Thursday, September 26, 2013

Kentucky ObamaCare head crumbles in committee

The executive director of Kentucky Health Benefit Exchange couldn't answer legislator questions today in Frankfort about outrageous deductibles on 2014 ObamaCare health plans or about state funding for the exchange when federal funds run out at the end of 2014.

Carrie Banahan mumbled and demurred during today's budget committee meeting and did not answer direct questions about how unaffordable even the most subsidized health plans will be in Kentucky under ObamaCare. She adamantly declared ignorance when asked specifically how the state would pay for its illegal exchange.

The illegal executive order filed by Gov. Steve Beshear in 2013 to create the exchange also attempts to create a funding mechanism for the exchange with a new insurance tax. That executive order, if the Kentucky Supreme Court doesn't throw it out first, would have to be ratified by the 2014 General Assembly. There is no chance of that happening.

Kentucky's 2014 Humana ObamaCare subsidized health premium rates shockingly high

A 25 year old single Franklin County, Kentucky non-smoker with a $25,000 annual income purchasing a Humana Silver plan effective January 1, 2014 will pay $144.17 per month for a $3250 deductible plan that pays all approved medical expenses after a $4750 maximum out of pocket limit is reached and all applicable federal subsidies are applied. Humana currently offers on ehealthinsurance.com a $3500 deductible plan with $3500 maximum out of pocket plan for the same person with a monthly premium of $86.57. Humana claims significant rate reductions in their 2014 approved rate request filing with the Kentucky Department of Insurance by limiting provider networks available to their customers.

Incidentally, this premium applies to all ages at this income level. Unsubsidized, this plan will cost $243.81 for an 18 year old and go higher from there based on age.

The same 25 year old person with a $40,000 annual income will receive no federal subsidy and will face a monthly premium of $206.87 for the closest available plan, in which the unsubsidized deductible is increased to $4600 and the unsubsidized maximum out of pocket limit is increased to $6300.

A 50 year old single Franklin County, Kentucky non-smoker with a $40,000 annual income purchasing a Humana Silver plan effective January 1, 2014 will pay $316.67 per month for a $4600 deductible plan that pays all approved medical expenses after a $6300 maximum out of pocket limit is reached and all applicable federal subsidies are applied. Humana currently offers on ehealthinsurance.com a $5000 deductible plan with $5000 maximum out of pocket plan for the same person with a monthly premium of $176.46. Humana claims significant rate reductions in their 2014 approved rate request filing with the Kentucky Department of Insurance by limiting provider networks available to their customers.

The unsubsidized premium for the same 50 year old would be $368.01 per month.

A Franklin County non-smoker with a $16,000 income purchasing a Humana Silver plan effective January 1, 2014 will pay $44.92 per month for a $3250 deductible plan that pays all approved medical expenses after a $4750 maximum out of pocket limit is reached and all applicable federal subsidies are applied. That means this person would have to spend more than twenty percent of his or her annual income before gaining the benefit of major medical health insurance.


Wednesday, September 25, 2013

Beshear plan to dump state employees moves forward

Governor Steve Beshear sent two lawyers to talk to the Committee on State Government today in Frankfort about wild cost increases in the state employee health plan.

Commissioner of the Department of Employee Insurance Joe Cowles attempted to deflect attention from increased costs and it mostly worked. Some legislators complained about a high volume of calls from state workers shocked by their 2014 plans, but their concerns, if any, were eerily low-key.

Senator Ernie Harris told Cowles that the Administration's plans might "save the state." They are being led like lambs to slaughter. Tomorrow at 1pm, the same dog-and-pony show goes before the Appropriations and Revenue Committee, which just might have reason to be a little more attentive.

Tuesday, September 24, 2013

Pitchforks and torches for Mitch McConnell right now

Hundreds of concerned Kentucky citizens will converge on Sen. Mitch McConnell's Louisville office at 11am Wednesday morning to shake him up on ObamaCare.

At issue is Sen. McConnell's insistence on allowing Senate Majority Leader Harry Reid to remove continuing resolution ObamaCare defunding language with only a majority of senators, rather than 60. McConnell's actions, in keeping with his long-standing fight against conservatives on this, would make defunding ObamaCare harder.

