Florida Consumer Perspectives

Florida needs a real energy plan and real regulation

2009-10-28T16:32:00.005-05:00

As the St Pete Times points on in their editorial, A weak energy plan Florida's Public Service Commission hasn't done much to promote energy conservation or efficiency. We're a backwards state.

With utilities spending huge amounts to promote their antiquated system of regulation, we can't move forward. Utilities shouldn't be allowed to spend ratepayer money stacking hearings or paying PR and lobbying firms.

It's no wonder the Retail Federation and the Industrial Power Users Group are fighting against the latest rate cases at the PSC. They keep getting gouged and passing along the costs to their customers -- us. But the utilities make money by selling more and more electricity and get a percentage profit on every dollar they invest in power plants. The well lobbied Legislature even allows them to make consumers into investors to pay for the nukes, because the market, so honored by the Legislature all the rest of the time, won't pay for nukes.

With this set up, consumer lose, again and again. FCAN thanks Gov. Crist for courageous appointments to the PSC that will potentially make Commissioner Nancy Argenziano the Chair in 2010. This will shake things up, but then Gov. Crist will be gone and we could go back to business as usual.

FCAN is calling on the Legislature to change the PSC nominating process to get better applicants with fewer ties to utilities. FCAN is calling on the Legislature to repeal the law allowing gold plated nukes to be built at our expense, whether they're needed or not. New rules are needed preventing contacts between utilities and PSC staff, as the recent scandals demonstrate.

Anyone hoping to become Governor might look at how popular Gov. Crist became by standing up to utilities and for consumers. One might also consider that retailers and industry are also concerned about utility rates. Time for some changes.

FPL AMONG BIGGEST CONTRIBUTORS TO PARTIES

2009-10-15T12:36:00.002-05:00

(My apologies for posting this article, but it isn't anywhere to link to yet. The point is, our utilities are spending big bucks influencing legislators. That translates into expensive unneeded nukes, a pliable PSC, and insignificant energy efficiency programs. BN)

By JOHN KENNEDY
THE NEWS SERVICE OF FLORIDA

THE CAPITAL, TALLAHASSEE, Oct. 14, 2009....No surprise, but some of the big contributors to the Florida Democratic and Republican parties over the past quarter also have spent time attracting headlines.

Florida Power & Light, whose rate case has convulsed the Public Service Commission and may have contributed to the ouster of two commissioners, was the top individual contributor to the state GOP.

The utility giant gave $181,000 of the party’s $3.8 million take in the three months that ended Sept. 30. Dosal Tobacco, the Miami-Dade County low-cost cigarette manufacturer which successfully fought the state’s new $1-a-pack tax on smokes, showed its gratitude by giving $87,500 to Republicans, who also rule the Legislature.

The Florida Medical Association, which is warily watching federal health care legislation, gave state Republicans $150,000, while the resort developers’ political action committee gave $125,000.

Florida Energy Associates, which is pushing hard to open Gulf of Mexico waters to offshore oil-drilling, contributed $40,000 to the party during the three months ending Sept. 30.

For Florida Democrats, who raised $2.5 million in the quarter, the Fort Lauderdale business law firm, Rothstein, Rosenfeldt Adler provided almost 10 percent of the party take – giving $200,000.

Walt Disney World wasn’t far back – giving $160,000; with FPL donating $135,000, while the company was watching PSC proceedings.

Then there were PACs: The state’s credit union committee gave $80,000 to Democrats and the Florida Association of Insurance Agents contributed $75,000.

And those oil-drilling proponents, Florida Energy Associates, also looked to make friends with Democrats, giving the party $30,000.
--END--
10/14/2009

Independent and Indispensable

http://www.newsserviceflorida.com

Health Care For Everyone In America

2009-09-21T13:26:00.004-05:00

Democrats were recently attacked for not doing enough to prevent "illegal immigrants" from obtaining health care under the proposals now in Congress. FCAN supports health care for everyone in America, which includes those here without documents. I'll explain our reasons.

First, it is the right thing to do. We believe in taking care of our neighbors and those in need of care. We don't want anyone to suffer, for any reason. In fact, under current law, hospitals and doctors are required to treat everyone. Aside from the morality, I believe this is because we would want to receive the same care if we found ourselves in need.

Secondly, taking care of everyone is more efficient. The changes made to the legislation envision health care providers checking identity papers before providing care. Aside from the obvious difficulty from doing so in an emergency situation, it would mean creating an entirely new bureaucracy to prevent people from obtaining care. Insurance companies would be the clear choice to do the work, considering their experience. National identity cards would be needed to establish identity. This would diminish our freedom, and cause lots of additional expense solely for the purpose of denying health care to people that need it.

Thirdly, the charity care providers would still have to provide care. While the many clinics and hospitals that currently provide care to those without insurance look forward to the end of their missions with the advent of national health care, they might face simply shifting clientèle. That would mean scarce resources put back into health care that might have been devoted to other causes.

Undocumented workers are now paying taxes. Many of these workers use forged social security cards and have payroll taxes deducted from their checks. That means they are paying into Social Security and Medicare. The U.S. Social Security Administration has estimated that undocumented immigrants contribute approximately $8.5 billion in Social Security and Medicare funds each year. The U.S. Internal Revenue Service has determined that undocumented immigrants paid almost $50 billion in federal taxes from 1996 to 2003.

FCAN believes immigration problems are complicated and should be addressed, but attacking immigrants and denying them care is not only foolhardy, it is wrong.

Bauccus Bill a Failure

2009-09-16T15:22:00.003-05:00

Washington, DC – Health Care for America Now (HCAN) – the nation’s largest health care campaign – released the following statement today on Senator Max Baucus’ health care bill.

Richard Kirsch, HCAN National Campaign Manager:

“The Baucus bill is a gift to the insurance industry that fails to meet the most basic promise of health care reform: a guarantee that Americans will have good health care that they can afford. The Baucus bill would give a government-subsidized monopoly to the private insurance industry to sell their most profitable plans - high-deductible insurance - without having to face competition from a public health insurer.

