Progressive Thinking

Supposed plan is a thinly veiled excuse to go backwards and to legalize discrimination.

MILWAUKEE - In an issue paper posted late last night and to be formally announced today in a speech in Minnesota, Scott Walker offers up a “bait and switch” health care plan that will immediately force millions Americans off of their health care coverage without providing any viable alternative. Walker’s ceaseless efforts to undermine the Affordable Care Act (ACA) fly in the face of the public’s desire to move the discussion beyond repeal to actually improving health care, lowering costs, and saving lives.

Walker’s choice of Minnesota of all places to release his plan to go backwards on health reform is a major miscalculation. Citizen Action of Wisconsin research has shown that health insurance costs for individuals and small businesses are much lower in Minnesota than Wisconsin in part because state leaders there have been working to implement and improve the health care law. Wisconsin’s health premiums are higher in part because of Walker’s efforts to sabotage health reform.

Walker’s supposed plan is so rife with internal contradictions and fuzzy math that it will never become law. It is a campaign document not serious public policy. It repeals all funding for health care reform while promising large new subsidies with no identified source of revenue. If enacted, Walker’s plan would dramatically constrict the freedom of the American people to access affordable coverage and control their own medical decisions.

The low lights of Walker’s Health Plan include:

• Repeal of the federal guarantee that no American can be denied coverage or charged higher premiums by insurance companies because they have pre-existing medical conditions.

• Repeal of the federal requirement that insurance companies allow young adults to stay on their parents health policies.

• Gutting Medicaid health programs for moderate income Americans (like BadgerCare) by block granting federal funds without any indexing for inflation, and limiting required state matching contributions. This will likely result in millions of moderate income Americans losing their affordable health coverage.

• Repeal income-based tax subsidies which make health coverage affordable for low and middle income Americans. The plan promises new subsidies, but simultaneously repeals the funding. The plan shifts from a progressive and targeted approach to health care subsidies based on the ability to pay to an approach that would if enacted funnel millions of dollars to the wealthy who do not need help to afford coverage.

• Shifting to a flat age-based subsidy system which will dramatically raise premiums for many Americans who rely on the federal marketplace for their health coverage. For example, 60 year old in Milwaukee, making $20,000 per year, would lose $4,474 per year in tax credits designed to mitigate the cost of their healthcare. Other medical costs would also increase because Walker also repeals caps on out-of-pocket medical costs. See more examples of cost increases for individual health consumers HERE.

• Legalizing sale of substandard skimpy health plans which leave people vulnerable to bankruptcy and without needed care when they have a major illness.

• Dramatically increasing health insurance premiums by creating incentives for healthier and younger Americans not to buy insurance until they are already sick, making the insurance risk pool less healthy and more expensive.

“Walker’s supposed plan is not serious health policy. It is a campaign document which provides nothing more than window dressing for a massive roll-back of the freedom to access quality affordable health care,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The American people are tired of the constant efforts to undermine health care reform. It’s time to recognize that the health care law is here to stay. Rather than going backwards, we need to work together to make the law better and lower costs.”

As Citizen Action of Wisconsin has extensively documented, Walker’s efforts to sabotage health care reform in Wisconsin has increased costs both to consumers and government, left tens of thousands of families needlessly without life saving coverage, and saddled consumers with dangerous substandard health insurance plans.

STATEWIDE - Today Citizen Action of Wisconsin announced strong support for the Wisconsin Economic Development Corporation (WEDC) outsourcing accountability bills authored by Senator Dave Hansen, Rep. Debra Kolste, and Rep. Andy Jorgensen.

The bills ban companies who receive public economic development money and then outsource jobs from state aid for a period of five years. The bills are AB 340 in the Assembly and SB 211 in the Senate.

The bills follow revelations by WKOW TV Madison that a multinational corporation receiving hundreds of thousands of dollars in state economic development support has twice outsourced Wisconsin jobs to Mexico. WEDC has thus far failed to take any action against the company, and has yet to close loopholes that allow companies to both take public economic development dollars and outsource jobs that Citizen Action of Wisconsin identified last year.

Citizen Action has repeatedly called on Governor Walker and lawmakers to fix the loopholes that allow public economic development dollars to go to companies engaged in outsourcing jobs. Citizen Action also continues to call on the Legislature to disband WEDC and create a fully accountable public agency to head up the state’s vital job creation efforts.

“It is clear that the Walker Administration is continuing its destructive policy of doling out tax credits and other economic assistance to large corporations engaged in selling out Wisconsin workers,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The best way to protect precious state economic development dollars, and make sure they are only available to companies creating more family supporting jobs here in Wisconsin, is a strict policy against giving public money to firms engaged in outsourcing.”

Dangerous U.S. Supreme Court Decision Could Come Next Week.

STATEWIDE - Governor Scott Walker continues to deny any responsibility for protecting health care coverage for over 184,000 Wisconsinites at risk because of a U.S. Supreme Court case that could be decided next week. At a campaign event in Florida, Walker recently told Bloomberg News: “States didn't create this problem, the federal government did. And they should fix it."

Governor Walker bears a special responsibility for this potential disaster because he forced tens of thousands off BadgerCare and onto the federal marketplace. In addition, many Wisconsin consumers on the health insurance marketplace have pre-existing conditions and faced shocking discrimination from insurance companies before the passage of health reform. The potential disaster would hit Wisconsin especially hard because it is a relatively high cost state for health insurance, an issue Walker has also taken no serious action to address.

The case of King v. Burwell could strip health insurance subsidies in states like Wisconsin which did not set up their own Affordable Care Act marketplaces. This could increase premiums on average over 300%. If Wisconsin were to create its own health insurance marketplace, or partner with another state that has created one, there would be no threat to health coverage.

“It’s Scott Walker’s moral responsibility as Governor to protect the people from a foreseeable disaster, like tens of thousands being cut off from health coverage,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin.”By passing the buck to Congress, Walker is putting at risk the lives and fundamental freedoms of people in every corner of Wisconsin.”

