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AFP-Michigan Testifies Against State-Based Healthcare Exchange
Americans for Prosperity (AFP) is a free market non-profit organization that is committed to educating and engaging grassroots citizen activists across the country to advocate for smaller government, lower taxes, and free enterprise. We believe that the free market is and always has been the true path to prosperity. On behalf of our almost 67,000 activists in Michigan, I am pleased to submit this written testimony opposing any attempt by the State of Michigan to create a “Health Exchange” as dictated by the Patient Protection and Affordable Care Act (PPACA).
Exchanges in their most basic form are a simple market mechanism allowing consumers to research, understand, and satisfy their health care needs. However, the Exchanges–as drafted within PPACA and substantiated by the Proposed Rules released in the Federal Register on July 15, 2011–are blunt instruments restricting consumer choice and limiting state flexibility.
The Proposed Rules from the Department of Health and Human Services (the Agency) try to provide the impression of state flexibility, while the Agency retains all important decisions regarding the Exchange and its processes. The Agency must provide initial approval of any Exchange, thus requiring compliance with standards and guidelines the Agency sets outside of Michigan’s control. Secondly, the Agency establishes a “significant change” test that removes any discretionary power from the State to make changes as needed. “Significant changes” include such items as: Exchange governance structure, state laws and regulations and IT systems or functionality. The Agency gives States discretion regarding the Exchanges but only within the tight approval and operational paradigm laid out by the Agency. Even Michigan’s best attempts to create a consumer-focused exchange will be thwarted by the Agency leaving Michigan as an administrator of policies formulated two thousand miles away.
Further, AFP objects to Agency attempts to create a centralized claims database. The aggregation of personal health data carries inherent security and privacy risks. The Agency also suggests that the use of this data will extend beyond the stated purposes of risk adjustment leaving the door open to “other uses,” creating accountability, security, and transparency issues.
Finally, implementation of a state based healthcare exchange will raise taxes on businesses in Michigan. If a business does not provide “affordable” coverage to an employee, the employee can then purchase insurance through an Exchange and becomes eligible for federal tax subsidies. The employer is then subject to a $3,000 fine for each employee that’s eligible for the subsidy. However, because lawmakers didn’t even read the bill before they passed it, only individuals purchasing from a state-created Exchange are eligible for a tax credit; federal Exchanges are not eligible. Therefore, setting up a state-based Exchange will subject businesses in Michigan to higher taxes.
AFP opposes any attempt by Michigan to create its own Exchange and instead urges the State to reject the Federal government’s attempt to make important decisions on behalf of Michigan and her citizens.
For a thorough explanation of AFP’s position on Exchange regulations, click here.
Sincerely,
Scott Hagerstrom
State Director
Americans for Prosperity – Michigan
Americans for Prosperity (AFP) is a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. AFP educates and engages citizens to support restraining state and federal government growth and returning government to its constitutional limits. AFP is more than 1.8 million activists strong, with activists in all 50 states. AFP has 31 state chapters and affiliates. More than 85,000 Americans in all 50 states have made a financial contribution to AFP or AFP Foundation. For more information, visit www.americansforprosperity.org Americans for Prosperity does not support or oppose candidates for public office.
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ObamaCare Health Care Exchange Regulations
July 2011
In principle, conservatives should support health insurance exchanges. They harness the power of free market competition, transparency and value comparison to drive innovation, increase choice, and reduce costs. However, when a health plan’s participation in the exchange is conditioned on page-after-page of federal mandates and restrictions, exchanges can also be used as a tool to expand bureaucratic control. That’s exactly what President Obama and Health and Human Services Secretary Kathleen Sebelius are trying to do with ObamaCare’s exchanges. On July 11, 2011, HHS released the first set of proposed exchange regulations. AFP’s concerns include:
Federal Control of State Exchanges: The President knows the country realizes his plan is a federal health care takeover. So in the first proposed regulations his bureaucrats used language that made it appear they were giving states flexibility to set up their own exchanges. Remember the health care market is far too complex for D.C. to run; they need the states to implement their scheme. Giving the appearance of flexibility is one way to convince states to do it. However, the proposed regulations direct that any “significant change” states want to make will require HHS approval. These changes could be as small as exchange governance structure, state laws or regulations, IT systems or functionality, or the qualified health plan certification process. States will be constantly asking permission to run their own exchanges; not a lot of real flexibility.