Under the Baucus bill, employers would have no responsibility to help pay for their workers’ coverage and would be given incentives to have workers pay more for barebones insurance. Americans who don’t get health benefits through work would still not be able to get good, affordable coverage.

We urge Senators on the Finance Committee to replace the Baucus plan with legislation that will do what the Senate HELP Committee and three House committees have done: guarantee that Americans have good health insurance that they can afford with the choice of a strong national public health insurance option.”

(FCAN is part of Health Care for America Now)

PSC in the mud again

2009-09-01T13:43:00.004-05:00

The St. Pete Times editorializes today on the dirt coming from the Public Service Commission. Generous pay raises for PSC staff in hard times, Kentucky Derby parties, and coziness. Coziness??? Yes, the Times correctly says the PSC is way to close to the utilities.

When the PSC is in session, the Commissioners sit in front, and next there is a line of tables for their staff and utility representatives. Behind that barrier sit the consumers. Of course, mere consumers are not allowed to address the Commission directly. Fortunately, we do have an aggressive Public Counsel and some consumer groups like FCAN.

The room layout is just a symbol of how things are. The fact is, as the Times suggests, the PSC staff meets constantly with utility staff and hears their message every day. In the not too recent past, FCAN helped pass reforms to stop commissioners from taking gifts from utilities and from meeting privately with utility representatives. But now the staff seem to be the conduit for information. A recent commissioner was sanctioned for reading into the record a utility memo that he received from a staffer.

It is time to look again at doing more to clean up the PSC and restore the confidence of consumers. Commissioners can take action on their own, but it may take more legislative action to separate the PSC from the utilities.

If you want to have your say on being billed for nuke plants that you may not be around to see finished, or guaranteed utility profits above 10%, then you should email the PSC. I recommend writing directly to Commissioner Nancy Argenziano at Commissioner.Argenziano@psc.state.fl.us or call her at (850) 413-6038. I suggest Argenziano because she has listened to consumers and can be an advocate for us.

Fight for Health Care Reform

2009-08-19T12:37:00.003-05:00

August 19th, 4-6pm: Digna Alvarez, Bill Nelson's Regional Representative, holds open office hours every month at the Jimmie B Keel Library (2902 W. Bearss Ave, Tampa, FL). Please join us to make sure this is a civil forum and don't let health care opponents disrupt the event. Facts not fear!
Join President Obama and numerous faith groups on a conference call on Wednesday evening, August 19th at 5pm. Click here to RSVP. Call in number is 1-347-996-5501 and no pass code is needed. Webcast log in: http://www.faithfulreform.org.
Health Care Reform Q & A with Florida Experts Aug 20, 10:00 am-Noon Call 1-269-320-8200 x 842465. You are invited to submit questions in advance of this call to lisag@floridachain.org. The panel of experts will address as many of these questions as there is time for. Questions are due by Aug 19. Experts include Greg Mellowe, Policy Director, Florida CHAIN; Bob Sharpe, Executive Director, Florida Council on Community Mental Health; and Leslie Spencer, Associate State Director of Advocacy, AARP.

Community Conversation Friday, August 21st: What matters most to you in health care reform? You are invited to come to a community conversation to talk about health care from your perspective. Join Jeff Johnson, Health Action Now Campaign Manager from 9:30-10:30am at the CARES Enrichment Center. 12417 Clock Tower Parkway. Hudson, FL. 34667.
Canvass Rep. Allen Boyd's district in Tallahassee, Saturday, August 22nd. Join FCAN and our coalition partners to canvass Rep. Boyd's district. We will be meeting at the FL AFL-CIO office: 135 S. Monroe St. Tallahassee, FL 32301 at 10 am. We'll then hit the streets for door-to-door education on what health care reform means for Americans. Tea will not be served. All materials, refreshments before and lunch afterwards will be provided. Join us and bring your friends!
Rep. Allen Boyd Townhalls. Please click here to check out the remaining forums Boyd is holding. We need people to turnout and attend these meetings to show Boyd that his district IS in support of a public health insurance option!
Allen Boyd Community Forum
6:00 p.m. Tuesday, August 25
City of Tallahassee City Hall
300 South Adams Street
Tallahassee, Florida
Statewide Rally!! August 29th!! Floridians throughout Florida are coming together for Florida's LARGEST mobilization for healthcare reform yet! Buses are being organized for rides as well. RSVP and stay up-to-date here.

Rep Allen Boyd reaping health care dollars

2009-08-18T16:57:00.006-05:00

According to OpenSecrets.org, Rep. Allen Boyd, a Blue Dog Democrat Representing District 2, which includes Tallahassee, is a top recipient of dollars from health interests. Although Boyd barely had opposition of 2008, he received $55,747 from pharmaceuticals and $48,750 from insurance interests.

Boyd's opponent in 2008 barely raised $5,000 total, and Boyd got 62.5% of the vote. Florida District 2 leans Democratic, obviously, and it would appear Boyd thinks he has a free hand and can do whatever he wishes.

But FCAN believes there should be some accountability. Boyd, as a member of the Blue Dog coalition in Congress, recently suggested he might not support President Obama's health care proposals. Here's his quote from CNN:

When a questioner, Ray Evans, said he believed the President wants to do too much at once and asked whether Boyd would “be willing to scrap everything” and start over to do pursue reform more incrementally, the congressman responded: “I think that is an excellent idea … we may end up there.”

With a strongly Democratic district, even Boyd's millions in corporate campaign contributions might not be enough to protect him from a more liberal opponent. Our job at FCAN, will be to let people know that Boyd is undercutting a very popular Democratic President and seems to be following the interests of his campaign contributors rather than his constituents.

Hunting Preserve for Tampa's Elite?

2009-08-15T16:32:00.003-05:00

As Hillsborough County considers selling the valuable Cone Ranch property to wealthy investors, questions are arising. The Times today points out that hunting might be an allowed activity under the preservation easement. Is that what this deal is all about? A private hunting preserve?

Denise Layne has an excellent track record protecting the environment and sits on the citizen panel looking at the project, but she can't do it all by herself. There are many questions, and the first one is why in the heck are we even considering selling this property to these rich guys?

