Tag: Medicare

  • Obama faces choice on morning-after pill limits

    Obama faces choice on morning-after pill limits

    WASHINGTON (TIP): President Barack Obama supports requiring girls younger than 17 to see a doctor before buying the morning-after pill to help prevent unwanted pregnancies. But fighting that battle in court, after a new decision makes the pill available without a prescription, comes with its own set of risks. A federal judge on Friday ordered the US Food and Drug Administration to lift age restrictions on the sale of emergency contraception, ending the current requirement that buyers show proof they’re 17 or older if they want to buy it without a prescription. The ruling accused the Obama administration of letting the president’s pending re-election in 2012 cloud its judgment when it set the age limits in 2011. “The motivation for the secretary’s action was obviously political,” US District Judge Edward Korman wrote in reference to Health and Human Services Secretary Kathleen Sebelius, who made the decision. The FDA had been poised to allow over-thecounter sales with no age limits when Sebelius took the unprecedented step of overruling the agency. If the Obama administration appeals the ruling, it could re-ignite a simmering cultural battle over women’s reproductive health, sidetracking Obama just as he’s trying to keep Congress and the public focused on gun control, immigration and resolving the nation’s budget problems. “There’s no political advantage whatsoever,” said Democratic strategist Hank Sheinkopf. “It’s a side issue he doesn’t need to deal with right now. The best idea is to leave it alone.” Still, Obama has made clear in the past that he feels strongly about the limits.. “As the father of two daughters, I think it is important for us to make sure that we apply some common sense to various rules when it comes to over-the-counter medicine,” Obama said in 2011 when he endorsed Sebelius’ decision. The Justice Department said it is evaluating whether to appeal. The White House said Obama’s view on the issue hasn’t changed since 2011. “He supports that decision today. He believes it was the right common-sense approach to this issue,” White House spokesman Jay Carney said Friday. Half the nation’s pregnancies every year are unintended. Doctors’ groups say more access to morning-after pills, by putting them near the condoms and spermicides so people can learn about them and buy them quickly, could cut those numbers. Appealing the decision could anger liberal groups and parts of Obama’s political base that are already upset with his forthcoming budget, which includes cuts to long-protected programs like Medicare health aid for the aging and Social Security pensions.

    But currying favor with conservatives who want the ruling to stand also is unlikely to do much to help Obama make progress on his second-term priorities. Also weighing on Obama is the unpleasant memory of previous battles over contraception, including an electionyear fight over an element of Obama’s health care overhaul law that required most employers to cover birth control free of charge to female workers as a preventive service.

    That controversy led to a wave of lawsuits and anger from Catholic and other faith-based groups. When Obama offered to soften the rule last year, religious groups said it wasn’t enough.

    Obama proposed another compromise on the rule in February, to mixed response. If the court order issued Friday stands, Plan B One-Step and its generic versions could move from behind pharmacy counters out to drugstore shelves, ending a decade-plus struggle by women’s groups for easier access to these pills. Women’s health specialists hailed the judge’s ruling, dismissing concerns that it could encourage underage people to have sex.

    But social conservatives, in a rare show of support for Obama’s approach to social policy, said the ruling removes commonsense protections and denies parents and medical professionals the opportunity to be a safeguard for vulnerable young girls. “The court’s action undermines parents’ ability to protect their daughters from such exploitation and from the adverse effects of the drug itself,” Deirdre McQuade, spokeswoman for the US Conference of Catholic Bishops. Absent an appeal or a government request for more time to prepare one, the ruling will take effect in 30 days, meaning that over-the-counter sales could start then.

  • US House votes to prevent March 27 federal shutdown; Obama reaches out to Senate

    US House votes to prevent March 27 federal shutdown; Obama reaches out to Senate

    WASHINGTON (TIP): Legislation easily passed the US House of Representatives on March 06 to avert another partisan budget battle and a possible government shutdown, and a dinner meeting between President Barack Obama and Senate Republicans offered signs of a thaw in relations. By a vote of 267-151, the House passed a measure to fund government programs until the end of the fiscal year on September 30. The Democratic-controlled Senate is expected to pass a similar bill next week. Without such legislation, federal agencies would run out of money on March 27. The bill to continue funding the government without last-minute drama occurred as Obama took the unusual step of inviting Republican senators to a dinner on Wednesday night at a Washington hotel a few blocks from the White House that lasted about an hour and a half.

    Attendees emerged optimistic about the prospects for the elusive big deal to put the nation’s finances on a more sustainable track in a way that satisfies both Democrats and Republicans. “It was a really good conversation,” Republican Senator John Hoeven said. “It was candid,” he said. “We really talked about how do we get to a big agreement in terms of the debt and deficit.” An administration official told Reuters before the dinner that Obama had been hoping to take advantage of a lull in a series of budget crises to launch a dialogue with Republican lawmakers with the goal of reaching a broad deficit reduction deal.

    While the meal was not intended to be a negotiation, it was an opportunity for Obama to make clear he is willing to consider some difficult spending cuts that are unpopular with his fellow Democrats in Congress, the official said.

    Those could include cuts to programs that include the Social Security pension system and Medicare for the elderly. Obama is due to discuss his other legislative priorities, including immigration reform, gun control and tackling climate change, at meetings with members of both political parties on Capitol Hill next week. The dinner may have been a chance to reverse some of the angry partisan rhetoric that has stood in the way of compromise in recent weeks. “The president greatly enjoyed the dinner and had a good exchange of ideas with the senators,” a senior administration official told reporters. Asked how the soiree had gone, Senator John McCain told journalists outside the hotel, “Just great. Fantastic.” Attendees included Senators Lindsey Graham, Bob Corker, and Kelly Ayotte and nine others.

