Category Archives: Insurance

In the “If Your Like Your Health Care Plan, You Can Keep It” Department…

then-i-saidFrom the Times-Dispatch: “After a year’s reprieve, up to 250,000 Virginians will receive notice by the end of November that their health insurance plans will be canceled because the plans do not comply with the Affordable Care Act and accompanying state law.”

Now those Virginians will have to buy new, Obamacare-compliant plans, which means they will have more benefits they may or may not want… and will cost more.

The Virginia Association of Health Plans, which has become a wholly owned subsidiary of the Obama administration, defended the forced switch. Said Executive Director Doug Gray: “I don’t call that cancellation – I call that an adjustment to the new law.”

I call it a cancellation. I’ll be that the people affected by the law call it a cancellation, too.

– JAB

It’s Oh, So Richmond!

By Peter Galuszka

cantorWhen I looked at my Richmond Times Dispatch, I was stunned. I couldn’t find a story that their wunderkind Congressman, Eric Cantor, the kind of Republican they love, had gotten a big deal job with Moelis & Co., a New York boutique investment bank.

There was the story in the Wall Street Journal and the Washington Post. Finally, the RTD straggled  on with brief piece at 6:22 a.m. on its Website.

Maybe it’s embarrassment. Cantor, the former House Majority Leader, could do no wrong with his Main Street Republican friends or the editors of the local newspaper. His wife, Diana, was on the board when the newspaper was owned by Media General. Then came his stunning defeat in a June primary to unknown David Brat, who ran a mash-up of a Tea Party and Libertarian insurgency.

Moelis says it is hiring Cantor “for his judgment and experience” and ability to open doors, says the Journal. He’ll live in Virginia and have offices in Washington and New York.

Well, that was quick! Or maybe not. Cantor has raised $1.4 million from the financial services sector, as well as lots from managed care. His sense of entitlement is astounding. First, he thought he didn’t have to bother with the home folks in the Seventh District any more, costing him the election. They he arranged (with Gov. Terry McAuliffe’s help) a special election.

Doing so would get his replacement in office faster and thus Virginia can keep its seats on some important committees. But it also frees Cantor to take his plum job.

You didn’t read it in the RTD first! Somethings will never change.

Cantor’s Self-Serving Special Election Scheme

cantor By Peter Galuszka

It looks like a small group of the Virginia Republicans elite has once again hatched a plot behind closed doors to manipulate elected politics without input from voters.

U.S. Rep. Eric Cantor, the victim of a surprising defeat in a June 10 Republican primary, has come up with a self-serving scheme to resign Aug.18 and finagle a special election Nov. 4 to pick his successor. The special election would be held along with a regularly scheduled one.

Normally, opposing candidates Republican David Brat and Democrat Jack Trammel, would routinely face election that day. With Cantor’s proposal, the winner of the special election for the 7th Congressional District seat would be able to take office immediately, instead of having to wait for usual matriculation of the other 434 Congressmen in January.

This is a back-door, move-to-the-head-of-the-class scheme. Presumably, the winner would be Brat who, taking office in November, would be placed ahead of other Congressional newcomers when it comes to coveted committee assignments. Good for the GOP. Bad for Democrats.

For Cantor, of course, it is a Big Win. Since his unexpected and earth-shaking defeat, the 51-year-old has been seen at such posh places as the Hampton is on the tip of Long Island schmoozing with Big Money. Cantor does have an advanced degree from Columbia in real estate finance and his wife was once a New York securities trader. Big Finance, along with Big Pharma and Big Managed Care, has been one of his biggest sources of election funds.

Larry Sabato, the University of Virginia political expert, by turns thought Cantor’s idea “generous” but also noted ”it’s highly probable that he has a deal in the works for his post-Congress life, and he’s eager to get it started,” Sabato was quoted as saying.

As might have been expected, Cantor made his announcement in the Richmond Times-Dispatch, his lapdog newspaper. Editors gushed that his announcement “features an extraordinary column by an extraordinary human being.”

It shows extraordinary cluelessness as well. Cantor, the Main Street Republicans and the TD’s club of Richmond elites don’t seem to understand that it is their very exclusivity that helped do Cantor in and give an upstart like Brat the edge.

Consider a cover story package that I co-wrote in the Chesterfield Monthly, one of the Richmond area’s up-and-coming publications. I found that it wasn’t just that Cantor ignored his district that did him in – it was a putsch by some rather annoyed Libertarians of the traditional ilk and small government moderates plus the Tea Party.