Centralized Database Risks Security of Personal Data: The proposed regulations also seek to establish a centralized claims database for the purpose of calculating risk. Insurers would be required to submit patients’ personal claims data to a huge federal database for the purposes of calculating “risk scores” and quality reporting – an enormous privacy concern. Do you want the federal government to have access to information about all of your health care decisions?
No Hint of Qualified Plans: “If you like your plan, you can keep it,” the President constantly promised during the health care debate. One of the more important elements of an exchange is which insurance plans will be allowed to participate. What plans qualify? This first regulation is entirely silent on what a qualified plan will look like. Care providers, insurers and patients are still waiting to learn if the President will allow us to keep the health care we have and like.
Short Timetable Threatens Federal Takeover: Maybe the worst aspect of these rules is the incredibly short time frame it gives states to get their exchanges up and running. States must receive “approval or conditional approval” from HHS by January 1, 2013 in order to avoid the federal government taking over the state’s exchange. However, due to various HHS review deadlines, states will probably need to have their plans submitted for federal signoff by July, 2012. With HHS due to release several more regulations before the states will have a clear picture of what the exchanges will need to look like to get HHS approval, states will likely only have a few months between when the final regulations are issued and when their plans are due.
Americans for Prosperity Calls for Lawmakers to Support Reforms to Michigan’s No-Fault Auto Insurance System
Grassroots group warns MCCA fee threatens hidden tax hike on Michigan drivers
LANSING, Mich. – Americans for Prosperity-Michigan today pledged its support for House Bill 4936, which would reform Michigan no-fault auto insurance, ensuring the long-term sustainability of the system. The taxpayer group called the government-mandated fee to fund the Michigan Catastrophic Claims Association (MCCA) a hidden tax on Michigan drivers—a tax that will increase substantially within a few years. AFP-Michigan has called on its 65,000-plus members to contact their legislator in support of HB 4936.
“With more than $60 billion in future unfunded liabilities, Michigan’s no-fault auto insurance system is on a collision course with financial ruin,” said Scott Hagerstrom, state director of Americans for Prosperity-Michigan. “Left unchanged, the system will not only empty our wallets, it will also threaten care for crash victims.”
Hagerstrom noted that the MCCA fee, which has been assessed on Michigan drivers as part of their auto insurance premium since the inception of the system, has risen from $5.60 in 2000 to $145 per vehicle. According to testimony from industry experts, if the current upward trend continues, the MCCA assessment will have to rise ten-fold.
“The MCCA fee is a hidden tax on Michigan drivers that will skyrocket within just a few years, bypassing legislative or voter approval,” said Hagerstrom. “It is time to enact reforms that will ensure the sustainability and affordability of our no-fault system.”
AFP-Michigan said it also plans to educate its membership on how large health care systems are fighting the change, because they stand to benefit from the government health insurance mandate. From everything from X-rays to MRIs, on average, health care systems charge Michigan drivers four times more for claims, according to a study commissioned by the Michigan Chamber of Commerce. Meanwhile, auto premiums—along with the number of uninsured Michigan drivers—continues to climb.
“It’s a perfect storm of hidden taxes, government mandates, and unfunded liabilities,” said Hagerstrom. “Lawmakers need to pass common sense reforms that will steer us toward calmer seas.”
Americans for Prosperity-Michigan is a statewide organization of 65,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
78-Year-Old Woman Taken to Emergency Room After Being Pushed Down Stairs by Occupy Protestors
LANSING, Mich. – A 78-year-old-woman from Detroit, Mich., went to the emergency room last night after sustaining injuries from being pushed down concrete stairs by Occupy protesters.
According to the woman, a mob of Occupy protestors pushed and shoved her as she exited the Americans for Prosperity Defending the American Dream Summit—causing her to fall down the concrete stairs in front of the Convention Center.
“I couldn’t even see the steps,” the woman said. As the mob pressed against her, she fell down the stairs, sustaining injuries to her head, her hand, and her leg. “The next thing I knew I was being pushed and I fell down.”
The video footage was captured by ConservARTive.com, click here.