    Graham drew up the guest list, the White House said. The meetings between the president and lawmakers, whether or not they produce results, depart from what has been an at best a stand-offish relationship between Obama and Republicans in Congress. They suggest that Obama and Republicans are getting the message that public patience with Washington is wearing thin.

    This has become apparent as Americans read of inconveniences they may soon confront at airports and elsewhere as a result of across-theboard cuts to the federal budget that kicked in on Friday after lawmakers and the White House failed to agree on an alternative. “This is the first indication in really a long time that the president is willing to exert leadership and bring people together and that’s exactly what needs to be done,” said Republican Senator Susan Collins of Maine, who has spoken by phone in recent days with Obama. Republican doubters At the heart of the bitter US budget dispute are deep differences over how to rein in growth of the $16.7 trillion federal debt.

    Obama wants to narrow the fiscal gap with spending cuts and tax hikes. Republicans do not want to concede again on taxes after doing so in negotiations over the “fiscal cliff” at the New Year. Despite the scheduled dinners and meetings and the vote on funding the government, few expect those differences to be resolved any time soon. Some Republicans remain skeptical of Obama’s overtures. “This president has been exceptional in his lack of consultation and outreach to Congress,” said John Cornyn of Texas, the second-ranking Senate Republican. Cornyn, like Collins, was not invited to dinner with Obama, but he warned that talk of tax increases would be unwelcome. “I don’t know if the purpose of the meeting is social or if he has an agenda.

    But if it is about raising taxes, we’re done.” While Republicans have taken most of the beating in surveys in connection with the so-called sequestration, a Reuters/Ipsos online poll released on Wednesday showed 43 percent of people approve of Obama’s handling of his job, down 7 percentage points from February 19.

  • Indian American CEO Goes Bankrupt

    Indian American CEO Goes Bankrupt

    NEW YORK (TIP): “My company is now doing business in 20 states and this year we are expecting revenue of $1.5 billion,” This is what the CEO and Chairman of the Universal Healthcare Group in Florida, Akshay K Desai had told media only six months back, adding that Romney had “a few months ago visited my company and spent a couple of hours and I gave him a tour and explained to him what we do and he was quite impressed.” Sadly, the scene is not the same today.

    The Medicare provider, which had been the employer of over a thousand people and more, has now gone bankrupt leaving a number of Indian American entrepreneurs and physicians hopeless after having invested $25 million in the company. The Surat born Akshay K Desai, Chairman and CEO, of the Universal Healthcare Group, stalwart in the Republican Party, major fundraiser, first Indian American to be appointed in the Finance Committee of a Republican Party and main mediator to Mitt Romney and the Indian Americans, is suddenly not as popular as then, with his party bosses and Governor Rick Scott now forcing him to step down from his post. “Governor Rick Scott called me and urged me to consider taking up this position, saying that I had the experience and was a long-time party loyalist and having been a staunch supporter of former governors Charlie Christ and Jeb Bush.

    He also said that he was so impressed by my track record of activism in the Republican Party for nearly two decades.”, was what he said some time ago. “I resigned myself to devote 100 percent of my time to deal with my company issue,” is what he says today. “You have to realize, in business it requires more time and if I am not able to devote enough time for getting things done outside of my business, then the most prudent thing to do would be to resign and let somebody else who has more time to step in so they can do it.”

    He declares that he needs “energy and all of my efforts are now entirely focused in helping the company to do better.” However, the sad part is that his company, now in great debt, is soon to be liquidated in order to get all outstanding policy claims and other debts paid off. All of its financial along with its revenue and assets have been mismanaged, misleading information has been released, the required amount of capital has not been maintained and over thousands of insurance policies have been ruined.

    The company has also brought losses to major investors like Dr. Zach Zachariah and Raj Gupta from Fort Lauderdale, and a major fundraiser from the Republican Party, apart from various other Indian American entrepreneurs, physicians and academics, some of them even having invested over a million in the company. “All the investors have been right-royally screwed.”, says one among them. “It’s really pathetic and we are finding all kinds of shenanigans have been going on,”, said another.

    “Florida insurance regulators have long had suspicions about Universal Health Care, the nearly insolvent St Petersburg Medicare insurer the state now accuses of fraud, forgery, embezzlement and other illegal financial conduct.”, reports the Tampa Bay Times. “As you know, quite a few of my friends and family, they are also investors in the company and so, I am doing my best to make sure that nobody gets financially hurt.”, a broken Desai says.

  • Obama Vows To Take America Forward

    Obama Vows To Take America Forward

    WASHINGTON (TIP): The second inauguration of Barack Obama as the 44th President of the United States took place in a private swearing-in ceremony on Sunday, January 20, 2013 in the Blue Room of the White House.

    A public ceremony marking the occasion took place the following day, on Monday, January 21, 2013 at the United States Capitol building. The inauguration marked the beginning of the second term of Barack Obama as President and Joe Biden as Vice President. The inauguration theme was “Faith in America’s Future”, a phrase that draws upon the 150th anniversary of President Abraham Lincoln’s Emancipation Proclamation and the completion of the Capitol dome in 1863. The theme also stresses the “perseverance and unity” of the United States, and echoes the “Forward” theme used in the closing months of Obama’s reelection campaign.

    The inaugural events held in Washington, D.C. from January 19 to 21, 2013 included concerts, a national day of community service on Martin Luther King, Jr. Day, the swearing-in ceremony, luncheon and parade, inaugural balls, and the interfaith inaugural prayer service. The presidential oath was administered to Obama during his swearing-in ceremony on January 20 and 21, 2013 by Chief Justice of the United States John G. Roberts.

    While Beyonce sang the National Anthem at the ceremonial swearing-in for President Barack Obama at the U.S. Capitol during the 57th Presidential Inauguration, it was Richard Blanco, the 44-year-old Madrid-born Cuban-American poet who read his poem “One Today” at the swearing-in ceremony for President Obama. Blanco is only the fifth poet – Robert Frost (1961), Maya Angelou (1993), William Miller (1997) and Elizabeth Alexander (2009) were the previous ones – reading at a presidential inauguration. He is also the first Hispanic as well as the first openly gay one. In his 18 minute speech, Obama tied current issues to founding principles.