Seven major Wisconsin health insurers are projecting large rate increases for 2016, ranging from 10% to 32%. Increases are a sign that Governor Walker and the State Legislator’s complete inaction on health insurance rates will cost Wisconsin.

STATEWIDE - Preliminary health insurance premium rates released this week by the U.S. Department of Health and Human Services show that seven major Wisconsin health insurers projecting large rate increases for 2016, including major for-profit companies such as UnitedHealthcare.

Rate increases range from 10% to 32% for these seven companies. The proposed rates were released because under the transparency provisions of the Affordable Care Act proposed rate increases over 10% must be made public.

The projected rate increases are a sign that Governor Walker and the State Legislator’s complete inaction on health insurance rates will cost Wisconsin consumers dearly in 2016.

According to a report released by Citizen Action of Wisconsin in April, there are a number of decisions the Walker Administration and the Legislature have made that are increasing health insurance rates in Wisconsin.

First, the Walker Administration's failure to implement robust rate review may be increasing premiums from 4-17%. Although the Affordable Care Act requires Walker’s Office of the Commissioner of Insurance to review premiums increases over 10%, the agency has yet to find a single rate increase excessive since this provision of the law went into effect in 2011.

Second, failure to accept enhanced federal funds for BadgerCare is shifting higher cost consumers onto private insurance, raising premiums for everyone else. Research from the Rand Corporation projects that states which refuse expanded Medicaid dollars have rates 8-10% higher.

Third, the Walker Administration made the decision to allow substandard health plans to continue to be sold in Wisconsin. A Rand Corporation report found that this practice keeps healthy people who already had insurance when the health care law went into effect out of the risk pool, raising premiums by as much as 10% for everyone else.

“It is stunning that health insurance costs seem to have fallen off the public agenda in Madison,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The preliminary 2016 health insurance premium increases ought to be a wakeup to policymakers that moderating health care costs should be one of the top priorities of state government. In the new health care environment, those states that take full advantage of the tools provided by health care reform will have lower costs than those that do nothing but try to sabotage reform. ”

STATEWIDE - After the release of yet another devastating state audit showing that the Wisconsin Economic Development Corporation (WEDC) has failed to document that companies receiving grants, tax credits, and loans are actually creating jobs, Governor Walker abruptly announced that he is pulling the plug on his controversial plan to merge the troubled agency with the Wisconsin Housing and Economic Development Authority (WHEDA).

While the cancellation of the proposed merger is welcome news for economic opportunity advocates, it fails to address the fundamental problem. WEDC is not just badly mismanaged, it is a flawed model. The notion that our scarce job creation resources should be doled out to business without real accountability is one of the worst ideas in modern Wisconsin legislative history.

The failure to close loopholes that allow companies receiving WEDC support to outsource Wisconsin jobs is only the tip of the iceberg. Wisconsin job growth has lagged behind the rest of the nation, and even worse the majority of jobs generated have been in low income occupations where poverty wages predominate.

The structure of WEDC itself, which by design has less accountability and transparency than a traditional public agency, raises questions about undue influence, further undermining public’s trust in their own government. In an environment where massive corporate election expenditures have been legalized, the public deserves ironclad guarantees that the process of handing out public economic development dollars is above politics.

The only permanent solution that can restore public confidence is to disband WEDC, and create a fully accountable department. The new department should focus its resources on creating the maximum number of family supporting jobs, not poverty jobs, and should place a special emphasis on areas with the greatest shortage of good jobs. There should be clear publicly known benchmarks for any company receiving assistance, a transparent process fully insulated from political considerations, and clawbacks from companies that fail to create the family supporting jobs that were promised. It should adopt Senator Hansen’s proposal to stop providing funds to companies engaged in outsourcing of jobs. It should also cease WEDC’s failed strategy of wasting money on poaching jobs from neighboring states, rather than investing in new economic opportunity.

Given recent research that shows the WIsconsin middle class has contracted more than any state in the country, it is critical that Wisconsin create an effective public agency that can make real progress on opening opportunity to more Wisconsin families.

“What is good for CEOs is not necessarily good for workers. Handing over our state’s economic policies to multinational corporations engaged in outsourcing and converting middle class jobs into poverty wage jobs is driving Wisconsin’s economy into the ground,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The only way we can halt the decline of the middle class, and expand opportunity to all those who are currently shut out, is to make creating good family supporting jobs the singular purpose of Wisconsin economic policy. No large corporation or CEO has any rightful claim on public dollars, unless they are in turn expanding real economic opportunity for Wisconsin workers.”

STATEWIDE - Now that the new revenue estimates released earlier this week have failed to produce any budget saving unicorns, attention should shift to the $345 million Governor Walker is leaving on the table by rejecting enhanced federal funding for BadgerCare.

The map at right provided by the Center on Budget and Policy priorities shows just how isolated Wisconsin is in rejecting this money.  Wisconsin is the only state in the entire Great Lakes region to turn down these critically important federal dollars.

As Citizen Action of Wisconsin explained earlier this week, because Governor’s Walker’s economic policies is generating mostly poverty-wage jobs, the cost of rejecting the BadgerCare money is increasing. One of the reasons that revenue estimates are slightly down is that the Governor’s policies are driving down wages in both the public and the private sector.

“This week’s revenue numbers should be a wake up call to Legislators to revisit Governor Walker’s damaging decision to rejected enhanced federal dollars for BadgerCare,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “Wisconsin cannot afford to needlessly leave tens of thousands of citizens without affordable health care, and in the process force massive cuts to critical investments in economic opportunity such as funding for our schools, technical colleges, and universities.”

STATEWIDE - The combination of the growing number of poverty wage jobs that do not provide health benefits and Governor Walker’s decision to reject federal dollars for BadgerCare are already having a major fiscal impact on the state budget, which will grow worse for the foreseeable future.

