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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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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.
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.”
This week, AFP: Michigan Director, Scott Hagerstrom shares his experiences at CPAC 2011, his thoughts on the Gov. Snyder’s proposed budget, set to be released this Thursday, and some of the challenges facing the state’s schools.