Author Archive: rlester
Friday, July 31st, 2009

Despite the panic, last week’s news contained nearly no mention of the Senate Finance Committee, the committee in the Senate that is holding up the legislation process because they have yet to complete their health care bill, but not for a lack of trying; Chairman Max Baucus (D-Montana) and a group of five other Senators (which, including Baucus, divides into 3 Democrats and 3 Republicans) on the Committee had locked themselves in Baucus’ office, chatting health care reform behind closed doors while reporters eagerly waited just outside, cameras and notepads readied in case this was the time that the Senators revealed to the public what exactly was going on. The progressive members of the Committee, completely excluded from the talks, have complained along with several prominent bloggers about these back door discussions. Eventually, Baucus let reporters in for several minutes before kicking them back out.
This week began with the breaking of the floodgates: Senator Olympia Snowe (R-Maine) finally gave the public some details of what exactly is being worked out in the antechamber. Not much has changed since we last reported on the Committee’s bill: it still has a health care co-op scheme in place of a real public plan option, and creates a “free rider” initiative requiring employers to pay for those receiving Medicare or government subsidies in place of a employer mandate. These substitutions just won’t cut it: the co-op initiative was tried during the Great Depression and failed, and the “free rider” initiative could discourage employers from hiring single workers or workers from low-income families. Nate Sloan from Fivethirtyeight declared that “the math on this bill is so bad I doubt it will survive intact.”
So much for holding our breath for what will come out of the Senate Finance committee. We’ll be best off if the HELP bill’s public option and employer mandate components win out when these bills are combined before the floor vote- which is now delayed until September, at the earliest. (more…)
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Thursday, July 30th, 2009
Conservatives in Congress have already stated their opposition to the Student Aid and Fiscal Responsibility Act, but it appears they’re willing to do more to defeat the bill in the court of public opinion. Senator Judd Gregg of New Hampshire, the Senate Budget Committee’s senior Republican, requested that the CBO adjust its score on the bill to account for “market risk,” the risk that student-loan defaults will be greater than the standard rate used by official CBO reports.
Representative George Miller, chairman of the Committee on Education and Labor, responded immediately, charging that the bill opponents “didn’t like the truth – that our legislation generates almost $90 billion that could be used to help students, families, and taxpayers – so they shamelessly decided to have a little fun with the numbers.”
Miller then proceeds to show why the “alternative” estimate is simply wrong:
This alternative estimate ignores current student loan market conditions, under which the federal government is currently supporting 60 percent of all federal student lending. This estimate assumes normal credit market conditions, under which the federally guaranteed student loan program functions entirely independently, as it used to. It does not reflect today’s reality: that the federally-guaranteed student loan program is on life support. The federal government, through both the Ensuring Continued Access to Student Loans Act, and the Direct Loan program, is now financing 60 percent of all federal student loan activity. . . If this alternative estimate was based on this current reality, it would likely show a higher market-risk adjusted subsidy rate for the Federal Family Education Loan Program – again reflecting that the program is on life support.
Even so, the alternative estimate still finds that the switch from FFELP to DLP saves taxpayers enormous amounts of money: only $47 billion as opposed to the $87 billion in savings the original estimate predicted. It looks like the alternative score is less an evil plan and more a cheeky shenanigan.
Don’t let the hackery get to you: keep writing your Senators and help us put students over banks.
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Thursday, July 23rd, 2009
The seeds of the Great Health Care Panic of 2009 were sown in early July, when GOP strategist Alex Castellanos sent out a memo offering poll-tested language Republicans could use to destroy Obama’s plans for health care. “If we slow this sausage-making process down, we can defeat it,” he reasoned.
Rep. Jim DeMint sounded the war cry on Friday, stating that “If we’re able to stop Obama on this it will be his Waterloo. It will break him.” The GOP immediately charged:
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Monday, July 20th, 2009
There’s never a good time for the head of the National Association of Student Financial Aid Administrators to get caught for fraud, but with Obama’s plan to reform education financing beginning the long crawl through Congress, there couldn’t be a worse time. Philip Day, the head of NASFAA, was recently charged with 8 felony counts.
The laundering seems mildly forgivable at first; most of the funds went towards local and state campaigns to benefit the state’s community college, his among them. But the funding could have gone to better use at the institution itself, rather than attempting to influence public opinion. Funds also went directly to reelection campaigns for local politicians.