The number of Wisconsin workers eligible for BadgerCare and who work for large poverty wage employers has increased by 8% over the last year, according to data released last week by the Wisconsin Department of Health Services. Highly profitable corporations such as Walmart, McDonald’s, Kwik Trip and Target now have more employees on BadgerCare than they did in 2013. New federal data released last week shows that Medicaid enrollment in Wisconsin has increased more than 6.8% over the last year.

One of the main drivers increasing BadgerCare enrollment is the failure of Wisconsin’s economic development policies to produce family supporting jobs which include health benefits. Nine of the top ten occupations with job openings in Wisconsin have low or very low wages and benefits. The two fastest growing occupations in Wisconsin are retail and fast food jobs. Recent reports from the UW-Madison Institute for Research on Poverty and the UW-Milwaukee Center for Economic Development confirm that poverty wage jobs are the major source of job growth in Wisconsin, and that poverty continues to increase even as more of these jobs are created.

The disturbing growth in poverty wage jobs is making the fiscal impact of Governor Walker’s decision to reject enhanced federal dollars for BadgerCare even worse. This is because Wisconsin is needlessly paying 40 cents on the dollar for many BadgerCare enrollees who could be entirely paid for with federal dollars. The Legislative Fiscal Bureau estimates each individual on BadgerCare not covered with the enhanced federal funding Walker rejected costs Wisconsin $4,596 per year. The Fiscal Bureau estimate of the cost of this decision continues to increase. According to the most recent estimate, the decision to reject enhanced federal Medicaid dollars will cost the state $345 million in the next budget, unless the Legislature reverses it.

“The combination of the failure of Governor Walker’s economic policies to create family supporting jobs and his misguided decision to reject federal funds for BadgerCare together are having a major negative impact on the state budget which will grow worse over time,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “Governor Walker’s economic, health care, and budget policies are creating a perfect storm of destruction, needlessly denying affordable health care to tens of thousands, shrinking the middle class, and leaving hundreds of millions of dollars on the table that could be used to support education, long term care, and other vital investments needed to expand opportunity.”

Citizen Action of Wisconsin believes outsourcing scandal shows whole WEDC model is flawed and can only be permanently fixed by scuttling the agency.

STATEWIDE - Yesterday Governor Scott Walker told WKOW TV 27 Madison that he was open to more sanctions against companies that take state job creation money and then outsource Wisconsin jobs.

This is a major reversal for the Walker, whose administration has repeatedly denied Citizen Action of Wisconsin’s contention that it is still perfectly legal for companies to outsource and to also receive large grants, loans, and tax credits from the Governor’s jobs agency, the Wisconsin Economic Development Corporations (WEDC). In October, Wisconsin Public Radio reported that WEDC officials refused to respond to Citizen Action’s contention. WEDC also refused to respond to similar questions from the Shepherd Express.

Wednesday Senator Dave Hansen (D-Green Bay) announced he was drafting an outsourcing accountability bill. Senator Hansen’s bill bans companies who receive public economic development money and then outsource jobs from state aid for a period of five years. Hansen’s bill follows revelations first reported by WKOW TV Madison that a multinational corporation, Eaton Corp., receiving state economic development support is outsourcing Wisconsin jobs to Mexico for a second time.

Citizen Action of Wisconsin believes that the outsourcing scandal demonstrates that the entire WEDC model is hopelessly flawed and can only be permanently fixed by scuttling the agency.

“The outsourcing scandal is only the tip of the iceberg. That state aid to corporations engaged in undermining Wisconsin workers is even possible debunks Governor Walker’s whole idea that precious state job creation dollars should be doled out by an unaccountable semi-public agency like WEDC,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The best solution to the failure of the WEDC model is to disband it, and create a fully accountable public agency which focuses investments like a laser beam on creating family supporting jobs, not merely doling out money to multinational corporations who are selling out Wisconsin workers.”

Reporting by the Milwaukee Business Journal sheds further light on WEDC’s shobby outsourcing standards. WEDC officials have claimed that performance standards assure that companies receiving state assistance are adding jobs to the economy, even if they are also engaged in outsourcing. However, business reporter Tom Held found that Eaton received nearly $370,000  in WEDC tax credits to create 25 jobs and to retain 150 jobs. They then turned around and outsourced 93 jobs to Mexico, a net loss of 68 jobs in Wisconsin.

Citizen Action of Wisconsin also argues that preventing the merger of WEDC with another public authority simply leaves the present failed system in place.

MADISON - Gov. Scott Walker’s attack on the Wisconsin Idea did not end with his botched attempt to re-write the University of Wisconsin’s mission statement. The substance of the attack is ongoing in his state budget.

The Wisconsin Idea is as simple as it is compelling. The fundamental rationale for our public universities is the on-going “search for truth” which elevates the lives of students to higher purposes than mere money getting and extends “knowledge and its application beyond the boundaries of the campus” in order to “improve the human condition.”

The Wisconsin Idea as it developed over 100 years was not mere lofty language. The words were matched by financial commitments decade after decade which, built our public education system brick by brick. Now Walker, with his slashing education cuts, is undercutting these investments

This commitment to learning as a gateway to social progress, and the fundamental belief that it is within our power to bridge the gap between the world as it is and the world as it can be, motivated generations of Wisconsinites much poorer than ourselves. Year after year farmers and shopkeepers and industrial workers put their nickels and dimes together to invest heavily in building our world class university system, our highly rated public schools, and our renowned technical colleges.

The idea that we don’t have the money is absurd. We are a far richer state than we were 100 years ago and even 50 years ago. Walker wants us to think we live in an age of limits, but they are self imposed. In Walker’s narrow ideology giving large tax giveaways to large corporations with no strings attached and turning down millions of dollars of federal health care money are more important than continuing our generational commitment to education.

