Bull-SCHIP: WSJ Takes Yet Another Swipe at the Center-Right Blogosphere

Photo of Tom Blumer.
  • Bookmark and Share

In the midst of a Wall Street Journal editorial today about proponents' misrepresentations relating to the State Children's Health Insurance Program (SCHIP) coverage, cost, and financing (characterized as "fiscal fraudulence"), the Journal took shots at blogs that have questioned the SCHIP eligibiliy of Graeme Frost, the 12-year-old boy the Democrats used to deliver a two-minute rebuttal to President Bush's veto of legislation that would vastly expand the program.

The Journal's criticisms of SCHIP expansion and the Democrats' overheated rhetoric after the veto are, on substance, very solid:

After President Bush vetoed Congress's major expansion of the State Children's Health Insurance Program, Nancy Pelosi declared: "President Bush used his cruel veto pen to say, 'I forbid 10 million children from getting the health benefits they deserve.'" As far as political self-parody goes, that one ought to enter the record books.

It's wrong on the facts, for one, which Speaker Pelosi knows. ..... The Schip bill was not some all-or-nothing proposition: A continuing resolution fully funds the program through mid-November, so none of the 6.6 million recipients will lose coverage.

Story Continues Below Ad ↓

The 10 million children that Ms. Pelosi cites are the sum of the current enrollees plus those who could join under the Democratic plan (which also has the support of some wayward Republicans). Never mind that up to 60% of these children already have private insurance, which Schip would displace as it moves up the income scale. Only by Beltway reasoning could "not expanding" count as "denying" public assistance. Hillary Clinton went further and said the President was actively "stealing" health care from needy kids.

..... Despite their howls about "the children," Democrats and their media partners are happy to milk them for political gain.

The Journal then turns oddly indulgent of the Democrats' political gamesmanship, and unjustifiably impatient with those who called it out:

Unfortunately, that narrative was bolstered this week by some conservative bloggers. After the Schip veto, Democrats chose a 12-year-old boy named Graeme Frost to deliver a two-minute rebuttal. While that was a political stunt, the Washington habit of employing "poster children" is hardly new. But the Internet mob leapt to some dubious conclusions and claimed the Frost kids shouldn't have been on Schip in the first place.

As it turns out, they belonged to just the sort of family that a modest Schip is supposed to help. One lesson from this meltdown is the limit of argument by anecdote.

"Meltdown"? "Just the sort of family that a modest Schip is supposed to help"?

Within 15 minutes of the editorial's 12:01 a.m. Saturday publication, Michelle Malkin recounted just a few of the reasons why the Frosts' eligibility for a properly-designed SCHIP is at best dubious, and at worst, theft from taxpayers:

To review quickly: We are now “meanies,” “hypocrites,” “slimers,” and “mobsters” for challenging the wisdom of taking money away from taxpayers of lesser means who are responsible enough to buy insurance before a catastrophic event in order to subsidize two-property, three-car families with four children in private schools and two parents who work “intermittently” and “part-time” who didn’t have the foresight or priorities to purchase insurance before a tragic auto accident.

And they call our conclusions “dubious?”

The properties the Frosts have acknowledged they own are currently worth at least $400,000. The three vehicles identified by Malkin are a Volvo SUV, a GMC Suburban, and a Ford F250 pickup truck. If all were new at the time of purchase, the Frosts would likely have had to pay at least $100,000 for all three. The degree to which the Frosts have borrowed against their properties is not known, and the family "oddly" declined to show their tax returns (fourth paragraph at link) to the Baltimore Sun.

According to the Kaiser Family Foundation's statehealthfacts.org web site (reviewed in the "Update for Mind-Boggling Detail" at the end of this post), 46 states and the District of Columbia do not have an asset test for SCHIP.

Despite the Journal's objections, it remains fair to ask whether the Frosts should be eligible, as they are, for even the current version of SCHIP. It remains reasonable to question why a program with apparently serious design flaws that allow a family with possibly substantial assets and net worth should be expanded before those design flaws are fixed. More fundamentally, it is more than fair to question whether a program advertised to the public as health care for children of the "working poor," which already "somehow" covers hundreds of thousands of adults (over 100,000 in Michigan alone), should be expanded into the heart of the middle class, and beyond.