    He sought to link the past and future, tying the nation’s founding principles to the challenges confronting his second term in a call for Americans to fulfill the responsibility of citizenship.

    Eschewing poetic language for rhetorical power, Obama cited the accomplishments of the past four years while laying out a progressive agenda for the next four that would tackle thorny issues like gun control, climate change and immigration reform. “We have always understood that when times change, so must we; that fidelity to our founding principles requires new responses to new challenges; that preserving our individual freedoms ultimately requires collective action,” he said. “My fellow Americans, we are made for this moment and we will seize it so long as we seize it together,” he added later.

    Analysts called the speech politically astute and an important expression of new forcefulness by the president as he enters his second term following re-election last November. “It’s a real declaration of conscience, about principles, about what he believes in,” said CNN Senior Political Analyst David Gergen. “He basically said, ‘When I came in the first term, we had all these emergencies, we had these wars. We’ve now started to clear the decks.

    Let’s talk about what’s essential.’” The foundation of the address, and Obama’s vision for the future, were the tenets he quoted from the Declaration of Independence — “that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness.” “Today, we continue a neverending journey, to bridge the meaning of those words with the realities of our time,” Obama said to gathered dignitaries and flag-waving throngs on the National Mall. “For history tells us that while these truths may be self-evident, they have never been self-executing; that while freedom is a gift from God, it must be secured by His people here on Earth.” In particularly pointed references, the president made a forceful call for gay rights that equated the issue with the struggle for women’s rights in the 19th century and civil rights in the 1960s. “We, the people, declare today that the most evident of truths — that all of us are created equal — is the star that guides us still; just as it guided our forebears through Seneca Falls, and Selma, and Stonewall,” Obama said, mentioning landmarks of the women’s, black and gay rights movements. “It is now our generation’s task to carry on what those pioneers began,” he continued, prompting the loudest applause and cheers of his address when he said “our journey is not complete until our wives, our mothers, and daughters can earn a living equal to their efforts.” More cheers came when Obama called for “our gay brothers and sisters” to be treated “like anyone else under the law — for if we are truly created equal, then surely the love we commit to one another must be equal as well.” According to observers, it was the first time a president championed gay marriage in an inaugural address. With further mention of topical issues such as immigration reform and gun control, Obama came to his key point — that adhering to America’s bedrock principles requires taking action on today’s challenges. “Being true to our founding documents does not require us to agree on every contour of life; it does not mean we will all define liberty in exactly the same way, or follow the same precise path to happiness,” he said. “Progress does not compel us to settle centuries-long debates about the role of government for all time — but it does require us to act in our time.” A deep partisan divide in Washington and the country characterized Obama’s first term, with Congress seemingly paralyzed at times and repeated episodes of brinksmanship over debt and spending issues bringing the first-ever downgrade of the U.S. credit rating.

    Acknowledging the political rift, Obama called for leaders and citizens to work for the greater good of the country. “We cannot mistake absolutism for principle, or substitute spectacle for politics, or treat name-calling as reasoned debate,” he said. “We must act, knowing that our work will be imperfect.” At the same time, he made clear he would fight for the central themes of his election campaign. “For we, the people, understand that our country cannot succeed when a shrinking few do very well and a growing many barely make it,” he said.

    While “we must make the hard choices to reduce the cost of health care and the size of our deficit,” he said, “we reject the belief that America must choose between caring for the generation that built this country and investing in the generation that will build its future.” In particular, he defended the need for popular entitlement programs that provide government benefits to senior citizens, the poor and the disabled, saying they were part of the American fabric. “The commitments we make to each other — through Medicare, and Medicaid, and Social Security — these things do not sap our initiative; they strengthen us,” Obama said. “They do not make us a nation of takers; they free us to take the risks that make this country great.” On Monday, Senate Republican leader Mitch McConnell, one of Obama’s harshest critics, called the president’s second term “a fresh start when it comes to dealing with the great challenges of our day; particularly, the transcendent challenge of unsustainable federal spending and debt.” Other issues also appear difficult, if not intractable.

    Obama made a reference to gun control, saying that the nation needed to ensure that “all our children, from the streets of Detroit to the hills of Appalachia to the quiet lanes of Newtown, know that they are cared for, and cherished, and always safe from harm.” However, congressional Republicans and some Democrats, as well as the powerful gun lobby, have rejected proposals Obama recently announced in response to the Connecticut school shootings that killed 20 Newtown first-graders last month.

    In citing climate change as a priority, Obama raised the profile of the issue on the national agenda after a presidential campaign in which it was almost never mentioned. “We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations,” he said, warning of a “long and sometimes difficult” path to sustainable energy sources in a nation dominated by its fossil fuel industries such as oil and coal. “America cannot resist this transition; we must lead it,” Obama said. “We cannot cede to other nations the technology that will power new jobs and new industries — we must claim its promise.” Obama infused his speech with references to two assassinated American icons — President Abraham Lincoln and civil rights leader Martin Luther King Jr. In one passage, Obama cited “blood drawn by lash and blood drawn by sword” in mentioning the Civil War and slavery.

    It mimicked Lincoln’s second inaugural address in 1865, when he spoke of the possibility that “every drop of blood drawn with the lash shall be paid by another drawn the sword.” Of King, Obama referred to those who came to Washington almost 50 years ago “to hear a preacher say that we cannot walk alone; to hear a King proclaim that our individual freedom is inextricably bound to the freedom of every soul on Earth.” The inauguration coincided with the national holiday honoring King.