This attack on the Wisconsin Idea goes beyond funding. Walker’s scheme to spin off our universities, stripping public accountability from a system the people of Wisconsin built together, cuts the UW system off from its public charge. At its core, the Wisconsin Idea is about connecting our universities to the public and its needs, applying cutting-edge knowledge to our social and economic problems to advance opportunity and better society.

Walker’s brand of conservatism is not interested in such knowledge. In Walker’s doublespeak, forcing people off health coverage is innovation, wind farms are a greater threat to human health than fossil fuels, slashing money for education is reform, the failed voucher school experiment is a success, dismal job creation numbers are a comeback, $7.25 an hour is a “living wage,” gutting unions will raises wages, and a budget deficit is a surplus. No wonder Walker wants to scuttle Wisconsin’s century-old “search for truth” and the application of knowledge “beyond the campus.”

The visionaries who framed the Wisconsin Idea, and the generations of average people who made it a reality, had great dreams for our future, and acted on those dreams. We should continue to follow in their footsteps.

New Citizen Action Report Reveals Wisconsin Health Insurance Costs 20-89% Higher than Minnesota's.

STATEWIDE - Citizen Action of Wisconsin released today the new report  Tale of Two States 2015 Report: Why Wisconsin's Health Insurance Costs Are Dramatically Higher Than Minnesota's.

The full report can be downloaded here.

In addition to providing statewide numbers, the report also compares health insurance individual marketplace rates for Wisconsin’s major metro areas, revealing major differentials in cost.

Key findings in report:

• Statewide Wisconsin health insurance rates continue to be far above Minnesota rates. Silver plans are on average 60% more in Wisconsin and have a $600 higher deductible

• For individual metro areas, the lowest cost silver plans range from 20-89% higher in Wisconsin, compared to the average cost in Minnesota.

• These percentage differences translate into $480 - $2,125 more per person per year in Wisconsin for a 40 year old before Affordable Care Act tax credits.

• If the U.S. Supreme Court decision in the pending King v. Burwell case takes away tax subsidies, Wisconsin consumers just over the poverty line would see rates as much as 2,400% higher than their Minnesota counterparts.

The report also shows that the U.S. Supreme Court Case of  King v. Burwell Court could make the rate disparity between Wisconsin and Minnesota much worse. The case, that will be decided in May or June, could strip health insurance subsidies in states like Wisconsin which did not set up their own Affordable Care Act marketplaces. This could increase premiums on average over 300%. If Wisconsin were to create its own health insurance marketplace, there would be no threat to health coverage.

“The fact that Minnesota is doing so much better than Wisconsin in controlling health insurance costs should be a wakeup call to state leaders in Madison,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “This report documents that states like Wisconsin that refuse to use the tools made available by national health care reform are undermining the fundamental freedom of their own residents to access quality affordable health coverage.”

“The decisions that are made here at the State Capitol have big impacts the cost of healthcare for our citizens”, said State Representative Melissa Sargent. “This high cost hurts our families, our businesses and our state. Families will have less spending money and businesses have less money to give raises.”

“A very significant factor in the cost of health insurance is the rejection of federal funds for BadgerCare, said Jon Peacock, Research Director for the Wisconsin Council on Children and Families. “The high cost of coverage for those denied BadgerCare will mean only those that know they need the insurance will scrape together the money to purchase coverage. As a result, adverse selection in the market leads to higher rates for everyone.”

Causes:

The report finds that state policy has a quantifiable impact on the premium disparities between Minnesota and Wisconsin. To see all the public policy drivers documented in the report click here.

1. Medicaid: Wisconsin’s rejection of federal funds for BadgerCare pushes more expensive consumers onto private insurance, driving up rates.

2. Rate Review: Wisconsin has not used it’s insurance rate review power to publicly challenge rate increases to block excessive rate increases and reduce wasteful spending.

3. Substandard Plans: Wisconsin continues to allow the sale of substandard insurance plans that are not compliant with the Affordable Care Act, damaging insurance risk pools.

4. Public Leverage: Wisconsin has not taken advantage of its purchasing power leverage to reduce costs outside of Madison.

For a full list of health insurance cost disparity causes, as well as other policy proposals, download the full research report.

Phone Calls on Wisconsin’s business lobby effort to pass a constitutional amendment aimed at stripping Chief Justice Shirley S. Abrahamson of her position turn up Massive Voter Confusion.

WISCONSIN - The campaign by Wisconsin’s business lobby to pass a constitutional amendment aimed at stripping Chief Justice Shirley S. Abrahamson of her position is a distortion of the democratic process.

The well-funded campaign by Wisconsin Manufactures and Commerce, under the brand of Vote Yes for Democracy, claims in Orwellian fashion that the amendment is about democracy.  In fact, there was no public demand for it, and most voters have no idea why it is on the ballot and what its implications are. As the Center on Media and Democracy has reported, the amendment is a thinly veiled effort to cement right-wing domination of the Wisconsin’s highest court.

Because of our grave concern that voters are being misled and manipulated by powerful special interests, Citizen Action of Wisconsin launched a phone campaign which has talked so far to 48,909 voters about the amendment. In our phone campaign we have found that voters lack the basic facts needed to make an informed decision about the amendment, so much so that many keep callers on the line trying to get more information. This is highly unusual, because the public does not generally crave unsolicited phone calls. Our program also found that even after receiving information, over one-third of voters are still undecided.

One serious problem with Wisconsin’s constitutional amendment process revealed in this campaign is that the ballot does not give voters basic information, such as what is current law and what is the rationale for each side of the question. This differs sharply with states that have the initiative (or direct legislation) process.

“It is shameful right-wing interests are manipulating the democratic process to gain further control the Wisconsin Supreme Court,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It is sham democracy when voters don’t know what they are voting on, and are given highly misleading information by wealthy special interests who have no intention of educating the public.”

Five years after the passage of the Affordable Care Act the law is guaranteeing Wisconsinites more freedom to control their own health decisions. But benefits are at risk due to inaction on Supreme Court threat. Reform more important in Wisconsin due to higher insurance costs.