Why take any chances at all with the property? It is currently owned by Tampa Bay Water, and it is a well field. Why not just leave things as they are? When the county has more funds, we can look at improving the ecosystem, and repairing damage from past ranching on the land. But any move to sell it, inevitably risks something happening to the land that might not be permitted if the land remained in public hands.

And isn't anyone besides me suspicious? Why are these guys offering us something for nothing? Does anyone really believe they are doing it because they love the environment? When the hunting issue came up, it began to look like a private, but publicly subsidized, hunting preserve. That's just not right. It is public land, and shouldn't be handed over to a few rich guys as their private playground.

Arguments made by tea baggers and 9/12ers

2009-08-07T11:54:00.006-05:00

As a panelist last night at the raucous health care town hall FCAN co-sponsored along with SEIU, I got to respond to arguments made by the rabid, Glenn Beck-inspired 9/12 group and the rest of the mob that tried to shout us down. Rep. Kathy Castor bravely would not be intimidated and made her points, updating the town hall on her work on health care reform. Thank you, Rep. Castor.

But the baggers did ask questions, which you could hear earlier in the day on the right wing radio talk shows. The first question is, "How can we afford another trillion for health care when the country is already struggling with deficits?" The answer is that health care reform is needed to get the economy going again and make America competitive in the world economy. President Obama's reforms will SAVE money compared to the Limbaugh/Hannity/Beck (LHB) Just Say No alternative.

Here in Hillsborough County, we were struggling to keep our public hospital afloat, and it was eating up more and more taxpayer funds every year, largely to keep up with indigent health care. Indigent care can be very expensive because America is still a country where anyone that walks into an emergency room will be treated. I assume the LHB alternative would be to request payment first. As Hannity said on his show a few nights ago, anyone can afford health care if they just work sixteen hours a day. That is his health care plan.

So, Hillsborough voters passed the Half Cent for Health Care sales tax to fund indigent care, and the Hillsborough Health Care plan began doing primary care. We got a lot of people out of the ER and we have saved money. Our plan is a model for the nation. Obama's health care will save money. That's why all the industrialized countries in the world have health care. We lag behind and our economy is in trouble because of the opposition of teabagger thugs.

Another suggestion made by the right is that care will be rationed and that we'll have waiting lines. We have that now because care is rationed by one's ability to pay. How is that fair? It is estimated that 22,000 people died in the US last year because of lack of health insurance. And, of course, you can still choose to pay for your private insurance and you may pay as much as you want. You can also do what wealthy people do now, which is just pay the doctor. If you have enough money, you don't need insurance and you get to see doctors that don't take insurance. If you have the cash, you will still be able to buy whatever health care you want. No change.

Baggers suggest that euthanasia will be offered instead of live saving treatments, just to save money. What a ridiculous claim! Under our current system, you have to be able to afford health care or you don't get it. You can get down on your knees and beg your pharmaceutical company for a hand out. Maybe they will let you live. And if you're insured, you can hope your insurance company will pay for the treatment you want, and will not start looking for errors on your application. The Obama plan would allow us to make decisions, as a community, on how we want to treat people that are gravely ill and require expensive treatments. This would have to be one of the most difficult choices a community could make. But that would be better than they current system where you either have the money, or you beg for your life.

We are in the fight of our lives here, and future generations are counting on us. A couple young people asked me what it would mean for them. They used the LHB inspired phraseology, "Will we have to pay for your generation's health care?" The answer is, as it has always been, that the young must care for their elders. That's what we do in my family, and probably in yours too. It is a sign of respect and civilization. We don't want to see our seniors begging in the streets or choosing between food and health care. We also want to accept all our seniors have created for us. All the institutions, all the wealth, all the knowledge. The price is small, and the new generation won't prosper unless we leave them with a good health care system. Let's make sure we get it right.

Visit msnbc.com for Breaking News, World News, and News about the Economy

2009-08-05T10:43:00.002-05:00

Health care reform is heating up in Washington and right here at home. YOUR voice is critical to achieving quality, affordable health care for all. Please join FCAN in our upcoming activities to make sure our Representatives are hearing support for reform from their constituents.

Contact Jessica Pemble, Health Care Reform Organizer, for more information and to get involved in our upcoming events. 813-877-6712 or jessica@fcan.org.

August, 2009

August 6th: Kathy Castor/Betty Reed Town Hall @ Children’s Board, 6pm-8pm. We will be collecting petitions, educating the public on HR 3200, and hosting the Town Hall.

August 7th: Join FCAN and Greenpeace for our Healthy Food Drive, 11am-7pm. Help us get our “Independence from Insurance Companies” and “Obama to attend Copenhagen” petitions signed! We will be donating all food to Potter’s House on Kennedy Blvd.

August 8th: Canvassing with Organizing For America in Tampa and St. Petersburg.

August 12th: Small Business Press Conference. Senator Nelson’s Tampa Office. Time TBA.

August 15th: Canvassing with OFA in Tampa and St. Petersburg.

August 15th: Woodstock Concert @ Skipper’s Smokehouse. We will be collecting petitions.
Week of August 19th: Take part in painting a mural on Monday and Tuesday at the FCAN office (your thoughts on the health care campaign) that will be delivered to Nelson at a rally outside his office on the 19th. Time TBA.

August 22nd: Canvassing with OFA in Tampa and St. Petersburg; Potluck Celebration.
Week of the 25th: Petition Delivery (“Independence from Insurance Companies”) and Enemies of Reform Press Conference. Time/date/location TBA.

August 25th: Health Care Townhall at Tallahassee City Hall.

August 29th: STATEWIDE RALLY in Orlando! Goal: 600+ people. Buses will be available from the Tampa area.