As to the antagonism the Journal is directing towards center-right blogs, I can't help but think that its editorial board is still carrying a grudge over how the attempt to pass a "comprehensive immigration bill" (known as "Shamnesty" to opponents) turned out this summer, and how during the runup to its rejection, the paper's ongoing 23-year romance with "There shall be open borders" was exposed by center-right bloggers.

Cross-posted at BizzyBlog.com and the Cleveland Plain Dealer's Wide Open blog.

—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters


Comments Policy

All comments are owned by whoever posted them and are subject to our terms of use. They should not be assumed to represent the views of NewsBusters.

Viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Come on, now. You know that

Come on, now. You know that if it means that even one child will have health insurance that wouldn't have had it otherwise, it's all worth it.

And you should know by now that there are NO "center-right" bloggers. There are only "centrists" and "right-wingers."

<sarc off>

"Cruel veto"? It's bad

"Cruel veto"?

It's bad enough that we HAVE TO pay for stupid people's abortions but now we'll have to pay for this? This is incremental socialism. It's not the government's role to provide healthcare.

The WSJ closet socialists...

... have been there a very long time - they just aren't out there daily-barking like the moonbats we suffer in the rest of the MSM.

To be sure, you never heard much about 'SCHIP' being a socialist giveaway of your and my money when it was about to get passed by the Democrat majority - and signed into law by a 'Republican' President.

Again - in this piece, whinning about the meanie bloggers exposing this rip-off for what it is - where is the outrage at the WSJ this time? Right where it's aways been - non-existent.

What's missing?

 What's missing from the WSJ comments is where does responsibility come in.  As Michelle pointed out, these parents are not attempting to find employment in places where they could have health insurance for their children.  I read, in E.J. Dionne's editorial, that the left is putting out the figure that it costs $12,000 a year for employee provided health care.  Most of us, that have employee provided health care, know that it's less than half that, depending on how much of the tab the employer picks up.  These parents never put them in the position of having the employer pick up any of the tab, which leads me ask, "What is their responsibility in all this?" 

As a family, my wife and I have been in the position where we took jobs to provide health care for our children, an expense that, had we decided to defer it would have been of great benefit to us.  Conservatives could have been better at questioning that aspect of the case, without getting into the personal.  Should we be responsible for people that choose to work part-time, have 4 children, and refuse to take responsiblity for their health care? 

The obvious solution, to this problem, is to remove the employer from the health care equation.  This would allow everyone to purchase their health insurance on the open market,  thus making it more affordable for people working in places that don't provide health insurance as a benefit.  The problem is that no one wants a free market in health insurance, because they know it would work and the immense profit would slowly be removed from it. 

If the Republicans don't start looking at this approach, we are all going to pay.  If we end up with Hillary Care, the price will be far more than a free market health care plan and the benefits will be less. If the government plan comes in first, it will be too late to implement a free market approach.   Republicans better smarten up. 

Democrats: Specializing in "high tech lynching" since 1987.

Newsbusters can't seriously be whining about a WSJ opinion piece

Listen, I am in agreement with 90% of the stuff posted on this site, but this site is about bias in the media. The WSJ Editorial Board is first of all an opinion section so posting criticisms of their opinions here, regardless of how much merit there may be, simply dilutes the overall argument that this site is trying to present.

Second of all, the WSJ editorial board is a conservative leaning group. I watch them every Saturday night, have read them for a decade. Everyone knows this.

I think disagreements of policy substance between conservatives should be left for a different blog. You run the risk of liberals pointing to a blog post like this and calling us a bunch of paranoids, or so disatisfied with anything remotely out of line with a staunch conservative view.

I'm sorry that I my first post here has to be a criticism, I have a lot more good to say about NB than bad, but this one needed some attention.

Hey john,

First, welcome here.

Don't worry about your being critical in your first post...that's fine.

We don't worry too much about what the liberals think....and the WSJ is supposed to report on things that relate to the biz world...while actually having a lefty editorial policy.  We recognize that. 