STATEWIDE - Five years after the passage of the Affordable Care Act the law is guaranteeing, more than any time in American history, the freedom of Wisconsinites to control their own health decisions. Before the Affordable Care Act passed, Americans faced shocking health insurance discrimination based on age, preexisting medical conditions, gender, and other factors. Today over 207,000 Wisconsinites have quality health coverage that can never be taken away by insurance companies.

There are substantial tax subsidies to make health coverage affordable which have an especially important benefit in a high cost state like Wisconsin. Because Wisconsin health insurance premiums are higher than surrounding states, Wisconsin health consumers gain substantially more. Local numbers and comparison charts are below.

As significant as these advances are, Governor Scott Walker’s refusal to prepare for the potential adverse decision in the U.S. Supreme Court decision of King v. Burwell threatens to take health coverage away from over 183,000 Wisconsinites who receive tax subsidies and have nowhere else to go. Many of these consumers have pre-existing conditions and faced shocking discrimination from insurance companies before the passage of health reform. Others were forced on the marketplace by Governor Walker’s ill-conceived decision to reject hundreds of millions of federal dollars for BadgerCare provided by the Affordable Care Act.

“The advance in freedom provided by health reform is at risk in Wisconsin due to Governor Walker’s actions,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It is political malpractice for Governor Walker not to prepare for a predictable disaster which could strip affordable health coverage from over 183,000 Wisconsinites. By failing to prepare a Wisconsin health insurance marketplace in the event the Supreme Court makes a damaging decision, Walker is putting at risk the lives and fundamental freedoms of people in every corner of Wisconsin.”

Table 1: Affordable Care Act’s Tax Credits Very Effective At Making Private Insurance More Affordable

(Click here to see data for more Metropolitan areas)

Data collected from Healthcare.gov and MNSure.org for 40 year old single applicant, non-smoking. Tax credits estimated for 40 year old single applicant making 200% of the federal poverty line, or $23,541 a year

Table 2: Affordable Care Act’s Outlawing of Pre-existing Condition Discrimination Protects Thousands

(Click here to see data for more Wisconsin localities)

Estimates from Families USA analysis of consumers in Wisconsin of non-institutionalized, non-Medicare-eligible population

Table 3: Citizens Around Wisconsin Have Signed Up for Health Coverage

(Click here to see data for more Wisconsin counties)

Source - County enrollment distribution based on Dept of Health Services June 2014 enrollment report adjusted for most recent February Healthcare.gov state enrollment numbers. Total tax credits are based on local enrollment and HHS reported average Wisconsin tax credit, annualized.

Poll shows massive public support for Wisconsin to take the enhanced federal funding for BadgerCare rejected in the Governor’s budget and for Governor Walker and the Legislature to prepare for the possibility that the U.S. Supreme Court could yank health insurance subsidies from over 183,000 Wisconsinites.

STATEWIDE - This morning Citizen Action of Wisconsin joined Public Policy Polling and members of the Legislature’s powerful Joint Finance Committee to release new poll results on key health care issues.

Audio of the release can be accessed here.

The polling shows massive public support for Wisconsin to take the enhanced federal funding for BadgerCare rejected in the Governor’s budget. It also shows overwhelming support for Governor Walker and the Legislature to prepare for the possibility that the U.S. Supreme Court could yank health insurance subsidies from over 183,000 Wisconsinites. Both are closely related budget issues. The polling results can be accessed here.

On taking the BadgerCare dollars currently being left on the table by Governor Walker, the public supports taking the money by an overwhelming 31 point margin (58% to 27%).

On the question of taking precautions against a U.S. Supreme Court decision that could endanger health insurance subsidies for over 183,00 Wisconsinites, the public by a 20 point margin (53% to 33%) thinks it is the Governor’s responsibility to take action to prevent anyone from losing their health care. This is a budget issue, because Governor Walker pushed 57,000 people off BadgerCare, and denied access to 81,000 people who would have been eligible, placing them on the federal marketplaces where they are vulnerable to an adverse U.S. Supreme Court decision.

The media call this morning was joined by three members of the Joint Finance Committee, Senator Jon Erpenbach, Representative Gordon Hintz, and Representative Chris Taylor.

“This is not the time to point fingers, we need leaders to step up,” said Representative Hintz.

On BadgerCare, Representative Chris Taylor said: “It’s a no-brainer. Why wouldn't we take this money to cover more people for less money.”

“For the life of me, I can’t understand why we have not done this,” added Senator Erpenbach. “It is up to Governor Walker to fix the problem, It’s the right thing to do.”

“It is clear that the Wisconsin public by huge margins supports major revisions to the state budget on health care issues,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The public wants Wisconsin to take all the money that is on the table to strengthen BadgerCare, and believes it is Governor Walker’s responsibility to take action to safeguard the health coverage of the over 183,000 Wisconsinites at risk from a potentially dangerous U.S. Supreme Court decision.”

About the poll: Public Policy Polling surveyed 1,071 registered Wisconsin voters from March 6th to 8th. The margin of error for the survey is +/- 3.0%. 80% of interviews for the poll were conducted over the phone with 20% interviewed over the internet to reach respondents who don’t have landline telephones. Full poll results can be accessed  HERE

Web Link to Release

MADISON - The Republican controlled Wisconsin State Assembly passed the so-called 'Right to Work' bill this morning. Governor Scott Walker is expected to sign the bill into law next Monday.

The passage of this bill is another step in the conspiracy of multinational corporations and right wing billionaires to rig the economy against average working people. The bill undermines the fundamental freedom of workers to band together, and have a voice in the decisions made by the CEOs of large multinational corporations. When added to the other elements of the conspiracy, encouraging the outsourcing of jobs, driving down the value of the minimum wage, devastating public employee unions, and gutting our generational investments in our schools and colleges, it will accelerate a race to the bottom by shrinking the middle class. It will make it harder and harder for millions of working families shutout of opportunity to work their way up the economic ladder and claim their piece of the American dream.