Leaders of the “malcontents” were lawyer Patrick McSweeney and Tea Party leader Jamie Radtke who ran unsuccessfully for U.S. Senate in 2012. In the “Bull Elephant” blog, Radtke compared Cantor and his Confederates as “mobsters” running around and snuffing out dissent among local conservatives.

Brat himself was ultra pissed off a couple of years back when he wanted to get the Henrico County GOP nod to run and replace Bill Janis. But, functioning as the old Soviet Politburo might have, a tiny group of Republican elders decided that the candidate would be Peter Farrell, the young son of utility powerhouse chieftain Tom Farrell of Dominion. In other words, it wasn’t exactly a day for waving the stars and stripes of Democracy. It was pure, Big League, Big Business inside diktat that could have taken place behind the crenelated walls of the Kremlin.

They didn’t give Brat a chance,”analyst Bob Holsworth told me. “That gave Brat the interest in taking on this Don Quixote-type campaign.

Now we get another closed-door deal. Hopefully, voters, conservative and liberal, will fire back.

Finally, Some Sense on Climate Change

mowbray archBy Peter Galuszka

Pulling the state’s head out of the sand, Gov. Terry McAuliffe has reversed his predecessor’s policy on addressing climate change.

He has reestablished a 35-member panel to see what the state can do to deal with what many scientists believe is an impending crisis. McAuliffe revived the panel first created by Democratic Gov. Tim Kaine and then left to wither away by former Republican Gov. Robert McDonnell.

Ironically, the new panel includes Michael Mann, a former University of Virginia climatologist who was the target of bitter and petty attacks by former arch-conservative Atty. Gen. Kenneth Cuccinelli over his view that mankind was responsible for carbon dioxide-driven greenhouse gases that are helping warm up the earth, melt polar ice caps and potentially flood huge sections of coastal cities such as Norfolk.

It’s about time that Virginia rejoined the 21st Century. McDonnell took the state backwards on environmental issues by gutting commissions such as this one and creating others that were devoid of ecological viewpoints and stacked with members of the fossil fuel industry and utility executives.

McAuliffe’s new commission has utility people like Dominion Virginia Power President Robert M. Blue and Bernice McIntyre of Washington Gas Light Company. But it is also well stocked with green types such as the Sierra Club, the Chesapeake Bay Foundation and the Southern Environmental Law Center whose views were pretty much in the wilderness during the McDonnell term.

It is finally time for the state to realize that climate change is real. Study after study shows that the state is vulnerable – from agricultural impacts brought on by different weather patterns to rising water in coastal areas. One area worth study is doing more to speed the switch to renewable energy sources like solar and wind.

McDonnell had pushed a policy that would make Virginia “the Energy Capital of the East Coast,” but the effort excluded renewables in favor of offshore oil and gas companies, nuclear power and coal.

Curiously, McAuliffe also favors such endeavors as offshore petroleum development. That raises questions in the face of massive fracking onshore for natural gas and the revolution it has sparked. Perhaps the new commission can provide some guidance.

It is refreshing that Virginia is finally emerging from the intellectual horse blinders that kept the debate stuck in Benghazi-style debates over emails at a British university or trying, unsuccessfully, as Cuccinelli did, to harass scientists globally over a ridiculous claim that Michael Mann had defrauded Virginia taxpayers by asserting what most climatologists do – that climate change is real and mankind is a reason for it.

Finally. . .

Denying Truth on the Outer Banks

Sun Realty

Sun Realty

By Peter Galuszka

North Carolina’s Outer Banks have always been a touchstone for me – in as much as anyone can associate permanence with sandy islands being perpetually tossed  around by tremendous wind and water forces.

The Banks and I go back to 1954 and Hurricane Hazel when I was an infant. They mark many parts of my life. So, I read with great interest The Washington Post story by Lori Montgomery about how real estate officials in Dare County and other coastal parts of North Carolina are trying to alter clear-cut scientific projections about how deeply the islands will be under water by 2100.

State officials say that the ocean should rise 39 inches by the end of the century. This would mean that 8,500 structures worth $1.4 billion would be useless. Naturally, this has upset the real estate industry which is pushing for a new projection of an 8-inch rise 30 years from now. Think of it like a photo in a rental brochure. You don’t choose shots of dark and stormy days. The skies must be blue.