Anti-Consumer Insurance Tax Bill Introduced

2009-07-31T12:22:00.003-05:00

Broad Coalition of Companies and Consumers Stand Opposed to Legislation

(Full Press Release)

Washington, DC (July 30, 2009) – Stating that Rep. Richard Neal’s (D-MA) bill to raise taxes on foreign based insurance companies operating within the United States was anti-consumer and anti-competitive, the Coalition for Competitive Insurance Rates (CCIR) today voiced its strong opposition to the bill. CCIR, a broad-based alliance dedicated to assuring competitive insurance costs and insurance availability for American consumers, contends that the bill would drive up consumer insurance rates by reducing competition and critical US insurance capacity. When Neal introduced similar legislation in the 110th Congress, consumer organizations and businesses that rely on affordable insurance coverage joined in opposing passage.

“The international insurance market is an essential component of our ability to provide protection to homeowners and businesses,” said Bill Newton, executive director of the Florida Consumer Action Network. “We believe this tax increase proposal would in all likelihood have adverse consequences for consumers. Given today’s financial and economic conditions now is certainly not the time to make access to insurance more costly.”

Single Payer vs Public Option

2009-07-28T12:45:00.002-05:00

A lively debate on single payer vs public option is taking place over on the Florida Progressive Coalition blog. Check out Mark Weaver's article and leave a comment.

Sinkhole Insurance Nightmare!

2009-07-24T14:51:00.003-05:00

[Guest Blog by Ginny Stevans, President of Having Affordable Coverage and a board member of Florida Consumer Action Network]

Well here we go....I said this would happen and it has started. Did our elected officials really think mortgage companies would not catch on about the automatic dropping of sinkhole coverage? The"if they don't ask, don't tell them" that Senator Fasano suggested was not going to work for long!

While I was president of HAC (Having Affordable Coverage) I strongly warned people about the new legislation to automatically drop sinkhole coverage was risky and that when the mortgage companies figured it out it would be required. We already knew of local banks that were requiring it but is only a matter of time before they all will require it. It IS after all a "peril" that can destroy your home and cost tens of thousands of dollars to repair.

Well the proof just came in the form of a letter from US Bank Mortgage Company to a mortgage holder. The letter reads in short that the homeowner who had his sinkhole insurance automatically dropped from his insurance company is now required to maintain his coverage or it will be forced placed.

The letter states "We understand from speaking with many insurance agents located in Florida that catastrophic ground collapse has been added to these policies in lieu of sinkhole coverage. However, our research has indicated major differences between these two perils. A sinkhole is the systematic weakening of the land supporting your home. If damage attributed to a sinkhole were to occur to your home, your property could still be deemed livable by your local authorities. A catastrophic collapse is a geological activity that results in all of the following conditions: 1) an abrupt collapse of the ground cover, 2) a depression in the ground cover visible to the naked eye, 3) structural damage to the building, including the foundation, and 4) the insured structure must be condemned and ordered vacated by a government agency. While we understand the financial burden caused by the current insurance situation in the state of Florida, we are required to ensure your home is covered in the event of damage. Sinkhole damage not only causes significant damage, but the repair costs are very high. Without sinkhole coverage, a homeowner would have to bear the burden of the cost to repair the property while maintaining their monthly mortgage payment."

Now what shall I tell this man who has Citizens Insurance, lives in Pasco County where no other insurance companies are writing and can not afford to ADD the the sinkhole policy back. Not to mention now to ADD the insurance back you will have to have a sinkhole evaluation at your cost. So much for our elected officials working to help lower our insurance!

Ginny Stevans
FCAN Board member and Pasco County Resident

BREAKING NEWS: The AMA Endorses the House Health care reform bill

2009-07-16T14:35:00.002-05:00

July 16, 2009

The Honorable Charles B. Rangel
Chairman, Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, DC 20515

Dear Chairman Rangel:

On behalf of the Board of Trustees of the American Medical Association, I am writing to express our appreciation and support for H.R. 3200, the “America’s Affordable Health Choices Act of 2009.” This legislation includes a broad range of provisions that are key to effective, comprehensive health system reform. We urge members of the House Education and Labor, Energy and Commerce, and Ways and Means Committees to favorably report H.R. 3200 for consideration by the full House.

In particular, we are pleased that the bill:

• Promises to extend coverage to all Americans through health insurance market reforms;

• Provides consumers with a choice of plans through a health insurance exchange;

• Includes essential health insurance reforms such as eliminating coverage denials based on pre-existing conditions;

• Recognizes that fundamental Medicare reforms, including repeal of the sustainable growth rate formula, are essential to the success of broader health system reforms;

• Encourages chronic disease management and care coordination through additional funding for primary care services, without imposing offsetting payment reductions on specialty care;

• Addresses growing physician workforce concerns;

• Strengthens the Medicaid program;

• Requires individuals to have health insurance, and provides premium assistance to those who cannot afford it;

• Includes prevention and wellness initiatives designed to keep Americans healthy;

• Makes needed improvements to the Physician Quality Reporting Initiative that will enable greater participation by physicians; and

• Initiates significant payment and delivery reforms by encouraging participation in new models such as accountable care organizations and the patient-centered medical home.

The AMA looks forward to further constructive dialogue during the committee mark-up process. We pledge to work with the House committees and leadership to build support for passage of health reform legislation to expand access to high quality, affordable health care for all Americans.

This year, the AMA wants the debate in Washington to conclude with real, long overdue results that will improve the health of America’s patients.

Sincerely,
Michael D. Maves, MD, MBA

Two Proposals to Pay for Health Care Reform

2009-07-07T15:26:00.005-05:00

Two Proposals to Pay for Health Care Reform without Hurting Struggling Families in Florida

Expanding the Medicare Tax or Limiting the Benefits of Itemized Deductions Can Make the Tax Code Fairer and Help Finance Health Care Reform

Health care reform can save us all money in the long-run by bringing all Americans into the health insurance system and rooting out the inefficiencies that drive up costs. But to make that happen, Congress will first need to raise revenue to finance an overhauled health care system. There are several ways to raise this revenue that would not hurt working families in Florida or in any other state. One is to make the Medicare tax a more progressive tax that investors pay just like everyone else. Another is to limit, as President Obama has proposed, the value of itemized deductions, which currently benefit rich families more than middle-income families. If Congress enacts the Medicare tax expansion described here, the richest one percent of taxpayers in Florida would have an average tax increase of $31,280 while the middle fifth of taxpayers would have an average tax increase of just $33.