The heroes in this rigged legislative process are the thousands of average workers who over the past two weeks came to their State Capitol from all over Wisconsin to do that most American of things, exercise their first amendment rights as citizens. The culprits are a conservative majority that is so ideological that they cannot even hear the voices of their own constituents, and are willing to act on fraudulent facts made up out of whole cloth by the special interests they serve. The complete absence of workers coming to the Capitol to support this legislation is a powerful proof that this bill is about the demands of Corporate CEOs to drive down wages and benefits, and has nothing to do with the interests of average working families.

Although the radical brand of conservative who has seized control of the machinery of our government celebrate a present victory, they are actually sowing the seeds of their ultimate defeat. In due time their deliberate rigging of the economy to shrink and shut off the middle class will become an undeniable fact, and will inspire a wave of outrage which big money politics and gerrymandered legislative districts cannot not contain. The conservative “divide and conquer” path to power will not work once the consequences of their manipulation of the economy are fully felt and understood across Wisconsin. Once the vehicle of our economy is driven off a cliff, the wreckage will be visible for all to see. It is a shame that we must re-learn the harsh lessons of the past that when workers have no power in the economy multinational corporations will drive their wages and benefits into the ground. Once this harsh lesson is learned again, the action of today will not stand.

Gov. Walker's headless decision to leave hundreds of millions of dollars in enhanced federal Medicaid funds on the table is a disaster not only for health care but also for higher education.

STATEWIDE - In response to the news that Wisconsin is now the only Great Lakes state not accepting enhanced federal Medicaid funds, Governor Scott Walker announced to the media Wednesday that he is unmoved by the actions of Republican Governors in surrounding states, and will again leave hundreds of millions of dollars on the table in the state budget that will be released next week.

This headless decision is a disaster not only for health care but also for higher education. The cost to the state budget of Walker’s refusal to take the BadgerCare dollars may be greater than the $300 million that the Governor proposes to slash from the University of Wisconsin System. According to the Wisconsin Budget Project, using number provided by the nonpartisan Legislative Fiscal Bureau, the refusal to take enhanced federal funds for BadgerCare will cost Wisconsin up to $315 million in the next state budget.

“Not only is Governor Walker’s irresponsible decision to reject federal dollars for BadgerCare forcing thousands to go without vital health coverage, it also causing unprecedented collateral damage to Wisconsin’s world class university system,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “The cost of Walker’s political obsession with undermining health care reform, no matter what the consequences, is now rippling beyond health care and into other vital investments that Wisconsin needs to thrive and prosper.”

Big Corporate For Profit Media Missed “Bait and Switch”, Outsourcing Safeguards Were Never Implemented as Walker Administration Announced But Did not Implement WEDC Outsourcing Prohibitions.

STATEWIDE - In July the outsourcing issue dominated the Governor’s race, generating wall-to-wall news coverage, and some excellent reporting on the use of public money to support outsourcing companies by Governor Walker’s jobs agency, the Wisconsin Economic Development Corporation (WEDC).

But when both candidates seemed to take strong positions against public job creation dollars going to companies engaged in outsourcing Wisconsin jobs, and WEDC seemed to enact safeguards, the issue vanished from the Governor’s race. This disappearance was so complete that it did not even come up in the two debates.

An analysis of the public record by Citizen Action of Wisconsin reveals that the strong protections announced in the media against providing state job creation grants, loans, and tax credits to firms engaged in outsourcing jobs were never implemented.

In addition, even the safeguards that were announced in the media and not implemented do not effectively prevent huge state tax breaks from going to outsourcing companies. Shockingly, Wisconsin tax policies enacted by Governor Walker and the Legislature actually could allow companies to claim large tax credits for some of the costs of outsourcing Wisconsin jobs.

“It is stunning as we witness an eleventh hour media frenzy over pseudo stories that have no impact public policy that the media is missing one of the biggest and most impactful stories of this election,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It is scandalous that voters are in danger of going to the polls knowing all about various fake campaign stories and no knowledge that state policy still allows their tax money to go to corporations engaged in outsourcing their jobs, and even could allow corporations to write off some of the expense of outsourcing.”

Walker Administration Announced But Did not Implement WEDC Outsourcing Prohibitions

In July, as a result of an intense debate about which candidate would take effective action to deter companies receiving state job creation grants, loans, and tax credits from outsourcing jobs, the Walker Administration announced in the media a number of changes in state policy designed to prevent companies which receive state aid from outsourcing Wisconsin jobs. It was announced and reported in the media that a series of reforms, championed by Representative Peter Barca (D-Kenosha), were discussed at the July WEDC meeting and would be implemented at the next meeting.

A Citizen Action of Wisconsin analysis of WEDC Board Minutes and publicly available records finds no evidence that strong policies announced to the media were ever put in place. Instead, the policies implemented were so watered down that is still perfectly legal to provide state funding to corporations engaged in outsourcing.

There were only two changes Citizen Action could locate in the public records. First, there is now 30 days notice required for layoffs by companies receiving WEDC grants, loans, and tax credits.  Second, new WEDC contracts will require that state funds are not directly spent on outsourcing.  Given that WEDC funds large corporation such as Ashley Furniture have every ability to use non-state resources to outsource, it seems to be still perfectly legal for companies receiving state dollars to outsource jobs, and to cancel out the jobs public money is paying them to create.

Other much stronger measures reported in the media seem never to have been implemented.

