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The human side of cost-cutting

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Illinois

* Illinois Cares Rx is a program for low-income seniors and the disabled. Here’s a brief description…

Illinois Cares Rx pays Medicare Part D premiums and reduces co-pays, deductibles and other pharmaceutical costs.

The program’s clients must have incomes below $22,340 a year for a single person and $30,260 for a two-person household.

* That program was eliminated under the Medicaid restructuring agreement. The human cost…

Bonita Turley gets emotional when she thinks about the $100 in additional medical expenses she could have to pay each month.

The Buffalo resident is among a chorus of seniors and advocates who hope Gov. Pat Quinn decides not to sign a budget-cutting bill that would eliminate Illinois Cares Rx, a statewide prescription-assistance program for low-income senior citizens and people with disabilities.

“I want to be as independent as I can,” said Turley, 65, a former insurance clerk who takes medicine for diabetes, seizures and thyroid problems.

Assuming that Ms. Turley is single, that $100 a month cost increase would be 5.3 percent of her annual income if she is at the top of the scale. That percentage could be a whole lot higher depending how far she falls under the cap.

Just something to think about.

posted by Rich Miller
Thursday, Jun 7, 12 @ 8:54 am

Comments

Rich, Rich, Rich, why do you want to wage class warfare against the job creators?

Comment by Lakeview Thursday, Jun 7, 12 @ 8:59 am
I’m waiting to be educated on this by Reboot Illinois, and the Illinois Policy Institute. They say they are non-partisan, so I trust them.

Comment by PublicServant Thursday, Jun 7, 12 @ 9:01 am
Most govt spending cuts will have a human cost. Although sad & unfortunate, I fear we will have a much harder road ahead. Look at the hardship in other countries. Our debt will force us into a different existence in the future.

Comment by Patty T Thursday, Jun 7, 12 @ 9:03 am
I think it is very good to point out these human costs to very vulnerable people. Most of these people who are living on the edge financially would gladly change place with most of the public employees who are in angst over the changes facing them in retirement. Most public employees will be above the poverty line when they retire, no matter which scenario plays out in the future. Sure it won’t be as good as they were promised, but life is not fair sometimes.

Comment by Cassiopeia Thursday, Jun 7, 12 @ 9:06 am
At what point does society start to care for those who are unable to care for themselves?

Comment by Huh? Thursday, Jun 7, 12 @ 9:08 am
Cassiopeia - apples to oranges. Illinois Cares Rx is an entitlement, the pension is deferred compensation.
That said, I will also quote, “a nation’s greatness is measured by how it treats its weakest members.” Gandhi.

Comment by Archimedes Thursday, Jun 7, 12 @ 9:14 am
Will the ACA include some help for those who lose benefits under this program. My impression is that ACA will provide subsidies to lower income taxpayers so they can purchase health services. Of course, the Supreme Ct. could declare some parts of the program unconstitutional this month, but many commentators believe some parts of it will probably survive whatever the Supreme Ct. does.

The ACA will have a huge effect on the provision of medical services in the US. I certainly hope our elected leaders are taking ACA into account as they make what could be short-term changes in Medicaid.

As to cost increases, it looks as though health costs are going up for everybody in the US. ACA tries to limit the impact on lower income citizens though.

Comment by cassandra Thursday, Jun 7, 12 @ 9:21 am
Pew just released an interesting poll regarding the political divide in this country and one of the questions was about caring for the most vulnerable in our society. We do have to ask as a society do we have a responsibility to care for our most vulnerable. And if the answer is yes, we then have to figure out a way to pay for it and we as able bodied citizens have to contribute.

http://www.people-press.org/2012/06/04/partisan-polarization-surges-in-bush-obama-years/06_pp_12-05-25_values_slideshow/

Comment by illilnifan Thursday, Jun 7, 12 @ 9:22 am
Cuts have human costs, but so do credit downgrades and higher interest costs.

The reality is that budgets have grown much faster than inflation for decades. If you didn’t see this coming, where have you been looking?