Just post here, and enjoy yourself. 

David Gregory, do you know which damn network you lie for? ~ Uncle Jimbo, @Blackfive

 

The WSJ ed board is in your

The WSJ ed board is in your view lefty?

I agree with the fact that they are blind on the issue of immigration, and on substance they are wrong. I am just saying the post looks a bit out of place on this site..

 

The ed board of the WSJ btw is a very conservative group. Bush flaks read it daily in order to get ideas and opinions, in as much as they read the Weekly Standard. The ed board folks have that much pull with conservative politicians.

This is a great site btw, its 2nd after drudge on my list daily, with Tom Maguire's Just one minute being an ocassional 3rd since he hardly updates it.

WSJ

John, thanks for your comment.
The WSJ's editorial board is conservative, but it has (at least) two ginormous blind spots: Immigration (open borders) and New Media (whom they should consider, usually, as allies, but don't).
The Board is so totally blind to the facts of illegal immigration, and to how important the center-right blogs are to keeping Big Media in check, that their editorials, which are usually good sources of facts the rest of the media won't report, deserve every NewsBusters knock they get in the two areas I've just named.

Tom --- immigration

blind spot OR business enablement?

"Television is where you watch people in your living room that you would not want near your house."       Groucho

botg

Perhaps the latter, But does it matter?

only if we wish to effect

only if we wish to effect change or expose their true bias

"Television is where you watch people in your living room that you would not want near your house."       Groucho

The media maneuver

As for the pros and cons of the SCHIP program, I won't comment here, because that's too long a discussion, and others can discuss it better than I can. What's interesting is the manipulations of the media. The WSJ is one example, but there are plenty of others.

EJ Dionne's article on the subject was simply ridiculous. It was thoroughly disingenuous, snarky, and condescending. Dionne argued that the Frost family did everything that conservatives advised (like owning their own home and starting their own small business), and now conservatives are penalizing them for that.

  • No, they're being criticized for not buying health insurance when they should have. It was imprudent for them to invest in commercial properties without having first taken care of their own insurance. 
  • Does Dionne really want to argue that starting your own business is a conservative thing (i.e., liberals would advise otherwise?
  • By the way, lost in all the buzz is that this was a program passed by the GOP in the first place. The veto is about expanding the program at the cost of $35 billion, all without any means-testing. That would mean that we would be encouraging more people to act unwisely, like the Frosts did, to the extra cost of $35 billion.

You're right, KC, Dionne's

You're right, KC, Dionne's article really is snarky.

And he proved, in spades, Ann Coulter's thesis that liberals love to send out people that no one is allowed to respond to. For one thing he says: (emphasis added)

OK, the Democrats are "fair game," but a 12-year-old? No wonder nobody talks about compassionate conservatism anymore.

So now, criticizing adults, if they have children, is attacking their children????

No one, repeat NO ONE attacked this 12-year-old boy. They criticized his parents for not buying health insurance, they talked about the house they own, the business he owns, the commercial property he bought, and whether they should be eligible for SCHIP. They even criticized the Democrats for using a child as a "human shield" against criticism; however, no one said one word of criticism about either Graeme or his siblings...

But notice howDionne says those mean conservatives are attacking a 12-year-old boy!

Neat how that works, huh???

 

 

 

Nice phrase, motherbelt

"Human shields against criticism" ... perfect. That's exactly the phrase that captures the strategy.

The 10 million children

The 10 million children that Ms. Pelosi cites are the sum of the
current enrollees plus those who could join under the Democratic plan
(which also has the support of some wayward Republicans). Never mind
that up to 60% of these children already have private insurance, which
Schip would displace as it moves up the income scale.-
-WSJ (emphasis added)

So, by vetoing this bill, President Bush is not allowing a lot of people to jettison their private health insurance and belly up to the public trough. (Why buy insurance when you can get it for free?) 

And that's cruel?? 

The Frost children are

The Frost children are covered under the program and still will be under the continued program.

As pointed out no body has attacked the children and if someone were to find an example even in the comments on the blogs involved then that could be from a very out of the norm person with their belief or a new poster that may have suspect motives.