One measure prominently reported as having been adopted by WEDC would have suspended funding for outsourcing companies until an equal number of jobs in Wisconsin are created.  As WKOW TV 27 reported: “companies who accept awards, then later reduce their net number of jobs in Wisconsin, cannot get any more actual money until they get their workforce back to where it was when the award was originally given out”. However,  This provision is not at all mentioned in WEDC board’s minutes or committee minutes, WEDC’s website, or in any subsequent board agendas. At the request of Citizen Action of Wisconsin, legislative staff made numerous requests to clarify the status of this policy with WEDC’s counsel, and to provide in writing the actual policies adopted by WEDC, but received no response.

The Milwaukee Journal Sentinel reported on July 29th that: “Gov. Scott Walker on Monday backed a proposal by Assembly Minority Leader Peter Barca to block state money and incentives from going to companies that shift jobs overseas.” The article goes onto state that the policy was discussed at the July WEDC board meeting and would be passed at the next meeting. Citizen Action’s review of public records, including WEDC minutes, finds no evidence this broad policy against giving state dollars to companies engaged in outsourcing was ever enacted. WEDC counsel has not responded to legislative requests for information on this policy.

Manufacturer's tax Credit an Even Bigger Outsourcing Loophole

Although the media has focused on WEDC’s connection to outsourcing, Governor Walker’s signature tax policy, the Manufacturer’s and Agricultural Tax Credit not only allows outsourcing companies to get massive tax credits, but even could allow them to write off some of the cost of outsourcing on their state taxes. The size of the tax credit is greater than WEDC funding for manufacturing. According to the Wisconsin Budget Project, it will add up to $874 million in tax credits over ten years.

The Manufacturer's tax credit represents a larger potential public support for outsourcing than WEDC grants, loans, and tax credits. The credit is available to those with manufacturing or agricultural property, but is not based on the size of the workforce. Because Wisconsin's corporate income tax is based on the sales a company has within the state, a company can still lay off or outsource large segments of its workforce and continue to be eligible for a sizable tax credit so long as it owns even one piece of property for manufacturing purposes. Recipients of this credit have no additional requirement to report outsourcing, and are not deemed ineligible for the tax credit if they outsource.

Although this massive tax credit is a major threat to Wisconsin workers, there has been no discussion during the Governor’s race about attaching job creation requirements to the credit or withdrawing it from corporations that outsource Wisconsin jobs.

“The Walker Administration's bait and switch on outsourcing is the biggest unreported story of this election,” said Robert Kraig, executive director of Citizen Action of Wisconsin. “Even the best informed voters are being left entirely unaware that it is still perfectly legal for a company like Ashley Furniture to outsource large segments of its Wisconsin workforce and claim  substantial job creation grants, loans, and tax credits while doing so. It could even be legal for them to write off some of the cost of outsourcing.”

STATEWIDE - According to an analysis by Citizen Action of Wisconsin, Wellpoint Anthem Blue Cross Blue Shield of Wisconsin, part of the nation’s largest for-profit health insurance company, will make an estimated $12,785,484 in additional revenue each year because Governor Walker rejected enhanced federal funds for BadgerCare.

On a media call earlier this week Citizen Action of Wisconsin and Wisconsin Democracy Campaign released evidence of a relationship between large insurance industry campaign donations to Scott Walker and the rejection of federal funds for BadgerCare. The data shows that the insurance industry was the biggest beneficiary of the decision to reject the funds for BadgerCare and has made major large campaign contributions to Governor Walker and leading Legislators.

The estimate of additional revenue for Wellpoint Anthem Blue Cross is based on their market share in the new federal marketplace in Wisconsin, enrollment numbers for former BadgerCare recipients, and the average tax subsidy that each new enrollee will receive from the federal government. It does not include additional premiums paid by individual health insurance consumers.

Lobbying records from the Government Accountability Board show that Wellpoint Anthem Blue Cross lobbied for 159 hours on the part of the state budget related to BadgerCare funding. It also lobbied for 238 hours on implementation of the Affordable Care Act, which could have included expanded BadgerCare eligibility. According to records compiled by the Wisconsin Democracy Campaign, executives from the company and its subsidiaries donated at least $42,850 to Governor Walker.

“The evidence is clear that the nation’s largest for-profit insurance company benefited substantially from Scott Walker’s disastrous decision to reject federal funds for BadgerCare,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It disturbing to believe that tens of thousands of Wisconsin families may be either without vital health coverage or paying too much for coverage just so Governor Walker’s campaign contributors can pad their profits.”

Lobbying records released Thursday by Citizen Action of Wisconsin from the Government Accountability Board (GAB) call into question Governor Scott Walker’s blanket denial that the insurance industry lobbied his administration to reject enhanced federal funds for BadgerCare.

Television journalist Greg Neumann of WKOW TV 27 in Madison captured Scott Walker on video stumbling to respond to Citizen Action of Wisconsin’s revelation that insurance industry donations may have swayed his decisions to reject hundreds of millions of federal dollars for BadgerCare.  In the news story, Walker says on camera that “to my knowledge they [the insurance industry] haven’t lobbied me personally or anyone in my administration on this.”

However, lobbying records from GAB show that three powerful insurance industry trade associations and Wellpoint Anthem Blue Cross spend 363 hours lobbying on the part of the state budget related to BadgerCare funding. Wellpoint Anthem Blue Cross spent an additional 238 hours lobbying on the implementation of the Affordable Care Act. The expansion of BadgerCare is a key part of the health care law.

Contrary to Scott Walker's campaign denial that the insurance industry lobbied his administration to reject federal funds for BadgerCare, records show that the Alliance of Health Insurers, Wisconsin Association of Health Plans, America’s Health Insurance Plans, and Wellpoint/Anthem Blue Cross-Blue Shield of Wisconsin spent at least 363 hours lobbying.

STATEWIDE - Lobbying records from the Government Accountability Board (GAB) call into question Governor Scott Walker’s blanket denial that the insurance industry lobbied his administration to reject enhanced federal funds for BadgerCare.

