RI Seeks Exception from Federal Health Insurance Mandate – Even Mass. Mandatory Health Insurance Offers Opt out Based on Income

The Rhode Island State Legislature’s GOP members are seeking an exemption from the Federal Mandate to purchase health insurance or face a fine according to the Providence Journal. The Bill, submitted to the Rhode Island Legislature is based on the 10th amendment, which, coincidentally, was the basis for the recent ruling by a Federal Judge in Florida that found the Health Care Reform Act to be un-Constitutional. Twenty-six states had filed a suit seeking to nullify the Federal Act due to the Commerce Clause. The Health Care Act, itself, does not include a severability clause, which, should the Supreme Court agree with the Federal Court in Florida, would make the entire bill moot. This is the most likely scenario.

As the National Program was largely based on the Massachusetts Model, one should note that Massachusetts offers an exception from penalty, or, an opt-out of sorts, for residents who either cannot afford to purchase health insurance and/or refuse for religious reasons. To avoid the penalty, each year, the resident must file for an exception with the State’s Department of Revenue, (Commonwealth Version of the Internal Revenue Service), that agency then forwards the request to the Mass. Health Connector, who reviews the application for exception and based on a series of financial hardship hurdles, will waive the penalty for that year only.

The penalty from the States D.O.R., is put “on hold” until the Connector makes a decision as to exempt or not exempt an individual request. Should the State find for the State, then the individual can further appeal the decision in court. Instructions for filing an exception are available at the Mass Health Connector portal.

In using the Massachusetts “Tool” to find if one is eligible for an exception, one will need: a prior year’s tax form and or estimate of total income, one is then given the standards for minimum coverage allowed under the State Mandate, and then given income levels that determine if one is eligible for exemption:

Question 2 - Is your annual income greater than:
• $54,600 if you are an individual
• $85,800 if you are a married couple without children or
• $114,400 if you are a family (at least one parent, one child/dependent)?

If one answers yes, they are immediately given the option to Estimate their tax penalty, as well as the option for filing for an exemption due to hardship by going to the “Waivers from the Tax Penalties: What They Are. How to Get Them.” page. The lengthy list includes exceptions for the homeless, for those who do not meet federal poverty guidelines, for those who’ve suffered a natural disaster, as well as the following:
“What else qualifies as a hardship?
Large families may claim that the Affordability Schedule does not fully account for their financial burdens. We will also consider other claims.”

What qualifies as “other claims”, is not specified, however, more than one resident has used this “last resort” qualifier to avoid paying the penalties.

In other words, Massachusetts mandates one has coverage, however, also offers residents (who must jump through hoops, submit forms, and deal with two agencies) in order to avoid paying fines, or being forced to buy health insurance a way out. Massachusetts, therefore, as a model, on the one hand mandates and fines, and on the other, exempts those who can find the information regarding exceptions

As to the cost of administering the behemoth that is Mandated Health Care Massachusetts Style, takes up the majority of the State Budget. The lack of ability to streamline, by cutting the process to a one-agency stop, allows the Commonwealth to hire additional staff to handle the claims.

The total system according to the CATO Institute is a dismal failure. The article, written in 2008, notes the following on the programs “universal coverage”:

The subsidies may have increased the number of Massachusetts citizens with insurance, but as many as 400,000 Massachusetts residents by some estimates have failed to buy the required insurance. That includes the overwhelming majority of those with incomes too high to qualify for state subsidies. Fewer than 30,000 unsubsidized residents have signed up as a result of the mandate. And that is on top of the 60,000 of the state’s uninsured who were exempted from the mandate because buying insurance would be too much of a financial burden.

Therefore, before real financial hardship hit the Commonwealth, approximately 400,000 residents did not comply, out of those, 60,000 sought and received exceptions from paying the state, and a mere 30,000 had signed up for coverage.

The cost to the Commonwealth, according to the study for 2008 was 1.8 Billion dollars for a plan that failed in its primary objective. In addition, private insurance premiums rose to meet a demand that clearly did not exist, and private endurance carriers, specifically Blue Cross/Blue Shield has instituted 10 to 11% increases each year since the plan was imposed on the State.

It is suggested that one read the CATO Institute Study here at www.cato.org.