Comment by Allen Skillicorn Thursday, Jun 7, 12 @ 9:33 am
Public Servant-LOL; I just read yesterday’s blog about an hour ago.

Financially, guess it is a good thing that my dad died a year ago-he was in a nursing home and in IL Cares Rx.

Might as well start the discussion now about physician-assisted suicide. Suicide rates will go up, and why should a person be forced to hang themselves out back alone, when it could be done in a dignified manner surrounded by family and friends in a place accustomed and equipped to deal with death?

Comment by downstate commissioner Thursday, Jun 7, 12 @ 9:36 am
When she says “former insurance clerk”, I’ll make a couple of assumptions. First I know it is dangerous to assume anything. Seconds assume she is retired. Third I assume since it didn’t mention any disability she is retired but not incapable of working a small part time job even 5-10

Comment by The Southern Thursday, Jun 7, 12 @ 9:37 am
@Cassiopeia, your bias is showing, at what level of income is it o.k. for someone to feel “angst” over their situation? We none of us can truly say we know what anyone else is dealing with, financially or emotionally with the cuts. I know several public workers who are barely making it, and not living high on the hog like you and some others think..but because they are just over the income guideline they aren’t eligible for any assistance. As human beings shouldn’t we be concerned about anyone’s misfortune, or does that concern only extend to those we have decided are worthy of concern. I personally think the RX cuts were made as leverage for other cuts, and that money will be found to reinstate the program down the road, but in the meantime, those who are caught in this mess will suffer. I want every legal citizen in IL to have a decent wage, health care, and a pension.. and yes, I am willing to have my taxes raised after a true effort has been made to cut out all the waste in government, and tax loopholes for big business are closed.

Comment by Huggybunny Thursday, Jun 7, 12 @ 9:42 am
And The Southern, I’ll assume you did not bother to click the article and read it.

Comment by Cindy Lou Thursday, Jun 7, 12 @ 9:44 am
Whoops hit enter too early. 10 he’s a week at 8.50 an he gets enough $$ to cover the cost and enough to save for her future yrs when she won’t be able to work due to age. I know this will be demagogued by several of you because that is your instant defense against logic. But there isn’t a law that you must fully retire at 65 especially if you aren’t financially prepared. My faith in the human spirit makes me believe that self reliance brings self respect and unless physical or other impairments prevent you from working, you should do so until you have secured your future. Otherwise its sorta like…welfare for the capable

Comment by The Southern Thursday, Jun 7, 12 @ 9:48 am
Cindy.

You assumed wrong. I see she has medical issues but she doesn’t indicate disability. Sorry for the grammar probes. The auto type feature is modifying my text.

Comment by The Southern Thursday, Jun 7, 12 @ 9:52 am
When the state has no money it is not feasible to keep spending. I’m sure more of these stories of people being hurt by the past mismanagement of the state will continue to be broadcast. Maybe we could have the people who are being harmed tell their stories in front of Madigans or Cullertons multi million dollar law offices.

Comment by Fed up Thursday, Jun 7, 12 @ 9:54 am
“Rich, Rich, Rich, why do you want to wage class warfare against the job creators?”

1) The job creators aren’t doing too well lately are they.

2) The battle of the classes has been ongoing since the beginnig of time. The harangue about inciting class warfare is used by the uppers to deflect attention away from legitimate concerns.

3) Rich is simply pointing out that there are real consequences.

Comment by Norseman Thursday, Jun 7, 12 @ 9:55 am
Norseman, I’m pretty sure that Lakeview was being snarky.

Comment by Rich Miller Thursday, Jun 7, 12 @ 9:59 am
On a brighter note, I saw that Tennessee is number one in the nation for retirement based on income taxes, property taxes, healthcare affordability, weather, etc, and it is actively encouraging retirees to come on down. Nashville is about 450 miles from Chicago. So, for those that can, leaving the Illinois misery is getting easier. You can bet that the better heeled public employee retirees will take their winnings and their economic impact out of Illinois to TN and other saner states. Wonder if the 177 solons of the GA are considering this, especially since a record 10,000 folks are hitting 65 every day in the US. Put this tidbit in Isaac Newton’s “for every action there is an equal and opposite reaction” as the GA deceases healthcare accessibilty for the poor, ponders pension cost shifting to home owners, more borrowing and more taxes to support public employees in their out-of-state retirements.