Ditto science. The insanity is that so many still don’t believe what is going on with climate change and carbon dioxide pollution. Over the past several years, Virginians, many of whom vacation on the Outer Banks, endured and paid for former Atty. Gen. Kenneth Cuccinelli’s legal attacks against a former University of Virginia climatologist who linked global warming to human activity. The assaults went nowhere.

Instead of addressing such profoundly transitory events, too many in the region say it isn’t so or pick away at what is really happening as we speak. And as Mother Jones magazine points out, it isn’t because weather change deniers, usually conservatives, don’t understand science.

The Outer Banks are an extreme example because of their incredible fragility. Anyone with even a cursory understanding of the islands knows that they are completely under the thumb because they are where two major ocean currents meet.

The only reason Hatteras has developed at all is the Bonner Bridge, an ill-conceived, 51-year-old span over Oregon Inlet so decrepit that it is often closed for repairs. Replacing it has been constantly delayed by the lack of funding and the threat of lawsuits. The federal government has been complicit for decades by spending at least hundreds of millions on sand replenishment programs or offering flood insurance coverage.

About 15 miles south of the bridge is Rodanthe, a flyspeck village just south of Pea Island National Wildlife Refuse. It is at the point of the Banks that sticks out farthest into the Atlantic and is under the strongest attack by ocean currents and storms. Route 12, the only way to evacuate by car when a hurricane comes, is on a narrow spit of constantly shifting sand trapped between the ocean and Pamlico Sound.

I’ve been going to Rodanthe for years. Starting in the 1980s, friends and I would pool our money and  rent one of the big beach houses. We have been constantly amazed how the distance between the structures and the surf is disappearing. One favorite spot was “Serendipity,” a skinny, tall beach house that we rented perhaps twice and featured fantastic views from the top-floor bar.

It was dressed up as a bed and breakfast in the movie ”Nights At Rodanthe,” a 2008 weeper starring Richard Gere and Diane Lane. The film was panned and the house was equally threatened. In fact, the next year, the owner had the whole thing placed on a truck and moved nearly a mile down the coast where there’s a little more sand.

More hurricanes followed, cutting a new inlet a few miles into Pea Island and its watery bird impoundments. The oceanfront houses we used to rent are in trouble. The ones across Route 12 now have dramatic new views.  A small, new bridge spans the inlet.

One can argue that building on the Banks is madness, global warming or not. There’s a lot of truth to this. But rising ocean water is truly going to accelerate the changes no matter how hard politicians or North Carolina’s real estate industry say it isn’t so.

Tea Party Populism vs. Eric Cantor

teddy roosevelt By Peter Galuszka

Political analysts and the media are still trying to tease out the meaning of soon-to-be-former House Majority leader Eric Cantor’s primary loss last week to an obscure college professor.

Two major themes seem to be emerging. One is what the Tea Party’s role was and what the Tea Party really is. The second is how the Big Media missed the story of winner David Brat’s surprising strength, although a number of local publications did get it, including the Chesterfield Observer, a suburban weekly that I write for (although not about politics) and won a special accolade in this morning’s New York Times.

The Times also had a piece Sunday on its front page noting just how closely tied Cantor is to Corporate America. Aerospace giant Boeing saw its stock plummet just after Cantor was clobbered. Over the years, Cantor has gladly done the bidding of big companies, notably in managed care and finance. His donors provide a ready chart.

He’s backed the continuation of the Export-Import Bank that helps guarantee loans for foreign sales (to Boeing no less) and helped kill a bill that would have increased the capital gains tax made by alpha-seeking and ultra-rich hedge fund managers. Cantor does know about big business because he is a lawyer and has a degree in real estate. His wife, Diana, has worked for such Wall Street behemoths as Goldman Sachs. And, of course, Cantor was hatched and grew up in Richmond’s cliquish business community.

The interesting trend here is how Brat, touching a surprisingly sensitive populist nerve, targeted Cantor’s cozy links to Big Business along with the usual complaint menu about illegal immigrants and government spending. Brat hit Cantor for various corporate bailouts, including TARP, backing Medicare Plan D and two unfunded wars.

Such criticism resonated with his supporters, who are conservatives. But unlike the country club Republicans of yesteryear, these voters might be throwbacks to the Gilded Age during the era of gigantic trusts. I am strolling through Doris Kearns Goodwin’s “The Bully Pulpit” which looks at Theodore Roosevelt and William Taft at the turn of the 19th century and it is fascinating reading.

