Bernie Sanders’ ‘Medicare for all’ plan projected to cost $32.6 trillion

Bernie Sanders

Sen. Bernie Sanders’ “Medicare for all” plan would increase government health care spending by $32.6 trillion over 10 years, according to a study by a university-based libertarian policy center. That’s trillion with a “T.” The latest plan from the Vermont independent would require historic tax increases as government replaces what employers and consumers now pay for health care, according to the analysis being released Monday by the Mercatus Center at George Mason University in Virginia. It would deliver significant savings on administration and drug costs, but increased demand for care would drive up spending, the analysis found. Sanders’ plan builds on Medicare, the popular insurance program for seniors. All U.S. residents would be covered with no copays and deductibles for medical services. The insurance industry would be relegated to a minor role. “Enacting something like ‘Medicare for all’ would be a transformative change in the size of the federal government,” said Charles Blahous, the study’s author. Blahous was a senior economic adviser to former President George W. Bush and a public trustee of Social Security and Medicare during the Obama administration. Responding to the study, Sanders took aim at the Mercatus Center, which receives funding from the conservative Koch brothers. Koch Industries CEO Charles Koch is on the center’s board. “If every major country on earth can guarantee health care to all, and achieve better health outcomes, while spending substantially less per capita than we do, it is absurd for anyone to suggest that the United States cannot do the same,” Sanders said in a statement. “This grossly misleading and biased report is the Koch brothers response to the growing support in our country for a ‘Medicare for all’ program.” Sanders’ office has not done a cost analysis, a spokesman said. However, the Mercatus estimates are within the range of other cost projections for Sanders’ 2016 plan. Sanders’ staff found an error in an initial version of the Mercatus report, which counted a long-term care program that was in the 2016 proposal but not the current one. Blahous corrected it, reducing his estimate by about $3 trillion over 10 years. Blahous says the report is his own work, not the Koch brothers’. Also called “single-payer” over the years, “Medicare for all” reflects a long-time wish among liberals for a government-run system that covers all Americans. The idea won broad rank-and-file support after Sanders ran on it in the 2016 Democratic presidential primaries. Looking ahead to the 2020 election, Democrats are debating whether single-payer should be a “litmus test” for national candidates. The Mercatus analysis estimated the 10-year cost of “Medicare for all” from 2022 to 2031, after an initial phase-in. Its findings are similar to those of several independent studies of Sanders’ 2016 plan. Those studies found increases in federal spending over 10 years that ranged from $24.7 trillion to $34.7 trillion. Kenneth Thorpe, a health policy professor at Emory University in Atlanta, authored one of those studies and says the Mercatus analysis reinforces them. “It’s showing that if you are going to go in this direction, it’s going to cost the federal government $2.5 trillion to $3 trillion a year in terms of spending,” said Thorpe. “Even though people don’t pay premiums, the tax increases are going to be enormous. There are going to be a lot of people who’ll pay more in taxes than they save on premiums.” Thorpe was a senior health policy adviser in the Clinton administration. The Mercatus study takes issue with a key cost-saving feature of the plan — that hospitals and doctors will accept payment based on lower Medicare rates for all their patients. The study found that the plan would reap substantial savings from lower prescription costs — $846 billion over 10 years — since the government would deal directly with drugmakers. Savings from streamlined administration would be even greater, nearly $1.6 trillion. But other provisions would tend to drive up spending, including coverage for nearly 30 million uninsured people, no deductibles and copays, and improved benefits, including dental, vision and hearing. After taking into account current government health care financing, the study estimated that doubling all federal individual and corporate income taxes would not fully cover the additional costs. Republished with the permission of the Associated Press.