Comment by Cook County Commoner Thursday, Jun 7, 12 @ 9:59 am
Uh, Norseman, I was being snarky! And some people are doing very well these days, but they claim that they should not be taxed because they are “job creators” even though, you know, they aren’t exactly creating jobs.

Comment by Lakeview Thursday, Jun 7, 12 @ 10:00 am
According to a Reuters analysis of recently released IRS data, six families in 2009 made $200 million each, yet paid no federal income taxes. Another 110 wealthy families paid 15% or less. There’s plenty of money out there, we just need to tax the ones that have it.

But, they’re the job creators, you say? Fine, then let’s make them create jobs. Raise their tax rate to the 1950’s rate of 90%. Then, for every US job they create, lower their tax

Comment by TwoFeetThick Thursday, Jun 7, 12 @ 10:02 am
The Southern, what part of the second page stating she receives disabled social security did you miss? To quote –” Turley said she struggles to pay her bills with monthly Social Security Disability payments”–I’m ready to hear now how the 84 yr old gentleman is going to work off his needs?

Comment by Cindy Lou Thursday, Jun 7, 12 @ 10:04 am
Lakeview, my apologies. My snark detector was a little off this morning.

Comment by Norseman Thursday, Jun 7, 12 @ 10:05 am
When Twofeet refers certain people’s lack of federal tax, unsure whether that is business or personal income. Unless you support a flat tax, taxing the people you want is difficult & complicated & not a solution. Take IL tax hike as an example of how it doesn’t work although a popular talking point.

Comment by Patty T Thursday, Jun 7, 12 @ 10:18 am
Women,children,and the disabled 1st so the lobbyist and pols still get theirs. Its truly disgusting.

Comment by mokenavince Thursday, Jun 7, 12 @ 10:19 am
Cook Co Commoner,
Yes, I can see the fleet of U-Hauls headed to Tennessee now.

Comment by Michelle Flaherty Thursday, Jun 7, 12 @ 10:22 am
“There’s plenty of money out there, we just need to tax the ones that have it.”

Problem with this sort of thinking is that folks who make lots of dough have options, like leaving a tax punitive state or nation. And their are plenty of other governments out their to welcome their abilities and fortunes. Unless, of course, the US is considering travel restrictions, account confiscations and other police state tactics. As an example, Mexico has a number of special communities set up for expatriots. I visited one years ago outside of Puerto Vallarta set up especially for wealthy Italians.

But the numbers are fairly clear that punitive tax rates on the wealthy will not solve the fiscal ills of Illinois or the nation. Too few of them. Once the modern day Robespierres are done with the privileged, they’ll come for the rest of us.

Comment by Cook County Commoner Thursday, Jun 7, 12 @ 10:27 am
“There’s plenty of money out there, we just need to tax the ones that have it.”

2011 budget deficit: $1.3 trillion (CBO 2011 projection)
AGI of top 1% $1.3 trillion (2009 IRS data)

If we seize every dime from the top 1% of taxpayers we can pay this years’ deficit.
Now what do we do next year?

Comment by capncrunch Thursday, Jun 7, 12 @ 10:29 am
Medicine has advanced to the point that many are living longer thanks to expensive drugs. Yet, if you’re under a certain income level you shouldn’t have this option? If you can’t afford the treatments, too bad?

Make sure your funeral plans are in order.

Comment by Wensicia Thursday, Jun 7, 12 @ 10:41 am
Remember, the state has no money with the following “affordable” exceptions:
-Granted $272 million dollars in tax breaks for profitable businesses.
- Refused millions of dollars of agreed-upon federal grant funds and associated program benefits.
- Payrolls and promotes Ryan and Blagojevich loyalists who are belligerent to laws, rules, objectives, and agreements.
- Provides legal services at no-cost to the belligerents above who make mischief against the people of Illinois.
- Provides a tax exemption to service businesses such as valet, yacht servicing, and wealth management services.