    The president concluded by urging Americans to fulfill their responsibility as citizens by meeting “the obligation to shape the debates of our time — not only with the votes we cast, but with the voices we lift in defense of our most ancient values and enduring ideals.” At a little more than 2,100 words, Obama’s speech was about 300 shorter than his first inaugural address four years earlier.

    In 2009, he was fresh off his historic election as the nation’s first African- American president, facing an economic recession, wars in Iraq and Afghanistan and the ongoing terrorist threat.

    David Maraniss, author of the book “Barack Obama: The Story,” said the difference from four years ago was palpable, adding: “I could feel his heart beating this time.” The inauguration was attended by approximately a million people.

    Obama Inauguration:
    The Inaugural Poem WASHINGTON (TIP): Inaugural poet Richard Blanco read his poem “One Today” at the swearing-in ceremony for President Obama. Blanco, the 44-year-old Madrid-born Cuban-American poet, is only the fifth poet – Robert Frost (1961), Maya Angelou (1993), William Miller (1997) and Elizabeth Alexander (2009) were the previous ones – reading at a presidential inauguration. He is also the first Hispanic as well as the first openly gay one.
    Here is the Poem
    One sun rose on us today, kindled over our shores,
    peeking over the Smokies, greeting the faces
    of the Great Lakes, spreading a simple truth
    across the Great Plains, then charging across the Rockies.
    One light, waking up rooftops, under each one, a story
    told by our silent gestures moving behind windows.

    My face, your face, millions of faces in morning’s mirrors,
    each one yawning to life, crescendoing into our day:
    pencil-yellow school buses, the rhythm of traffic lights,
    fruit stands: apples, limes, and oranges arrayed like rainbows
    begging our praise. Silver trucks heavy with oil or paperbricks
    or milk, teeming over highways alongside us,
    on our way to clean tables, read ledgers, or save livesto
    teach geometry, or ring-up groceries as my mother did
    for twenty years, so I could write this poem.

    All of us as vital as the one light we move through,
    the same light on blackboards with lessons for the day:
    equations to solve, history to question, or atoms imagined,
    the “I have a dream” we keep dreaming,
    or the impossible vocabulary of sorrow that won’t explain
    the empty desks of twenty children marked absent
    today, and forever. Many prayers, but one light
    breathing color into stained glass windows,
    life into the faces of bronze statues, warmth
    onto the steps of our museums and park benches
    as mothers watch children slide into the day.

    One ground. Our ground, rooting us to every stalk
    of corn, every head of wheat sown by sweat
    and hands, hands gleaning coal or planting windmills
    in deserts and hilltops that keep us warm, hands
    digging trenches, routing pipes and cables, hands
    as worn as my father’s cutting sugarcane
    so my brother and I could have books and shoes.

    The dust of farms and deserts, cities and plains
    mingled by one wind-our breath. Breathe. Hear it
    through the day’s gorgeous din of honking cabs,
    buses launching down avenues, the symphony
    of footsteps, guitars, and screeching subways,
    the unexpected song bird on your clothes line.

    Hear: squeaky playground swings, trains whistling,
    or whispers across café tables, Hear: the doors we open
    for each other all day, saying: hello, shalom,
    buon giorno, howdy, namaste, or buenos días
    in the language my mother taught me-in every language
    spoken into one wind carrying our lives
    without prejudice, as these words break from my lips.

    One sky: since the Appalachians and Sierras claimed
    their majesty, and the Mississippi and Colorado worked
    their way to the sea. Thank the work of our hands:
    weaving steel into bridges, finishing one more report
    for the boss on time, stitching another wound
    or uniform, the first brush stroke on a portrait,
    or the last floor on the Freedom Tower
    jutting into a sky that yields to our resilience.

    One sky, toward which we sometimes lift our eyes
    tired from work: some days guessing at the weather
    of our lives, some days giving thanks for a love
    that loves you back, sometimes praising a mother
    who knew how to give, or forgiving a father
    who couldn’t give what you wanted.

    We head home: through the gloss of rain or weight
    of snow, or the plum blush of dusk, but always-home,
    always under one sky, our sky. And always one moon
    like a silent drum tapping on every rooftop
    and every window, of one country-all of usfacing
    the stars
    hope-a new constellation
    waiting for us to map it,
    waiting for us to name it-together.

  • A Platinum Solution To U.S. Fiscal Woes: $1 Trillion Coin

    A Platinum Solution To U.S. Fiscal Woes: $1 Trillion Coin

    WASHINGTON (TIP): If you had to flip a coin over whether Congress will raise the debt ceiling, here’s the ultimate one – a freshly minted trillion-dollar platinum coin. A formal petition has been started asking the White House to create such a coin in order to avoid another high-stakes fiscal battle to raise the debt ceiling. The Treasury secretary has the authority to mint platinum coins in the denomination of his choosing, but likely would run into stiff opposition from lawmakers who have been trying to reduce the budget deficits. Creating the cash would also completely override the independence of monetary policy, something the Obama administration has been very careful not to do in the past.

    The coin petition is one of many wacky requests to alight on the White House’s website. People have petitioned the President to nationalize the Twinkie industry, deport British CNN talk show host Piers Morgan for gun control comments he made on air, and give Vice President Joe Biden his own TV show. About 4,000 signatures have been collected for the coin petition, which was created two days after lawmakers passed a bill to avert austerity measures of higher taxes and spending cuts. Shown are the petitioner’s first name, first initial of surname, and in most cases, the city. In order to get a formal response from the White House, 25,000 signatures must be collected by early February.

    “While this may seem like an unnecessarily extreme measure, it is no more absurd than playing political football with the US — and global — economy at stake,” the petition said. The U.S. Treasury began shuffling funds in order to pay government bills after the country hit the $16.4 trillion legal limit on its debt Dec. 31. However, the Treasury’s accounting maneuvers will last only until around the end of February, giving Congress two months to raise the debt limit before the U.S. defaults on its debt. Last week’s deal forced Republicans to forgo their anti-tax pledges and give in to Democratic demands to raise taxes on the wealthiest. Now Republicans want to use the debt limit increase to win spending cuts from Democrats as well as major changes to Social Security retirement and Medicare health care programs.