McConnell is running very misleading ads on television in Kentucky portraying himself as an ObamaCare opponent while he works behind the scenes to undermine conservative efforts to kill the federal takeover of the American healthcare system.

McConnell insists privately that caving in and waiting for the law to fail under its own weight will work to end ObamaCare. We are still waiting for that strategy to work with defeating Social Security, Medicare and Medicaid.

Beshear fines Humana $65,000 for telling truth about rates

Humana sent letters out to health insurance customers in Kentucky this summer warning them that ObamaCare will cause their premiums to explode upward in January and advising them how to limit harm to their personal finances caused by radical left-wing politicians. The Kentucky Department of Insurance fined Humana $65,000 in August for their efforts, in every way punishing them for telling the truth.

Gov. Steve Beshear has repeatedly violated state law to ram through ObamaCare, by creating an ObamaCare "exchange" at state taxpayer expense without legislative approval and by expanding Medicaid without completing legally required administrative review. Both of these issues are on their way to the Kentucky Supreme Court. Punishing truth-telling with massive fines is certainly in keeping with Beshear's disdain for the rule of law, but continued silence by Republican "leaders" should disgust every Kentuckian.

We must criminalize violations of KRS 12.028 and KRS 205.520(3) to ease removal of politicians like Beshear for subverting the legislative process.

Thursday, September 19, 2013

Beshear crushes Kentucky's poor

Kentucky Governor Steve Beshear has spent four months filling desperate citizens with false hope promoting an impossible ObamaCare pipedream and the time has come for him to face the music.

Kentucky Supreme Court case 2013-SC-000652-T represents the first step toward getting Gov. Beshear right with our state's most vulnerable people by nullifying his illegal attempt to expand Medicaid eligibility, a state option under the Affordable Care Act.

"Governor Beshear has broken the law, lied in court and lied to the people of Kentucky promoting a ridiculous ObamaCare scheme that becomes more hated as more information becomes available," said David Adams, plaintiff in the lawsuit.

"Beshear is now hiding behind court rules to delay into October well-deserved punishment for his crimes," Adams said. "If he has any pride left he should respond immediately to the Supreme Court so we can get all this out in the open before wasting billions of dollars further wrecking our healthcare system."

Beshear violated KRS 205.520(3) by not initiating the KRS 13A administrative review process of the proposed Medicaid expansion, falsified court documents to downplay risks of accepting the expansion and has falsely portrayed Medicaid expansion as initially cost-free to the Commonwealth, risk-free to our existing Medicaid population and revenue-positive to the General Fund.

Wednesday, September 18, 2013

Obama/Beshear drop Syria, declare war on Kentucky

The Obama Administration's Environmental Protection Agency is set to post new regulations, perhaps today, that would make building of new coal-fired power plants impossible anywhere in America.

This action would hasten an untimely death for affordable electricity in Kentucky. Obama's advocacy for killing coal deserves a stronger response from the Bluegrass State than Governor Steve Beshear's squishy letter to the EPA, especially after Beshear has done backflips for the President in subverting state law trying to force job-killing ObamaCare on us, too.

Come on, Gov. Beshear. You can do better than this.

Monday, September 16, 2013

Why Kentucky probably won't have Anthem in a year

When Kentucky politicians rammed through their version of HillaryCare in 1994, all the individual health plans but Anthem fled the state. In 2014, it's payback time and Anthem will pay very hard.

Only three insurers will play in Kentucky's ObamaCare "exchange" and Anthem will be the most expensive, by a long shot. Worse, I ran my family's ages through Anthem's current and 2014 rate charts and found their premiums more than doubling as ObamaCare takes full effect in January.

Humana will be a major beneficiary of the likely demise of Anthem, but the real winner appears to be the federally-created Kentucky Health Cooperative with the state's lowest premiums. In other words, the single-payer dream has almost been fulfilled in Kentucky.

All the more reason to keep the pressure up on Kentucky's incompetent and destructive health regulation bureaucracy with three state lawsuits headed to the Kentucky Supreme Court and more on the way soon. Stay tuned for details.

Friday, September 13, 2013

Kentucky's ObamaCare fight moves to state Supreme Court

Kentucky's tea party challenge to state implementation of ObamaCare took a big step forward today with the first in a series of arguments to reach the Commonwealth's Supreme Court.

