Can Baby Bonds Fight the Wealth Gap and Racial Inequality? Connecticut Aims to Find Out.

Mary Pat Campbell

Link: https://www.ineteconomics.org/perspectives/blog/can-baby-bonds-fight-the-wealth-gap-and-propel-racial-equality-connecticut-aims-to-find-out

Excerpt:

Connecticut has made history as the first state to implement a baby bonds program — fully funded for 12 years of babies.

The state will invest $3,200 for each baby covered by HUSKY, the state’s Medicaid program – that’s about 15,000 babies a year and a whopping 36% of the state’s children. Kids are automatically enrolled; no action is required. Upon reaching adulthood (18-30), participants can claim funds for specific wealth-and-opportunity-building purposes like higher education, a home purchase, or starting a business in the state. To receive the funds, they have to be Connecticut residents and need to complete a financial literacy course (hopefully not one funded by self-serving Wall Street firms). The initial $3,200 investment is anticipated to grow to $11,000 – $24,000, depending on when claims are filed.

Turning the idea of baby bonds into reality was a rocky road: the Democratic-led Connecticut General Assembly passed the bill in 2021, championed by former Democratic Treasurer Shawn Wooden. However, Governor Lamont and his team initially opposed the program’s funding, citing concerns over borrowing more than $50 million annually. Internal conflict heated up, as revealed in a January 2023 investigation by the Connecticut Mirror, exposing tensions between Wooden and the governor’s staff. Yet, following the publication, the situation took an unexpected turn. The program became a reality.

The sticking point of funding was solved by a plan to use a $393 million reserve fund established in 2019 during the restructuring of the state’s cash-strapped pension fund for municipal teachers. Originally designed to cover shortfalls in pension fund contributions, this reserve could be repurposed. To safeguard the pension system and meet ratings agencies’ requirements, a $12 million insurance policy was necessary, leaving approximately $381 million available for investment in the baby bonds program.

Author(s): Lynn Parramore

Publication Date: 27 Feb 2024

Publication Site: Institute for New Economic Thinking

Adele vs. Taylor Swift, Covid, and Entertainment Industry Pandemic Insurance

Mary Pat Campbell

Link: https://www.nakedcapitalism.com/2024/02/adele-vs-taylor-swift-covid-and-entertainment-industry-pandemic-insurance.html

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Excerpt:

Making those timelines — 2020, 2021, 2022, 2023, 2024 — really brought home to me how long this pandemic has been going on; I lost track in the daily grind (though the daily grind is also my form of coping). And it’s a bit discouraging to see the most solidarity our society seems capable of fizzle out after 2020, followed by a struggle to return to business as usual, a struggle that failed by 2024, in that a once-essential part of touring — contact with the fans — has now gone missing.

We can, of course, moralize about what how these artists have gone about their business:

To be fair, though, when CDC Director Mandy Cohen is swanning about with no mask, modeling how to infect everybody she breathes on, what’s a poor celebrity to do? Restoring social norms that support non-pharmaceutical interventions will probably take a whole-of-society approach (which could happen when those Tiktokers start doing their research).

Here, however, are two small steps artists like Adele and Taylor Swift could do to improve the Covid pandemic situation.

First, big acts could really help out smaller acts by supporting organizations like this one: [Clean Air Club]

Second, sell N95s at your concerts and on your websites as branded merch. K-Pop powerhouse Twice already does this (though KN94s, not N95s):

And if, by some happy chance, some intern from either organization reads this post, please champion these ideas!

Oh, and champion clean air, too. Who could be against that? Miasma delenda est!

Author(s): Lambert Strether

Publication Date: 28 Feb 2024

Publication Site: naked capitalism

How Should the Government Negotiate Medicare Drug Prices? A Guide for the Perplexed

Mary Pat Campbell

Link:https://www.ineteconomics.org/perspectives/blog/how-should-the-government-negotiate-medicare-drug-prices-a-guide-for-the-perplexed

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Excerpt:

Now, at last, thanks to the Inflation Reduction Act (IRA), the federal government will be allowed to negotiate a “maximum fair price” for drugs covered by Medicare Part D. This historical change, taking place in the face of intense industry opposition, incrementally reverses policies that have prohibited the government from engaging in price negotiations since Medicare Part D was first established in 2003. While only ten drugs will be subject to negotiation in the first year of the IRA and 90 over the first five years, negotiations are now ongoing.

….

It has been suggested that the government should negotiate for value-based pricing that would benchmark the Medicare Part D price measures of the health benefit provided to those using these drugs. This would be analogous to the approach currently used by most European countries for drug pricing. We believe this approach is inadequate and fails to provide the public with a return on the massive US government investments in biomedical research related to these drugs that enabled these products to be developed and commercialized in the first place.

….

In our new INET working paper, we extend these analyses to the ten drugs selected for Medicare price negotiation in the first year of the IRA. Our analysis reveals that the NIH spent $11.7 billion on basic or applied research related to the drugs selected for Medicare price negotiations, representing a median investment cost of $895.4 million per drug and, by making this research available to industry, saving industry a median of $1,485 million per drug. While data on industry investments in these ten drugs is not publicly available, this level of NIH investment is comparable to reported investment by industry in the drugs approved from 2010 to 2019.