  • Back from the Brink

    Back from the Brink

    What a cliff-hangar it was! Even Hollywood could not have provided this sort of dramatic script. First, it was Senate which passed, in the early hours of Tuesday, January 1 Fiscal Cliff deal potentially averting a disaster not only for the tax payers but for the US economy itself. Then, it was the turn of the House to pass this bill, also late evening on Tuesday, overcoming opposition from conservative Republicans. The month of December saw quite a bit of nail-biting drama as both the sides, Democrats and Republicans, tried to one-up each other in negotiations. Democrats wanted to hike taxes on those making more than 250,000 along with other items like hike in estate taxes but offered no spending cuts, while Republicans wanted to preserve all of the bush-era tax cuts while proposing serious curtailment to the entitlement programs like Social Security, Medicaid, Medicare etc., items which were off limits to Democrats.

    The impasses in negotiations were making markets nervous – the Dow Jones index was see-sawing wildly. The confusion on tax rates was also beginning to grow. With the looming deadline of December 31, speaker Boehner tried to rekindle the negotiations by devising another plan – the so called Plan B -, which would permanently extend almost all of the tax cuts enacted under President George W. Bush for all households under $1 million, thus sparing majority of the Americans from the expiration of the bush-era tax cuts while raising the taxes on those making more than 1 million per year. But the plan was doomed from the start. Not only Speaker Boehner failed to get the support from the anti-tax conservative members of his party, the plan would not have even passed the Democratic controlled Senate. In the end, realizing that the Plan B was not going anywhere, Speaker Boehner pulled it from consideration.

    With the House unable to provide any measure to avert the fiscal cliff, it was left to the Senate to craft a deal.Working directly with Vice President Joe Biden, Minority leader Mitch McConnell, in barely two days, formulated and passed the bill by a lopsided 89-8 margin in the early hours of Tuesday, underscoring the anxiety felt by both sides which would have not only plunged the economy back into severe recession but would have had disastrous and negative impact on the world economy. But what is Fiscal Cliff ? In short, Fiscal Cliff is the term, coined by Federal Reserve Board Chairman Ben Bernanke, that refers to major economic events that would take place in 2013 due to the expiration of the 2010 Tax Relief Act, which extended the Bush-Era tax cuts by two years and Budget Control Act of 2011 which was designed to tackle the Debt crisis of 2011 and which also included mechanisms to reduce the deficit by half by automatically triggering across- the -board cuts, called sequestration, in all domestic spending programs and defense. It was estimated by Congressional Budget Office that the automatic triggering of tax increases and sequestrations, the economy, which is slugging at less than 2 percent per year, would plunge back into recession with unemployment going up to 9 percent.

    What if there had been NO Fiscal Cliff Deal? According to CBS Money Watch, the expiration of the tax cuts would bring the system back to 2001 tax rates, Clinton-era rates, which would make everybody’s taxes go up substantially. The paycheck would be much smaller than the previous months. There would also be a lot of confusion in terms of withholding – whether to use 2012 tax rates or to use 2013 tax rates. IRS has issued guidelines that any paycheck cut in the later half of January has to assume that the Bush era tax cuts have expired. This would make paycheck smaller than previous months

    Another casualty would come in the form of sequestration, wherein automatic cuts triggered would reduce the budgets of government programs by 8 to 10 percent. Government workers could face furlough anywhere from less than 20 days to longer duration. The cuts would not have to be immediate and can be phased over several weeks by respective government departments. But the cuts would be divided equally between defense and other government programs, which mean everything from Homeland security, public schools to health to what is on the table. More than 2 million unemployed would also see the expiration of their unemployment benefits thereby throwing those more into misery, given the weak employment situation. Even doctors would not be spared. Physicians would see 27 percent reduction in the Medicare payments because congress failed to pass the Doc-Fix that would have addressed the scheduled cuts.

    Finally, the US economy would bear the massive brunt. According to Congressional Budget Office, not only it would slide back into recession but the unemployment would also go up to 9 percent. The economy would contract by 1.3 percent in the first half of 2013. Pretty grim. So what is next? Recognizing the severity of the situation, Senate passed with overwhelming margin of 89-8 the so- called deal. The deal would extend Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000. It would also postpone the sequester for two months. The unemployment insurance has been extended for another year. The deal also affects taxes on investment income and estate taxes. But, still, the drama would not end. The deal passed by the Senate faced uncertain future in the House, where its passage was not guaranteed. Republicans were clamoring for more cuts in the form of amendments and send the bill back to Senate for reconsideration. That would have put the country over the Fiscal Cliff. But, in the end, realizing that they don’t have the votes for spending cut amendments and knowing that they would be blamed for the resulting budget chaos, Republicans reluctantly approved the Senate bill by a bi-partisan vote of 267 to 167, which included most of the house Democrats and less than half of the Republican majority.

    But the deal is far from being perfect. It has infuriated not only liberals but conservatives also. Even though Democrats are grumbling about the increase in threshold for tax hike, the Republicans are sore because it does nothing to address the runaway spending and the debt. The deal does not solve the fiscal problems entirely but promises a new, and bigger, battle in two months over the spending cuts and how to raise the debt limit beyond $16.4 trillion. Spending cuts to military and cuts to domestic programs have only been delayed for two months. Republicans have vowed to fight for a new deal that would include significant cuts in government benefit programs like Medicare and Medicaid health care for retirees and the poor, which are responsible for the ballooning federal debt. But, for now, the deal has averted the calamity in the form of immediate tax hikes and resulting economic recession, and has brought the country back from the brink.