David Adams said the case centered on preventing "improper and illegal use of government powers to effect an optional expansion of Kentucky's Medicaid program under the Affordable Care Act."

Adams is petitioning the Court to transfer his appeal immediately from the Court of Appeals in order to gain a faster resolution to the case. Governor Steve Beshear and Cabinet for Health and Family Services Secretary Audrey Haynes are the Respondents.

"Respondents cited KRS 205.520(3) and KRS 194A.050(1) as providing justification for their actions, while ignoring that both statutes explicitly call for the Commonwealth's regulatory review process to be engaged and completed," Adams said. "That is the first key fact in this case, but it was ignored by Respondents and by the Circuit Court."

Beshear and Haynes have claimed throughout the case that legal limits on their powers under state statute were of no consequence because they are merely obeying federal law and that the expansion can be reversed later at the state's option when it becomes clear the expansion is unaffordable and not a workable solution to the state's indigent care problem. The U.S. Supreme Court, however, made clear that the Medicaid expansion is optional for states and the supposed state withdrawal option simply does not exist.

The issue of the false claim of a state exit strategy was a contentious one in Franklin Circuit Court written and oral arguments, but was ignored by Judge Phillip Shepherd in his September 3 ruling in favor of the Medicaid expansion.

Governor Beshear's failure to follow Kentucky's administrative review process earlier this year when there was time to complete the process legally -- it can easily take nine months for a contentious issue -- now boxes him in to claiming that there is no process limiting his actions, despite ample clarity in statute. Inexplicably, that strategy worked in the Circuit Court. It is now a key part of the appeal.

"KRS 13A.090 states 'the courts shall take judicial notice of any administrative regulation duly filed under the provisions of this chapter after the administrative regulation has been adopted.' In this instance, an administrative action effecting the optional Medicaid expansion was neither 'duly filed' nor 'adopted' pursuant to Kentucky law," Adams said. "The Franklin Circuit Court ignored those facts and recognized a regulation that does not exist."

Adams said the time for initiating the process of accepting the Medicaid expansion has now passed.

"Before required public hearings, discussion and votes could take place to possibly adopt the administrative regulation necessary to effect the ACA Medicaid expansion, the provision would pass beyond being a state option as it is now to becoming a part of permanent federal law on January 1, 2014 without legal and proper completion of the review process required by KRS 13A," Adams said. "The law, once subverted in this way, renders the voice of the people silent in all matters proscribed by law to be governed by regulatory review."

The two sides now await word from the Supreme Court to set up a hearing schedule.


Thursday, September 12, 2013

Much cheaper to throw state employees into ObamaCare

The individual per person cost of insuring a Kentucky state employee under their new plan in 2014 will be $933.16 a month. That applies to every individual employee regardless of any factors that might otherwise impact an insurance premium rate. Under ObamaCare, a Louisville resident age 64, non-smoker who chooses a $6300 deductible will have a total cost of insurance of $905.73 a month if he uses up all of his deductible.

Most state employees, obviously, are less than 64 and won't use up all of a $6300 deductible for the Bronze plan, which is projected to be the most popular ObamaCare plan.

I've had several legislators tell me Gov. Beshear can't throw the state employees into ObamaCare without legislative approval. That, of course, depends on what the Kentucky Supreme Court thinks KRS 12.028 means when it says the same thing.

And to be clear, this is no endorsement of ObamaCare. It's just that the state employee plan was purposely set up this year to be far worse even than that. A 26 year old Louisville resident and non-smoker on the same ObamaCare plan will have a monthly cost of $659.95. That's horrible compared to 2013, but a bargain compared to costs on the state plan.

Wednesday, September 11, 2013

State employee health plans a dangerous ripoff

The Kentucky state employee health plans are out for 2014 and it is not a pretty sight.

The cheapest Humana plan, called Standard CDHP costs $641.50 for an individual plan. The employee contribution into that amount is $12.98 and the rest comes from taxpayers. We fund the plan with $250 for the employee to spend on co-payments and deductible for the year. The maximum out-of-pocket liability for the employee is $3500 and the deductible is $1750.

