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McCrory contradictionsAs reported in this morning’s edition of the Weekly Briefing, a new report issued by the McCrory administration yesterday appears to directly contradict earlier statements by the administration and its supporters about the benefits of Medicaid expansion for the state.

The new report, “The Impact of the Military on North Carolina,” finds that federal military spending produces enormous economic benefits for North Carolina. According to a press release issued from the Governor’s office touting the report:

“The military supports 540,000 jobs, including 340,000 in the private sector, according to a new report released today by the N.C. Department of Commerce. The report also found the military boosts the state’s personal income by more than $30 billion.
 
The study, released by the Labor & Economic Analysis Division, concludes the military accounts for nearly 10 percent of all economic activity in North Carolina.”

According to the press release (and the report itself) these findings were calculated by a private research group known as Regional Economic Models Inc. (REMI) which made use of its complex economic modeling system known as “Policy Insight-Plus” or “PI+” to develop its findings.    

Interestingly, however, the administration has demonstrated outright hostility to the use of the REMI PI+ model when it comes to the benefits of Medicaid expansion. Read More

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Pat McCrory 4As the national news and opinion stories about North Carolina’s recent disastrous policy turns (especially the decision to terminate federal emergency unemployment benefits) pile up, it’s becoming increasingly clear that this is not good news for any political aspirations that Gov. Pat McCrory might harbor.

While conservatives will dismiss stories in the New York Times, Time, the BBC and various national magazines as merely the work of the “liberal media,” the plain truth is that no one is going to develop any kind of positive national political profile with such coverage. Oh sure, McCrory can — like Scott Walker before him — win the plaudits of Fox News and the Washington Times, but that is simply not going to cut it in the long run with the bulk of the mainstream national political establishment. This is especially true if, Read More

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If only North Carolina’s governor would listen to the GOP leader of his native state.

By David Morgan

(Reuters) – Ohio’s Republican governor, John Kasich, is no fan of President Barack Obama’s health reform law. But he has become an unlikely proponent of one element of Obamacare – expansion of Medicaid healthcare coverage for the poor – and he has a warning for his fellow party members about the moral consequences of blocking it.

“When you die and get to the meeting with St. Peter, he’s probably not going to ask you much about what you did about keeping government small, but he’s going to ask you what you did for the poor. You’d better have a good answer,” Kasich, a Christian conservative, says he told one Ohio lawmaker last week.

Read the entire story by clicking here.

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In public policy debates it’s common for different organizations to disagree about crunching numbers and examining trends. We often disagree about which states should serve as models for North Carolina. All of that is understandable.

Last week John Hood, president of the John Locke Foundation, decided to change this dynamic in a column distributed by the Insider. In that column, which is mostly about Medicaid, he accuses groups that disagree with him of lying.

Specifically, he says this claim was untrue:

 North Carolinians were told that regardless of whether the state set up its own Obamacare exchange or allowed the federal government to do so, state government would have to fund the exchange’s operating costs. This claim was false.

Since I was in the middle of that discussion I can report on what was actually said in both public and private debates.

When the legislature this year pushed a bill to reject Medicaid expansion they included in the legislation a provision that essentially turned over all responsibility for establishing a health benefits exchange in North Carolina to the federal government. A health exchange, as a reminder, is the online marketplace where people can shop for insurance. Some people, depending on income, will qualify for subsidized coverage when purchasing a policy through the exchange.

Some legislators and conservative activists argued that it would be fiscally irresponsible for North Carolina to set up a state exchange. What we pointed out, along with a few others, is that whether we establish a state, federal, or partnership exchange, the financing doesn’t change. The federal government will pay for establishing the exchange and then it must be self-supporting.

That means North Carolinians must pay for the operations of the North Carolina exchange.

As we also pointed out, if the federal government operates our exchange then it will be financed by an insurer user fee, in effect a premium tax, on North Carolina insurance companies and insurance purchasers. If the state set up its own exchange we could both control its size and pull from more diverse funding streams. We may not want to load the entire cost of the exchange on to premiums.

It is clear what Hood is trying to accomplish in his column. He wants to say that groups like us lied to legislators and the public about funding the exchange. We, therefore, can’t be trusted when it comes to Medicaid. That is irresponsible and it is misleading. And the Insider should be more cautious in distributing such attacks.