On a media call earlier this week Citizen Action of Wisconsin and Wisconsin Democracy Campaign released evidence of a relationship between large insurance industry campaign donations to Scott Walker and the rejection of federal funds for BadgerCare. The data shows that the insurance industry was the biggest beneficiary of the decision to reject the funds for BadgerCare and has made major large campaign contributions to Governor Walker and leading Legislators.

Television journalist Greg Neumann of WKOW TV 27 in Madison captured Scott Walker on video stumbling to respond to Citizen Action of Wisconsin’s revelation that insurance industry donations may have swayed his decisions to reject hundreds of millions of federal dollars for BadgerCare.

In the news story, Walker says on camera that “to my knowledge they [the insurance industry] haven’t lobbied me personally or anyone in my administration on this.”

However, lobbying records from GAB show that three powerful insurance industry trade associations and one large national for-profit insurance company lobbied substantially on the part of the state budget related to BadgerCare funding.

The records show that Alliance of Health Insurers, Wisconsin Association of Health Plans, America’s Health Insurance Plans, and Wellpoint/Anthem Blue Cross-Blue Shield of Wisconsin spent at least 363 hours lobbying on the section of the state budget that includes BadgerCare funding.

Unlike GAB reporting requirements on individual bills, reporting rules on subjects in the state budget do not require specific disclosure of what position was taken, only what areas of the budget were lobbied.

“Lobbying records certainly cast doubt on Governor Walker’s blanket denial that his administration was lobbied by large insurance interests to reject federal funds for BadgerCare,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “We are very concerned that over 26,000 Wisconsin parents may be going without vital health coverage because of more pay-to-play corruption in the Walker Administration.”

Insurance Companies getting windfall of public dollars also donated big money to Walker and legislators.

Statewide - On Monday morning, Citizen Action of Wisconsin and Wisconsin Democracy Campaign called into question relationship between large campaign donations and the rejection of federal funds for BadgerCare. When Governor Walker rejected federal funds for BadgerCare, an estimated 87,000 Wisconsin residents were forced to purchase private health insurance coverage from the health insurance marketplace. Tens of thousands fell into an entirely unnecessary coverage gap.

The new data shows that the insurance industry was the biggest beneficiary of the decision to reject the funds for BadgerCare, and have donated massively to the campaigns of Governor Walker and Legislators who pushed the policy through.

According to data collected by the Wisconsin Democracy Campaign, the insurance industry, including insurance agents, have contributed over $1.26 million to Governor Walker from the period between 2009 and 2013. This is over three times more than Governor Jim Doyle received from the industry from 2000-2012. The insurance industry also gave nearly $1 million to State Legislators. The industry contributed over four times as much to Republican members of the State Assembly as their Democratic counterparts, and 2.7 times as much to State Senate Republicans. Data for 2014 is not yet available but experts believe the insurance industry contributions will be substantial.

These campaign contributions are dwarfed by the large financial windfalls for insurance companies resulting from the rejection of enhanced federal BadgerCare dollars. Federal marketplace plans are much more expensive than BadgerCare, and put the insurance industry in a position to profit substantially. Tracking the federal tax credits individuals denied BadgerCare receive instead to purchase private coverage, the data compiled by Citizen Action of Wisconsin shows that Wisconsin insurance companies would receive up to $350 million per year extra in tax credits for individual health policies. This does not include the premiums paid by individual consumers or new small business premiums.

“Many across Wisconsin have been confounded by Scott Walker’s seemingly irrational decision to leave hundreds of millions of federal dollars on the table that could have strengthened BadgerCare,”said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “This data raised the disturbing specter that Walker and conservatives in the Legislature sold out their own constituents for campaign cash from the insurance industry. Leaving tens of thousands of Wisconsin families without health coverage in return for campaign donations is morally repugnant.”

“The question of federal funds for BadgerCare is a clear example of where the public wants one thing, and the insurance companies want another, and unfortunately the insurance companies succeeded in getting their way”, said Mike McCabe, Executive Director of the Wisconsin Democracy Campaign. “There is a disturbingly high presence of contributions directly to the officials that had the ability to get the industry what it wanted.”

Newly released county-level data shows number of residents by County forced off BadgerCare and left in “coverage gap.”

STATEWIDE - New Wisconsin Department of Health Services county-level data obtained from an open records request by Citizen Action of Wisconsin quantifies the BadgerCare coverage gap at the local level.  The data shows the statewide impact of the coverage gap caused by Governor Walker’s misguided decision to reject federal dollars to strengthen BadgerCare. Contrary to the widespread assumption this is primarily an urban problem, the data shows that the relative impact is greater in rural areas than in cities (see charts below).

Governor Walker’s decision to turn down billions in federal funds for BadgerCare forced 62,776 parents off the program in April, leaving 26,600 in a coverage gap unable to affordable private coverage. The Federal government, at the request of US Senator Tammy Baldwin, recently intervened by creating a special enrollment period in the health care marketplace for uninsured Wisconsinites forced off BadgerCare. While this will help some parents who missed the first open enrollment period, health advocates believe that many in the gap simply cannot afford the premiums, copays, and deductibles associated with private insurance.

On November 4, over 1 million Wisconsin voters will have the opportunity to weigh in on the issue when they vote on BadgerCare advisory referendums in 19 counties and 1 city.

Counties with the highest percent of individuals forced off BadgerCare still uninsured

* - Has BadgerCare referendum on November 4th ballot

Counties with most residents kicked off BadgerCare, as percent of population

* - Has BadgerCare referendum on November 4th ballot

Comparison of Major Metros

13 of 20 Counties with BadgerCare referendum marked above in bold/underlined

* - City of Kenosha has referendum

Full data for all 72 Wisconsin counties can be found here.

“Governor Walker’s political decision to force 62,000 Wisconsinites off BadgerCare is inflicting needless damage to families and communities all across the state, especially in rural areas,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “Walker and his allies in the Legislature need to stop playing politics with the health and economic security of hard pressed families in every Wisconsin county who are working to get ahead and live the American Dream.”

Web link to Press Release here