Conservative icon David Koch leaving business, politics

Davi Koch

Billionaire conservative icon David Koch is stepping down from the Koch brothers’ network of business and political activities. The 78-year-old New York resident is suffering from deteriorating health, according to a letter that older brother Charles Koch sent to company officials Tuesday morning. Charles Koch wrote that he is “deeply saddened” by his brother’s retirement. “David has always been a fighter and is dealing with this challenge in the same way,” he wrote. David Koch is leaving his roles as executive vice president and board member for Koch Industries and a subsidiary, Koch Chemical Technology group, where he served as chairman and chief executive officer. Koch is also stepping down as chairman of the board for the Americans For Prosperity Foundation, the charity related to Koch brothers’ primary political organization. Charles Koch had assumed a more visible leadership role in the brothers’ affairs in recent years. He will continue to serve as the CEO of Koch Industries and the unofficial face of the network’s political efforts. Democrats have demonized the Koch brothers for their outsized influence in conservative politics over the last decade. Former Senate Majority Leader Harry Reid regularly attacked Republicans for what he called a “Koch addiction.” Yet the Kochs have clashed with the Trump administration at times. Citing concerns about Trump’s style and substance, the network refused to endorse either presidential candidate in the 2016 election. And while they have praised Trump’s policies on taxes, de-regulation and health care, they have aggressively attacked the Republican administration’s trade policies. On Monday, the Koch network announced a multi-million-dollar campaign to oppose Trump’s tariffs and highlight the benefit of free trade. Using the money they made from their Kansas-based family business empire, the Koch brothers have created what is likely the nation’s most powerful political organization with short- and long-term goals. Their network has promised to spend $400 million to shape the 2018 midterm elections. They have also devoted significant time and resources to strengthening conservative influence on college campuses, in the Hispanic community and in the nonprofit sector. David Koch, who served as the Libertarian Party’s vice presidential candidate in 1980, had begun focus more on philanthropy in recent years. The Manhattan resident donated $150 million to New York City’s Memorial Sloan Kettering Cancer Center in 2015, the largest gift in the organization’s history. He has also given $185 million in total donations to the Massachusetts Institute of Technology, his alma mater. In an April interview with the Washington Examiner, Charles Koch described his younger brother this way: “David is much more political than I am.” Charles continued: “David is a much better engineer than I am and is much more into the arts and social life. Obviously he’s got to be or he wouldn’t live in Manhattan. And David is much more into elective politics than I am.” In Tuesday’s letter, Charles Koch said his brother’s “guidance and loyalty, especially in our most troubled times, has been unwavering.” “David has never wanted anything for himself that he hasn’t earned, as his sole desire has always been to contribute,” he wrote. Republished with the permission of the Associated Press.

Conservative Kochs condemn Donald Trump’s immigration crackdown

Charles Koch

Charles Koch first likened candidate Donald Trump‘s plan to ban Muslim immigrants to something Adolf Hitler would have done in Nazi Germany. The billionaire industrialist and his chief lieutenants offered a more delicate response this weekend when asked about President Trump’s plan to block immigration from seven Muslim-majority countries. They described Trump’s plan as “the wrong approach” that violated its dedication to “free and open societies.” The criticism comes as the Koch network, among the most powerful conservative groups in the nation, works to strike a delicate balance in the early days of the new administration. The Kochs refused to support Trump’s candidacy last fall, but they now see a once-in-a-lifetime opportunity to influence the White House and the Republican-controlled Congress. Their optimism is fueled by strong relationships inside the administration, despite their vow to oppose Trump’s policies if they deviate from the Koch brothers’ conservative priorities. Trump critics were easy to find at the California desert resort this weekend, where attendance at a semi-annual conference was limited to the 550 people who donate at least $100,000 each year to the various conservative political and policy groups backed by Charles and David Koch. The critics included Charles Koch himself, although the conservative patriarch did not mention Trump by name Sunday as he warned that the nation is facing a moment of “tremendous danger.” He said the nation could “go the authoritarian route … or we can move toward a free and open society. So this is our opportunity.” Still, the Koch network says it’s confident about its ability to shape the direction of the Trump administration’s policies from the inside. “Many former network staffers that are in the White House now remain good friends of ours. So we’re in constant contact with them,” said Koch spokesman James Davis. “Conversations have been open and continue to be.” There is perhaps no bigger Koch ally than Vice President Mike Pence, whose staff and ideology has been in close alignment with the Kochs for years. Charles Koch spoke directly with the vice president on the phone days before his inauguration as Pence considered hiring a Koch communications staffer, Stephen Ford, to serve as his chief speechwriter. Ford was soon hired, along with former Koch chief Marc Short, who now serves as the White House legislative director. “The reason we’re optimistic … is really Mike Pence,” said Doug Deason, a prominent Trump supporter and major Koch donor. “If you think Cheney had power in Bush White House, just watch and see what happens with Mike Pence.” Several reporters, including one from The Associated Press, were invited to attend the weekend conference. As a condition of attending, photographers were not allowed and reporters were not permitted to identify any donors without their permission. Koch and his powerful allies insist they will challenge Trump when his policies don’t align with their conservative vision. The network plans to spend between $300 million and $400 million over the next two years to shape policy and politics, much of it devoted to its nationwide grassroots network. While there has been much talk of Trump allies creating an outside group to help promote his agenda, the Koch network’s capacity to communicate directly with voters on the ground in key states has no political rival. The Koch’s “secret sauce,” Holden says, is “the accountability play.” “We’re principled. And if we can’t get comfortable with the policies that are in place, then we’re not going to support them. But if we can we will support them, regardless of who’s in office,” he said. Like Trump, the Kochs favor efforts to cut government regulation and replace the federal health-care system. They do not share the president’s plans for a massive infrastructure spending or his crackdown on immigrants from Muslim-majority countries. “The travel ban is the wrong approach and will likely be counterproductive,” network co-chair Brian Hooks said Sunday. “Our country has benefited tremendously from a history of welcoming people from all cultures and backgrounds,” he said. “This is a hallmark of free and open societies.” Republished with permission of The Associated Press.