Paper PDF: https://www.ineteconomics.org/uploads/papers/WP_219-Federal-spending-on-drugs-Ledley-et-al-final.pdf

Author(s): Fred Ledley

Publication Date: 4 Mar 2024

Publication Site: Institute for New Economic Thinking

The mystery of the ‘golden cohort’

Mary Pat Campbell

Link:https://www.bbc.com/news/uk-15024436

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Excerpt:

The life experience of British people born between the years 1925 and 1934 has long had demographers and insurance companies scratching their heads.

For reasons which remain unclear, individuals within this slice of the UK population have been living longer and healthier lives than groups both older and younger.

Today the Office for National Statistics returns to the mystery of the so-called “golden cohort”, trying to understand better why the members of the generation born in the midst of the Great Depression have been enjoying higher rates of mortality improvement throughout their adult lives.

One tool used to track the golden cohort is a heat chart which, in this case, looks at annual mortality improvements for men and women. It takes a bit of explaining, but the diagrams reflect the social history of Britain over the last century or so.

Starting with men (Figure 1a), the most obvious feature of the heat chart are the vertical bands of blue and brown in the bottom left corner. Blue represents worsening mortality and brown improving, so the blue slice closest furthest to the left is the cohort decimated by World War I and the influenza pandemic.

Author(s):

Publication Date: 23 Sep 2011

Publication Site: BBC

Why do Swiss people die?

Mary Pat Campbell

Link: https://blog.datawrapper.de/why-do-swiss-people-die/

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Excerpt:

Looking at the evolution of premature deaths, we can celebrate the progress made in medical research. Years lost to infectious diseases like tuberculosis have reduced dramatically, and deaths due to AIDS in particular are nowadays close to zero, a drastic decline since the height of the pandemic in the 1990s. Cancer and cardiovascular diseases have followed a similar path, though they still cause a high number of premature deaths. We can observe that years lost to suicide before age 70 have also declined significantly. In a country where assisted suicide is legal, there is maybe something empowering in the prospect of dying healthy of old age. Years lost to alcoholism and car accidents have also declined — it may be that prevention and overall security have reduced these types of more behavioral deaths.

Author(s): Luc Guillemot

Publication Date: 26 Oct 2023

Publication Site: datawrapper

Government Unions Target Fiscal Sanity in Connecticut

Mary Pat Campbell

Link: https://www.nationalreview.com/2024/02/government-unions-target-fiscal-sanity-in-connecticut/

Excerpt:

Connecticut taxpayers, saddled with a pension system for state workers and teachers marked by decades of underfunding, glimpsed a ray of hope in 2017 when legislators embarked on a path toward accountability and fiscal discipline by enacting “fiscal guardrails.”

Now, state unions under the umbrella of the State Employees Bargaining Agent Coalition are clamoring for the removal of the fiscal guardrails that were constructed to prevent the same unions from driving taxpayers over the cliff. The staggering state debt of more than $80 billion, including unfunded pension debt from the state workers’ and teachers’ pension funds, bonded debt, and health-care liabilities, was the result of years of irresponsibility and political horse-trading with state unions that were all too eager to negotiate benefits without a sustainable funding plan.

…..

Connecticut has long been a high-income per capita state and also imposes one of the country’s most burdensome tax systems. Yet it still managed to accumulate the highest state debt per resident. The 2017 bipartisan fiscal guardrails constituted a recognition that the previous decade’s cycle of budget shortfalls, followed by significant tax increases, was simply unsustainable.

The guardrails were codified in 2023, and the general assembly unanimously voted to extend them for another five years. Their very effectiveness in slowing spending growth has made them susceptible to attack from state unions.

Author(s): Frank Ricci and Bryce Chinault

Publication Date: 13 Feb 2024

Publication Site: National Review Online

Few Nursing Facility Residents and Staff Have Received the Latest COVID-19 Vaccine

Mary Pat Campbell

Link: https://www.kff.org/medicaid/issue-brief/few-nursing-facility-residents-and-staff-have-received-the-latest-covid-19-vaccine/

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Excerpt:

Uptake of the current COVID-19 vaccine is higher in non-profit facilities than in for-profit or government facilities (Figure 2). The percentage of nursing facility residents who received the updated vaccine is 46% in non-profit facilities compared with 35% in for-profit facilities and 43% in government facilities. Uptake of the fall 2022 vaccine was also highest in non-profit facilities and lowest in for-profit facilities. Rates of vaccine uptake for nursing facility staff were low in all types of facilities with minimal variation across facility types (data not shown).

Author(s): Priya Chidambaram and Alice Burns

Publication Date: 13 Feb 2024

Publication Site: KFF, Medicaid

Lessons Learned During the Pandemic Can Help Improve Care in Nursing Homes

Mary Pat Campbell

Link: https://oig.hhs.gov/documents/evaluation/9808/OEI-02-20-00492.pdf

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Excerpt:

OIG recommends that the Centers for Medicare & Medicaid Services (CMS):

1. Implement and expand upon its policies and programs to strengthen the nursing home workforce.

2. Reassess nurse aide training and certification requirements.

3. Update the nursing home requirements for infection control to incorporate lessons learned from the pandemic.

4. Provide effective guidance and assistance to nursing homes on how to comply with updated infection control requirements.

5. Facilitate sharing of strategies and information to help nursing homes overcome challenges and improve care.

CMS did not explicitly state its concurrence or nonconcurrence for the five recommendations.

Author: Christi A. Grimm

Publication Date: February 2024

Publication Site: Office of the Inspector General, HHS