Being a Republican then meant being an upstart and independent-minded troublemaker, not a defender of the status quo and big business interests. The public seemed remarkable well informed and the media was filled with brilliant journalists like Ida Tarbell, Lincoln Steffens and S.S. McClure who took apart trust-builders such as John D. Rockefeller.

There was a real sense that too much economic power was being concentrated in two few hands and if you look at what’s happening today with the mergers of airlines, cable companies and banks, you get an uneasy sense of déjà vu. The result back then was long-standing legislation like the Sherman Anti-Trust Act and bodies like the Federal Trade Commission. The concerns were inequality, lopsided economic clout and the tendency for big companies to abuse their power.

It is in this sphere where the Tea Party types, whomever they are really, might be on to something. I’m all for leniency and compassion on immigration issues but I have to say that some of the anti-Cantor comments might have harkened back to the days of McClure’s Magazine and Tarbell’s extraordinarily detailed dissection of Standard Oil.

Sadly, the journalist profession has been gutted by cost-cutting, which is one reason why the Beltway types missed the Cantor story and scrappy little papers like the Chesterfield Observer got it. If there is growth in the news media, the hot trend is setting up “data-driven” Websites but as the Times notes, these proved inadequate as well in last week’s election because they relied on imperfect data. In other words, garbage in, garbage out, no matter how lively the prose is. What really matters is shoe leather journalism and not numbers crunching.

On-the-ground reporting can capture important clues such as how Cantor misused his Majority Leader bodyguards and Black Suburban SUVs to keep his constituents at bay on the rare occasions he actually sought them out. Otherwise, he seemed to be sequestered at expensive steakhouses. Voters pummeled by the Great Recession got the message.

Add up all of these trends and you might start understanding why Cantor’s defeat was so important. It posits who exactly the Tea Party is and what they actually stand for. It could be the start of a movement as historically significant as the one 125 years ago.

Lean Urbanism and the Bureaucratic State

building_codesby James A. Bacon

The really big idea to emerge from the 2014 Congress for New Urbanism (CNU) was “lean urbanism.” The idea isn’t entirely new. Andres Duany, New Urbanism guru and the driving force behind “lean” urbanism, has been publicly discussing the idea for a year or more. But he used the annual confab to flesh out the idea in a series of forums and conversations with others. The idea received a positive response — far more people attended his sessions than Duany had expected — but he received at least one reminder, which I shall recount shortly, that bringing about the kind of reforms he envisions will be exceedingly difficult. The fundamental problem resides not in bureaucratic intransigence or political obstreperousness but in the extraordinary complexity of modern democratic society.

The concept of lean urbanism arises from Duany’s observation that municipal zoning codes and building codes are so complex and onerous that they make it exceedingly difficult for young people, artists, gays and other small-scale players with a high tolerance for risk to gentrify and re-develop decaying urban neighborhoods. They simply lack the scale to hire the architects, planners and lawyers needed to push their projects through City Hall. Without the risk-oblivious pioneers to pave the way and demonstrate the viability of a neighborhood, big-money developers stay away unless government mitigates the risk through partnerships and subsidies, which, of course, are highly risky and expensive for government.

Duany experienced what he calls an “aha” moment, however, when touring Detroit not long ago. He was astounded by hot spots of revitalization where young people had moved into neighborhoods and begun rebuilding under the radar. Detroit’s bankruptcy, he contended, had forced the city to pare back its code enforcement apparatus, with the result that the Millennial pioneers no longer faced the bureaucratic obstacles that had halted re-development before. Was there some way to replicate that experience by, in effect, pre-negotiating a stripped down set of codes and regulations for districts targeted for development?

Lean urbanism, as best I could decipher it from the CNU sessions I attended, moves along two tracks — one on the private-sector side, the other on the public-sector side. In a series of sessions, a succession of lean-urbanism advocates presented papers on different strategies and tactics for bringing down the private-sector cost of re-development projects. Duany sat in attendance as commenter and interloculator.

Thus, David Brain, a board member of the National Charrette Institute, made a presentation on how to reduce the cost of charrettes, which are visioning and design sessions conducted with extensive public input. Charrettes are manpower-intensive and run up significant bills for the developers who hold them. Perhaps the idea could be re-tooled, Brain suggested, by bringing in smaller teams that focused on incremental changes rather than grand visions and by settling for rougher sketches without the complete documentation. There would be trade-offs, to be sure, but the result would be a tool that can “do more with less in the way of financial resources.”

