• Sen. Harry Reid, Lone Wolf

    Senate Majority Leader Harry Reid

    All of the top leadership of the United States Senate and House of Representatives have bought into the idea that if millions of Americans must use the newly-created exchanges to find and purchase health plans, then those that crafted the law should as well–all except for Senate Majority Leader Harry Reid.

    A little background–

    Since these marketplace exchanges are, at least in theory, supposed to deliver “superior” products at a “competitive” price, then Members of Congress and their staffs should have no issue purchasing health insurance through those exchanges, right?  Such was the thinking of the Congress of the United States when it passed H.R. 3590, also known as the Patient Protection and Affordable Care Act (Obamacare), with the following provision:

    “MEMBERS OF CONGRESS IN THE EXCHANGE.— (i) REQUIREMENT.—
    Notwithstanding any other provision of law, after the effective date of this subtitle, the only health plans that the Federal Government may make available to Members of Congress and congressional staff with respect to their service as a Member of Congress or congressional staff shall be health plans that are—
    (I) created under this Act (or an amendment made by this Act); or
    (II) offered through an Exchange established under this Act (or an amendment made by this Act).”
    (http://1.usa.gov/18kYi3C)

    In case you were wondering, there was no other health plan created for Members of Congress or congressional staffs under this act, or any amendments (the Federal Employees Health Benefit program existed long before the Affordable Care Act).  Yes, Congress passed a law forcing its own Members and staffs to receive health care via the exchanges–and they accidentally wrote themselves out receiving any additional compensation in the process (all lawmakers and most staffers are over the 400%-of-poverty-line cutoff to receive subsidies).  The law also defines what constitutes “congressional staff:”

    “The term ‘congressional staff’ means all full-time and part-time employees employed by the official office of a Member of Congress, whether in Washington, DC or outside of Washington, DC.”

    Of course, the Office of Personnel Management (OPM) allows Members of Congress to designate who is and who is not “official staff:”

    “Because there is not an existing statutory or regulatory definition, OPM believes that Members of Congress are best able to designate which of their staff members work in their official office (and therefore, must choose health plans from the Exchanges).”
    (http://1.usa.gov/IDXNG4)

    This means that congressional leadership, who generally have additional staffers for legislative committees and leadership positions, must determine which staffers are “official” and cannot be exempted from the exchanges, and which staffers are “non-official” and may be exempted.  Every top leader in the Congress has opted to keep all of their staffers on the exchanges–Democrats for the likely reason that they believe in the law and choose to demonstrate their faith in it, and Republicans ostensibly to martyr themselves and demonstrate that they are going to suffer the repercussions of “Obamacare” along with everyone else.  Sen. Reid is the outlier.

    Sen. David Vitter (R-La) sees something incongruent here, and yesterday sent an open letter to Sen. Reid requesting additional information on which staffers were exempted, on what grounds, and whether they were involved in drafting the Affordable Care Act (bit.ly/1f7HbRU).  These seem like altogether reasonable questions, given that the White House, the OPM and the Department of Health and Human Services seem to be making this up as they go along.  And if congressional staffs are mandated to purchase health plans through the exchanges, it seems reasonable for the federal government to contribute to the premiums, like any other large employer (although the legislature must amend existing law to reflect this, rather than the White House and the OPM changing federal statute by executive fiat).  What is not reasonable is claiming to “stand ready to work with any Republican” to address flaws with the Affordable Care Act, while blocking legislation attempting to do just that and while exempting certain staffers from having to participate in the same exchanges forced on the rest of Congress and millions of American people.

  • Letter to the Editor

    Here’s a letter to The Wall Street Journal:

    Your editorial arguing that ObamaCare exchange plans deliver an inferior product at an unimpressive price is right on point (“ObamaCare’s Plans Are Worse,” Nov 30, 2013). However, continuing to refer to the market distorted by ObamaCare as “insurance” is a gross misnomer, at best. In a properly functioning insurance market, consumers absorb the smaller expected costs themselves, and purchase insurance to defray the potential larger costs of some unforeseen catastrophic event. Purchasing health “insurance” that covers routine check-ups but is useless in seeking premier treatment for a serious illness is no more sensical than purchasing auto insurance that pays for oil changes but provides no coverage in the event of a wreck. But it’s no surprise that the marketplace wizards in the federal government have gotten the economics backwards–again.

    Jared Graham

  • From the department of “Ya Think?”

    20131113-082533.jpg

    And another one:

    20131113-082631.jpg
    Really? The unemployed aren’t seeing the signs of the recovery?…

  • Cause and effect

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    Replace “but” with “because” — the flow of easy federal dollars has been fueling drastic tuition increases for years.