If Congress instead enacts the President’s proposal to limit itemized deductions for the wealthy, the richest one percent of Florida taxpayers will have an average tax increase of $12,991 while the middle fifth of taxpayers will have no tax increase at all.

Proposal 1: Make the Medicare Tax Fairer

Problem: We Have a Tax to Fund Health (the Medicare Tax) But Paris Hilton Is Exempt! The Medicare payroll tax is the one important tax we already have that is dedicated to funding health care, but it completely exempts wealthy investors whose income takes the form of capital gains, stock dividends, and interest. Someone who does not have to work because she owns a lot of stocks or other assets and receives capital gains, dividends and interest currently pays no Medicare tax whatsoever. The Medicare payroll tax is levied at a flat rate of 2.9 percent on all wages and salaries. Technically, half is paid by the employee and half is paid by the employe (but most economists think that the employee ultimately pays the employer portion as well through reduced wages).

Solution: Make the Medicare Tax a More Progressive Tax that Investors Pay Just Like Us

The Medicare tax can be improved with a few simple steps that have been formulated by Citizens for Tax Justice (CTJ) and endorsed by Health Care for America Now (HCAN). First, the individual portion of the Medicare tax (the 1.45 percent tax currently paid by employees) can be extended to cover unearned income (investment income) like capital gains and stock dividends in addition to earnings.

Second, the individual portion of the Medicare tax (which would now cover both earnings and investment income) can be made progressive by introducing a higher rate of 2.5 percent that applies to the earned and unearned income above $200,000 (or $250,000 for married couples). The employer portion of the Medicare tax would not be changed.

Third, to prevent a tax increase on moderate-income seniors, the expanded Medicare tax can exempt the first $50,000 of investment income for seniors (or $100,000 for married seniors).

How Much Revenue would This Raise to Pay for Health Care and Who would Pay It?
The proposal outlined here would raise $40.5 billion in revenue in 2011 and around $500 billion over a decade, without disproportionately impacting families that are currently struggling to obtain health care and other necessities.

If Congress enacted this proposal, most Americans would either see no tax increase at all or would see a tax increase of less than $100 a year. That’s because the proposal mainly targets unearned income (investment income), and the vast majority of investment income is received by the richest Americans.

As a result, about 71 percent of the resulting tax increase for Florida taxpayers would be paid by the richest one percent of the state’s taxpayers. About 87 percent would be paid by the richest five percent of the state’s taxpayers.

This proposal would also have little impact on seniors. Most Social Security benefits are already exempt from taxes, and this proposal would not change that. In addition, the exclusion for investment income for seniors ($50,000 for singles and $100,000 for married couples) would be more than adequate to shield the vast majority of seniors from a tax increase.

Proposal 2: Limit Itemized Deductions for Rich Families
Problem: Itemized Deductions Subsidize Activities at Higher Rates for High-Income People

Itemized deductions provide subsidies for certain activities (like buying a home or giving to charity) through the tax system. But they unfairly subsidize these activities at higher rates for wealthy families than they do for middle-income families. People filing their federal income taxes are allowed deductions to lower their taxable income. They can either take a “standard deduction” or choose to “itemize” their deductions. Most people take the standard deduction, but well-off families typically itemize.

The income tax allows you to take an itemized deduction for interest you paid during the year on a home mortgage, for charitable donations you made during the year, for state and local taxes you’ve paid, and for several other expenses.

The problem is that itemized deductions subsidize certain activities at a higher rate for high income taxpayers. For example, the itemized deduction for home mortgage interest is supposed to encourage home ownership, but it does so in an outrageously unfair manner. Someone rich enough to be in the 39.6 percent income tax bracket will save almost 40 cents for each dollar they spend on mortgage interest.

A middle-income family might be in the 15 percent tax bracket. This family will save only 15 cents for each dollar they spend on mortgage interest.

If a member of Congress proposed a program to encourage home ownership through direct subsidies, with larger subsidies going to rich families than middle-income families, we would say that’s absurd. But that’s exactly how the itemized deductions work.

Solution: President Obama Would Limit Tax Savings to 28% of Itemized Deductions
The President would reduce, but not eliminate, this disparity by limiting the savings for each dollar of deductions to 28 cents. So someone in the 39.6 percent tax bracket would save 28 cents (instead of nearly 40 cents) for each dollar of itemized deductions. That’s still more than the family in the 15 percent bracket would save, but the difference would be reduced.

How Much Revenue would This Raise to Pay for Health Care and Who would Pay It?
The President’s proposal to limit the benefits of itemized deductions for high-income people would raise over $20 billion in 2011 and over $260 billion over ten years, without impacting the vast majority of Americans at all.

Only 1.8 percent of Florida taxpayers would be impacted in any way. As a result, about 85 percent of the resulting tax increase for Florida taxpayers would be paid by the richest one percent of the state’s taxpayers. About 99 percent would be paid by the richest five percent of the state’s taxpayers.

Misinformation about the Impact on Charities
Some lawmakers have expressed concern that this proposal would hurt non-profits because it would reduce the tax subsidy for charitable donations by wealthy taxpayers. But a recent report from the Center on Budget and Policy Priorities concludes that this proposal would only reduce charitable giving by around 1.9 percent.

That’s partly because only a small group of wealthy taxpayers are affected, and they only account for a fraction of the total charitable giving (about 17 percent) in the United States. Using previous studies on the way tax rates impact charitable giving, they estimate that this fraction of charitable giving will be reduced somewhat, but the overall impact on donations will be a reduction of only 1.9 percent.

The report also points out that non-profits could gain enormously if Congress uses this proposal to fund reform of the health care system, making it easier for non-profits and other entities to make sure their employees have adequate coverage.

To see Florida's report, please go here: http://www.ctj.org/payingforhealthcare/fl.pdf

If you would like to see reports for different states, you can find them here:
http://www.ctj.org/payingforhealthcare.htm

What happened with HB 1171?

