Progressive Thinking

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.

This week, Sen. Kathleen Vinehout writes about a bill pending in committee that would preempt local control of computer app-driven ride share Transportation Network Companies (TNCs). Companies like ‘Uber’, a San Francisco based company that provides services in Wisconsin, are behind the bill to prohibit local governments from setting rules related to TNCs.

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.”

Senator Kathleen Vinehout joined her legislative colleagues at a press conference today announcing the 13,500 petition signatures gathered to Save SeniorCare. Governor Walker wants to cut SeniorCare funding and force participants to sign-up for MediCare part D. She turned in over 1,000 signatures gathered by her office alone. The petitions were delivered to the Governor and legislative leaders.

MADISON - Today, I was happy to join several of my legislative colleagues, including Assembly Democratic Caucus Chair Andy Jorgensen (D- Milton) and Senate Democratic Assistant Leader Dave Hansen (D-Green Bay), at a press conference announcing the number of petition signatures gathered calling on the Legislature to Save SeniorCare.

Governor Walker included a provision in his budget to cut SeniorCare funding by $15 million and require all SeniorCare participants to sign up for Medicare Part D. Thousands of Wisconsinites are united in opposing the governor’s proposed changes to SeniorCare.

I added over 1,000 signatures gathered by my office from people in the 31st Senate District and surrounding communities to the more than 13,500 petitions calling on the Republican majority to save SeniorCare. The petition signatures were delivered to the offices of the governor, legislative leaders and the co-chairs of the Joint Finance Committee.

The people of Wisconsin told us in no uncertain terms, Save SeniorCare! People all over the state are calling on the legislature to preserve SeniorCare just as it is with no fee increase or limitations on enrollment.

SeniorCare is a cost effective Wisconsin invention that helps seniors of modest income afford prescription drug coverage. Swapping out SeniorCare for expensive, confusing Medicare Part D makes no sense.

I want to thank the office of the people of the 31st Senate District who turned in over 1,000 signatures on petitions to Save SeniorCare. Thank you to everyone who circulated and signed the petitions. Your citizen advocacy makes a real difference.

This week, Sen. Kathleen Vinehout writes about details in Governor Walkers’s budget bill that include Wisconsin-Minnesota Tuition Reciprocity, the Educational Approval Board and the Government Accountability Board. She believes these provisions should be removed from the budget bill and deliberated publicly on their merits.

MADISON - “I didn’t know that was a part of the state budget,” the parent told me.

That was the reciprocity agreement between Wisconsin and Minnesota to allow students from across state lines to attend public universities at in-state tuition costs. This arrangement saves students and parents out-of-state tuition costs.

The governor’s budget removes state funds to pay for the tuition reciprocity program and tells University officials the program is optional.

Tuition costs vary at universities. Non-residents can pay as much as triple the tuition of in-state students. Generally the UW system is less expensive for in-state tuition so the program does cost Wisconsin.

Without funds in the state budget to pay for the program and in the face of $300 million in state cuts, it is unlikely officials will continue the agreement between the two states.

Eliminating the tuition reciprocity program will significantly increase tuition over a four-year degree for more than 20,000 students in Wisconsin and Minnesota.

Also affecting certain college students and their families is the governor’s proposal to abolish the Educational Approval Board (EAB). This board sets standards for, and examines details of curriculum and facilities of, the for-profit colleges operating in Wisconsin.

Operating much in the background, the EAB currently inspects for-profit higher education schools, examines such areas as curriculum, professor qualifications, facilities, equipment. The board enforces rules to prevent fraud, misrepresentation and false advertising. The EAB sets standards for information schools must provide to students.

The board also protects students from schools that would take tuition payments and not deliver the promised education. Many of these schools exist on-line in other states. Students participate in classes on-line and communicate with professors and students thousands of miles away.

Eliminating the EAB also changes laws related to enforcement of words that protect the University of Wisconsin and the state Technical Colleges. One of the board’s functions is to stop the unscrupulous for-profit school operator from appropriating the words “Wisconsin”, “state”, “college” or “university”.

The governor’s proposal would move a few of the EAB functions to a new state agency called the Department of Financial Institutions and Professional Standards. Under the governor’s plan complaints about for-profit colleges would be handled by the Department of Ag, Trade and Consumer Protection (DATCP).

The effect of this agency shuffling and the elimination of the EAB are to rubber stamp at the state level any “accredited” for-profit “college” or “university.” Placing enforcement for fraud on the already overworked staff at the Consumer Protection Division of DATCP is a way to keep the appearance of consumer protection without the real teeth that exist in current law.

Another function of state government that protects people – this time from unscrupulous public officials – is the Government Accountability Board (GAB).

Created in bipartisan action in 2007, the GAB oversees elections, lobbying, ethics of public officials and campaign finance. The agency has come under scrutiny by leaders of both parties, which to me indicates the board is doing its job.

Recently the Legislative Audit Bureau released an audit showing among other findings, the GAB had embarked on setting up a new computer system to upgrade its many technological functions. The governor’s budget would centralize all these information technology (IT) functions in the Department of Administration (DOA).

The DOA, often called by insiders the Department of ALL, is the right hand of the governor; his political appointee oversees all of its functions.

At risk is the integrity of the state’s voter file including new voter registrations, provisional and absentee votes, updated poll lists and the canvas reporting system used by clerks to report election returns. Also at risk is the reporting system for disclosing campaign donations, lobbying activity and the financial relationships of elected or appointed officials.

Moving the computer functions of the nonpartisan GAB into the DOA is tantamount to setting the fox to guard the henhouse.

Many governors slip major changes into the budget bill to avoid public scrutiny. It’s the job of the people’s representatives –the legislature - to act now and get rid of these changes.