  • Counter Mythbuster

    There is so much garbage in this op-ed, it is hard to know where to start:
    http://www.nytimes.com/2013/10/17/opinion/the-myth-of-the-medical-device-tax.html?smid=pl-share

    1) The tax is on revenues, not profits–so any discussion of “excess profits” (which is NOT a real thing) is moot.
    2) The fact that J&J could “afford” the tax is again irrelevant, especially if one considers the number of companies operating with slimmer margins that cannot “afford” to comply with bad law and bad economics.
    3) “To complement these efforts, the new Patient-Centered Outcomes Research Institute, a nongovernmental body created by the Affordable Care Act, should pay for research that compares the effectiveness of devices so physicians can make informed choices.” — If a body is created by an act of Congress, don’t tell me it’s a “nongovernmental body.”
    4) I will bet anyone $1 that maintaining an onerous tax–and one that targets revenues instead of profits, at that–will NOT “provide incentives for the industry to become more innovative.”

    But here’s what made it into a letter to the New York Times:

    If Mr. Spiro’s assessment of the innovative capacity of the medical device industry was accurate—offering only “tweaks” without any real improvement (“The Myth of the Medical-Device Tax,” 16 October 2013)—then 2013 would only have a slightly shinier x-ray machine than 1913, instead of groundbreaking MRI technology that can visualize the body in 3D and in greater fidelity than ever before.Jared Graham

  • Which Candidate Is at the Far Edge of the Spectrum?

    wsj.com

    Alan Blinder asserts that leading Republicans have said the 2009 fiscal stimulus created no jobs (“A Republican Ticket From Far Right Field,” op-ed, Sept. 6). I know of no serious person who has made such a claim. What most Republicans do attest is that the federal fiscal stimulus created far too few jobs for the money, created them far too slowly and grossly misallocated taxpayer dollars at the expense of marginalizing private capital. This isn’t radical, right-wing economics—it is the simple, logical and proven belief that whatever “multiplier” government assigns to its own spending, it will always be less than that of the free markets. That used to be called “capitalism.”

    Jared Graham
    Savannah, Ga.

     

  • Sel Graham on Cap-And-Trade

    Sel Graham’s letter to the WSJ on carbon cap-and-trade rules:

    http://online.wsj.com/article/SB10001424052748703298004574457511346605076.html

  • WSJ Letter: Economic Systems, the Bible and a Just Community

    In the parable of the talents in the Gospel of Matthew, Jesus tells the story of a master who entrusts varying amounts of money to three servants. Two servants return the money to the master with a profit, and the master rewards them with greater responsibility. A third servant feared the master and merely buried his money in the ground, and was rebuked for being “evil and lazy” for not putting the money to use or at least investing it with a bank. Like most parables, this one has many meanings, but at its heart it teaches that inaction and fear of risk are undesirable qualities. Capitalism rewards those who use their “talents,” take action and accept risk. Socialism does not.

    Jared Graham
    Savannah, Ga.

    Original: http://online.wsj.com/article/SB10001424052970204652904577197040721709250.html

  • WSJ Letter: Good-Faith Partner Vital in Foreign Policy

    In response to Michael O’Hanlon and Paul Wolfowitz (“Defining Victory in Afghanistan,” op-ed, Nov. 22): The authors neglect one important consideration in comparing a strategy for Afghanistan with recent successes in Colombia—in justifying a hands-off approach, which still calls for an abundance of advisory and financial support, it helps to have a good-faith partner with which to work. In Colombia we had President Álvaro Uribe. Afghanistan’s Hamid Karzai is no Álvaro Uribe.

    Jared Graham
    Savannah, Ga.

    Original: http://online.wsj.com/article/SB10001424052970204443404577054672440235432.html

  • Washington Post Letter: Getting China to rein in North Korea

    Regarding former president Jimmy Carter’s Nov. 24 op-ed, “Listen to North Korea“:

    Mr. Carter did not mention the giant panda in the room. Without convincing China that its continued unconditional support of North Korea will only harm its long-term strategic interests, any “diplomatic niceties” the United States might initiate will be for naught. Despite Mr. Carter’s assertions of Pyongyang’s credo of “juche,” or self-reliance, China’s influence on North Korea is not trivial.

    For six decades, Pyongyang has proved itself an irrational actor that cannot be trusted to behave in accordance with the laws of nations. Our real challenge will be persuading China to temper North Korea sooner rather than later.

    Jared Graham, Savannah, Ga.

    Original: http://www.washingtonpost.com/wp-dyn/content/article/2010/11/26/AR2010112605136.html