What should be questioned, by every Massachusetts resident who is bound by law to buy insurance, and given limited carriers from which to choose is: "why the Commonwealth does not open up the pool of available insurers in much the same way it did with auto insurance coverage"? When the Commonwealth allowed auto insurance carriers to sell their wares across State Lines, residents noticed an immediate and significant drop in premiums.

Additionally, should the Federal Mandate be found unconstitutional, again, and again, and again, up to the Supreme Court, then would not the Massachusetts Model, with its limited availability, opt out clauses and massive inefficiency, be eligible for a similar suit?

To those Legislators in Rhode Island, kudos, look to the Massachusetts Model, and one can find multiple reasons why the Federal Program is in trouble before it has had a chance to truly take on Massachusetts ineptitude. The fact of the matter, there are options on the table that would reduce the cost for those uninsured, allowing consumers to buy across state lines, and make their own choices as to their health care.

The Federal Plan does offer an opt-out, however, only to those corporations that cannot “afford” total coverage: 700 plus organizations that have been allowed to opt out of the Federal Mandate so far. Full list of employers opting out and exception options via the U.S. Dept. of Health and Human Services here at www.hss.gov

From Massachusetts to Pennsylvania Avenue, what we have is a colossal waste of time that has cost billions in hours and revenue and has accomplished nothing more than increased court cases, without effectively reforming the system, which, is still in need of reform.

2012 GOP Potential Challengers – Reading Tea Leaves via Book Tours

Ohio, a swing state in 2008, where President Obama bested GOP Candidate, John McCain by a margin of 51 to 47%, is now, according to an article online at the Cincinnati Enquirer receiving visits from the President and Multiple Potential GOP Candidates. The Premise for the majority of the visits – book tours. Viewing a book tour as a stepping stone to a Presidential run, might on the outside appear a bit ridiculous, as bookstores are located in every state of the union – and of the three “front-runners” mentioned in the article, all have authored books and were “on tour” in the State. Included in this list are Mike Huckabee, Mitt Romney and Sarah Palin, who have been leading in polling for the GOP nomination since the Mid-terms. Newt Gingrich, in this particular article, was in Ohio promoting a movie that he had directed, while others visiting the State had attended purely political events, including: Tim Pawlenty, John Tune and Michele Bachmann.

Bachmann, who has been actively promoting the Tea Party movement in both the national spotlight as well as in early primary states such as Iowa, is seen by some as a potential candidate, however, tea leaves aside, Bachmann, a stalwart, no apologies, Conservative – Tea Party leader is, like the balance of those names (with some exceptions, notably New Jersey Govenor Chris Christie) side-stepping the question of whether or not one will run for the Presidency.

Book tours have taken Mitt Romney, for instance, from New York, across the country and into Canada asking the question on the main tour dates page: “Is Your City Lucky Enough to Have the 45 President of the United States Visit After That?” This, from Mitt Romney Central dot com, leaves little left for Romney to do than formally announce his bid. The Title of Romney’s Book: ”No Apology, Believe in America” a New York Times Best Seller.

Mike Huckabee’s latest book, A Simple Government: Twelve Things We Really Need from Washington (and a Trillion That We Don't!)” is set for release on February 22, 2011. His tour dates are based, for now, mainly across the south, beginning in Iowa. Huckabee has noted more than once, that he would be making a decision regarding a run, by summer 2011, however, if one were reading Book Tour Tea Leaves, it would appear that decision may come earlier, in Iowa, in late February.

Sarah Palin’s latest book tour took her to Iowa and South Carolina (as well as Little Rock, AR, Nebraska and Texas, to name a few). ”America by Heart : Reflections on Family, Faith, and Flag” her latest, which, incidentally debuted at the number 2 slot on the New York Times Best Seller List.

Therefore, the three most mentioned potential candies, all have current books, and are either on tour, have finished touring and or are about to tour the nation, and stopping at States one traditionally associates with politics.

In 2007, Mike Huckabee went on tour with his book, “From Hope to Higher Ground” The Washington Post headlined on January 28th, 2007, “Mike Huckabee Launches Presidential Bid” however, he formally announced in February.
Obama, dubbed in June of 2008, as the “presumptive nominee”released a “flood” of books prior the election.

