Political illusions and cheap tricks: The wrong medicine for Kentucky’s Medicaid malady

BluegrassBeaconLogoMore than 324 years after architect Sir Christopher Wren constructed fake pillars at Windsor Town Hall near London to satisfy building inspectors, tourists remain fascinated with the good-for-nothing posts.

The story goes that in 1689, local inspectors warned that the town hall would crumble without additional support. Rather than fight City Hall, Wren, England’s greatest architect – who disagreed with the inspectors – fooled them by building four pillars that offered the illusion of more support but which did not even reach the ceiling.

Stunts deceiving observers by illusion are not, of course, relegated to 17th century building inspections. They can occur in outright wallet-crushing fashion today.

Take, for example, Kentucky’s Medicaid shanty.

Inspectors have carefully examined the leaning structure and determined that adding 300,000 new enrollees into the Obamacare program – which Gov. Steve Beshear announced he will do – would add an unbearable financial weight to a structure that’s already crumbling. [Read more...]

BIPPS weighs in on Medicaid expansion for WHAS


On the eve of Gov. Steve Beshear’s announcement about his intention to expand Medicaid in Kentucky, Bluegrass Institute president Jim Waters had the opportunity to chime in on the debate. In a story by Joe Arnold of WHAS:

Under the law, the federal government would pick up the full tab of the increase for three years, but after that, Kentucky would have to fund ten percent of the added cost.

“We’re going to make a broken program bigger, not better,” argued Jim Waters, President of the Bluegrass Institute, a free-market think tank.

Expanding medicaid would inflict a one size fits all approach to Kentucky’s unique health care needs, Waters continued, ultimately reducing access for the people for whom Medicaid was created.

“And that is the truly poor and the truly disabled.  They need the care.  We need to find other ways to provide the other people better care as well,” Waters contended.

What does this mean for Kentucky? Well, you can read about that here.

 

What does economic freedom have to do with poverty?

By Stephan Gohmann, Ph.D.

Out of the 50 U.S. states and 10 Canadian provinces, Kentucky ranks No. 56 in economic freedom, as measured by the Frasier Institute’s Economic Freedom of North America Index. Among Kentucky’s surrounding states, only West Virginia ranks lower.

The index is a measurement of the size of government, amount of taxation and freedom of workers to engage in labor contracts.

Less economic freedom yields many less-than-desirable incomes:

  • According to kidscount.org, only 39 percent of Kentucky’s young adults (ages 18 to 24) have enrolled in or completed college, compared with 42 percent to 53 percent in the surrounding states of Indiana, Illinois, Missouri, Tennessee and West Virginia.
  • Kentucky’s median family income of $47,000 is second-lowest among surrounding states. Only Tennessee’s is lower at $45,700. The remaining surrounding states have median incomes ranging from $51,000 to $70,800.
  • Kentucky ranks No. 45 in the percent of the population living in poverty.

In recent years, many economists have examined how institutions or “the rules of the game” drive these outcomes.

Some of the rules are cultural. Religious institutions and local heritage influence behaviors and can only change slowly. [Read more...]

When it comes to public pension reform, a little dab will NOT do ya’

Sometimes the truth IS scary.

A recent call to action by the Bluegrass Institute drew some fire because some believed that we did not tell the whole story about legislators who voted against HB 299. In fact, we were accused of fear mongering.

The truth is, Kentucky’s public pension crisis is worthy of fear as it is endangering the financial viability of our state.

The author of the critique had this to say:

Sure, the legislature is to blame for sweetening its own pension deals. But that’s not all legislators. It’s primarily leaders and those scheming the system to make a mountain of cash.

The Bluegrass revisionist history crew apparently doesn’t want the general public to know that many legislators have voted against sweetening their pensions. That bunch is also set on making sure the public doesn’t find out that each year for the last four years? The State Senate has passed legislation to stop these messes.