  • A Hot Vice Presidential Debate: Biden Outperforms Ryan

    A Hot Vice Presidential Debate: Biden Outperforms Ryan

    NEW YORK (TIP): The vice presidential debate between Vice-President Joe Biden and Republican Vice Presidential nominee Re. Paul Ryan appeared to be a sequel of an earlier debate between Obama and Romney.

    The 90 minute debate held at Centre College in Danville, Kentucky, from 9:00 p.m. – 10:30 p.m. on Thursday, October 11 was moderated by ABC’s Mar tha Raddatz. The debate was split on foreign and domestic policies. Libya, Afghanistan were the major foreign policy issues. Speaking about the failure of Obama to understand the situation in Libya, Paul said, “It took the president two weeks to acknowledge that this was a ter rorist attack.” Ryan blamed the Obama administration for “projecting weakness abroad.”

    “What we are watching on our TV screens is the unraveling of the Obama foreign policy,” he added. Biden, who ke pt smiling during Ryan’s comments, responded, “With all due respect, that’s a bunch of malarkey.” He criticized Ryan for voting to cut funding for embassy security and added of Mitt Romney and Ryan, “These guys bet ag ainst America all the time.” For Biden, the debate marked an oppor tunity to change the nar rative of the campaign in the wake of President Obama’s widely-panned perfor mance in the first presidential debate last week. Mitt Romney has g ained in both national and battle g round state polls in the wake of that perfor mance, and the two men are now ef fectively tied in national polls. While vice presidential debates have not changed the course of a campaign in the past, a strong perfor mance by the vice president could allow the Obama campaign to re g ain its footing. For Ryan, the Wisconsin Re publican cong ressman and House Budget Committee chair who is seen by many as the intellectual leader of the GOP, the debate was a chance to introduce himself to the American people and make a forceful case for the Romney/Ryan ticket.

    Ryan, who asked to be refer red to as “Mr. Ryan” instead of “Cong ressman Ryan” by the moderator, was pressed on his plan to transfor m Medicare into a voucher-like system as well as the Romney-Ryan ticket’s unwillingness to specify which deductions and loopholes should be eliminated from the tax code in order to make its tax cuts revenue-neutral. On Iran, the two ag reed Iran should not be allowed to obtain a nuclear weapon, but Ryan said sanctions should be tougher claiming Iran is moving faster toward a nuclear weapon. Biden defended the administration’s sanctions saying “These are the most crippling sanctions in the history of sanctions. Period.” Biden followed by asking, rhetorically, how the administration could make the sanctions any tougher.

    “What more can the President do? We will not let them acquire a nuclear weapon,” he said. Raddatz then moved on to domestic policy where Biden and Ryan got to Mitt Romney’s comment at a F lorida fundraiser that “47 percent” of people don’t pay income taxes. Ryan came to his running mate’s defense, “sometimes the words don’t come out of your mouth in the right way,” Ryan said. Biden immediately dismissed the suggestion that Romney’s “47 percent” was a flub saying, “If you think he just made a mistake, then I’ve got a bridge to sell you.”Moving to Medicare, Biden laid down his commitment, “We will be no par t of a voucher pro g ram or the privatization of Social Security,” he said. But Ryan accused the vice president of not putting “a credible solution on the table.” Ryan shot back, “they got caught with their hands in the cookie jar tur ning Medicare into Obamacare,” refer ring to the Obama administration’s $716 billion in Medicare savings. Raddatz then moved on to the proposed tax plans of both the Obama- Biden and Romney-Ryan ticket. Ryan fiercely defended Romney’s plan saying “six studies have guaranteed that this math adds up,” and guaranteeing that his plan won’t raise the deficit or raise taxes on the middle class. Biden questioned that guarantee asking how lower taxes rates and g reater economic g rowth was possible.

    “Jack Kennedy lowered tax rates and increased g rowth,” Ryan of fered. “Oh, now you’re Jack Kennedy,” Biden quipped back. On the topic of abor tion, Raddatz asked Ryan if someone who wishes abor tion to remain le g al has something to wor ry about with Romney in of fice. “We don’t think that unelected judges should make this decision,” said Ryan But Biden argued those who wish abor tion to remain le g al do in fact have something to wor ry about, “The next president will get one or two supreme cour t nominees, that’s how close Roe vs. Wade is,” he said. On a personal note, Raddatz asked what each candidate’s individual character would bring to the White House.

    “There are plenty of fine people who could lead this country,” Ryan be g an, “but what you need are people who, when they see problems, fix those problems.” Biden pointed to his drive to fight for the middle class. “My record stands for itself,” he said, “I never say anything I don’t mean…my whole life has been devoted to leveling the playing field for middle class people.” In closing, Biden reiterated his commitment to the middle class once more, “The president and I are not going to rest until the playing field is leveled,” he said, “That’s what this is all about.” Ryan, with the final word, made the hard sell, “Mitt Romney and I will not duck the tough issues, and we will not blame others for the next four years. We will take responsibility…the choice is clear, and the choice rests with you, and we ask you for your vote.”

  • First Presidential Debate – A Polite Affair

    First Presidential Debate – A Polite Affair

    NEW YORK (TIP): President Obama and challenger Mitt Romney differed sharply Wednesday, October 3 night over taxes, Medicare and, especially, the record of the last four years in a pointed but largely polite debate that highlighted the deep substantive divide between the two philosophical foes, says a Los Angeles Times report.

    Romney portrayed Obama’s tenure as an unmitigated failure, citing continued high unemployment, a rise in dependence on food stamps and other assistance programs, and disappointingly tepid economic growth. He said the president’s “trickle-down government” was “not the rightanswer for America. I’ll restore the vitality that gets America working again.”

    “Going forward with the status quo is not going to cut it for the American people who are struggling today,” Romney said.

    “It’s time for a new path,” he later added.

