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Mitch Daniels on Health Care

Republican IN Governor


Medicare 2.0 for the sickest, and for middle and low income

Medicare's unfunded obligations are almost five times larger than Social Security's, more than twice as large as our current national debt. It simply must be changed. The best conceptual way forward is to begin planning for a new future Medicare 2.0, based on Reconstruction principles. Assure every American up to some high-income threshold that a set amount will await them, money they can then use to purchase health insurance suitable for them. The amount can be adjusted not only for income but also for health status, so that the sickest or most infirm participants receive the higher amounts they are likely to be charged for insurance. The taxpayer's--actually, in this case, the working-age population's--bill would be knowable and controllable. The choice of insurance would be entrusted to the citizen. These policies would keep premiums down by restoring the responsibility for routine and first dollar expenses to the patient, while providing secure protection against the most expensive costs.
Source: Keeping the Republic, by Mitch Daniels, p.203-204 , Sep 20, 2011

Obamacare is an existential fiscal crisis; it must be undone

"Obamacare," as it came to be known, not only fundamentally alters the terms of trade in the largest single sector of the American economy (some 18 percent at present, and growing), but also embodies many of the reasons why the United States is now facing an existential fiscal crisis. It was pushed through with a reckless disregard for the federal government's ability to pay its bills. Obamacare must be undone and replaced not merely as a matter of sound health policy, not merely because it promises to damage a staggering national economy, not merely because it will hasten the bankruptcy of the American government. Obamacare must be undone [because] it demeans and diminishes the rights of the free people Americans were intended to be.
Source: Keeping the Republic, by Mitch Daniels, p. 85&102 , Sep 20, 2011

HSAs work better than old-fashioned insurance plans

Shortly after inauguration, I directed our personnel department to add the HSA option. With a HSA, the consumer has a personal account from which to pay medical expenses. In 2006, the first year of availability for Indiana state employees, HSAs were selected by only 4% of us. But over the next few years, the option grew in popularity. In 2011, 85% of state workers were using them. The results were positive. Medical costs for state employees were at least 11% lower than forecast. HSA plan members were accumulating real savings. Notably they were accessing preventive care at higher rates than their counterparts in old-fashioned insurance plans.
Source: Keeping the Republic, by Mitch Daniels, p. 85-102 , Sep 20, 2011

Healthy Indiana: POWER = personal wellness & responsibility

HIP, [the Healthy Indiana Plan], was our 2006 initiative to bring peace of mind of health insurance to as many low-income Hoosiers as we could. I defined HIP as a partial solution to the approximately 350,000 chronically uninsured. To pay for the program, I had settled on an increase in the tobacco tax. I devised an acronym to describe the personal accounts that would be at the heart of HIP. They were called POWER accounts which stand for "personal wellness and responsibility." HIP became law in May 2007. Participants manage a personal POWER account, funded by their own modest premiums, averaging around 3% of AGI with a cap of 4.5%-- and the state's contribution. The accounts total $1100 per person per year. It offers "health care you can control, at a price you can afford."
Source: Keeping the Republic, by Mitch Daniels, p. 98-100 , Sep 20, 2011

Tort reform; sue HMOs; no guarantees

Source: Indiana Gubernatorial Election 2008 Political Courage Test , Nov 1, 2008

INShape plan: insure 130,000 uninsured Hoosiers

Daniels writes, "We have created a medical error reporting system for all hospitals in Indiana. We have created a health insurance plan for the uninsured that we hope to cover 130,000 Hoosiers, without raising taxes or using general fund revenue. Our INShape plan has received national recognition for its efforts to help Hoosiers lose weight, stop smoking, and adopt other healthy lifestyles. We've invested more than $20 million in funding to encourage our citizens to be more active."
Source: Indiana Gubernatorial Election 2008 Political Courage Test , Nov 1, 2008

Increase cigarette tax; insurance discounts to non-smokers

Governor Daniels believes it is it vital for Indiana’s economic future to improve the health of our State and lower its high healthcare costs. The high cost of healthcare in the state erects an obstacle to job growth. Governor Daniels’ 2006 Legislative Agenda includes initiatives to encourage Hoosiers to quit smoking by increasing Indiana’s lowest in the Midwest cigarette tax, and allowing employers to offer discounts on health insurance premiums to non-smokers.
Source: Gubernatorial website, www.in.gov/gov, “Issues” , Nov 11, 2006

Loosen "one-size-fits-all" approach to Medicaid.

signed Letter to Pres. Obama from 32 Governors

As Governors, we are writing to you regarding the excessive constraints placed on us by healthcare-related federal mandates. One of our biggest concerns continues to be the Maintenance of Effort (MOE) provisions of the Patient Protection and Affordable Care Act, which prevent states from managing their Medicaid programs for their unique Medicaid populations. We ask for your immediate action to remove these MOE requirements so that states are once again granted the flexibility to control their program costs and make necessary budget decisions.

Every Governor, Republican and Democrat, will face unprecedented budget challenges in the coming months. Efforts to regulate state operations impose greater uncertainty on our budgets for oncoming years and create a perfect storm when coupled with the current state of the economy.