2009-06-29T15:35:00.003-05:00

1171, the insurance deregulation bill, was passed by an overwhelming majority in the Florida House and Senate, then vetoed by Governor Crist. Why?

I would speculate that because this idea was fairly popular with constituents, many voted for it knowing the Governor would take the heat. The insurance company PR campaign was quite effective, and also, many legislators wanted to be able to say they went along with the insurers (a breakaway group of smaller insurers opposed the bill.) Voting with insurers helps get campaign contributions. But legislators probably knew that the Governor had to veto the measure because it could wreak havoc on his Senate run if rates go through the roof. The safe choice was the veto, and rates stay the same, mostly. So the vote was a freebie for the legislators: Help your contributor, but no impact on your voters. Can't help wondering if some of them were nervous that he might sign it.

The veto override isn’t likely because the Senate President voted against the bill along with a significant group of senators including the minority leader, Sen. Gelber. The Republicans aren’t that thrilled with Charlie, but they aren’t likely to revolt against him either because he is very popular. They can make his life difficult, and 1171 does just that. He has to argue against something that hasn’t actually happened, so its hard for him to make his case. Everyone asks, “Why can’t I have a choice?” and it isn’t an easy answer.

He will probably still win the Senate seat, but it’s a little harder now. Charlie knows that running against the insurance companies has usually been a winner in our state. Look at Bill Nelson, former insurance commissioner. So he isn’t too worried. In the end, everyone is happy but a certain large insurer, and they’re really mad, but they just haven’t played this very well. This is the insurance business. They make a lot of money. They need to deal with the occasional negative outcome.

Governor Vetos 1171

2009-06-24T14:49:00.003-05:00

Gov Crist today vetoed HB 1171, the State Farm bailout bill. FCAN and numerous other consumer groups had urged the veto. We thank the Governor for his wise decision.

Had the bill been signed, Florida insurance rates would have skyrocketed and thousands of policyholders would have come the the state run Citizens Property Insurance company.

Now, it remains to be seen whether State Farm will follow through on its threat to leave the state. This blog has always maintained that State Farm is bluffing and that they will find an excuse to stay. My guess would be that they say market conditions have changed and that they will accept a 20% or 30% rate hike from OIR. They will dramatically dump a few policies and then go back to business as usual, namely bullying everyone else.

State Farm's loss will be the gain of smaller companies trying to get into the Florida market. Our insurance market is growing and competition is increasing. That can now continue.

Veto HB 1171 -- State Farm Bailout

2009-05-28T09:47:00.006-05:00

Gov Charlie Crist is currently considering whether to sign or veto HB 1171, which we call the "State Farm Bailout" and which the Florida House calls "Consumer Choice." FCAN urges all its members to immediately call, email, or fax the Governor requesting a veto of this bill.

HB 1171 would allow insurance companies like State Farm to sell the policies they are currently selling at any price they wish and those policies would be exempt from assessments by the state. Unfortunately, an amendment requiring the companies to continue to sell their current policies at the state approved price failed, meaning the companies would be able to only offer the higher priced policies. Essentially, homeowner's insurance would be deregulated. State Farm was turned down recently for a 60% rate hike, so we assume that would be the new price of their policies.

The result of this bill will be skyrocketing insurance costs and a flood of consumers into the state run Citizens Property Insurance. What are the consequences? Certainly, higher profits for insurance companies, higher rates for consumers, and beyond that, the unknown. We don't know what would happen with Citizens or the rest of Florida's homeowner insurance market.

Background

Homeowner insurance is regulated for several reasons. Insurance policies are quite complicated, and regulation allows consumers to know that they are truly protected by their policy. Insurance companies are also regulated for solvency, meaning the state makes sure that they have sufficient funds to pay claims. This is very much in the public interest, because the rest of us would have to pick up the cost of those claims because of the Florida Insurance Guaranty Association or FIGA. FIGA is like FDIC for banks. It means you can rest assured your claims will be paid.

Insurers aren't required to be regulated. Unregulated companies are called "surplus lines" carriers and you are on your own in dealing with them. It is a "buyer beware" situation. Chubb is a large surplus lines carrier as is Lloyd's of London.

But State Farm and others like them don't want to be unregulated because they would then lose the protection of FIGA and the approval of the state for their policies. One of the largest benefits is the ability to purchase discount "reinsurance" from the state Cat Fund. Naturally, insurance companies don't want to give up that benefit and would no longer have to pass along those savings to consumers. They want to have their cake and eat it too.

State Farm tried to prove it deserved higher rates in hearings before the insurance commissioner, an administrative court judge, and an appeals court judge. They lost every time. So, according to the St. Pete Times, they spent $204,998 lobbying the legislature this year and it seems that HB 1171 could be the result.

Take Action

Our state insurance department has done a good job in regulating our insurance companies, and now it no time to roll the dice on our economic future. Floridians need the assurance of regulation to know their policies are worth what they are paying.

Contact Gov Charlie Crist at 850-488-4441 or email charlie.crist@myflorida.com The fax number is 850-922-4292. Tell him to VETO HB 1171!

Insurance Campaign Contributions

2009-05-15T14:38:00.004-05:00

Julie Patel posted this article on SunSentinel.com pointing out that "Florida legislators, received nearly $2 million in insurance-related contributions since the start of 2008"

Also, followthemoney.org documents $115,172 in donations to legislators from State Farm agents in 2008.

Consumer advocates ask Gov. Crist to veto home insurance deregulation
> Posted by Julie Patel on May 6, 2009 03:17 PM

Four consumer advocacy groups implored Gov. Charlie Crist today to veto a bill that would allow large insurers to charge essentially unregulated rates.

"This bill is an invitation for insurers to game the Florida regulatory system and abuse consumers," said officials from the Consumer Federation of America, Consumer Watchdog, Center for Economic Justice and United Policyholders in a letter to the governor. "No price can be too high, no discrimination can be found unfair if a policy is issued under these terms."