And then there’s the “hidden account”:
An additional $45,000 in Pepsi payments to the college was allegedly diverted to what the district attorney called a “hidden account” in the college’s foundation. Day is charged with using these funds, according to the district attorney, “for expenses that could not, or were unlikely to be, reimbursed by City College, such as a City Club membership for himself, parking tickets, and alcoholic beverages at functions.”
It’s sad to see a man known for his work on behalf of low-income students be involved in the kind of fraud that hurt them. For shame. (more…)
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Wednesday, July 15th, 2009
It’s been 13 days; 13 days of markups(which Senator Dodd quips might be a new record), 13 days of partisan games, 13 days of financial hijinks and fake scandals, and finally, on the 13th day, the Health Education and Labor & Pensions(HELP) Committee passed the “Quality, Affordable Health Coverage for All Americans” bill! The bill has emerged from committee, passing along partisan lines, and is now ready for the next step of being combined with the Senate Finance Committee bill before being voted on by the entire Senate. So what does it look like?
(more…)
Tags: health care Posted in News | 2 Comments »
Thursday, July 2nd, 2009
A few weeks ago, the Senate Health, Education, Labor, and Pensions Committee submitted an unfinished version of their bill for scoring by the Congressional Budget Office. The results were bad: a cost of $1 trillion with coverage for only one-third of the uninsured. People freaked out. Senator Lindsey Graham (R-SC) declared the “death. . . [of] a government run health care plan.” But somewhere along the way, these people (both Republican and Democrat) seemed to forget that this incomplete bill had excised language about the public plan or an employer mandate. The bill that had been scored had no mention of Graham’s government health care plan.
But since then, the missing language has been added, detailing both the public plan (named the “Community Health Insurance Plan”) and an employer mandate. CBO scores came back yesterday, and they’re suprising:
The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee.
Chew on that, naysayers.
And while Jonathan Cohn, of The New Republic, reminds us that the total cost of health care reforms will be $1 trillion (once reforms to Medicare not under the jurisdiction of the HELP committee are added in), a trillion happens to be the magic target Obama and Congress are aiming for. The ways to pay for this have been worked out and are already on the table.
Wonk Room has the details of the new plan:
- Community Health Insurance Option: Will have to compete on a level playing field with private providers and offer competitive rates and premiums. Presumably, the plan will be able to use its administrative efficiency and its market power (assuming it is able to attract a significant number of applicants and providers) to lower premiums.
- Employer mandate: Large employers would have to provide coverage to their workers or pay $750 per full-time employee, $375 for each part-time employee. Businesses with less than 25 employees will receive a tax credit, on a sliding scale, based on the number of workers. Ezra Klein points out, “the CBO estimates that “a mere 150,000 will lose their coverage. That’s nothing. And it means that a lot more Americans end up insured and the government spends a lot less in subsidies.”
With savings that good, it’s no wonder the AMA has decided to endorse the public plan.
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Tuesday, June 30th, 2009

Two weeks ago, centrist Democrats introduced a series of better-than-nothing compromises that we’ve been tracking; these were apparently designed to appeal to Republicans, making a bipartisan solution possible, but their inability to cooperate has left at least one Democrat angry. CBS reports:
Behind-the-scenes attempts to get a deal with Republicans on nonprofit co-ops as an alternative to a public plan have led only to frustration. . . He and his colleagues may have to go it alone, said Sen. Chuck Schumer.
Along with the public support visible in recent polls, this makes one think the Democrats would take Schumer’s advice and begin the push for a public plan, but centrist Democrats still seem weary. Diane Feinstein, who appeared on “State of the Union” this weekend, said that she thinks it will be difficult to control health care costs, adding, “I think there’s a lot of concern in the Democratic caucus.” In addition, some have suggested that some special interests could be behind the uncertainty surrounding the public option. All in all, it looks as if there is a sizable number of Blue Dog Democrats who are “determined to party like it’s 1993.” So, how can the Democrats save Health Care?
By pulling out the big guns: Ladies and gentlemen, here comes Mr. President.
The push began last week, when Obama addressed the AMA:
If we do not fix our health care system, America may go the way of GM; paying more, getting less, and going broke.
(more…)
Tags: health care Posted in News | 1 Comment »
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