Sally Bradshaw’s bolt from GOP a sign of Donald Trump’s impact on party

Less than four years ago, the Republican Party tapped a few respected party officials to help the GOP find its way forward. This week, one of them says she’s leaving the party — driven out by Donald Trump. While not a household name, Sally Bradshaw‘s decision to leave the GOP rocked those who make politics their profession. The longtime aide to former Florida Gov. Jeb Bush was one of the five senior Republican strategists tasked with identifying the party’s shortcomings and recommending ways it could win the White House after its losing 2012 presidential campaign. Now, she says, she’ll vote for Democratic nominee Hillary Clinton if the race in her home state of Florida appears close come Election Day. “Sally is representative of an important segment of our party, and that is college-educated women, where Donald Trump is losing by disastrous margins,” said Ari Fleischer, who worked with Bradshaw on the GOP project and was a senior adviser to President George W. Bush. “Trump has moved in exactly the opposite direction from our recommendations on how to make the party more inclusive.” Fleischer still supports Trump over Clinton. But Bradshaw is among a group of top Republican operatives, messengers, national committee members and donors who continue to decry Trump’s tactics, highlighting almost daily — with three months until Election Day — the rifts created by the billionaire and his takeover of the party. This past weekend, the billionaire industrialist Charles Koch (coke) told hundreds of donors that make up his political network that Trump does not embrace, nor will he fight for, free market principles. That’s one reason Koch‘s network, which has the deepest pockets in conservative politics, is ignoring the presidential contest this year and focusing its fundraising wealth on races for Congress. Donors and elected officials gathering at a Koch event in Colorado said they accepted the Koch brothers’ decision, even if it hurts the GOP’s White House chances. Kentucky Gov. Matt Bevin, among the high-profile Republicans on hand, refused to endorse Trump and referenced now defunct political parties, such as the Whigs, when asked about the health of the modern-day GOP. “The party is not really what matters. It’s the principles,” Bevin told The Associated Press. Another of those in attendance, House Speaker Paul Ryan, didn’t even mention his party’s presidential nominee during his speech to the group. Yet he referenced an election he called “personality contest” devoid of specific goals or principles. Liberals and those on the political left are hardly fully united around Democratic nominee Hillary Clinton, whose convention was interrupted on occasion by supporters of Vermont Sen. Bernie Sanders. But after beating Sanders in the primaries, Clinton took steps to win over Sanders and his supporters — including agreeing to changes to the party’s platform. Trump has shown little such inclination, pushing ahead instead with the approach and policy proposals that proved successful in the GOP primary. Among the key recommendations of the post-2014 report that Bradshaw helped write was for the party to be more inclusive to racial and ethnic minorities, specifically Latino voters. One of Trump’s defining policies is his call to build a wall on the U.S. border with Mexico, and forcibly deport the millions of people — many of whom are Hispanic — living in the country illegally. Bradshaw told The Associated Press her decision to change her voter registration in her home state of Florida was “a personal decision,” with the tipping point being Trump’s criticism of the Muslim mother of a U.S. soldier killed in Iraq in 2004. In an email to CNN, Bradshaw wrote that the GOP was “at a crossroads and have nominated a total narcissist — a misogynist — a bigot.” Her decision to leave the party isn’t “a good sign, given the role she’s played at the national level with the RNC and the high esteem in which she’s held,” said Virginia Republican Chris Jankowski, among the nation’s leading GOP legislative campaign strategists. Another member of the panel that examined Mitt Romney‘s 2012 loss is Henry Barbour, a Republican National Committee member from Mississippi. In a message to the AP, he joined the many Republicans who called on Trump to apologize to the family of the late Capt. Humayun Khan, a suggestion the billionaire has rejected to date. Like Fleischer, he does not plan to follow Bradshaw out of the party, but insisted that Trump must work harder to unify it. “If we are to gain anything by this, Donald Trump must show he wants to unite Americans so he can win in November and the best way to do this would be to apologize,” Barbour said. “There’s no excuse, particularly for his comments about Mrs. Khan.” Republished with permission of the Associated Press.