    Obama spoke of entering office amid an economic crisis and suggested the progress the nation had made – modest private sector job growth, the recovery of the auto industry, a slow healing of the housing market — would be jeopardized by a Romney return to the approach that caused the hardship in the first place.

    “Are we going to double-down on the top-down policies that helped get into this mess?” Obama said near the opening of the 90-minute session. He said Americans had heard the same pitch – promises of lower taxes and a smaller deficit – when George W. Bush ran in 2000, and the result was a soaring national debt capped by the worst economic downturn since the Depression.

    “Math, common sense and our history shows us that’s not a recipe for job growth,” Obama said. “Look, we’ve tried this.”

    The president entered the debate on the University of Denver campus with a breeze at his back, holding small but significant leads in the eight or so battleground states that are likely to decide the race. Romney, after a rough several weeks, was looking to reverse Obama’s momentum, and he was assertive throughout the night, several times talking over the moderator, longtime PBS anchor Jim Lehrer.

    Tonally, the debate was worlds apart from the slashing campaign being conducted in the key states. Obama did not mention Romney’s recently publicized remark critical of almost half of Americans – those who did not pay 2011 federal income taxes – nor Romney’s tenure at the Bain Capital venture firm, key components of the ads that helped push him ahead of the Republican.

    For his part, Romney seemed to steer toward the middle, emphasizing his support for popular elements of Obama’s healthcare plan and moderate regulation of the financial industry, and what he cast as his bipartisan approach in Massachusetts. And he displayed a polish that eluded Obama for most of the night.

    Obama repeatedly attacked Romney’s promise to cut taxes across the board and pay for it by closing loopholes and eliminating deductions. He said that, in truth, Romney would give cuts to the rich and raise the burden on the poor and middle class. There was simply no way, the president said, for Romney’s plan to mathematically add up.
    “He’s been asked over 100 times how you would close those deductions and loopholes, and he hasn’t been able to identify them,” said Obama, who proposes a tax hike on household incomes over $250,000 and individuals earning over $200,000.

    “Virtually everything he just said about my tax plan is inaccurate,” Romney fired back, insisting he would not “under any circumstances” raise taxes on the middle class or boost the deficit, though he did not offer more detail.
    Obama said Romney would gut schools and make deep, painful cuts to Medicare as part of his budget-balancing plan, which relies solely on spending cuts. The former Massachusetts governor heatedly denied he would cut education spending – boasting that the state’s schools were ranked No. 1 in the nation – and said raising taxes would “kill jobs.… You never balance the budget by raising taxes.”

    Instead, he vowed to cut funding for the Public Broadcasting System, eliminate the number of government employees through attrition, combine some federal agencies and apply a simple test to federal spending: “Is the program so critical it’s worth borrowing money from China to pay for it?”

    Romney took part in 19 debates during the primary season, turning in several strong performances when his candidacy was imperiled, and he spent months rehearsing for Wednesday night. Obama, by contrast, had not taken the debate stage in nearly four years.

    The challenger’s practice showed. While the president sometime drifted into long, professorial disquisitions, Romney was crisp and on offense for most of the night. “You’re entitled as the president to your own airplane and to your own house, but not to your own facts,” he tartly told the president at one point.

    “We have to work on a collaborative basis,” Romney said, at one point citing his Massachusetts healthcare plan, put together by Democrats and Republicans in his state. (Obama twitted Romney by citing the plan as a model for his own healthcare overhaul, saying the two men shared many of the same advisors.)

    Obama was, often, mildly sarcastic. He cited the lack of details from Romney on his tax plan, his proposal to repeal the president’s healthcare law and a promise to undo some of the financial regulations the administration put in place.

    “At some point,” Obama said, “I think the American people have to ask themselves, is the reason that Gov. Romney is keeping all those plans … secret is because they’re too good?”

    At another point, after one of Romney’s repeated pledges to govern in a more bipartisan fashion than Obama, the president scoffed that he wouldn’t get off to a much of a start by repealing the healthcare plan cherished by Democrats as avowedly his first order of business.

    Romney repeatedly attacked “Obamacare” – a label Obama happily embraced with a smile – saying it would rob $716 billion from Medicare and make it more difficult for seniors to find doctors and hospitals willing to treat them. He said his overhaul proposal would protect current beneficiaries as well as those approaching retirement age.

    Obama shot back that Romney’s promise was contradicted by the facts. Romney’s plan to give future retirees a voucher to help subsidize their coverage would end up driving up their out-of-pocket costs and undermining Medicare for future generations, he said. He added that his Medicare cuts are aimed at providers and insurance companies and would not scale back care for seniors.

    The session was expected to draw a TV viewership in the tens of millions, making it one of the most closely watched events of the lengthy campaign. But history has shown that it is often post-debate coverage, which plays out for several days, that has a more substantial impact on voter perceptions – a process that could be intensified this year by the rise of social media such as Facebook and Twitter.

    The two men will debate twice more, meeting Oct. 16 in Hempstead, N.Y., and Oct. 22 in Boca Raton, Fla. Their running mates will debate on Oct. 11 in Danville, Ky.

  • US Healthcare  System Wastes  $750  Billion a Year: Report

    US Healthcare System Wastes $750 Billion a Year: Report

    WASHINGTON (TIP): The U.S. health care system squanders $750 billion a year – roughly 30 cents of every medical dollar – through unneeded care, byzantine paperwork, fraud and other waste, the influential Institute of Medicine said Thursday, September 6 in a report that ties directly into the presidential campaign.

    President Barack Obama and Republican Mitt Romney are accusing each other of trying to slash Medicare and put seniors at risk. But the counter-intuitive finding from the report is that deep cuts are possible without rationing, and a leaner system may even produce better quality

    “Health care in America presents a fundamental paradox,” said the report from an 18-member panel of prominent experts, including doctors, business people, and public officials. “The past 50 years have seen an explosion in biomedical knowledge, dramatic innovation in therapies and surgical procedures, and management of conditions that previously were fatal …

    “Yet, American health care is falling short on basic dimensions of quality, outcomes, costs and equity,” the report concluded.

