Another blind Illinois hater heard from
Tuesday, Jun 5, 2012 - Posted by Rich Miller
* Apparently, they’ll pay anybody to write any goofy thing over at the Wall Street Journal. Here’s an opinion piece by William McGurn published today…
Unlike Illinois, Ohio has a Republican governor, John Kasich, and a reformist Republican legislature. Unlike Illinois, Ohio’s governor ruled out tax hikes as a way to address his state’s budget hole ($8 billion). And unlike Illinois, whose Medicaid cuts mostly do nothing to slow the growth of spending, Ohio’s Medicaid program expects to see its annual rate of increase cut in half.
How did Buckeye Republicans do it? It turns out that when you can’t rely on dubious revenue projections, you get more serious about spending. When Mr. Kasich’s people looked at Medicaid, they found that 4% of Ohio’s Medicaid cases accounted for 51% of the spending. That allowed them to address costs while improving care—e.g., coordinating care for the most expensive, chronic cases instead of just having them show up in emergency rooms.
In sharp contrast, the cigarette tax in Illinois raises many more questions than it answers. Take the projected $350 million in revenue, which is designed to help close a $2.7 billion Medicaid gap.
OK, so Illinois slashed programs, whacked reimbursement rates to providers, cut the state’s Medicaid “credit card” to prevent it from using next year’s revenues to pay for this year’s spending and moved people into less expensive care and yet the WSJ says the cuts “mostly do nothing to slow the growth of spending”? Ridiculous. Here are a couple of “losers” identified by the AP…
LOSERS
• Patients: The vast majority of the spending reductions will mean leaner services for the state’s 2.7 million Medicaid patients.
The cuts end prescription drug coverage for nearly 200,000 senior citizens and halt health coverage entirely for 35,000 adults. Illinois would join other states that already cut back on Medicaid extras like regular dental care for adults. The state would no longer cover most visits to chiropractors and only people with diabetes could see podiatrists.
Eyeglasses would be limited to one pair every two years. Prior state approval would be required for wheelchair repairs, heart bypass surgery and obesity surgery. Patients would be limited to four prescription drugs per month without prior approval. […]
• Nursing homes: Illinois is trying to discourage expensive nursing home care for people who could stay in their own homes with help. That’s reflected in the Medicaid rate cuts. Nursing homes with healthier residents will take a 10 percent cut in payments. Those with sicker residents will face cuts of 1 percent. Institutions for Mental Disease, a type of nursing home with mostly mentally ill residents, will see cuts of 2.7 percent.
But Illinois did “mostly nothing.” Right.
…Adding… From Wall Street Journal editor Allysia Finley on the failure of pension reform…
The lesson in all this is that reforming government takes courage and deliberation. By leaving pension reform to the last week of the legislative session, lawmakers betrayed that it wasn’t a priority. They tried to cobble together a bill at the last minute, but things done in haste are rarely successful.
The pension study group, staff and leaders worked on this issue for months. And everything big in Illinois is put off until the last week.
- 42nd Ward - Tuesday, Jun 5, 12 @ 1:05 pm:
But isn’t this a rehash of the same arguments, I.e., “We can’t cut, it hurts people” vs. “We can’t afford it.”?
- Give Me A Break - Tuesday, Jun 5, 12 @ 1:07 pm:
Perhaps a call from Mr. McGurn to an Illinois provider of human services is in order.
- wordslinger - Tuesday, Jun 5, 12 @ 1:18 pm:
Even after Rupert, the WSJ puts out probably the best newspaper in the English language five days a week.
But their opinion writers, always, always, have been on crack.
The old saw in the business is that the reporters at the WSJ work day and night to prove their opinion writers are morons.
- Shore - Tuesday, Jun 5, 12 @ 1:20 pm:
It’s about him hitting Obama more than it is about hitting Illinois as the nytimes opeds hitting school boards and the prison system in texas long after bush moved onto to dc were more about him than what was going on there. California is I think voting on cigarette tax increase today and I am sure there are other states even ones with republican governors or state legislatures that have done similar things or even gone farther.
http://www.washingtonpost.com/blogs/ezra-klein/post/california-weighs-doubling-its-cigarette-tax/2012/06/05/gJQANuGzFV_blog.html
When Obama started to run there was a lot of love in the media for Illinois and chicago not all of it earned and deserved, but there’s also the reality that other people on the other side will want to tell another story about the state and not every hit will always be earned or deserved.