Koch network refusing to help Donald Trump

From a luxury hotel on the edge of the Rocky Mountains, some of the nation’s most powerful Republican donors are rebelling against Donald Trump. Billionaire industrialist Charles Koch, host of the exclusive weekend retreat, did not mention Trump by name as warned that political leaders are giving “frightening” answers to America’s challenges. One of his chief lieutenants was more direct as he made clear that Koch’s expansive political network would not use its tremendous resources to help Trump win this fall. “We’re focused on the Senate,” said Mark Holden, general counsel and senior vice president of Koch Industries. He noted that none of the presidential candidates are aligned with the Koch network “from a values, and beliefs and policy perspective.” Trump’s dire warnings of growing crime in America, Holden said, simply aren’t accurate. “We’re much safer,” Holden said. “That’s what the data shows.” Koch described the 2016 “political situation” this way: “We don’t really, in some cases, don’t really have good options.” The comments came Saturday, the first of a three-day gathering for donors who promise to give at least $100,000 each year to the various groups backed by the Koch brothers’ Freedom Partners — a network of education, policy and political entities that aim to promote a smaller, less intrusive government. The ambitious Koch network has invested hundreds of millions of dollars to influence politics and public policy over the last decade, but don’t plan to spend anything to help Trump, even if some of the 400 or so deep-pocketed donors gathered in Colorado Springs this weekend think it should. Trump thumbed his nose at the gathering from Twitter. “I turned down a meeting with Charles and David Koch,” the New York billionaire tweeted. “Much better for them to meet with the puppets of politics, they will do much better!” The weekend’s agenda for the estimated 400 donors gathered in Colorado Springs featured a series of policy discussions and appearances from at least three governors, four senators and four members of the House of Representatives, including House Speaker Paul Ryan. Kentucky Gov. Matt Bevin and Arizona Gov. Doug Ducey talked up policy successes in their states on Saturday night, avoiding discussion of the 2016 presidential contest altogether. When it was his turn, Colorado Sen. Cory Gardner touched on the race for the White House, although he did not mention Trump’s name. “Forty years worth of Supreme Court justices are going to be determined this November,” Gardner told donors, a reference to the next president’s ability to fill at least one existing vacancy on the high court. Those yet to appear include Wisconsin Gov. Scott Walker, Texas Sen. John Cornyn, South Carolina Sen. Tim Scott, Utah Sen. Mike Lee, Rep. Mike Pompeo of Kansas. Rep Jason Chaffetz of Utah and Rep. Mike Coffman of Colorado. Koch later told his guests that America’s frustrated electorate is looking at the wrong place — politicians — for answers. “And to me, the answers they’re getting are frightening,” he said without naming any politicians, “because by and large, these answers will make matters worse.” Charles and David Koch have hosted such gatherings of donors and politicians for years, but usually in private. The weekend’s event includes a small number of reporters, including one from The Associated Press. Koch has put the network’s budget at roughly $750 million through the end of 2016. A significant portion was supposed to be directed at electing a Republican to the White House. It will instead go to helping Republican Senate candidates in at least five states: Ohio, Pennsylvania, Nevada, Wisconsin and Florida, Holden said, noting that the network has dedicated $42 million so far to television and digital advertising to benefit Republican Senate candidates. In some cases, the network may try to link Democratic Senate candidates to Clinton, he added, but there are no plans to go after her exclusively in paid advertising. The organization may invest in a handful of races for governor and House of Representatives as well. And while the network will not be a Trump ally, it won’t necessarily be a Trump adversary either. “We have no intention to go after Donald Trump,” Holden said. Republished with permission of the Associated Press.