The Bluegrass Institute doesn’t bother to mention legislators like Senator Jimmy Higdon, who has stood firmly against this mess. Or that in 2010 he introduced legislation that would have gutted House Bill 299 – but the House refused to vote on it.

While it is true that some legislators voted against HB 299 in 2005 the following facts remain:

  • The General Assembly greatly enhanced their retirement benefits.
  • Nothing has been done to effectively change policies and corrupt practices resulting from that legislation.
  • Kentucky’s unfunded public pension liability doesn’t go away because a few legislators voted against a bill, but who still stand to personally benefit from it.
  • Many of the legislators that voted for HB 299 are still in office as well.

This list of all votes for/against 2005′s HB 299 was published in the Bluegrass Institute’s 2012 Future Shock report. See any names you recognize? Many of these folks are still in office. Notice how several state senators didn’t even do their job by failing even to cast a vote. [Read more...]

Mercatus and Bluegrass Scholars report: Kentucky is not economically competitive, Part 2 of 4

Maurice McTigue – Citizen Education Seminar from the Bluegrass Institute on Vimeo.

Recently the Bluegrass Institute partnered with the Mercatus Center at George Mason University to host its Citizen Education Seminar at the Crowne Plaza Hotel in Lexington. The event included both Bluegrass Institute and Mercatus scholars discussing the most pertinent barriers standing in the way of Kentucky’s economic competitiveness.

Today, we present remarks from the Mercatus Center’s distinguished visiting scholar, Mauirce P. McTigue, in part 2 of of our weekly series delivering exclusive  video footage from the event.

McTigue’s message was simple: no country in history has ever created prosperity through spending, consumption and government dependency. In order for jobs to be created and prosperity to grow, capital saving and investment must first occur –a truth often ignored by politicians looking for short-term political favor.

But since capital is so easily moved from one region of the country to the next, Kentucky’s mission is clear: create the friendliest business environment in the nation to attract business resources essential for growth in the commonwealth.

So just how has Kentucky been performing in that regard? According to McTigue, it really doesn’t matter which index of economic competitiveness or business friendliness you look at, because Kentucky ranks in the bottom half of all of them. In fact, according to CNBC’s “Top States for Doing Business” index, Kentucky comes in at No. 45 for “access to capital” — the key ingredient to job creation.

McTigue raised the obvious follow-up question:  ”Why the hell do you hate business here? Because to be in the 40s, you have to be doing a lot of really bad stuff.”

Unfortunately, Kentucky has a long way to go to become economically competitive with neighbors on either side of our borders. McTigue succinctly summed up Kentucky’s economic backwardness:

“Kentucky is a state that has been stagnating for a long period of time. Why would it be stagnating? Because I think your governments have just been satisfied with how we did things in the past and have not been prepared to think in an entrepreneurial way about how we might do things in the future. I get the picture that your government is very protectionist — is trying to stop people from making mistakes that might hurt them. Well, you have to get away from that.”

 

The Crime of Whitening Teeth with Over-the-Counter Products

It’s perfectly legal to buy over-the-counter tooth whitening products and use them. But if you pay a nondentist for help in doing so, that person may be committing the crime (!) of practicing dentistry without a license. Kentucky passed just such a prohibition on teeth whitening in 2010, apparently with little-to-no debate.

Today’s Wall Street Journal features an op-ed by Angela C. Erickson and Paul Sherman of the Institute for Justice detailing the institute’s suit against Alabama for this kind of prohibition. The issue holds broad implications for other kinds of employment where a powerful lobby can effectively shut out even the smallest of competitors. The authors note that of the complaints, the overwhelming majority come from would-be competitors:

white-out-coverThe Institute for Justice’s “White Out” study, released Tuesday, documents that dissatisfied consumers are not the force behind restrictions that shut down teeth-whitening businesses in malls and salons. Overwhelmingly, it is dental-industry interests. Of the 97 complaints about non-dentist teeth whitening provided to the institute from 17 state agencies, only four came from consumers. All four alleged reversible side effects, like gum inflammation and tooth sensitivity. Academic dental research shows that such side effects are common to all forms of teeth whitening, wherever it is done.

