The White House flip-flopped today on its insistence that special deals used to bribe senators into supporting ObamaCare be removed.
Taking a new position, Axelrod said the White House only objects to state-specific arrangements, such as an increase in Medicaid funding for Nebraska, ridiculed as the "Cornhusker Kickback." That's being cut, but provisions that could affect more than one state are OK, Axelrod said.That means deals sought by senators from Montana and Connecticut would be fine — even though Gibbs last week singled them out as items Obama wanted removed. There was resistance, however, from two committee chairman, Democratic Sens. Max Baucus of Montana and Chris Dodd of Connecticut, and the White House has apparently backed down.
As long as more than one state is somehow touched by a proposed deal, the White House greenlights it. In other words, if Nebraska rewrites the Cornhusker Kickback so that one dollar of its Medicaid funds from the feds are donated to Iowa, it's presumably okay.
Since Harry Reid and Nancy Pelosi furiously cut deals left and right to squeak ObamaCare through, the president's new position allows for a whole host of kickbacks. Here's the rundown of special deals that are or probably will be in the health care reform package.
-- Connecticut hospitals. Even though Chris Dodd was always a surefire vote for ObamaCare, he still secured $100 million in the bill for Connecticut hospitals. He's particularly enthusiastic about the University of Connecticut, whose teaching hospital he wants revamped. Technically other states can compete for some of the grant money, so Connecticut isn't the sole state affected.
-- Montana asbestos victims. Max Baucus secured another kickback in ObamaCare for victims of asbestos poisoning from a vermiculite mine in Libby, Montana. In order to avoid some of the negative attention that plagued Ben Nelson's Cornhusker Kickback, Baucus cleverly wrote the language as expanding Medicare to cover "environmental health hazards." That can technically apply to all states, so it stays in.
-- Western hospitals. Connecticut isn't the only state whose hospitals will be larded up with health care money. A provision in ObamaCare increases Medicaid funding for states with 50% or more "frontier counties" -- defined as a county with a population density less than six people per square mile. The Congressional Budget Office said this would include Montana, North Dakota, South Dakota, Wyoming, and Utah. Three of the five are western swing states that Democrats are hoping will lean blue in future elections.
-- Student loans. House Democrats are moving to include a package in ObamaCare that would nationalize student loans. The House already passed the overhaul with 32 more supportive Democrats than ObamaCare. Nancy Pelosi is hoping that tying the two bills together will sweeten the pot for Democrats currently on the fence.
-- Black and Hispanic colleges. Included in the student lending bill is a kickback that would fund historically black and Hispanic colleges and universities. The provision, according to The Hill newspaper, is untouchable thanks to strong support from the Congressional Black Caucus and the Congressional Hispanic Caucus. The CBC has expressed concern about ObamaCare diverting attention from creating jobs and the CHC is worried about restrictions for illegal immigrants in the bill.
With his announcement today, Obama finally woke up to reality: The only way he can ram his health care boondoggle through is if he buys off legislators. Note that all the deals in the bill are just to woo Democrats.
