General AssemblyPost-Game Wrap-Up/Pre-Game Show: Weds., June 29, 2011
Here’s what we/I learned yesterday: For the remaining two days of session, the Pre-Game Show section of my posts ain’t worth the paper it’s not printed on.
Many of the key legislative developments did not show up on any agenda. Two cases in point:
The House passed the Democratic redistricting plan by a 26-10 vote, with the five other R’s not voting. Straight party line vote, and really not a whole lot of recriminations from the R’s. Monsignor Lavelle, perhaps waxing nostalgic for his soon-to-be final days in the House and not yet certain as to what will emerge from the Senate, said:
“Elections have consequences, and one of those consequences this year will be redistricting.”
Of course, in the Senate, it appears that the only election with consequences will turn out to be the one where DeLuca and Blevins beat back a challenge for leadership. Meaning that Lavelle could well take a seat in the Senate from a Democrat, courtesy of DeLuca and Blevins. But, I digress, for now.
The neanderthals in the Senate also saved one of the worst Delaware Way vestiges of patronage from extinction, at least for now. With alleged ‘progressives’ Sorenson and McDowell not voting (the long arm of Tony DeLuca, redistricting crayon in hand?), legislation to abolish the already useless Board of Parole failed, by a 9 Y, 10 N margin. Of course, there’s no funding in the Budget Bill for the agency, so we have one more bit of unnecessary drama added to the final days of session.
Neither of these bills appeared on any agenda. And, they really don’t have to. You see, there are rules that govern the way the houses operate. They are rules that are voted on by the respective bodies at the beginning of the General Assembly session. However, there is one rule that supersedes all these rules. You may occasionally see it on an agenda as follows: (MTSR). Which means ‘Motion To Suspend All Rules that may interfere with the consideration of (fill in the piece of legislation)’. Rules suspended can and do include requiring a bill to go through the committee process, and requiring that notice of the bill’s consideration be made via agenda. Which means that dozens of bills will be considered without any public notice these next two days. That’s why I’ve urged (it’s useless, I know, but at least I want you to exercise diligence and keep an eye on shady dealings) legislators to not go on an orgy of yea votes unless they understand what they’re casting their votes for.
That’s not to say that bad legislation can’t be worked even with public notice. SB 146 gives the finger to Delaware’s neediest as two ‘not-for-profits’ merge w/o promising even a cent of their obscene reserves. $175 million in reserves for this ‘not-for-profit’. The Senate basically decided that what they passed in 2004 was not what they intended to pass in 2004, hence AG Beau Biden has no authority to challenge the merger between BC/BS and the Pittsburgh-based Highmark. It gets worse. From today’s News-Journal article:
As an alternative method of safeguarding the reserves, an amendment to Senate BIll 146 would require review and approval by the Department of Insurance of any payment Blue Cross makes in excess of $500,000 from the reserve fund to Highmark.
In a committee meeting last week, and through compromise discussions this week, Biden was steadfast in his opposition to Blevins’ bill. He warned that, through the deal, Highmark would gain control of Blue Cross’ entire pot of reserves. (IC Karen Weldin) Stewart has the power to ultimately approve or deny the deal, should it proceed. A public hearing is scheduled for early September.
That’s no safeguard. That’s a blank check. Can anyone, anyone, cite an example of KWS daring to challenge BC/BS? Don’t bother to answer. Rhetorical question.
In fact, she has been so derelict in her duties that Reps. Dan Short and Bryon Short have introduced legislation to, in effect, require the Insurance Commissioner to do her job.
At the same time, (Rep. Dan) Short criticized Insurance Commissioner Karen Weldin Stewart for dragging her feet by failing to impose any penalties on Blue Cross Blue Shield of Delaware — three months after she concluded that the insurer had broken the law with a contract giving a subcontractor an incentive to deny requests for high-tech tests used to diagnose heart blockages and brain tumors.
Just like Tom Wagner, KWS protects those she’s charged with regulating at the expense of those who elected her to office. Her shrill defenders notwithstanding, she is both an embarrassment and a danger to the citizens of Delaware. I’d love to see the House hold SB 146 hostage until some real consumer protections are built into it, but BC/BS is just so wired into the General Assembly that that ain’t happening. In fact, it’s on today’s House agenda under a Motion to Suspend Rules.