The Michigan woman was among 130 Americans for Prosperity-Michigan members who traveled 11 hours by bus to attend the Defending the American Dream Summit in Washington, DC.
Americans for Prosperity-Michigan is a statewide organization of 65,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
Americans for Prosperity Calls Committee Vote Against Detroit-Canada Bridge “Important Victory for Taxpayers””
Group warns taxpayers must remain vigilant;
Calls on Gov. Snyder to respect the legislative process
State Sen. Mike Kowall voted against the proposed Detroit-Canada bridge in committee
LANSING, Mich. – Americans for Prosperity-Michigan applauded today’s Senate Economic Development Committee vote against the Detroit-Canada government bridge, calling it “an important victory for taxpayers.” However, the group warned, Michigan taxpayers must remain vigilant because bridge proponents will likely seek another route to passage for the proposal.
“We applaud the lawmakers on the committee who had the backbone to stand up for taxpayers even under tremendous pressure to support bigger government,” said Scott Hagerstrom, AFP-Michigan state director. “This vote is an important victory for taxpayers.”
Those lawmakers who voted against the proposal were: Sen. Mike Kowall (R-White Lake Township), Sen. Goeff Hansen (R-Hart) and Sen. Mike Nofs (R-Battle Creek). Lawmakers who supported the proposal were: Sen. Judy Emmons (R-Sheridan) and Sen. Dave Hildenbrand (R-Lowell). Both Democrats on the committee, Sen. Tupac Hunter (Detroit) and Sen. Virgil Smith (Detroit), passed on the vote.
“Unfortunately, the forces of big government will continue to push this proposal,” said Hagerstrom. “It’s like the bad guy in a horror movie—it just refuses to die. We’re calling on Gov. Snyder to respect the legislative process and turn his attention to issues that will bring genuine prosperity to our state.”
The vote comes on the heels of an AFP-Michigan poll that showed nearly half (49 percent) of Michigan voters oppose a new Detroit-Canada bridge, while just 31 percent of respondents said they supported the proposed bridge project. Voters were more than twice as likely to “strongly oppose” the bridge than they were to “strongly support” the bridge (36 percent to 16 percent), with the total number of voters who supported the bridge lower than those most fervently against it.
The full poll results can be found online at www.MichiganAFP.com. For more information about AFP-Michigan’s position on the New International Trade Crossing, visit www.DetroitBridgeInfo.com
Americans for Prosperity-Michigan is a statewide organization of 65,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
Americans for Prosperity Poll Finds Intense Opposition to Detroit-Canada Bridge, Strong Support for Right to Work
7 of 10 voters support Right to Work; Nearly half of voters oppose Detroit bridge
LANSING, Mich. – Key findings of a new poll released by Americans for Prosperity-Michigan show that nearly half (49 percent) of Michigan voters oppose a new Detroit-Canada bridge, and seven out of 10 voters support giving workers the right not to be forced to join a union. The AFP-Michigan poll covers a total of six key taxpayer issues, including government checkbook transparency, a gas tax increase, and limiting property taxes to a fixed percent of a home’s value. The full poll results may be found online at www.MichiganAFP.com.
“Americans for Prosperity wanted to take the pulse of Michigan voters on some of the core issues we’re focusing our efforts on during the remainder of the legislative session this year,” said Scott Hagerstrom, state director of Americans for Prosperity-Michigan. “When asked plainly, voters do choose less government, lower taxes and greater transparency.”
The phone survey of 600 likely Michigan voters was conducted by the polling company, inc./WomanTrend with a margin of error of +/- 4.0 percent. Among its findings:
• Detroit-Windsor Bridge – Nearly one-half of respondents opposed the bridge, with 36 percent strongly opposed. In fact, voters were more than twice as likely to “strongly oppose” the bridge than they were to “strongly support” the bridge (36 percent to 16 percent). The total number of voters who supported the bridge was lower than those most fervently against it.
• Right to Work – 71 percent of respondents supported giving Michigan workers, including teachers, the right not to be forced to join a union. No less than 54 percent of all three political parties and ideologies rejected the idea of compulsory unionization.
• Gas Taxes – A mere 13 percent of respondents supported an increase in the gas tax in Michigan, while 80 percent opposed a gas tax hike.