Another concept was to build on the idea of tactical urbanism, in which planners, non-profits and/or volunteers mock up changes to the cityscape by repainting traffic lines, bringing in trees and bushes in planters, installing movable street furniture and holding events to show people what is possible. The idea is to undertake small, inexpensive experiments. If they fail, they can be scrapped at little cost. If they succeed, municipalities can follow up by making permanent changes.

One CNU session highlighted an example of “lean sprawl repair” for the Oak Hollow Mall in High Point, N.C. That project visualized transforming an abandoned mall into a business incubator with space for live-work studios, artisan workshops and a culinary institute. Parking lots would provide space for cheap, pop-up business quarters in the form of shipping containers. Cheap. Fast. Low risk. Other presentations explored the potential for making greater use of live-work units, using lean urbanism to revitalize small towns, and adopting the vernacular architecture of the Philippines to increase energy efficiency of American buildings at low cost.

But achieving public-sector reform is a tougher nut to crack. In yet another session, Richmond, Va., attorney Daniel K. Slone tackled the prospects for reforming the building code. Rules in the building code exist for a reason, he said. They are designed to protect against hazards common to the construction of buildings and they have constituencies that will fight to preserve them. Responsible builders prefer having codes because they protect against competitors underbidding them by doing shoddy work and because hewing to accepted best practices protects them against lawsuits if something does go wrong. When Millennials in Detroit ignore the permitting process, they take on risks — or pass them on to others — that they may or may not be prepared to deal with.

Unlike many government standards, which are imposed from above, building codes come from a grassroots, bottom-up process in which government plays a negligible role in setting the standards. The process is open to anyone who wants to participate, and the results reflect a give-and-take between stakeholders. The 1990s saw important updates to the code as environmentalists pressed for alternative building designs for such things as green roofs, adobe houses and putting outdoor lighting in trees rather than on creosote phone poles. Another wave of reform resulted in the creation of a Rehab subcode that recognized that the renovation of existing buildings justifies different rules than does construction of new buildings, achieving some of the goals that the Lean Urbanists are agitating for.

It might be useful, suggested Slone, to examine the concept of sovereign immunity that protects public officials for the negligent actions of government. Sovereign immunity has eroded over the years as citizens, legislators and courts have sought to hold public officials more accountable. Understandably, government officials are reluctant to expose themselves to the risk of lawsuits by modifying the building code. Clarification or expansion of sovereign immunity may be one of the most overlooked aspects of achieving lean regulatory reform, Slone wrote in a draft white paper. However, reformers should expect the possibility of resistance from the plaintiff’s bar and consumer advocates. Continue reading

Brat and Cantor: Two Unsavory Choices

BratCantorWebBy Peter Galuszka

The hottest political race coming up is the Republican primary this Tuesday involving the 7th Congressional District now represented by Eric Cantor, a powerful conservative who is House Majority Leader and could possibly one day be Speaker of the House.

His opponent, college professor David Brat, has gotten much national attention because Brat is trying to out-Tea Party Cantor who tried to shed his Main Street background and led the insurgent Tea Party parade during their days of glory back in 2010.

But if you want to see just how intellectually barren both men are, read what they wrote in opposing columns in the Richmond newspaper this morning. They show just how out of touch they are and how they are dominated by a tiny group of hard-right fanatics who have split the state GOP.

Brat is an economics professor at Randolph-Macon College in the quaint railroad town of Ashland that might be a set for a Jimmy Stewart movie.

He spends a lot of time debunking Cantor’s ridiculous claim that he is a “liberal” college professor but the very fact that he is doing this is a throwback to the Old Virginny days of yore. First, off, what is wrong with being a “liberal professor?” Are we supposed to have academics that pass a litmus test? Maybe Brat would have House UnAmerican Activities Committees on colleges to make sure that “liberal” professors don’t poison young minds.

Secondly, the use of the term is an exercise in euphemism that smacks of the Massive Resistance days when a candidate was accused of being a “social engineer” if he or she backed integration and civil rights.

And while Brat makes some fair points about Cantor masquerading as a budget hawk, his ideas on finally dealing with undocumented foreign-born residents are downright scary and are obviously intended as a populist ploy to the lower elements of voters.