Comment by Honestly Thursday, Jun 7, 12 @ 10:42 am
“Make sure your funeral plans are in order.”

Potter’s grave is more likely.

Comment by Huh? Thursday, Jun 7, 12 @ 10:47 am
So, the arguments are: if we tax them they’ll leave, and if we tax them now, how will we pay for things later. My bad. Better to allow them to keep vacuuming money out of the economy and not pay their fair share to help maintain the country who’s benefits allowed them to earn all that dough. We must appreciate the crumbs they allow us to have, or they’ll take them away.

People are going to die, but I’m sure it’s no one you know. Wow. As a nation, how did we get here?

Comment by TwoFeetThick Thursday, Jun 7, 12 @ 10:48 am
–Just something to think about.–

Rich, just when did that “thinking” enter the equation by the Democrats when they dropped seniors down the rabbit hole?

Oh, and watch their direct mail blather on about how they “protected core services.”

And their health care coverage? No cuts there.

Comment by King Louis XVI Thursday, Jun 7, 12 @ 10:51 am
Nattering nabobs at it again. Where’s the heartwarming uplifting story about the extra $100 a month in the pockets of the CME shareholders thanks to their tax breaks?

Comment by hisgirlfriday Thursday, Jun 7, 12 @ 10:52 am
Businesses are not the only ones who can move. Government dependent women and their children move up here all the time from Kentucky because our benefits are better. We have an entire class of people who won’t work at menial jobs because they can live off the state.

Businessmen are more than willing to give and take political favors.

Both sides of the debate are failing America.

Comment by Liberty_First Thursday, Jun 7, 12 @ 11:08 am
My mother’s friends are already talking about which medications they can take every other day rather than according to doctor’s orders so that they can make medications last. Even if it isn’t a good idea and will land them in the hospital over the long run, they really are making choices between food, meds, and power bills.

Comment by Aldyth Thursday, Jun 7, 12 @ 11:11 am
And the alternative is? A bankrupt state with no help whatever for the poor? Role of government in rescuing everybody has ended. Tough love, self-reliance, and charity care is needed.

Comment by Ace Matson Thursday, Jun 7, 12 @ 12:09 pm
==And the alternative is?==
Casino expansion. Gov. Quinn wants to separate these issues, but I see them as completely linked. Money that would be raised by casino expansion could save this $72 million program.

Comment by Robert Thursday, Jun 7, 12 @ 12:18 pm
Let me see if I understand our conservative friends correctly: Imposing hardship on the poor by slashing Medicaid is good government. Imposing a tax on services used primarily by the affluent would be class warfare.

Comment by reformer Thursday, Jun 7, 12 @ 12:23 pm
==Tough love, self-reliance, and charity care is needed.==

Spoken like the true uncaring conservative I’m sure you are. How is the weather up there on your nice little perfect mountain? Pathetic.

Comment by Demoralized Thursday, Jun 7, 12 @ 12:27 pm
Allen S
== The reality is that budgets have grown much faster than inflation for decades.==
That’s untrue about social service spending in this state, which has declined in constant dollars over the past decade.
The Southern
So which is preferable? Imposing financial hardship on a sick senior, or imposing a service tax on, say, tax attorneys and plastic surgeons?
Ace
Is tough love only for the poor, or should estates of millionaires give back the tax cut they just got in the Sears deal? Just askin.

Comment by reformer Thursday, Jun 7, 12 @ 12:32 pm
CCC
You warn about the dangers of soaking the rich. Are you aware that the IL state and local tax system is one of the most regressive among the 50 states? I note that you don’t complain about the reality of soaking the poor.

Comment by reformer Thursday, Jun 7, 12 @ 12:36 pm
capncrunch
I don’t know of anyone who proposes “seizing every dime from the top 1%.” So you can dispense with knocking down that straw man.

The fact is that the 400 wealthiest taxpayers in the USA are paying at the lowest rates in more than a generation.

It’s also a fact that the effective state and local tax rate on the top 1% in this state is only about a third as high as it is on the bottom 20%. You’d think our tax system were based on the principle of taxing those with the least ability to pay.