Here’s the entire Session Activity Report for Tuesday’s legislative session. Both the Bond Bill (Senate) and Grants-In-Aid Bill (House) were introduced, and will be likely considered today under Suspension of Rules.
The Senate also passed the horrible HJR 3 with three no votes, which basically allows the telecom industry to write its own tax provisions; SB 63, a very good bill, long overdue, which now goes to the Governor; and SS1/SB 29, but with an amendment added to protect drunken hunters and legislators from losing their gun permits should they be pulled over for public intoxication. After all, except for the fact that they’re drunk and a menace to others on the road, they’re law abidin’ citizens. Ain’t that right, John Atkins? Besides, who would deny hunters their ceremonial six-pack after bagging a coyote? It’s the redblooded male equivalent to the post-coital cigarette.
The House passed a buncha’ stuff that doesn’t interest me, but may interest you. Thumbs up to SB 42, part of a package of mortgage foreclosure legislation that will rank as one of this session’s notable achievements. Everything else: Meh.
The Senate does not even have a posted agenda today, and will likely work through packets of bills with little or no public notice. This is unnecessary, as the House at least has a significant posted agenda. But just remember who pulls the strings in the Senate. They firmly believe that you don’t have the right to know. If any of you are in the Hall today, please keep us updated as to what’s going on, especially on the Senate side since their sessions cannot be streamed online.
The House has several significant bills on its posted agenda today. The key agenda is House Agenda III. It includes the sop to Blue Cross/Blue Shield, SB 146, to be worked under suspension of rules. Rest assured that the House will keep that $175 million in BC/BS off limits to Delawareans, if not to BC/BS’ merger partner.
Not the only sop to be run by the saps today, though. SB 91, which gives the banks yet another entirely undeserved set of tax breaks, is set for House action. $3.4 mill in FY ’12 and $8.5 mill in FY ’13. All in the name of economic development. Economic development, my not insubstantial ass.
HB 195, the Grant-In-Aid bill, is also scheduled for consideration. This, above all others, is the Incumbency Protection Bill. Grants to fire companies, senior centers and the like. In fact, that’s the reason, IMHO, why this bill has a 3/4 majority vote requirement. It virtually guarantees that there are goodies for everyone within. In other words, an essential part of the Delaware Way. In fact, Jobs for Delaware Graduates, one of the most phony baloney ‘programs’ in Delaware history, gets, are you ready, $754,000 in Grants-In-Aid. Wait a minute, I’m wrong. They get an additional $223,080 further down the list. Almost $1 mill, a total waste. Herman Holloway Jr.’s Martin Luther King Center, an utterly redundant referral agency, gets its annual $30K. There are so many examples of agencies and organizations that really shouldn’t get state help that it’s not even funny. Click on this link, then scroll down the list and decide for yourself which of these grants are neither worthy nor essential uses of state funds. I beg you to do this. Then come back and give us your favorite blatant examples of ‘incumbency protection’. And don’t blame the Joint Finance Committee. This is the annual Mutually-Assured Reelection Bill. It’s basically the committee members’ jobs to keep their caucus members happy.
As we know, happiness is in the eye of the beholder. The less happy the lobbyists are, the happier I am. I expect to be a sad man by early Friday morning.
Thank you for the summary. You are right on in your analysis of the non-profit BCBS merger with for-profit Highmark. Attorney General Biden is trying to protect the citizens of Delaware while Senator Blevins has sold Delawareans out.
“Biden was steadfast in his opposition to Blevins’ bill. He warned that, through the deal, Highmark would gain control of Blue Cross’ entire pot of reserves. (IC Karen Weldin) Stewart has the power to ultimately approve or deny the deal, should it proceed.”
However, Senator Blevins introducing her bill going around AG Biden makes sense when you look at her campaign finance report. It reads like a Who’s Who of the Insurance Industry, with aprroximately 60% of her contributions coming from PACs, people who work in and for the insurance industry, etc.
And where is Karen Weldin Stewart while all this is going on? Notably absent from Legislative Hall the last week of session where all other elected officials seen working hard and visibly present.
So, I called a contact in Karen Weldin Stewart’s Office to see if she would be showing up for this bill and found out she left this past weekend for another trip on the taxpayers dime. This time to Switzerland.