Bob Hunter, insurance director for the Federation who occasionally consults for state regulators, said deregulation failed in Texas where he was the insurance commissioner. Insurers wouldn't sell policies or they'd only sell policies "at very excessive rates," according to the letter.

Sen. Mike Bennett (R-Bradenton), who pitched the Senate version of the bill, told legislators last week to support the measure "if you really believe in the free market [and] you really believe constituents should be able to pick an insurance company of their choice even if they're willing to pay more."

Florida legislators, who received nearly $2 million in insurance-related contributions since the start of 2008, approved six home insurance measures that were backed by insurers this year and two that weren't. Included in the half dozen measures is the deregulation bill and a broad property insurance package aimed at drawing insurers to the state and reducing financial risks for Floridians if a major hurricane hits.

"Loosening the regulatory chokehold on private insurers and requiring the residual market to pay its own way are positive moves," Cecil Pearce, American Insurance Association's state affairs vice president, said in a statement.

Veto State Farm Bailout Bill

2009-05-14T12:25:00.002-05:00

May 7, 2009

Honorable Governor Charlie Crist
The Capitol
400 S. Monroe St.
Tallahassee, FL 32399-0001

Honorable Governor Crist,

RE: HB 1171 The Insurance Company Choice Bill

On behalf of the thousands of members of Florida Consumer Action Network (FCAN) and our Board of Directors, I urge you to veto HB 1171, the bill on your desk that would deregulate Florida’s insurance companies. I feel this bill would be a disaster for the state – causing skyrocketing insurance rates, floods of new customers into Citizens, and disruption of our fragile insurance market.

The bill is really an “insurance company choice” bill, not a “consumer choice” bill as it is misnamed. If you sign this bill, insurance companies can choose to stop offering their current policies and offer policies at unregulated rates instead. State Farm would gain the most, since they would be able to raise their rates the 67% they were denied by the Insurance Commissioner and the courts. What they were unable to prove they deserved, they were able to lobby through the legislature. Its not fair.

Companies like State Farm currently benefit from discounted reinsurance rates from the taxpayer subsidized Cat Fund, yet under 1171, they would no longer have to pass along those savings to consumers. That’s not fair. State Farm’s policies would still be backed by the Florida Insurance Guaranty Fund (FIGA) as if they were regulated. If insurance companies really want deregulation, they can immediately be deregulated by becoming “surplus lines” companies. They don’t really want it. They want the backing of the state without the responsibility, like children.

Our thousands of members have greatly appreciated the way you have stood up to insurers and worked to hold down rates. You called State Farm’s bluff, and now we want to see what cards they are really holding. I agree with you: they’re too high priced and good riddance. I also think they are too greedy to actually leave.

Please veto this bad bill and remain the champion of insurance consumers throughout the state.

Thank you,

Bill Newton
Executive Director

Giving away our water

2009-04-25T20:25:00.003-05:00

Tampa's Brendan McLaughlin did an excellent story on ABC Action News about the giveaway of our water to Nestle Waters and the enrichment of Robert Thomas. While we are all undergoing a drought and cutting back on water use, these guys clean up at our expense. We applaud the Governor for leading the way on taxing the water. But why don't they at least have to cut back during the drought?

That's Tampa's water, and it would feed directly into the Hillsborough River and come our our taps, if Nestle - Zephyrhills didn't have such a sweet deal. How come we all have to pay for water, but it's free for them?

Veto Elections Bill!

2009-04-22T10:48:00.001-05:00

AD HOC COALITION OF CITIZEN, CIVIL RIGHTS AND VOTING RIGHTS GROUPS CALL UPON GOVERNOR CRIST TO OPPOSE AND VETO:

Senate Bill 956 and House Bill 7149

April 22, 2009

Office of Governor Charlie Crist
State of Florida
The Capitol
400 S. Monroe St.
Tallahassee, FL 32399-0001
Charlie.Crist@MyFlorida.com

Dear Governor Crist:

We, the below-signed organizations, write to respectfully request that you oppose companion election bills Senate Bill 956 and House Bill 7149, currently under consideration by the Florida legislature. We urge you to speak out forcefully against these bills, and to veto any resultant legislation, should it reach your desk.

These bills, designed to suppress the vote, may be enacted at the eleventh hour of the session with only minimal public consideration or legislative deliberation. Among other provisions, the bills would:

• Delay from 2012 to 2016 making accessible marksense (paper) ballots available statewide to voters with disabilities
• Restrict third-party voter registration efforts
• Make it much harder for grassroots groups to use the citizens’ initiative process
• Restrict nonpartisan election protection programs
• Reduce transparency in the funding of political advertisements
• Bar more voters from casting a regular ballot on Election Day
• Restrict the list of accepted forms of identification for voter registration and identification at the polls
• Expand the ability of lobbyists to influence legislators and legislation
• Restrict the ability of the governor to extend early voting
• Grant sweeping and unchecked power to the Department of State at a time when some supervisors interpret election laws to protect and expand voter rights in their respective counties, in contrast to the state’s restrictive interpretation of the same laws

These provisions needlessly infringe on the voting rights of Floridians, particularly those of historically disenfranchised communities, including elderly and low-income voters, and voters of color. Instead of fixing real problems—such as expanding access to early voting as you directed in November—they would disenfranchise eligible Floridians, for no legitimate reason and at significant taxpayer expense.

We respectfully urge you to right this wrong, and send a strong message to the legislature that you will not condone these unjustified and harmful measures.

For more information please contact Courtenay Strickland, Director of Public Policy, ACLU of Florida (305) 457-5422 cell or cstrickland@aclufl.org, or Carolyn Thompson, Voter Protection Advocate, Advancement Project cell (786) 278-2361 or cthompson@advancementproject.org.