That means in addition to the monthly premium, the customer is on the hook for the first $1750 in medical expenses each year. That's the equivalent of a zero deductible plan costing 787.33 a month (641.60 + (1750/12)). After the deductible, it's a 70/30 plan. That means anything substantial gets you up to the $3500 annual out-of-pocket -- which includes the deductible. So if you add the additional $145.83 a month in for the additional out of pocket ((3500-1750)/12), we are paying $933.16 per month for health coverage for each employee.

It's not hard to imagine that whoever negotiated these rates for our state employees had in mind a plan to go back and argue that it would be cheaper to just throw them all on the ObamaCare "exchange."

It's yet another reason to storm the castle to stop Gov. Beshear from illegally throwing us into ObamaCare.

Will Beshear wait to screw KY Supreme Court justices?

Kentucky Gov. Steve Beshear is quietly completing plans to throw state employees, including the seven Supreme Court justices he needs to approve his illegal ObamaCare implementation actions, into the state health insurance "exchange."

State employees are just now being notified of massive premium rate increases for 2014 caused by ObamaCare, and Beshear's hope is apparently to attempt to capitalize on the confusion of the run-up to the launch of the massive federal program to announce the shift as a major cost-cutting move for the state.

Steve Beshear's bad faith dealings with the people of Kentucky include violating state law where it limits his power to act without proper approval and then falsifying court documents to hide his criminal activity. Kentuckians of all political stripes must reject his lawlessness. A good place to start is to criminalize violations of KRS 12.028, which Gov. Beshear used to start this whole mess.

Monday, September 09, 2013

Emperor Beshear stripped naked

Kentucky Governor Steve Beshear's Department of Insurance thugs have insisted for over a month that health insurance rates for 2014 weren't ready for public inspection yet. We now know this was not true.
Beshear will hold a hastily-arranged pro-ObamaCare rally tomorrow in Frankfort to attempt to spin the disastrous new premiums. Stand by for details to be made available as we get them.

Saturday, September 07, 2013

Biggest left-wing newspaper sitting on Kentucky story

Reporters at the New York Times have known about what is happening with ObamaCare in Kentucky for many months, but you wouldn't know it from reading their newspaper.

Minutes ago, someone at the large, old and powerful left-wing paper checked in here for the latest and read our big news confirming ObamaCare's devastation of Kentucky's health insurance market. Here's the proof:

They and the rest of the journalistic hacks sitting on ObamaCare stories can continue to play dumb if they want, but you know better.

Friday, September 06, 2013

Humana actuary confirms ObamaCare rate shock

Humana actuary Nick Mueller today confirmed the Kentucky Department of Insurance has approved ObamaCare health premiums very close to the eighty percent increase he requested in June.

Internal Department of Insurance documents received today from Lori Brown at the Department contain final, approved premium information for Humana, Anthem and Kentucky Health Cooperative, the only three companies who applied to participate in the Kentucky Health Benefit Exchange. Anthem and the Kentucky Health Cooperative got exactly what rates they applied for, while Humana received a cut of less than one percent from their initial proposed increase.

Humana's rates appear to be the cheapest across the board of all three companies.

This information was acquired through an open records request served on the Department of Insurance last Friday, despite their receipt three years ago of a federal grant to improve transparency and to specifically make rate information available without the necessity of an open records request.

Other reporters who have gone to the Department seeking this information today have been told that it is not available. Kentucky Progress will fix that on Monday.

The Kentucky Health Benefit Exchange is a state entity created by Gov. Beshear under a temporary state government reorganization Executive Order in 2012. It's creation was not ratified by the 2013 General Assembly, which is required by KRS 12.028. Its continued operation is currently being challenged in state courts.

Wednesday, September 04, 2013

Another try for "Governor Transparency"

When Steve Beshear was first running for Governor, his favorite word was "transparency." Since he has been in office, though, his campaign rhetoric has dissipated to nothing.

A sleepy state media has probably emboldened Beshear in his secrecy.

The case of the 2014 ObamaCare health insurance premiums currently unfolding paints a rather unflattering portrait of politician and press alike.

The hottest news story in the country in 2013 has been ObamaCare. Will it work; will it be a hugely expensive disaster? You know the drill.

Kentucky's coverage has been rather sparse as well as one-sided bordering on cheerleading for President Obama's top legislative agenda item.