    If banking worked like health care, ATM transactions would take days, the report said. If home building were like health care, carpenters, electricians and plumbers would work from different blueprints and hardly talk to each other. If shopping were like health care, prices would not be posted and could vary widely within the same store, depending on who was paying.

    If airline travel were like health care, individual pilots would be free to design their own preflight safety checks – or not perform one at all.

    How much is $750 billion? The one-year estimate of health care waste is equal to more than ten years of Medicare cuts in Obama’s health care law. It’s more than the Pentagon budget. It’s more than enough to care for the uninsured.
    Getting health care costs better controlled is one of the keys to reducing the deficit, the biggest domestic challenge facing the next president. The report did not lay out a policy prescription for Medicare and Medicaid but suggested there’s plenty of room for lawmakers to find a path.

    Both Obama and Romney agree there has to be a limit to Medicare spending, but they differ on how to get that done. Obama would rely on a powerful board to cut payments to service providers, while gradually changing how hospitals and doctors are paid to reward results instead of volume. Romney would limit the amount of money future retirees can get from the government for medical insurance, relying on the private market to find an efficient solution. Each accuses of the other of jeopardizing the well-being of seniors.

    But panel members urged a frank discussion with the public about the value Americans are getting for their health care dollars. As a model, they cited “Choosing Wisely,” a campaign launched earlier this year by nine medical societies to challenge the widespread perception that more care is better.

    “Rationing to me is when we are denying medical care that is helpful to patients, on the basis of costs,” said cardiologist Dr. Rita Redberg, a medical school professor at the University of California, San Francisco. “We have a lot of medical care that is not helpful to patients, and some of it is harmful. The problem is when you talk about getting rid of any type of health care, someone yells, ‘Rationing.’ ”

    More than 18 months in the making, the report identified six major areas of waste: unnecessary services ($210 billion annually); inefficient delivery of care ($130 billion); excess administrative costs ($190 billion); inflated prices ($105 billion); prevention failures ($55 billion), and fraud ($75 billion). Adjusting for some overlap among the categories, the panel settled on an estimate of $750 billion.

    Examples of wasteful care include most repeat colonoscopies within 10 years of a first such test, early imaging for most back pain, and brain scans for patients who fainted but didn’t have seizures.
    The report makes ten recommendations, including payment reforms to reward quality results instead of reimbursing for each procedure, improving coordination among different kinds of service providers, leveraging technology to reinforce sound clinical decisions and educating patients to become more savvy consumers.

    The report’s main message for government is to accelerate payment reforms, said panel chair Dr. Mark Smith, president of the California HealthCare Foundation, a research group. For employers, it’s to move beyond cost shifts to workers and start demanding accountability from hospitals and major medical groups. For doctors, it means getting beyond the bubble of solo practice and collaborating with peers and other clinicians.

    “It’s a huge hill to climb, and we’re not going to get out of this overnight,” said Smith. “The good news is that the very common notion that quality will suffer if less money is spent is simply not true. That should reassure people that the conversation about controlling costs is not necessarily about reducing quality.”
    The Institute of Medicine, an arm of the National Academy of Sciences, is an independent organization that advises the government.

  • Paul Ryan Republican speech ‘contained errors’

    Paul Ryan Republican speech ‘contained errors’

    AMPA, FL (TIP):
    Republican vice-presidential nominee Paul Ryan has come under fire for alleged inaccuracies during his convention debut in Tampa, Florida.

    Mr. Ryan attacked the president for making cuts to the Medicare healthcare program, but did not say that his own budget plan includes the same savings.

    He complained that proposals by a budget commission were not adopted, but did not mention he opposed its report.
    Mr. Romney’s speech to the convention is the challenger’s biggest opportunity yet to make his case to the nation and is one of the set-piece events of the US election calendar.

    He and Mr. Ryan will challenge President Barack Obama and his Vice-President Joe Biden on Election Day, 6 November.
    In a barnstorming speech to a rapt audience, Mr. Ryan promised a “turnaround” for America and said Mr. Obama’s administration was tired and out of ideas.

    The Wisconsin congressman said he and Mitt Romney would not duck the tough issues.
    Mr. Ryan, who serves as chairman of the House of Representatives Budget Committee, is known as a leading Washington policy “wonk”, responsible for the budget plans backed by Mr. Romney and Republicans in Congress.
    But fact-checkers listening to his speech on Wednesday night quickly alleged that he had been slack with his facts.
    On a key area of debate, the future of Medicare, the government-run health program for over-65s, Mr. Ryan accused the White House of slashing $716bn (£450bn) from the much-loved scheme.

    But FactCheck.org, amongst others, said Mr. Obama’s 2010 healthcare reform law does not cut money from Medicare, but simply reduces the growth in spending on the scheme in an effort to keep it solvent.
    In addition, Mr. Ryan – who described the Obama plan as “the biggest, coldest, power play of all” – failed to note that he proposed virtually the same cuts in his own budget plans.

    He accused the president of “political patronage” via his $800bn stimulus plan, passed in 2008. However, he neglected in his speech to mention that he sought to procure stimulus dollars for energy firms in his home state of Wisconsin, the Associated Press notes.

    The vice-presidential hopeful was also accused of misleading his audience over the timing of the closure of a GM plant in his home town of Janesville, Wisconsin.
    That statement earned Mr. Ryan a “false” rating from PolitiFact.com, having failed to note that the plant closed under the previous administration of President George W Bush.
    The Obama campaign released a web video on Thursday highlighting Mr. Ryan’s contentious statements, and dubbing him the “wrong choice for the middle class”.