Running mate Mike Pence: Conservative but not angry about it

As a conservative talk-radio host in the 1990s, Mike Pence described himself as “Rush Limbaugh on decaf.” Two decades later, Pence is the unflappable conservative governor of Indiana who’s being plucked by Republican presidential contender Donald Trump as his running mate. Where Trump is impulsive, Pence is cool-headed. Where Trump makes conservatives suspicious, Pence has credibility. And where Trump struggles to draw evangelical Christians, Pence is well-regarded by them. A favorite quote highlights how Pence might smooth some of the sharp corners of the Trump campaign and its supporters. “I’m a conservative,” Pence says. “But I’m not angry about it.” The former congressman also is a proven fundraiser with close ties to billionaire industrialists David and Charles Koch and their network of wealthy donors, many of whom have been dismissive of Trump. “One thing you can say about Mike Pence is he’s got a very calm, steady demeanor that in some ways is a little Reaganesque,” said Christine Mathews, a Republican pollster for former Indiana Gov. Mitch Daniels. “He’s a counterbalance to Trump in that way.” Trump announced on Twitter Friday morning that he’s selected Pence as his running mate, capping a wild 24 hours of speculation interrupted by the truck attack in Nice, France, that left scores dead. Not so long ago, their relationship was a little awkward. Trump met privately with Pence before Indiana’s primaries, seeking his endorsement. Instead, Pence, under pressure from national conservatives, tepidly endorsed Trump’s rival, Texas Sen. Ted Cruz, while still lavishing praise on Trump. Trump won that primary. Before the night was over, Cruz had quit the race. For Pence, a former six-term congressman, Trump’s selection offers a return to national politics after his embrace as governor of conservative social issues sidelined his own presidential ambitions. Pence describes himself as “a Christian, a conservative and a Republican, in that order.” In 2015 he provoked a national backlash after signing a law that critics said would have allowed businesses to deny service to gay people for religious reasons. Even some Indiana Republicans have questioned his decisions, suggesting Pence has at times seemed more interested in appealing to national conservatives than doing what’s best for the state. Pence’s support of the state’s religious objections law led to a revolt from the business community, which joined gay rights advocates in successfully pushing for changes to the law. Raised in Columbus, Indiana, in an Irish-Catholic family, Pence revered the Kennedys growing up and has said he voted for Jimmy Carter in 1980. He later identified as an evangelical Christian and was inspired to join the Republican Party by former President Ronald Reagan, whose “happy warrior” rhetorical style Pence has since tried to emulate. After attending Hanover College, Pence graduated from Indiana University Law School in 1986. He met his wife, Karen, around the same time and twice unsuccessfully ran for Congress before taking a job at Indiana Policy Review, a conservative think-tank. In a 1991 essay titled “Confessions of a Negative Campaigner,” Pence swore off harsh political tactics he used in “one of the most divisive and negative campaigns in Indiana’s modern congressional history” while calling for “basic human decency.” “That means your First Amendment rights end at the tip of your opponent’s nose — even in the matter of political rhetoric,” Pence wrote, though he backtracked in the face of a difficult re-election campaign in Indiana. In Congress, Pence sponsored a few bills that became law as amendments in other legislation. But he built a national following among conservatives for his willingness to buck his own party after opposing President George W. Bush‘s Medicare expansion and the No Child Left Behind education overhaul. During the early years of President Barack Obama‘s administration, Pence helped lead the opposition to the Democrat’s agenda. “He has a particularly strong talent, a gift if you will, for being able to stick to principle while making his political opponents or those who disagree with him feel like they are being heard and respected,” said Ryan Streeter, a former Pence aide and George W. Bush staffer who is now a public affairs professor at the University of Texas. Pence’s congressional experience is one trait that Trump, who has never held public office, wanted in a running mate. Marc Short, a former Pence aide and top Koch brothers operative, elaborated: “He’s worked with (House Speaker) Paul Ryan. He’s worked with the team in House leadership. He’s somebody who has deep relationships in the evangelical movement, and he’s somebody who has foreign affairs experience.” Pence’s one term as governor has drawn mixed reaction, and he has managed to alienate moderate Republicans over social issues. Groups threatened boycotts over last year’s religious objections law and late-night television hosts mocked the policy, leading lawmakers to approve changes. This year Pence clashed with the local Catholic archdiocese by opposing the settlement of Syrian refugees in Indianapolis. Pence was also slammed for the planned 2015 launch of “JustIN,” a state-operated news service that was ditched after critics panned it as “Pravda on the Plains.” But he has also presided over Indiana’s improving economy and plummeting unemployment rate, which Republicans credit to the state’s low taxes, limited regulation and pro-business climate. Republished with permission of the Associated Press.