Sincerely,

AARP
Advancement Project
American Civil Liberties Union (ACLU) of Florida
Broward Election Reform Coalition
Business and Professional Women of Florida
Central Florida Teamsters Union
Common Cause of Florida
Democracía Ahora
Equality Florida
Florida AFL-CIO
Florida Alliance for Retired Americans
Florida Association of Planned Parenthood Affiliates
Florida Acorn
Florida Council of the Blind
Florida Consumer Action Network
Florida Health Care Association
Florida Immigrant Coalition
Florida Fair Elections Coalition
Florida National Organization for Women
Florida Public Interest Research Group (PIRG))
Florida State Conference NAACP
Florida Voters Coalition
Haitian-American Grassroots Coalition
Handicapped Adults of Volusia County (HAVOC)
Human Services Coalition
LatinoJustice (PRLDEF)
Latino Leadership
Lawyers’ Committee for Civil Rights Under Law
League of Women Voters
Miami-Dade Election Reform Coalition
One Nation Volusia
People for the American Way Foundation
Palm Beach Coalition for Election Reform
Project Vote
Sarasota Alliance for Fair Elections
SEIU Florida
SAFE
Unitarian Universalist Legislative Ministry of Florida

Our Legislature is corrupt and insane

2009-04-20T10:55:00.003-05:00

Yes, folks, its true. They've lost their minds, and they're up to their ears in special interest money. The grand jury says so. They indicted this year's first house speaker on corruption charges, and then indicted the whole legislature.

While the rest of the country woke up to the half truths and deceptions of these politicians, Florida lags well behind and we are stuck with a bunch of neanderthal legislators (no offense to neanderthals!)

Consider a few of their actions: they plan to give tax break for private planes and yachts for their wealthy patrons while cutting back support for education and health care.

Despite the fact that deregulation got us into the financial mess we're in, the legislature wants to deregulate phone service, and lift all or many restrictions on developers. Haven't we learned anything? Does anyone still believe the deregulation rhetoric?

Legislators have to call a DC think tank operator, Grover Norquist, to ask permission to vote for a tax. Don't legislators think they should consult with their constituents instead? Are they nuts?

And just in case you were thinking about doing something about this, they are passing new legislation restricting your voting rights. They're making it harder to register to vote and doing everything they can to protect their jobs.

Maybe they are getting the idea that people might consider this corruption and insanity enough reason to throw some of these rascals out. It happened to the rest of the country. Florida may be behind the times, but maybe we can catch up next election cycle.

Unregulated Insurance Rates?

2009-04-16T11:25:00.004-05:00

Howard Troxler writes an excellent column today on Senate Bill 2036 and House Bill 1171 regarding deregulation of insurance rates. As Howard explains it, insurers could offer rates in excess of their approved rates and that might create some competition for policyholders. Hmmmm...

We regulate insurance because it is a complicated product and the consumer is at a considerable disadvantage, which you know if you have ever tried to read your policy. So the state analyzes the policy for you and decides what is a fair price, with a lot of input from the company and in comparison to similar policies. Also, if the policy doesn't cover you, the rest of us often end up picking up the tab. We have an interest in making sure your policy pays. The state also stands behind policies through the Florida Insurance Guaranty Fund (FIGA) which is like the FDIC is for banks. You can buy a policy from a small company knowing they are backed the same as State Farm. For some reason, big insurers always lobby to keep small insurers from advertising this.

You can always buy a policy on your own through what is called "surplus lines." Chubb is a surplus lines company. Generally, the market for these policies is people with multi-million dollar homes that can afford an attorney and financial advisors to negotiate the policy for them.

I have two questions about this "deregulation": Will we still be assured that the policy covers what we think it does, meaning it is still the policy "form" approved by the state Office of Insurance Regulation? And what about the wind?

Assuming that the same standard insurance (or form) will be what is offered, then insurers could offer insurance to people they otherwise wouldn't insure because their approved rates are too low, or so they say. Those people might now be in Citizens, and could then opt out for a cost.

Say you are currently with State Farm, which says it is leaving because the state won't let it charge high enough rates. You could stay with State Farm if it chose to offer you insurance at the unregulated rate. That's why some people think this is the "State Farm" bill. Your option would be another insurer or Citizens.

Citizens? As I understand current law, people would still have the option of buying Citizens as long as the rate offered by the private competitor was 15% higher than Citizens. Since State Farm says they need a 62% increase, most cost sensitive people would go to Citizens. Brand name shoppers might actually pay the increase. What would stop insurers that currently offer policies within that 15% from no longer offering those policies and only offering higher priced policies, but say, 14.99% higher?

And what of the wind? In coastal areas, would the higher priced policies include wind coverage from the insurers or from Citizens? This is not clear.

One thing is clear, assessments should not be exempted, and Troxler agrees: "the House bill would create two classes of Floridians: a privileged class that could afford to "buy its way out" of paying for Florida's future hurricanes, and those still in the old system who would get stuck."

Everyone in Florida will have to pay for hurricane damages, and setting up a group of people who could opt out of the costs of the state helping us out, but would still reap the benefits, just isn't fair.

Trox also suggests this bill "couldn't hurt." That is unclear as well. Trox may not have heard of something called "unintended consequences." They can roar like a hurricane.

New Senate Insurance Bill

2009-04-01T16:28:00.003-05:00

The Florida Senate today is looking at attempting to fix Florida's insurance crisis. We won't know until later what comes out of the committee, but an early bill analysis is encouraging.

What I see is "file and use" ratemaking extended another year, but in exchange for "flex bands" for insurance companies, and higher Citizens rates. Extending "file and use" is FCAN's top priority.

The insurance companies have asked for flexibility and the experiment should be allowed to proceed. If insurers are responsible, it should continue. The Senate Bill contemplates allowing insurers raise to rates less than 10 percent per year, triggered by various circumstances including higher reinsurance costs.

Many people will object to Citizens raising its rates, but the state simply has too much exposure. FCAN has endorsed the so called "glide path" to reach actuarially sound rates. However, that might mean some rates could go down. The definition of "actuarially sound" is questionable. Insurer models are suspect, and recently the National Association of Insurance Commissioners started to look into the problem and may produce its own model.

One good item is that part of the Citizens increase would go into My Safe Florida Homes, which pays for retrofitting Florida homes to make them withstand hurricanes.

More on this bill in the coming days. The house insurance committee is expected to look at insurance on Friday. There is bound to be plenty of horsetrading.