Indeed, Brat’s column raises serious questions about just how well he understands economic reality, especially when it comes to immigration. Forces are aligning for some kind of long-overdue resolution of immigration. He claims Cantor backs amnesty for undocumented workers. (If so, what’s wrong with that?)

Brat paints a weird picture in which “illegals,” working in collusion with giant corporations, are stealing jobs from “real” Virginians. I won’t go into the borderline racist and nativist aspects of his statements. They smack of the older days of the No Nothings and the Ku Klux Klan that wanted to keep non-Protestants, such as Catholic Irish, Poles, Germans and Italians, or Chinese or Japanese, out of the country.

Strangely and even more troubling, Brat simply doesn’t understand the American labor market. One of the reason so many immigrants are in some sectors of the economy, such as construction and poultry processing, are because the jobs are dirty, messy and there aren’t enough native-American workers willing or able to do them. That is why turkey processing plants in the Shenandoah Valley have so many hard-working Hispanic immigrants. Ditto construction jobs.

At the other end of the spectrum, Professor Brat ignores the dilemma at the high-end of the economy. American universities are not producing enough software and other engineers so we have to import them through visa programs. Some companies are so hungry for foreign intellectual talent that immigrants end up working just across the border in Canada where it is easier to get visas although their efforts support American firms.

This may come as news to Brat in his little college town, but the world is becoming more global and, like it or not, there will be more foreign-born people working here and elsewhere. His complaint that illegals are getting soldier jobs that Americans might want is strange. The military needs to wind down after 13 years of war. One wonders if Brat even has a passport and has traveled overseas.

Cantor’s column is the usual Eddie Haskell boilerplate. He spends a lot of time tearing down the Affordable Care Act. Republicans have launched at least six unsuccessful assaults on it and still refuse to accept the Supreme Court’s decision of a couple of years ago.

Generously funded by the managed care industry, Cantor raises no alternatives to the current health care system that is plagued with overbilling, a lack of transparency and has cruelly prevented millions from getting coverage because of “pre-existing conditions.” Granted the roll out of exchanges was a mess last year, but health care sign ups have exceeded expectations in Virginia. The expected number was 134,800 in enrollment plans under the ACA. At the beginning of May it was 216,300.

Neither candidate talks about crucial issues such as income inequality, climate change or America’s changing role in world diplomacy. Neither talks about about poverty or smart growth or student debt.

Cantor is likely to win Tuesday but neither man seems worthy of leadership. They are just more evidence about how the right-wing fringe has been allowed to highjack the agenda. As this continues to happen, Virginia will be stuck in its ugly past.

Why Executive Fiats Are Needed

idiot gets shotBy Peter Galuszka

Two initiatives — one on the state and the other on the federal level– show just how untenable the politics of confrontation has become. It is forcing the executive side to take charge at the expense of the legislative.

Democrats Gov. Terry McAuliffe and Atty. Gen. Mark Herring are exploring ways to have the governor take emergency authority to continue operating the state of no budget is passed by June 30. Herring has brought in a constitutional ringer from the University of Virginia to help out.

Meanwhile, on Monday, President Barack Obama will unveil new rules to stem carbon dioxide pollution at electricity power plants. This will most likely involve some kind of cap and trade system that actually has worked for a couple decades for preventing emissions that contribute to acid rain.

Obama is late in promulgating the rules because King Coal and its well-paid lobbyists and members of Congress want to blunt the impact on coal-fired electricity plants that provide about 40 percent of the electricity in this country. They and the annoyingly boring global change naysayers have rendered Congress useless in addressing one of the most pressing issues of our time. Result? Gridlock.

So, Obama is taking executive power through existing law, namely air pollution laws that date back to Republican Richard M. Nixon.

It’s a shame that there can’t be intelligent discussion about either issue. In Virginia’s case, the stubborn resistance by conservative Republicans in the House of Delegates to expanding Medicaid has deadlocked action on passing a $96 billion two year budget.

Turns out that the fiscal situation is even more dire because of a $350 million shortfall this year in revenue which is the result of many wealthy Virginians taking advantage of capital gains tax law changes that made it better to ditch stocks last year as they did. The shortfall will only snowball if nothing is done. Localities and state employees will be severely impacted.

Hence McAuliffe is seeking out a Constitutionally-acceptable way to keep the government going regardless of what hard-liners like House Speaker Bill Howell do.