I don’t know about many of you, but I am personally disgusted with Karen Weldin Stewart’s complete lack of ethics and caring for the people who elected and relied on her to protect us from unsrupulous insurance companies, deals that benefit insurance companies and throw people to the wolves and failure to punish insurance companies that break the law.
I don’t think it would have been to much to expect to have our Insurance Commissioner at Legislative Hall lobbying bills to protect the citizens of Delaware, working with legislators and advocating for “We the People” of Delaware. This is just the least I expect – more would be better.
Instead, Karen Weldin Stewart left the country and thumbed her nose at Delawareans.
Meanwhile, with KWS in Switzerland – the Insurance Industry boldly lobby’s for deals that betray Delawareans, make a grab for more power to be provided to KWS (she’s in their pocket) and Insurance companies shamelessly evading the law, leaving it up to concerned legislators to do Karen Weldin Stewart’s job in her notable absence and continuous inaction where action and leadership is sorely needed.
I could be wrong, in fact I think I WAS wrong on Al’s show yesterday re this point, but I don’t think that Highmark is a for-profit. In fact, Blevins argues that we need to swallow this so that BC/BS won’t HAVE to merge with a for-profit.
And the $175 million reserve that this behemoth has accumulated precisely b/c of the tax advantages of being a not-for-profit is further out of reach than ever.
Tough to swallow.
And, maybe, while in Switzerland, KWS will visit the bank accounts that insurers probably have stashed away there. You know, to keep the cash away from us.
The proposed amendment to existing law will serve to benefit only Highmark and the executives of BCBSD. The following is an op ed I submitted to the NJ. It has not been printed. Since I wrote the article last Thursday, the Pittsburgh newspapers confirmed by worst fears-Highmark needs Blue Cross’ reserves to buy out a failing hospital system in Pittsburgh-West Alleghany Health System!:
I had the pleasure of testifying in the Delaware Senate Insurance Committee’s hearing of a bill intended to amend Delaware Code (Title 29, Section 2531) in order to strip the Attorney General of his power to protect BCBSD’s reserves of over 175 million dollars if the Insurance Commissioner allows Blue Cross to merge with Highmark, Inc, a Pittsburgh-based insurer.
While all the testimony offered in favor of this last-minute and almost under the radar bill was given by paid attorneys and lobbyists supporting the merger, I spoke as a private citizen paid by no one, answerable to no one. I also spoke as a former Department of Insurance professional, having left the DOI in January as its Regulatory Specialist and Director of Consumer Services. In those capacities, under two Commissioners, I developed the expertise necessary to know that this bill, if enacted, may result in Delaware losing control of its major health insurer, and with it, 175 million dollars in reserves-dollars paid by Delaware policy holders.
As a practicing attorney for over 30 years, and as a former judge, I have learned to weigh arguments of opposing sides by looking at the logic offered and understanding what each party has to gain or lose by its assertions.
BCBSD and Highmark support stripping Attorney General Biden of the power to require these reserves be placed into a foundation for Delaware citizens because, without the reserves, the merger deal may not go through. But, they also argue that if the merger is approved, the reserves will remain in Delaware. Why pull out of a deal over money you do not want?
BCBSD argues that it needs to merge with the much-larger Highmark because it needs to upgrade its computer system in order to “compete with large national health insurers”. Yet, Insurance Commissioner Stewart has asked the federal government to exempt the two largest national health insurers doing business in Delaware ( Aetna and United Health Care) from new federal standards because otherwise “they will leave the state”. Where is the competition then?
Blue Cross’ reserves are 10 times the minimum set by the National Association of Insurance Commissioners (NAIC). Having reserves TEN TIMES that standard is unnecessary, especially at a time when there have been huge premium increases for Delawareans in individual and small-employer plans. In a hearing I conducted with then Commissioner Matt Denn as the hearing office in 2007, the then-vice president of BCBSD stated that its violations of Delaware law requiring the payment of “clean claims” was a result of its need to upgrade its computer system. I asked Mr. English the cost and his answer was 17 million dollars. Allowing for inflation and increased costs, certainly the upgrade needed to keep BCBSD competitive against its competitors (who when all are combined have a smaller share of the Delaware market than Blue Cross does) would require the expenditure of less than one-third the reserves.