- Ahoy! - Tuesday, Jun 5, 12 @ 1:21 pm:
I”m shocked, shocked that the newspaper owned by the same people as FOX news would say misleading things.
That being said, I actually like the WSJ, it was an opinion piece and they should probably stick more with what they know, business.
- Mouthy - Tuesday, Jun 5, 12 @ 1:22 pm:
Wall Street Journal - Part of News Corp’s future vision for America. When I was young it was called TASS.
- Yellow Dog Democrat - Tuesday, Jun 5, 12 @ 1:24 pm:
First, the author “fails” to mention that cigarette taxes were increased to $1.25 a pack in Ohio over seven years ago. I guess it didn’t fit his story.
Unlike Illinois, small towns in rural Ohio are being forced to declare bankruptcy and dissolve themselves in the wake of massive budget cuts instituted under Governor Kasich’s “No New Revenue” budget.
This article is a must-read:
State budget cuts hit small-town Ohio
Residents in Uniopolis wanted a balanced budget, and voted in Republican Gov. John Kasich to get the job done. But now the village is facing disincorporation because it can’t stay afloat.
- Steve Brown - Tuesday, Jun 5, 12 @ 1:35 pm:
Tried to get Ms. Finley to return a call or email yesterday to chat about pension developments in IL …no luck.
Heck Chubbs Christie get bunches of kudos in NJ and he skipped the pension payment his 1st year in office.
- TwoFeetThick - Tuesday, Jun 5, 12 @ 1:47 pm:
YDD, that article sums things up perfectly. People just don’t equate government cuts with a loss of anything they care about or affected by. When cuts hit close to home, it’s always “I didn’t mean cut THAT” or “Yes, I wanted cuts, but not cuts that deep.” IMO, people are dangerously disconnected from their government.
Oh, and who the heck thought it was a good idea to include government pre-approval of wheelchair repairs? What did that save, a few thousand dollars? What are people going to do, crawl around until an overworked and understaffed office somewhere gets around to approving their request?
- Another View - Tuesday, Jun 5, 12 @ 1:49 pm:
YD, I’m not sure how the 7 year old cig tax is relevant to how the current gaps are being filled. Did the writer mention the cig tax in Illinois before this new law?
I’m not all together familiar with the budget cuts in Illinois. If they did something similar to what happened in Ohio as related by the WSJ, then the article is grossly unfair. But if Illinois adopted a less strategic approach with across the board type cuts, then I’d say the article is fair.
I haven’t heard in this debate anything akin to the 4%/51% number so I’m guessing it wasn’t part of the discussion.
Rich, I’d say that your comment about everything being put off to the end is hardly an excuse. It’s an indictment. Interesting that you’d take the status quo, which has led to the very problems being bemoaned, as somehow all right. That’s the whole point. We need to do something different. They didn’t.
- Anon - Tuesday, Jun 5, 12 @ 1:51 pm:
==everything big in Illinois is put off until the last week.==
OK, but that doesn’t necessarily mean it’s desirable. More likely it’s the way MJM prefers, to maximize his control.
As Dr. Phil would say, “How’s that workin’ for ya?”
Seems like another approach might be worth a try.
- Rich Miller - Tuesday, Jun 5, 12 @ 1:56 pm:
===More likely it’s the way MJM prefers, to maximize his control.===
Pretty sure that predates MJM.
- chuddery - Tuesday, Jun 5, 12 @ 1:59 pm:
==Pretty sure that predates MJM.==
That’s not true Rich. Before MJM all was right and there was no evil in the world.