So, there you have it: rule but executive fiat. To be sure, in Virginia’s case, there are possible ways to get out of the mess, namely Republican Sen. Emmet Hanger’s compromise plan on Medicaid. But when it comes to global warming, forget it. The power of the Koch Brothers and the fossil fuel industry is simply too great. No matter what practically every climate scientist in the world says, we are having to answer to the deniers.

Hang on. June will be a lively month.

Sen. Emmett Hanger’s Good Idea

emmett-hangerBy Peter Galuszka

Could some seemingly small technical changes in legislative tactics and voting powers on an obscure commission clear the way for passing a state budget and expanding Medicaid in some form?

Sen. Emmett Hanger, a Republican senator from Augusta, thinks so. If he’s right, there could be a way out for both Republican House Speaker Bill Howell and Democratic Gov. Terry McAuliffe who are taking the stubborn impasse right up to the wire of June 30.

Hanger is proposing technically separating Medicaid expansion to 400,000 lower income Virginians from the budget debate, but with a twist.

There would be legislation linked to the budget requiring changes in the voting of a legislative commission known as the Medicaid Innovation and Reform Commission (MIRC) which was formed in 2013 and must agree that enough positive change in the Medicaid program is taking place to allow expansion. It would most likely occur through private insurance exchanges of some type.

“By October of this year we might be able to begin some limited enrollments,” Hanger told me in an interview.

I called him because, frankly, I didn’t understand media accounts of what he was proposing although the reports indicated that there could be some kind of breakthrough involved. My undergraduate degree is in international relations and I used to study diplomacy. I realize that such types of granular give and take can bring tremendous progress. I am intrigued.

Of course, I could be dead wrong and Virginia will not pass a $96 billion, two-year budget, the state will lose its good bond rating, government will shut down at least in part, teachers won’t get paid and those caught in health care limbo between Medicaid and Obamacare will remain there.

Talking with Hanger gave me some perspective that I didn’t have and haven’t read in the Mainstream media.

First, he said that the General Assembly has already approved Medicaid expansion. It did so last year with former Gov. Bob McDonnell in office. But it also created the 10 member legislative Medicaid Innovation and Reform Commission to identify problems and offer improvement suggestions for the state’s Medicaid program. No expansion can occur unless the commission approves. Hanger is chairman of MIRC.

By law, any expansion of Medicaid must be approved by a supermajority vote of the commission. That means that a majority of the five Senate members of the commission would have to say yes. Ditto a majority of the five House members.

Hanger’s proposal would make it a straight majority vote of six out of 10 members from both Senate and House sides. Plus, they won’t vote to approve expansion, only to disapprove it. In the meantime, MIRC would set clear metrics to benchmark what reforms are truly wanted.

Medicaid expansion would involve some kind of private health exchange (now dubbed “Marketplace Virginia”), and there would be added safeguards that there would be adequate copays by participants and ways to make sure that emergency rooms aren’t suddenly flooded with newly insured patients. He also wants a workable data system to keep track of patients and payments and other safeguards to prevent abuse. There are at least 17 categories of improvement areas.

The Senate would concede and use the House’s budget bill. The House would drop “Marketplace Virginia” from its bill and would concede that addressing additional Medicaid reforms would be required.

“Technically, it delinks Medicaid expansion from the budget bills,” says Hanger. But he adds that many seem to have forgotten that the General Assembly actually approved of Medicaid expansion last year “if a series of reforms were taken.” He says his plan would insure that just that happens and he believes it could happen quickly while the budget impasse is resolved separately.

He says that Howell, who has stubbornly resisted any Medicaid expansion this legislative session, seems amenable. So does McAuliffe.

The danger, of course, is that decoupling Medicaid from the budget bills takes away leverage points from both sides. Democratic Senator Dick Saslaw fears some kind of trick as do some Republicans.

My view is that sure there’s that risk, but it’s getting really late to keep playing chicken. My view also is that McAuliffe has done a hell of a lot more to compromise than Howell has.

Also, in my view, a private exchange is not the best way to go to expand Medicaid but the reality is that Virginia has a highly conservative legislature. Other conservative states such as Indiana have managed health care expansion through private exchanges, so I guess half a loaf is better than no loaf.

It seems that Hanger’s proposed deal might just get that, and not too late, either. It’s worth a look since the financial and health alternatives are truly terrible to contemplate.