The remaining 93 complaints came from dentists, hygienists, dental boards, associations and anonymous individuals. They didn’t allege harm to consumers as a result of commercial on-site whitening. The complaint was that entrepreneurs offering teeth-whitening services are practicing dentistry without a license.

As a result of these unlicensed-practice complaints and pressure from licensed dentists and associations, at least 30 states have taken action against non-dentist teeth-whitening businesses. Some of the states have passed new laws or regulations to ban them from the trade. Others have simply reinterpreted existing laws against the unlicensed practice of dentistry.

These laws, and many others like them, need to go. You can read the report here. You can listen to a related Cato Institute podcast about it below:

Institute Board of Scholars chairman on KET

Dr. John Garen, the chairman of the Bluegrass Institute’s Board of Scholars, appeared on KET’s ‘Kentucky Tonight’ as part of a panel discussion about the federal budget.

(click on the image below to view the video)

GarenOnKYTonight

 

 

 

 

 

 

 

 

 

 

 

Put yourself in your state legislator’s shoes

DearKYTaxpayerBannerDear Kentucky taxpayer:

Put yourself in your state legislator’s shoes for a second.

Imagine you are a state senator with the opportunity to enhance your own wealth through legislation by manipulating the state’s public pension benefit to your advantage.

After all, what’s the harm in taking a bit more compensation for the arduous public service you perform?

Would you be able to resist the urge to give yourself a nice retirement bonus?

The fact is, our legislators couldn’t resist it. In 2005, they passed HB 299 which ushered in a series of policies that lined their retirement pockets at the expense of you, the taxpayer.

Now the system is $34 billion in debt, and while legislator pensions aren’t the sole reason for that, it certainly doesn’t seem right that our public servant legislators are raking in the dough while state workers’ pensions are at risk.

So put yourself in your state legislator’s shoes again. What would it take for you to make a stand among your peers to put an end to this abuse? I have to imagine the first step would be hearing from constituents – just like you.

Contact your state legislator here.

‘Political courage’ should be more than a cheesy catch-phrase

Several years ago I found myself at a cheese-making operation in Wisconsin.BluegrassBeaconLogo

While I had not traveled to the Badger State explicitly to observe Asiago delicacies being turned from fusty, amorphous gook into firm, fresh cuisine, the side visit to the cheese-producing facility somehow ended up being the most captivating part of the whole trip.

It was almost as fascinating as watching how political leaders from state to state and even different countries differ so greatly in political courage.

Take, for example, the gap in British bravery demonstrated by Great Britain’s former Prime Minister Margaret Thatcher, who went to her eternal reward on April 15 at age 87, and that of American President Jimmy Carter, who was in office when the Baroness of Kesteven moved into 10 Downing Street.

Their nations faced similar problems: long lines at gasoline pumps, climbing interest rates and a chilling cold war. Yet while Thatcher used her time as an opposition leader during the five years before she became prime minister in 1979 to hammer out practical, free-market remedies, all Carter could do was plan failed hostage-rescue attempts and drone on about America’s “crisis of confidence.”

Carter’s approach resulted in even longer lines, emboldened enemies and soaring inflation.

Thatcher’s legacy was different. [Read more...]

Quote of the day: Who do we point the finger at?

This excerpt is from InsiderLouisville.com and covers Gov. Steve Beshear talking about pension reform:

Kentucky got severely upside-down on the retirement funds because in good economic times, state government diverted state pension contributions to other things, he said.

“You can’t point any fingers and blame any set of individuals,” he said.

Well, actually you can point the finger at one specific set of individuals – The Kentucky General Assembly. See, our state legislators are the ones who enabled the policies that led us where we are. In addition to that, they are a shining example of public pension abuse.