Comment by reformer Thursday, Jun 7, 12 @ 12:43 pm
“The fact is that the 400 wealthiest taxpayers in the USA are paying at the lowest rates in more than a generation.”…..

Help me out here, reformer, how does that statement alter the facts in my comment? The point is that income taxes must be raised on much lower income levels if we intend to finance our social democracy at its’ current level.

Comment by capncrunch Thursday, Jun 7, 12 @ 1:14 pm
==I don’t know of anyone who proposes “seizing every dime from the top 1%.” So you can dispense with knocking down that straw man.==

What that means is that taxing the rich is not going to solve the problem.

==Most of these people who are living on the edge financially would gladly change place with most of the public employees who are in angst over the changes facing them in retirement.==

And most retired public employees facing the possibility of suddenly paying thousands of dollars in health insurance premiums a year would gladly change places with an employed person with a middle-class income who is threatened by an income tax rate increase of another percentage point or two. As would Ms. Turley, I’m sure.

Comment by Anonymice Thursday, Jun 7, 12 @ 1:14 pm
capn & anonymice
Our state and local tax system is one of the most regressive of any state. Do you favor a tax system that puts the heaviest burden on those with the least ability to pay, or with the most ability to pay?

Comment by reformer Thursday, Jun 7, 12 @ 1:54 pm
Here’s a solution for the AARP:

@CapnCrunch -

Repeal the sales tax exemption for prescription drugs in Illinois and use it to fund Rx programs for low-income seniors and families.

Why should the Pritzkers get a break on their Happy Pills and mentholated shaving cream, when we’re cutting life-saving (and cost-saving) prescription drugs? We shouldn’t.

Mischief managed.

Comment by Yellow Dog Democrat Thursday, Jun 7, 12 @ 2:46 pm
Before branding all wealthy people as tax dodgers you should take some time to figure out why their rates are low. For instance, there are bonds issued by municipalities whose interest is tax free. If they were taxed, the munis would just have to pay a higher interest rate to compete with the corporations for the capital. That would end up coming back to you in a higher state tax rate or it would force the state’s to reduce their assistance to the poor even more. Don’t let the Dems make sweeping statements about those evil rich not paying their fare share without thinking it through.

Comment by Anonymous Thursday, Jun 7, 12 @ 2:47 pm
On a non-snarky note, thanks Rich for your post. It is important that all citizens understand the real impact these cuts have on real humans even if they believe there were no other options given the fiscal condition of Illinois.

Comment by Rod Thursday, Jun 7, 12 @ 3:08 pm
@Anonymous -

The super-rich like Mitt Romney pay a lower effective tax rate because:

1) We have a flat tax in Illinois;
2) The sales tax is our #1 source of revenue;
3) Wealthy people have the best accountants.

Comment by Yellow Dog Democrat Thursday, Jun 7, 12 @ 3:08 pm
Yello Dog-

So what’s your solution? Eliminate the tax free status on munis, maybe eliminate charitable contributions, not allow accountants to help with tax preparation?
How about we eliminate some of the fraud and corruption in this State? We could save many programs if we stop letting the pols get away with theft.

Comment by Anonymous Thursday, Jun 7, 12 @ 3:32 pm
@Anonymous -

1. Eliminate the flat tax
2. Institute an alternative minimum tax for income over $500,000
3. Cap corporate tax expenditures at 10% of total corporate tax revenue.
4. Eliminate the sales tax exemption for food and Rx drugs, and use it to fund food and drug programs that are based on need, as well as reduce the overall sales tax rate.
5. Tax retirement income above $100,000.
6. Reduce TIFs by half.
7. Publicly finance elections, thereby eliminating the $500 million “Corruption Tax” posited by Patrick Collins.
8. Means test all state K-12 aid: fund GSA and poverty grants at 100% of the recommended level, starting with the poorest school districts, and when the money’s gone, its gone.
9. Ditto for College grant funding.

And that’s just in my first term as governor.