These reserves also serve to make the proposed merger of BCBSD with Highmark more attractive- for Highmark. If BCBSD argues it needs the merger to survive, why does Highmark need our Blue Cross? Large companies do not gobble up small ones to keep the small ones from dying. They do not do it due to a sudden pang of conscience. They do it for the assets! The asset that Blue Cross has is its reserves! As evidence of this I point to the front page banner story in the June 3rd edition of the Pittsburgh Post-Gazette. That paper reported that Highmark may be unable to renew its contract with its largest provider-the University of Pittsburgh Medical Center. UPMC has its own health plan and is unwilling to renew with Highmark on Highmark’s terms. Highmark’s only viable option in its home market is to buy West Penn Allegheny Health System-the only real competition to UPMC. Yet, West Penn lost 22 million dollars in the first quarter of 2011 alone. This nearly 88 million dollar a year loss trend, combined with the cost of buying West Penn means that Highmark needs to find the assets necessary to make the deal. Though it has nearly a billion dollars in its own reserves (in a market serving 10 times the people as BCBSD) it cannot draw down its own reserve money without approval of Pennsylvania regulators. Highmark needs BCBSD because Highmark needs the reserve money paid to Blue Cross by Delawareans. How is this good for BCBSD or for Delaware?
If this senate bill is enacted in the waning days of the legislative session, it will strip the citizens of the protection the attorney general has within his authority to offer through protecting the assets of non-profits. Though Highmark is also a not-for-profit corporation, its greatest growth is in its for-profit subsidiaries. While the Insurance Commissioner would still have to approve a merger, and could impose reasonable conditions, there is no guarantee in law that this commissioner or a future commissioner will act in the best interest of the policy holder. Attorney General Biden must retain the power current law gives him.
That’s the best summation of the effort to destroy BC/BS I’ve ever read — and the attempts of corporate greedheads to get their hands on that money goes back more than 20 years. Thank you Mr. Crane.
Gad. I love coming here and learning what the real deal is. Thanks El Som and MC.
“Elections have consequences, and one of those consequences this year will be redistricting.” – Greg Lavelle
WOW – talk about a dog whistle to the Sussex nuts – that was a warning to the crazies
“see – O’Donnell is still biting us in the butt and costing us dearly”
SO,be careful who you put up for a candidate!!
ROTFLMAO – good one Lavelle!
If this shite disguised as legislation (SB 146) happens to get through, we can only hope that Jack will veto it. Anyone have what Matt Denn’s take is on this?
Tommywonk brings us some fascinating epilog language from the Bond Bill:
http://www.tommywonk.com/2011/06/bond-bill-and-stoltz-real-estate.html
Haven’t yet read the Bond Bill epilog but, after this, I’m on my way…
Here’s an interesting Epilog tidbit:
“Section 57. North Wilmington Library. Funds authorized in the Section 1 Addendum of 70 Del.
Laws, c. 210 shall be used to plan and construct a library within the First Senate District.”
They’re specifying libraries by Senatorial district now? BTW, it’s McDowell. I checked.
Looks like Keno is in the racinos’ future:
Section 68. Lotteries. Amend 29 Del. C. §1 4803 (s) by adding the word “keno” after the word roulette and before the words “bingo, wheel fortune”.
Don’t know whether this is good or bad, but I know when a legislator has stuck something specific in the Bond Bill when I see it:
Section 107. Wakefield Drive. The Department of Transportation shall be prohibited from reopening Wakefield Drive in Newark through to Old Baltimore Pike.
Well, if this road is not to be a thru road, it should be taken off the list of roads eligible for DELDOT maintenance. Betcha THAT’s not happening.
Here’s one I like:
‘Section 124. Community Transportation Funds Work Group. The Department of Transportation is directed to meet with a group of those legislators interested in reviewing the estimating and contracting processes currently used for projects funded through Community Transportation Funds. The incoming Secretary is requested to convene this meeting and report to the co-chairs of the Joint Legislative Committee on the Capital Improvement Program by October 31, 2011.’
Legislators have long held suspicions about the accuracy of such estimates, and I think it’s time this process is examined.
This one looks like something Speaker Gilligan might have written:
‘Section 133. Dickinson High School. Funding provided to the Red Clay School District for Equalization as provided for in the Fiscal Year 2012 Annual Appropriations Act shall be contingent upon the following:
(a) The lighted football field at Dickinson High School may be used at night only for Dickinson home games and Dickinson band practice; and (b) The District is required to maintain the fencing between Dickinson High School and the community of Montclare, keep the gate between the properties locked at all times (except by mutual agreement between the District and the Montclare Civic Association), and provide, maintain and replace, if necessary, the Leland Cypress trees along the fence line bordering the homes on Salem Drive.’
