the benefit of Democrats and to the detriment of Republicans.

He thinks “local control” could resonate, especially when sought by the relevant and affected private sector, including, tentatively, the powerful lobby known as the Arkansas State Chamber of Commerce.

But that’s different, you see. In BrummettWorld, Beebe’s political play does not offend, because the governor is a acting on calculation to achieve an advantage, rather than principle. The horrifying thing about these Republicans is they might actually believe what they espouse. “Why, I was so appalled I almost dropped my mustache comb!” Brummett declares.

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Jay Bradford’s Selling Hard on Health Insurance Exchanges. Are Lawmakers Buying?

Jay Bradford on Arkansas health insurance exchange

Arkansas Insurance Commissioner Jay Bradford

All right, show of hands: You’ve all heard of the old sales tactic called  the “foot in the door” technique, right? Where a crafty salesman gets a customer to agree to a small request, in order to soften up said customer up for larger requests to come? Why, it’s a timeworn classic (and well-supported by numerous egghead studies)!

If you’d like to get a great example of the “foot in the door” technique in action, drop in on a legislative hearing sometime when Arkansas Insurance Commissioner Jay Bradford is pitching lawmakers on setting up a health insurance exchange. The man’s a master.

At a hearing Monday, Bradford asked legislators to signal their approval for his department to move forward with an application for a $3.8 million federal grant to continue developing the Arkansas health insurance exchange. Recognizing that many lawmakers are wary of the exchanges, Bradford offered a warm bath of smooth reassurance if they’d just let him move forward: “That’s all we’re asking to do, is keep it alive,” he said. (No down payment! No commitment! Sign here!)

Bradford’s “foot in the door” is to emphasize that this is just a lil’ ole tiny grant, a few million free dollars from the federal government, that will allow Arkansas to keep setting up a state health insurance exchange, to keep those nasty feds from setting one up for us.

A consummate salesman, this Bradford: Keep lawmakers comfortable with this modest grant request, and hit ‘em again down the road for a bigger commitment. That’s the ticket. And if the courts rule against Obamacare or a new president or Congress should scrap the law, why, by golly, the exchange can just “go away,” says Bradford, and we’ll be none the worse off.

Of course, that’s not likely to happen. Because once they secure the grant, move further the planning process forward and get the exchange ready to go, the rationale will change. It will morph into, “Gosh, we’ve gone this far and we’ve invested so much time and energy and money. If we pull the plug on this now, all that money will have been for nothing. We can’t let that happen.” Bureaucratic initiatives of this scope rarely just “go away,” as Bradford soothingly suggested to lawmakers on Monday.

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Keep An Eye on This Health Insurance Exchange Meeting With Arkansas Lawmakers

Monday! This morning all the world awaited the news as to whether former University of Central Arkansas president Lu Hardin would be stoned in the town square or merely executed by firing squad for his crimes against humanity (he ended up with probation).

Now that that’s over, keep your eye on this (more consequential) matter: At a legislative hearing today (opens as PDF), state insurance commissioner Jay Bradford will make the case for requesting more federal money to set up a state level health insurance exchange.

As you know, a central tenet of the Obamacare law passed in 2010 is that all states are required to set up online health insurance exchanges. Two weeks ago, Bradford asked lawmakers to give his team the OK to move forward with an application for a planning grant from the U.S. Dept. of Health and Human Services.

Some legislators are grumbling at the lack of specifics (Bradford presented no budget for how the money would be spent, rankling House Minority Leader John Burris) and the short time frame (the grant application is due by Sept. 30).

Dan Greenberg at the Advance Arkansas Institute has just released a new paper analyzing the status of state health insurance exchanges that should be a must read for policymakers grappling with the issue. He poses some pertinent questions and urges legislators to step carefully before taking on any additional commitments related to setting up the exchange in Arkansas. Do go and check it out! (Opens as PDF)

Specifics on the 1:30 p.m. legislative hearing are here.

Sales Tax Study: We’re Number Seven! We’re Number Seven!

Tax Foundation state and local sales tax map

Click for closer look at Tax Foundation map

A new study from the nonpartisan Tax Foundation ranks states for combined state and local sales tax rates, and ye olde Natural State checks in with one of the lowest rates in the nation!

No, of course that’s not true. Arkansas clocks in with a combined state and local sales tax rate of some 8.5 percent, putting us at number 7 in the entire United States. Hooray!

But fear not! Your state and local governments are hard at it putting taxpayer dollars to work on behalf of the people, with a deep commitment to careful oversight and accountability.

Or perhaps not.

Arkansas Workforce Services: “It’s OK, We Only Squandered $23.8 Million!”

 

Arkansas unemployment wasteA worthy addition today to the “Just How Much Damn Money ARE They Wasting?” genre from Alison Sider of the Arkansas Democrat-Gazette: Sider follows up with state Dept. of Workforce Services (DWS) officials on the question of some $161 million in improper unemployment payments made over the last three years. Surprise! They say it’s not that much (subscription required).

DWS claims to have identified “actual, verified overpayments” of $23.8 million over the last three years (The stats by year: 2011-$11.1 million; 2010-$6.5 million; 2009-$6.2 million=$23.8 million).

That’s a lot less than $161 million, the amount of improper payments as determined by the U.S. Dept. of Labor, but still a huge amount of money to just have walking out the door.

But does the lower figure represent a reliable accounting? I’m betting probably not.

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Fun With Numbers: Let’s Estimate Double-Dipper Artee Williams’ Pension!

The Quarter-Million Dollar Man: Artee Williams hits the jackpot.

The Quarter-Million Dollar Man: Ark. Workforce Services Director Artee Williams hits the jackpot.

This story about the Arkansas Dept. of Workforce Services making $161 million in improper unemployment payments has opened up some swell reportage and commentary from around the state. A sample:

Regarding this last: Just how much money is that for a double-dipper of Williams’ estimable stature? The Arkansas Project is here to help you figure that out, through a process of reasonable speculation and best-guess estimation!

The Arkansas Public Employees Retirement System (APERS) publishes their formula for calculating monthly retirement benefits in the APERS handbook, and they also host a handy benefits calculator at their website. But it’s still pretty complicated, so we’re gonna need help.

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Dept. of Moot Points: Here Is That Attorney General’s Opinion on the Arkansas Higher Ed Post

Shane Broadway: BMOC? Eh, not quite.

Shane Broadway: BMOC? Eh, not quite.

Your state attorney general, Dustin McDaniel, was tidying up around the office and came across that long-awaited AG’s opinion on the qualifications of former Sen. Shane Broadway to serve as director of the Dept. of Higher Education. (More background here.)

Here is McDaniel’s opinion (opens as PDF), furnished in response to a request from state Reps. Allen Kerr and Jane English, which sidesteps offering a definitive answer to the question but does arrive at this conclusion:

…any person who fails to possess the statutory qualifications described above would be ineligible to serve as Director regardless of other factors, including the preference of the Board members or university presidents. If the leaders of the State’s higher education institutions feel that the statutory qualifications are no longer appropriate, then they are free to seek legislative changes. Short of that, no exceptions to the current framework reveal themselves.

It was the epic dispute that transfixed an entire state in the summer of 2011, a classic college movie confrontation between the Jocks (strutting Arkansas Democrats like Gov. Mike Beebe and Broadway) and the Nerds (pasty, slope-shouldered Republicans with thick glasses who insisted upon a close reading of the statutory language, as nerds are wont to do).

But alas, the big showdown never arrived—Broadway withdrew himself from consideration last week. All’s well that ends etc.