• Government Transparency – Lawmakers loath to take up controversial issues should embrace government transparency. A whopping 83 percent supported government checkbook transparency.
• Property Taxes – A majority of Michigan voters (62 percent) favored fixing property taxes in correlation with home value, with 39 percent strongly in favor of such a measure.
“Our findings indicate that lawmakers should start focusing their energy on Right to Work, government transparency and a property tax limitation,” concluded Hagerstrom. “An expensive and unnecessary Detroit-Canada government bridge is a distraction from the issues that will bring genuine prosperity to our state.”
Americans for Prosperity-Michigan is a statewide organization of 65,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
Americans for Prosperity Drops Mail Piece Thanking House Speaker Rep. Jase Bolger for Transparency Efforts
Grassroots group urges amendment, passage of House Bill 4136
LANSING, Mich. – The grassroots taxpayer group Americans for Prosperity-Michigan dropped a district-wide mail piece thanking House Speaker Rep. Jase Bolger (R-Marshall) for “bringing unprecedented transparency, openness, and accountability to Michigan government.” The mailer depicts a photo of the Capitol building with a large sign that reads “Open House.” The mail piece can be viewed online at MichiganAFP.com.
“The Michigan House is more open and accountable to citizens than ever,” said Scott Hagerstrom, state director of AFP-Michigan. “We applaud Rep. Bolger’s efforts to bring sunshine to the operations and expenditures in the Michigan House of Representatives. Now, we need to make these reforms permanent and bring a similar level of transparency to Michigan’s other branches of government by passing House Bill 4136.”
Specifically, Rep. Bolger created a new, user-friendly website, located at house.mi.gov, that allows citizens to easily find information, including:
• Salaries and benefits of all representatives and House staff
• Spending by the House Business Office and individual representatives’ offices
• Audit reports
• Appropriation bill status
• Financial reports for the House and House Fiscal agency
House Bill 4136—introduced this January—would require the state to create a free, online searchable database containing the details of all agency purchases, contracts and grants. It is pending in the House Oversight, Reform, and Ethics Committee. Hagerstrom noted that, if amended to include the legislative branch, the bill would make Rep. Bolger’s reforms permanent, ensuring future legislatures would not be able to revoke them.
“Thomas Jefferson spoke of making the finances of our Union as ‘clear and intelligible as a merchant’s books’ so that anyone could understand them, investigate abuses and thus control them,” Hagerstrom concluded. “We look forward to working together with Rep. Bolger to continue to pursue this founding principle here in Michigan.”
Americans for Prosperity-Michigan is a statewide organization of 64,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
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AFP-Michigan Legislative Scorecard 2011
Taxpayer group scores lawmakers on tax, spending and education reform votes
Click the image to view the scorecard
LANSING, Mich. – The grassroots free-market group Americans for Prosperity-Michigan today released its 2011 Mid-Session Legislative Scorecard. The publication also highlights Upcoming Issues that the 64,000-member-strong taxpayer group will focus its activities around during the remainder of the legislative session this year. The AFP-Michigan scorecard is available online at www.MichiganAFP.com.
“Americans for Prosperity-Michigan’s mid-session scorecard will empower citizens to hold their lawmakers accountable to the principles of economic freedom and limited government,” said Scott Hagerstrom, state director of Americans for Prosperity-Michigan. “We hope citizens will ask some tough questions as they review their lawmakers’ voting records. Did their lawmaker make the taxpayer grade? Where is there room for improvement?”
AFP-Michigan’s legislative scorecard currently encompasses 23 roll-call votes in the State Senate and 19 roll-call votes in the Michigan House of Representatives. Of Michigan’s 38 State Senators, five received scores high enough to receive an “A” grade, including Sen. Patrick Colbeck (R-Canton) and Sen. Joe Hune (R-Hamburg) who achieved perfect scores for an “A+” grade. Of Michigan’s 110 State Representatives, 62 scored 89 percent or above for an “A” grade, including 48 who achieved perfect scores for an “A+” grade.