Tea Leaves aside, books outlining an individual’s view of American, which is timed for release immediately before or during the general election cycle, compete with book tour that places those individuals in States traditionally on the list of politico’s as a first step towards a Presidential run, have been released by all perceived top runners.

This book tour stage as a stepping stone to the Presidency (or not at the case may be), allows a “potential candidate” to get an idea of just how popular, or unpopular, they may be in key states, allows them to meet the people on the ground, with a fair amount of non-committal book signing, that will, in all likelihood generate both income and interest.

Of Note: Donald Trump, who has announced a possible intent to run for the GOP nomination, has not written a book – yet.

Major Parties Court the South – Convention Placement for Democrats not Without Controversy - 2012 Begins

It goes without saying, that one cannot win a Presidential election without those Southern States, specifically those considered “swing” states one way or another -always considered more Conservative than the rest of the country, and there have been shifts in recent years, especially with the short-lived emergence of blue dog Democrat candidates. The 2010 Mid-terms, for all intents and purposes, changed the landscape from the mid-west to the west, to the northeast, with the usual glaring exceptions of the States of California, Massachusetts and New York. Therefore, the South, Florida specifically as a swing state of sorts, would be a logical location for the RNC to set up camp.

The RNC choice of Tampa, in the state of Florida, is somewhat of a “safe” choice, given the strength of the Republican party in the state, and the recent election of Mark Rubio, Tea Party/Republican, to the Senate. The setting is urban, and Tampa, like so many urban areas in Florida, could be any eastern city, with the exception of geography. The psychological implications of this setting, therefore, are twofold, demoralize the opposition and shore up the base.

On the other hand, the Democrats chose Charlotte, North Carolina, stepped in the history of the South, currently has one Democrat and one Republican Senator, their Congressional Representatives are split 7 republicans to 6 Democrats, and the state can be considered a swing state, having 15 electoral votes (2010). The south was, historically a Democrat stronghold up until the 1940’s, university logic suggests that with the Democrat Party adopting a civil rights platform, southern Democrats were disenfranchised and looked towards another party. In addition, as the decades progressed, the strong Christian base in the south, rejected the platform Why not at least attempt to reclaim some of the south by placing a Convention in Charlotte?

There are some objections, mainly form the key supports of the Democrat Party – the unions North Carolina has right to work laws, and are extremely unfriendly environments to unions. Who according to Politco, are not at all pleased with the choice of the Convention site, due to its anti-union atmosphere. One might however, take a closer look at early polling down by Democrat leaning polling firm Public Policy Polling which has been polling the country since the mid-terms in 2010. On hypothetical Republican primaries, as well as hypothetical match-ups between Obama and those Republicans used in the polls (most notably: Mike Huckabee, Mitt Romney, Sarah Palin, and New Gingrich) the results are rather interesting. In most instances, the President does not fare well, however, he does best Huckabee in North Carolina, not as strong a showing as say the newly released poll from California, or polls taken in Massachusetts, but in order for this projected one-term president to get a toehold, in states other than California and Massachustts, he would need to stake out the south. No sense preaching to the choir.

Note: Massachusetts has, for decades, consistently voted Democrat in Presidential elections with the only exceptions being: Ronald Reagan, where the Bay State, not once, but twice, went red.
With the choice of convention cities, and the Obama campaign staff in place in Chicago, the race for 2012 is on. The only question now remaining is who will be included in the pack of Republican Primary candidates. Mitt Romney, former 1 term Govenor of the Commonwealth of Massachusetts has all but officially announced. He would be the first from this observation. Newt Gingrich may be the second, he already has given an indication he will run (while in Georgia). Mike Huckabee, who is polling extremely well, is holding any announcements until summer; likewise Palin, who may be under contractual agreements with Fox and also, may want the time to test the water. One would gather though, that Huckabee, who, along with Romney ran in 2008, would decide one way or another earlier, perhaps forming an exploratory committee sometime in February and announcing shortly thereafter, if, his 2008 pattern holds true. Others who have announced they are thinking of running, Donald Trump (who will also announce in June (or the spring), Rick Santorum, former Senator from the State of Pennsylvania, that said, those with the most name recognition now, will stand the best chance at reaching the electorate needed to push a primary challenge. Those who are utilizing social media, and the media in general, will again, have an advantage with this obvious media engaged nation.