Health and education are the primary cost drivers for most state budgets. Medicaid enrollment is up. Revenues are down. States are unable to afford the current Medicaid program, yet our hands are tied by the MOE requirements. The effect of the federal requirements is unconscionable; the federal requirements force Governors to cut other critical state programs, such as education, in order to fund a "one-size-fits-all" approach to Medicaid. Again, we ask you to lift the MOE requirements so that states may make difficult budget decisions in ways that reflect the needs of their residents.

Source: Letter to Obama from 32 Governors 110107-Gov on Jan 7, 2011

2010 Governor, House and Senate candidates on Health Care: Mitch Daniels on other issues:

IN Senatorial:
Daniel Coats
Richard Lugar

2011 Special Elections:
CA-36:Jane Harman(D)
CA-36:Janice Hahn(D)
NV-2:Dean Heller(R)
NY-9:Anthony Weiner(D)
NY-26:Chris Lee(R)
NY-26:Kathleen Hochul(D)
Retiring 2012:
CA-6:Lynn Woolsey(D)
OK-2:Dan Boren(D)
MI-5:Dale Kildee(D)
TX-14:Ron Paul(R)
Running for Mayor:
CA-51:Bob Filner(D)
Running for Governor:
IN-6:Mike Pence(R)
WA-8:Dave Reichert(R)
Running for Senate:
AZ-1:Jeff Flake(R)
CT-5:Chris Murphy(R)
HI-2:Mazie Hirono(D)
IN-2:Joe Donnelly(D)
MO-2:Todd Akin(R)
MT-0:Dennis Rehberg(R)
ND-0:Rick Berg(D)
NM-1:Martin Heinrich(D)
NV-1:Shelley Berkley(D)
UT-3:Jason Chaffetz(R)
Dem. Freshmen
in 112th Congress:

AL-7:Terri Sewell
CA-33:Karen Bass
DE-0:John Carney
FL-17:Frederica Wilson
HI-1:Colleen Hanabusa
LA-2:Cedric Richmond
MA-10:Bill Keating
MI-13:Hansen Clarke
RI-1:David Cicilline
GOP Freshmen
in 112th Congress:

AL-2:Martha Roby
AL-5:Mo Brooks
AZ-1:Paul Gosar
AZ-3:Ben Quayle
AZ-5:David Schweikert
AR-1:Rick Crawford
AR-2:Tim Griffin
AR-3:Steve Womack
CA-19:Jeff Denham
CO-3:Scott Tipton
CO-4:Cory Gardner
FL-12:Dennis Ross
FL-2:Steve Southerland
FL-21:Mario Diaz-Balart
FL-22:Allen West
FL-24:Sandy Adams
FL-25:David Rivera
FL-5:Rich Nugent
FL-8:Dan Webster
GA-2:Mike Keown
GA-7:Rob Woodall
GA-8:Austin Scott
ID-1:Raul Labrador
IL-8:Joe Walsh
IL-10:Bob Dold
IL-11:Adam Kinzinger
IL-14:Randy Hultgren
IL-17:Bobby Schilling
IL-8:Joe Walsh
IN-3:Marlin Stutzman
IN-4:Todd Rokita
IN-8:Larry Bucshon
IN-9:Todd Young
KS-1:Tim Huelskamp
KS-3:Kevin Yoder
KS-5:Mike Pompeo
LA-3:Jeff Landry
MD-1:Andy Harris
MI-1:Dan Benishek
MI-2:Bill Huizenga
MI-3:Justin Amash
MI-7:Tim Walberg
MN-8:Chip Cravaack
MO-4:Vicky Hartzler
MO-7:Billy Long
MS-1:Alan Nunnelee
MS-4:Steven Palazzo
GOP Freshmen
in 111th Congress:

NC-2:Renee Ellmers
ND-0:Rick Berg
NH-2:Charlie Bass
NH-1:Frank Guinta
NJ-3:Jon Runyan
NM-2:Steve Pearce
NV-3:Joe Heck
NY-13:Michael Grimm
NY-19:Nan Hayworth
NY-20:Chris Gibson
NY-24:Richard Hanna
NY-25:Ann Marie Buerkle
NY-29:Tom Reed
OH-1:Steve Chabot
OH-15:Steve Stivers
OH-16:Jim Renacci
OH-18:Bob Gibbs
OH-6:Bill Johnson
OK-5:James Lankford
PA-10:Tom Marino
PA-11:Lou Barletta
PA-3:Mike Kelly
PA-7:Patrick Meehan
PA-8:Mike Fitzpatrick
SC-1:Tim Scott
SC-3:Jeff Duncan
SC-4:Trey Gowdy
SC-5:Mick Mulvaney
SD-0:Kristi Noem
TN-3:Chuck Fleischmann
TN-4:Scott DesJarlais
TN-6:Diane Black
TN-8:Stephen Fincher
TX-17:Bill Flores
TX-23:Quico Canseco
TX-27:Blake Farenthold
VA-2:Scott Rigell
VA-5:Robert Hurt
VA-9:Morgan Griffith
WA-3:Jaime Herrera
WI-7:Sean Duffy
WI-8:Reid Ribble
WV-1:David McKinley
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Page last updated: Nov 05, 2011