What is being addressed is the chain of events that got the provided example where they are and how expansion furthur up the economic viability chain makes even less sense to argue the point of economic necessity.

What has also only been addressed by a few and mainly in the comment sections is that the SCHIP program really doesn't have an exit strategy.

The only way out is for the illness to reach final remission no longer requiring treatment. Any thing else presents a high barrier to the cost of exiting the program.

The Frost family is now trapped by financial caps that they had functionally chosen in advance by themselves for years by their own admissions. Now they are by mandate. If they exceed those caps they are tossed from the program and must assume to cost of care.

Sure they can't easily get insurance after the fact. But to not have insurance prior with four children is playing financial Russian Roulette.

When I grew up if nothing else all children in school were offered modest coverage for childhood ailments and were restrictive for other things out of the norm , but by doing that the cost was low to purchase.

One potential exit strategy is a partnership between commercial insurance and the SCHIP program allowing purchase of commercial insurance with the pre existing 1 year waiting period.

However once purchased the commercial insurance covers all issues not directly attributable to the condition and the SCHIP program only covers the treatment related to the pre existing condition.

During the transition if the commercial insurance is obtained, the financial cap is adjusted on proof of insurance for an appropriate amount of time to allow the exit transition to occur.

So for example in the Frost case they would be allowed to increase their income to cover the cost of the new insurance and once the pre existing window had passed all coverage would revert to the commercial insurance and the relationship with the SCHIP program would come to an end.

Under the requirments of

Under the requirments of most existing programs today, a person would be eligible for their children to be covered as long as their income is below a set family size limit.

There are two issues with that.

1 Most programs do not count unearned income ie cash flow from municipal bonds

2 Total physical assets are not taken into account.

So litterally I could be Scrooge McDuck and have a room full of gold bars (unless that is considered a liquid asset by the program), dozens of major artworks hanging in my house, a ferrari, a lear jet , a swimming pool of olympic proportions, a string of quarter horses and many other things such as houses , places of business etc.

But as long as only real income is tied into the qualification and unearned income is exempted my children could still qualify under the program as needy, even though my total net worth could be in the millions many times over.

Programs vary on what the

Programs vary on what the use to measure eligibiltiy. That can pick from the range of financial measures such as Gross Total Income, Adjusted Gross Income and Net Taxable Income.

As anyone who prepared their own taxes would know these numbers reflect vastly different amounts.

Add that to whether or not assets are put into the mix and you can see why their are issues with the system.

Also each state tries to weight the implementation of their program to give the most benefits to their perceived greatest impact amoung those who qualify for the program.

"The Frost family is now

"The Frost family is now trapped by financial caps that they had
functionally chosen in advance by themselves for years by their own
admissions. Now they are by mandate. If they exceed those caps they are
tossed from the program and must assume to cost of care."

Come again? You mean if these folks get real jobs, making real money, they will be forced to leave the program and assume the cost of raising their own children, part of which includes paying for their own health care/insurance? Say it ain't so. What else is there to say but a big, fat DUH!!!!!

These folks aren't trapped by anything. They have figured out a way to game the system into providing free health care/insurance for their children because they don't believe they should be required to do so themselves. That's why their college graduate mother works part-time, and their business owning father most likely runs an all cash business that allows him to be creative with his income numbers.

You are right, if these folks began to earn more money, they would no longer be eligible for the program, as it should be. And that's EXACTLY why they make sure they don't earn more. These people aren't forced to be on SCHIP, they WANT to be on SCHIP! They don't feel it's their responsibility to pay for their own health insurance/care, which explains why they are proponents of universal health care.

And the idea that they can't find health insurance is a canard. They have already stated that they could get a policy for $1,200 a month. If both worked full-time jobs,like adults with children should do, they could afford this policy. But they don't want to. Why pay for it yourself when you can get it for free.

 

cash biz

Then there's the possibility that the Frosts might be doing non-reported business over and above what I assume is the $45K they report. It wouldn't be that tough to stay off the books with rental property (cash some of the rent checks from time to time instead of depositing them) or self-employed woodworking (cash the checks or simply take cash as payment).