Among other votes, lawmakers received positive marks for votes to:
• Reform teacher tenure rules
• Eliminate ergonomics as a standard for regulation by MIOSHA
• Pass the 2011 Transportation Budget, which prohibits state tax dollars from being used toward Gov. Rick Snyder’s proposed Detroit-Canada government bridge; and,
• Require public employees to pay at least 20 percent of their health insurance premium
During the remainder of the legislative session, AFP-Michigan noted that it will focus its grassroots energy toward passing the Senate’s package of education reforms, stymying plans to create a state health care exchange, eliminating the personal property tax, and killing off Gov. Rick Snyder’s proposed New International Trade Crossing.
“Our economic freedom advances or recedes with many of the votes our lawmakers take,” Hagerstrom concluded. “More of our lawmakers must be willing to fight for the principles of constitutional government with every single vote they take.”
Americans for Prosperity-Michigan is a statewide organization of 64,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities.
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Americans for Prosperity-Michigan Highlights Concerns Regarding Proposed Detroit-Canada Government Bridge
Grassroots group says bridge will cost taxpayers more than a few dimes
MIDLAND, Mich. – The grassroots free-market group Americans for Prosperity-Michigan held a news conference today with Dick Morris to highlight concerns about Gov. Rick Snyder’s proposed New International Trade Crossing. The 65,000-member-strong group has been an outspoken opponent of the new Detroit-Canada government bridge.
“The appropriate way to fund such a project is through private investment, not by pickpocketing the public purse,” said Annie Patnaude, deputy state director of Americans for Prosperity-Michigan. “Politicians on both sides of the border are making promises, but it is Michigan taxpayers who will ultimately foot the bill.” Read the rest »
Americans for Prosperity Ad Touts Governor’s Reforms
LANSING, Mich. – In an ad campaign that began this week, Americans for Prosperity – Michigan (AFP-Michigan) championed efforts by Governor Rick Snyder in bringing school reform changes to the state.
“While we may not agree on every issue, we appreciate some of the great ideas the governor is bringing to the table in this instance,” said AFP-Michigan State Director, Scott Hagerstrom. “Reform has been needed for decades, but this seems like the first time we are taking a hard look at what is right for children in the system versus what works the best for teachers in the MEA. Teacher tenure reform has already passed the House and we’re looking forward to more streamlining in the coming weeks and months. The ads we put out today just serve to inform the public about the good that is due to come from more accountable public schools that will need to succeed to survive.”
AFP-Michigan has long been a proponent of a more accountable, streamlined public education system. Despite being one of the best funded education systems in the nation, the Michigan Department of Education estimates 84% of high school seniors are unprepared to enter college once they graduate. Michigan also ranks 39th in grade and middle school scoring.
Hagerstrom concluded, “We can’t just keep throwing money at the problem of really helping our kids excel. It is time to try something new and we’re excited for the possibilities.”
Americans for Prosperity Ad Touts Governor’s Reforms
LANSING, Mich. – In an ad campaign that began this week, Americans for Prosperity – Michigan (AFP-Michigan) championed efforts by Governor Rick Snyder in bringing school reform changes to the state.
“While we may not agree on every issue, we appreciate some of the great ideas the governor is bringing to the table in this instance,” said AFP-Michigan State Director, Scott Hagerstrom. “Reform has been needed for decades, but this seems like the first time we are taking a hard look at what is right for children in the system versus what works the best for teachers in the MEA. Teacher tenure reform has already passed the House and we’re looking forward to more streamlining in the coming weeks and months. The ads we put out today just serve to inform the public about the good that is due to come from more accountable public schools that will need to succeed to survive.”
AFP-Michigan has long been a proponent of a more accountable, streamlined public education system. Despite being one of the best funded education systems in the nation, the Michigan Department of Education estimates 84% of high school seniors are unprepared to enter college once they graduate. Michigan also ranks 39th in grade and middle school scoring.
Hagerstrom concluded, “We can’t just keep throwing money at the problem of really helping our kids excel. It is time to try something new and we’re excited for the possibilities.”
Scott Hagerstrom: A little more openness, please, governor, on the bridge
By Scott Hagerstrom, State Director of AFP-Michigan
Gov. Rick Snyder has reassured Michigan citizens that the New International Trade Crossing project has their best interests at heart. Yet the administration’s draft legislation thwarts transparency and accountability to the very public it is supposed to benefit, raising questions as to whether the project will be a benefit or a boondoggle.
Transparency and accountability are universal truths of good government. In fact, Snyder made these issues key throughout his campaign. Read the rest »