Comment by Yellow Dog Democrat Thursday, Jun 7, 12 @ 3:47 pm
Yellow-
Impressive list.
Before you take office you may want to consider building large fences and gates to keep people from fleeing the state after you implement your policies.

Comment by Anonymous Thursday, Jun 7, 12 @ 4:20 pm
YDD
You were asked for your program, and you delivered! If your plan became law, IL would place a far lower burden on those with the least ability to pay. Which is why Republicans would oppose the YDD plan.

Comment by reformer Thursday, Jun 7, 12 @ 4:35 pm
OK, dog, I’ll vote for you, but only if you run on the R ticket

Comment by steve schnorf Thursday, Jun 7, 12 @ 4:41 pm
==Before you take office you may want to consider building large fences and gates==
Not sure this was the intended use of the suggestion, but, YDD, you could start your stump speeches with “I promise to build a large fence around Illinois” - just hearing that line alone should be worth half the tea party vote.

Comment by Robert Thursday, Jun 7, 12 @ 4:55 pm
The state could have gone a long way to control IL Cares Rx costs by simply considering assets - Extra Help (Medicare’s Rx assistance) has clearly set asset guidelines, and IL should have had them too. People with $100k in savings don’t have the same need as a person with no savings, even if their total income looks similar . . .

Comment by Blue Grass Thursday, Jun 7, 12 @ 5:02 pm
YDD,

You want to add eliminating Chicago’s status as a sanctuary city and requiring proof of citizenship for any State funded benefits? Add that to your list and I’ll vote for you

Comment by RNUG Thursday, Jun 7, 12 @ 5:47 pm
Anonymous - @ 4:20 pm:

People leaving may not be a bad thing. Used to be people moved to IL for the better welfare benefits compared to the surrounding states. At one point it was so bad I joked in a meeting about setting up kiosks on the bridges coming into IL so they could sign up. If we cut benefits enough, maybe some of that influx will reverse itself.

Comment by RNUG Thursday, Jun 7, 12 @ 5:54 pm
Southern

This 65 year old woman takes 7 to 10 miedications. She has diabets, seizures, and thyroid problems. She may not be able to drive, let alone work. If Social Security says she is disable, then she is disabled. She lives in a small town which keeps her expenses down. She makes a small pension (good thing it is from a private firm or you’d begrudge her that too).

Do you want her to beg on a street corner for her prescription money? These are exactly the people we should be helping….

Comment by mythoughtis Thursday, Jun 7, 12 @ 6:33 pm
my apologies for all the typos in the previous post. My fingers work faster than my brain

Comment by mythoughtis Thursday, Jun 7, 12 @ 6:35 pm
==People are going to die, but I’m sure it’s no one you know. Wow. As a nation, how did we get here?==

As a nation we have always been here.

Comment by Fact is Thursday, Jun 7, 12 @ 8:17 pm
All I can say is that it is GENIOUS that we’re limiting access to blood pressure, cholesterol, and diabetes medications because strokes, heart attacks, and amputations are MUCH cheaper! As long as the ratings agencies say we’re doing a heckuva job, it’s all good!

Comment by Sam Thursday, Jun 7, 12 @ 8:37 pm
If this woman, as the article mentions, is disabled and has the low income stated, then she will qualify for “extra help” under Medicare Part D and will have subsidized monthly premiums and subsidized co-pays.

Originally, the “Circuit Breaker” program was wonderful because no other alternatives existed. However, in 2006 Medicare Part D was instituted but Gov. Blagojevich did not want to see the Illinois Program go away even though that would have been the preferred route to choose at that time.

Yes, these seniors will have to change and they will have to fill out more paperwork and deal with a different beauracracy but they will have coverage.

Please, please, please if you have a parent, friend or neighbor on the program tell them to go talk to their pharmacist for help. We deal with this every day!

Comment by BIG R.Ph Thursday, Jun 7, 12 @ 9:19 pm
=OK, dog, I’ll vote for you, but only if you run on the R ticket =

Me, too, Dog.

Comment by The REAL Anonymous fka Anonymous Thursday, Jun 7, 12 @ 10:55 pm