- TwoFeetThick - Tuesday, Jun 5, 12 @ 2:12 pm:
===… your comment about everything being put off to the end is hardly an excuse. It’s an indictment.===
The reality is, the longer a controversial proposal sits in public view, the more time those opposed to it have to stir up opposition to kill it. Plus, no one involved in significant negotiations wants to be the first to give in. There’s often nothing sinister involved in proposals coming together at the last minute. Everyone just holds their ground as long as possible and, if anything major is ever going to get passed, it has to move quickly before those opposed have time to amass their troops. That’s just how it is. That’s why you’ll never see a budget sit in public view for days before it is voted on. No budget could ever get passed in that situation. No matter how good of a budget it may be, there are always winners and losers.
- CircularFiringSquad - Tuesday, Jun 5, 12 @ 2:28 pm:
And Madigan created craming for finals,etc.
- Yellow Dog Democrat - Tuesday, Jun 5, 12 @ 2:44 pm:
@Another View-
If you’re gonna credit Ohio for balancing their budget without raising taxes, you really ought to point out that Illinois cigarette tax was much lower than Ohio to begin with.
- wishbone - Tuesday, Jun 5, 12 @ 2:49 pm:
“Eyeglasses would be limited to one pair every two years.”
Actually that sounds pretty generous. I’ve had my current pair at least four years, but then I pay for my own.
- mark walker - Tuesday, Jun 5, 12 @ 2:50 pm:
Did McGurn even call anyone in Illinois? He clearly knows nothing about the Medicaid changes and cuts, which were targeted, both strategic and tactical, and not across the board. Maybe his key data source, if he has any at all, is Illinois Review.
Both the budget line items and the Medicaid reforms were studied, and worked on for months. Various pension reform ideas were discussed for months as well, but firmly proposed for decision only late in the process.
My (anecdotal and incomplete) understanding is that most states decide on budgets and other big fiscal issues only at the end of session, after months or weeks of preparation, precisely for the reasons outlined by TwoFeetThick above.
Those who loudly complain about “last minute bills forced through” an uninformed legislature, strike me as either willfully unknowing or misled.
- Anonymous - Tuesday, Jun 5, 12 @ 2:58 pm:
I’d love to hear more details about “4% of Ohio’s Medicaid cases accounted for 51% of the spending.” Is that true here? If so is there any any way to give those people the same or better care for less? For example I know it costs way less to keep someone at home with assistance than to put them in a nursing home and it can sometimes give better results. Are any of these 4% candidates for something like that or are they just so extremely ill/injured that there is no other option?
- Lakefront Liberal - Tuesday, Jun 5, 12 @ 3:22 pm:
====- wishbone - Tuesday, Jun 5, 12 @ 2:49 pm:
“Eyeglasses would be limited to one pair every two years.”
Actually that sounds pretty generous. I’ve had my current pair at least four years, but then I pay for my own. ======
Why do you assume that because you have been able to see clearly with the same prescription for four years that others are in the same situation?I’ll bet that if after a year with one prescription you found yourself squinting and getting headaches because you are unable to see clearly you would get new glasses even though you “pay for your own.” Would that make you someone who wastes money or someone who has a medical need?
In a democracy we have a role in making decisions that affect the lives of others. If we want to do that fairly we have to realize that they might not be EXACTLY like ours.
- capncrunch - Tuesday, Jun 5, 12 @ 3:36 pm:
I didn’t know William McGurn was blind.
- Another View - Tuesday, Jun 5, 12 @ 4:04 pm:
YD, you’re right to a point. However, I’m not sure you can expect any reporter to be able to compare all the hosts of taxes in existence in the various states.
Conventionally, you take a look at where things are now and see how they’re handled from this point. In this instance, Ohio didn’t raise taxes, Illinois did. Or so I gather.
A “fair” analysis would also include reimbursement rates in existence now, poverty rates, and more items that might make Ohio look better or worse. I wish that type of analysis happened, but it doesn’t. Not by the WSJ, Trib, NYT, etc.
I’ve tried to find a single reference to an Ohio town facing bankruptcy, and haven’t found it. The article you posted doesn’t reference it, only a possible dissolution. No other towns possibly dissolving are listed. Can you point me to something about a bankruptcy?
- Wensicia - Tuesday, Jun 5, 12 @ 4:09 pm:
After this, I guess the Tribune editorial board loses its 1st place rating as most negative towards Illinois government.