After several weeks of begging, cajoling, screaming and pestering, I've finally gotten a commitment from Kentucky Department of Insurance officials that sometime on Friday they will give me access to next year's rates -- some of which have been finalized more than a month.

It should be an unending source of embarrassment to our state media that I am getting this first.

Tuesday, September 03, 2013

Tea Party headed to Kentucky Supreme Court

Franklin Circuit Court Judge Phillip Shepherd ruled today in favor of Kentucky Gov. Steve Beshear's illegal actions to force his state into ObamaCare.

Shepherd ruled KRS 12.028, which provides the Governor with temporary reorganization powers, ignored language in section 5 of that statute which requires re-issuance of temporary restructuring to wait until after the 2014 General Assembly session starts. Gov. Beshear created the Kentucky Health Benefit Exchange under a 2012 Executive Order which was not ratified by the 2013 General Assembly. He then issued a new Executive Order creating the Kentucky Health Benefit Exchange, an action which is specifically prohibited by this statute.

Shepherd also ruled that the regulatory process explicitly required by KRS 205.520(3) and KRS 194A.050(1) does not apply to Gov. Beshear in expanding Medicaid, though it clearly does.

Governor Beshear had to lie in court and break state law in order to pretend to have authority specifically denied him by statute and the Constitution. He needed a judge to ignore these facts and now he needs four of seven who are elected in districts whose people understand and oppose ObamaCare. I don't think he can do it.

Beshear wasting $4.2 million ObamaCare grant

Kentucky's Department of Insurance is ignoring multiple open records requests for 2014 individual market health insurance rates under ObamaCare despite accepting more than $4.2 million in federal grant money over the last three years to improve transparency of the rate review process.

In fact, a federal grant application summary from 2011 promises "(t)he State will also enhance its website further to allow consumers access to rate filings without going through the open records process."

Employers and insurance brokers around the state report group health premium rates almost doubling from 2013 to 2014 with ObamaCare taking effect, an unprecedented explosion in health insurance costs.

According to the Department of Insurance web site, all the health plans set to participate in the Kentucky Health Benefit Exchange individual market had their rates approved in August.

The incompetence and fraud on display at the Kentucky Department of Insurance and the lack of media coverage of same is easily the biggest political scandal of 2013 in the state. A functioning Republican Party would be all over this.

Monday, September 02, 2013

Do left wing blog readers hate garlic, too?

All I did earlier today was helpfully post information to the biggest leftist political blog, Daily Kos, hoping to stir up a conversation about separation of powers and constitutional limits on elected officials.

Before banning me for life for my trouble, they pretty much responded like vampires to sunlight. Pretty funny stuff.

Sunday, September 01, 2013

Criminalize Beshearism

Kentucky Gov. Steve Beshear seems to be determined to gain a legacy of law-breaking. Kentuckians must respond by criminalizing his illegal behavior so his shenanigans are not repeated.

Specifically, when Beshear violated KRS 12.028, he did so knowing there was no penalty for his actions. In fact, he clearly expected to get away with it. KRS 12.028 should be amended to penalize any governor who attempts to reorganize government as the statute provides without following the requirements of the statute. Specifically, when Beshear sought to create the Kentucky health benefit exchange via executive order he needed subsequent ratification of his temporary action by the legislature to make it permanent. He did not get such ratification. Though the law clearly states that the executive order then becomes null and void, Beshear has attempted to ignore that limitation on his power by continuing to develop the ObamaCare "exchange."

The statute contains no criminal penalties for violation of its provisions. It needs them. A member of the Kentucky General Assembly with courage should file a bill creating criminal penalties for a governor who ignores these legal limits.

Also, when Gov. Beshear sought to expand Medicaid under ObamaCare he claimed KRS 205.520(3) gave him the authority to do so. It does, but with the provision that such may be effectuated only "by regulation." Gov. Beshear has ignored that part of the statute and has, therefore, violated that statute. He has waited so long to initiate the administrative review process that it can not now be used to expand Medicaid under the provisions of PPACA -- ever. Case law in Kentucky provides for statutes that are abused like this can be found unconstitutional. Both statutes are being challenged in this manner in Franklin Circuit Court.

If the statutes are not found unconstitutional, they should be amended to include criminal penalties. Those bills should be pre-filed immediately.