I’m not saying this is bad, but it sure as hell is an example of legislative micromanagement.
The North Wilmington Library language was there last year’s Bond Bill as well. If you look at the table of continuing appropriations (page 9), you will find that funds for the library have been kept in place since FY 1996.
Geezer wrote:
“That’s the best summation of the effort to destroy BC/BS I’ve ever read — and the attempts of corporate greedheads to get their hands on that money goes back more than 20 years. Thank you Mr. Crane.”
This is what your legislators are trying to do–ahead of the election of a new IC who wouldn’t let this obscene money grab go through.
The legislators are hereby on notice.
The District is required to maintain the fencing between Dickinson High School and the community of Montclare, keep the gate between the properties locked at all times
Districts need to be hit over the head to do anything. I’m not sure what would have been a better vehicle to make sure the District stayed on top of this. A state law should do the trick.
Montclare is very quiet and residential, and it actually quite an important issue to the local community, especially considering the >50% suspension rate at Dickinson, and the potential of out-of-area crowds at night.
Disclosure: I grew up around there and went through holes in that fence many times. I would have been disppointed if there weren’t a hole somewhere. Sometimes they just left the gate open so people wouldn’t cut new holes. So this fence has been a problem for a long time.
Tommywonk: I thought we already HAD that library near something like 40th and Market??
Or does this reference the library out by the old DMV?
Please enlighten us, especially as to why this language is still here if the library’s already been built.
Thanks, Puck, I didn’t say it was bad. I just knew that the specificity of the language means that it came from a legislator, not the controller general’s office or some state agency.
Hey, we’re starting to flesh out some of this epilog language. Keep it up!
It’s officially the North Wilmington Branch, and if located at 3400 N. Market Street. As for why the money is being continued after 15 years, I don’t know.
where do you find this epilog language?
The irony is that it WAS in Harris’ district when built but it IS currently in Margaret Rose Henry’s district now.
So, if that’s the library being referenced, the reference is inaccurate.
Mat: If you click on the link I provided to the Bond Bill in the initial article, the Epilog language is basically everything EXCEPT the spread sheets of numbers. In other words, the Epilog is everything that looks like your typical bill. You will need Adobe Acrobat to open it, however, but you can download it for free.
BCBS/Highmark – bad deal for Delawareans – find out more.
http://www.pittsburghlive.com/x/search/?searchwords=highmark&x=49&y=4
Highmark poised to buy West Penn
http://www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_743888.html
Highmark, Delaware insurer’s deal up in air
http://www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_743892.html
http://www.pittsburghlive.com/x/search/?searchwords=highmark&x=49&y=4
Thanks El Som–it is comforting to know that my tax dollars willingly given to aid public policy, and underwrite our general responsibilities to each other as human beings and citizens of this state are being forwarded to the Delaware Wrestling Alliance. I will sleep better at night knowing they got their fair share.
And of course a full disclaimer of sarcasm intended–because folks today tend to run w/misquotes and out of context discourse.
Gene Reed was working leg hall for the IC yesterday, fyi anony.
I picked up the bond bill and saw a few more items under DelDOT’s epilog section. There is similiar language to the Stoltz properties for one that Acierno is trying to rezone across from Holy Angels on Possom Park Road. And there is an interesting, well it can really said to be ridiculously written, section on the Coons /GORE property behind Glasgow High School as well as detailed instruction to DelDOT relating to the Rte. 301 Spur.
There’s also an interesting section on spending DelDOT’s congested corridor land acquisition money but without mention of specific parcels although in other sections there is mention of the purchase of farmland around Bear and Milltown – both congested areas.
There is also reference to purchase of the old Dover Library building. I thought I saw Carla Markell touting that the funds for the new library were not state funds …. but we are purchasing their old building out of the Bond bill ostensibly for DNREC offices and “a walkable campus” that sounds like a big bill for rennovations to me.
I appreciated hearing some of the discussion on the BCBS deal on WDEL today between Mascitti and Crane – didn’t get to hear the end but it looks like most of what was discussed in written out here. I wonder if Senator Blevins could be convinced to use this space to explain her side of this action a la Senator Peterson.