- Michelle Flaherty - Tuesday, Jun 5, 12 @ 4:20 pm:
Umm, OK, there was that $2.7 billion Medicaid thingy that included the single largest program cut in state history.
But that was a couple weeks ago and everyone forgot about it with all the putting things off until the final day.
- Michelle Flaherty - Tuesday, Jun 5, 12 @ 4:24 pm:
Another View,
A few years ago Ohio adopted a Gross Receipts Tax for taxing businesses. You should Google that and Illinois for some fun reading.
- Uncle Musty - Tuesday, Jun 5, 12 @ 5:22 pm:
Unbelievable. Really. Anyone who sticks up for what is happening in this state is daft. We can’t pay our bills, medicare providers have stopped accepting patients, we cut services to the poor, the young (school breakfast, after school programs)and the mentally ill. We have the most underfunded pension system in the country. Our Governor is more of an Ambassador than a governor and our credit rating is garbage. Taxes get raised to pay down… whatever, and nothing gets paid. And everything is Hunky Dory?
- Michelle Flaherty - Tuesday, Jun 5, 12 @ 5:36 pm:
Uncle, you have no idea what you’re talking about.
This budget has $1.3 billion to pay bills.
It had to come from somewhere, so all kinds of stuff got whacked.
MediCARE is a federal program.
I’m guessing you mean Medicaid.
A big part of that $1.3 B goes to pay MediCAID bills to resolve the very problem you’re talking about and part of the reform this year was to adopt safeguards to ensure the state can’t keep carrying MediCAID bills from one year to the next.
The tax increase essentially went to make the pension payment but without across the board changes those costs will ensure even greater cuts to the poor, young and mentally ill.
This budget contains some of the single largest budget cuts in the history of the state in order to pay bills and somehow you’re left complaining about what’s cut and unpaid bills? Have you read anything the past six weeks?
- hisgirlfriday - Tuesday, Jun 5, 12 @ 5:43 pm:
Guess illinois just needs to follow ohio’s lead and hire a former fox talk show host as guv and wsj will write how all our problems are over. What are dana perinos plans for 2014?
- Uncle Musty - Tuesday, Jun 5, 12 @ 5:45 pm:
Yes I meant mediCAID. I have been dealing with medicare for a parent so I mistyped. Sorry. Can’t you even admit this state is in tad bit of trouble when we have the worst finances of any state and can’t pay years old bills?
- Anonymous - Tuesday, Jun 5, 12 @ 7:08 pm:
=But Illinois did “mostly nothing.” Right.==
Rich, your timing is off on this. Defending Illinois politicians right now is premature. Let’s see if the action taken in the past two weeks — after years of digging the hole we are stuck in — really does result in some stabilization of the patient. Let’s see if the boys can actually get together on a pension plan. Then, and only then, should anyone start being defensive about Illinois’ political leadership and their ability to act.
- Concerned Voter - Tuesday, Jun 5, 12 @ 7:30 pm:
“- Lakefront Liberal - Tuesday, Jun 5, 12 @ 3:22 pm:
====- wishbone - Tuesday, Jun 5, 12 @ 2:49 pm:
“Eyeglasses would be limited to one pair every two years.”
Actually that sounds pretty generous. I’ve had my current pair at least four years, but then I pay for my own. ======
Why do you assume that because you have been able to see clearly with the same prescription for four years that others are in the same situation?I’ll bet that if after a year with one prescription you found yourself squinting and getting headaches because you are unable to see clearly you would get new glasses even though you “pay for your own.” Would that make you someone who wastes money or someone who has a medical need?
In a democracy we have a role in making decisions that affect the lives of others. If we want to do that fairly we have to realize that they might not be EXACTLY like ours.”
I have a question, how often can they glasses now? As a state employee, I am eligible for an eye exam every year minus my copay, and new lenses/frames every 2 years. So I don’t consider that plan as “limited”.
- reformer - Tuesday, Jun 5, 12 @ 8:15 pm:
The WSJ is simply participating in the bash-Illinois to-discredit-Obama program.