Tuesday, July 2, 2019

Nixing private insurance divides 'Medicare for All' candidates

Nixing private insurance divides 'Medicare for All' candidates

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Some Democratic presidential candidates who say they support “Medicare for All” are walking a tightrope on whether to fully embrace a key portion of the proposal that calls for eliminating private insurance.
Only a few White House hopefuls raised their hands when asked at last week’s debates if they were willing to abolish private insurers, even though others who were on the stage have publicly backed legislation from Sen. Bernie Sanders (I-Vt.) which would do just that.
Sen. Elizabeth Warren (Mass.), Sen. Kamala Harris (Calif.) and Sanders all raised their hands, as did New York City Mayor Bill de Blasio. But Harris later said she misunderstood the question, and clarified that she does not support eliminating private insurance.
“I am supportive of Medicare for All, and under Medicare for All policy, private insurance would certainly exist for supplemental coverage,” she said Friday morning on CBS News.
Sanders’s plan would cover every medically necessary service, including dental, vision and long-term care for people with disabilities.
That leaves little room for private insurers to cover anything except cosmetic surgery, Sanders has said.
Harris has seized on that exception to argue Medicare for All wouldn't eliminate private insurance, and that “supplemental coverage” would still exist.
Her comments, along with the discrepancy between those who have supported the Sanders bill on and off the debate stage, illustrate the delicate balance some Democrats are trying to achieve: They want to highlight their progressive chops by talking about Medicare for All, even though much of the voting public isn’t ready to give up their private insurance.
Harris has waffled on the issue of private insurance for months, despite being a co-sponsor of Sanders’s legislation. But she isn’t the only candidate in this situation.
Among the 2020 Democratic candidates, Sens. Cory Booker (N.J.) and Kirsten Gillibrand (N.Y.) are co-sponsors of Sanders’s bill, while Reps. Tulsi Gabbard (Hawaii), Tim Ryan (Ohio) and Eric Swalwell (Calif.) are co-sponsors of a similar House bill introduced by Rep. Pramila Jayapal (D-Wash.), a co-chair of the Congressional Progressive Caucus.
Booker said he thinks there is a role for private insurance, and told The New York Times in a recent candidate survey that he would pursue a public option.
During the debate, Booker was less clear about his plans.
“We have to do the things immediately that provide better care,” he said. “We can do this better, and every single day I will fight to give people more access and affordable cost until we get to every American having health care.”
In a statement after last week’s debates, Sanders said there can be no middle ground, and his campaign called on all the candidates to unequivocally say where they stand on Medicare for All. 
"If you support Medicare for All, you have to be willing to end the greed of the health insurance and pharmaceutical industries. That means boldly transforming our dysfunctional system by ending the use of private health insurance, except to cover non-essential care like cosmetic surgeries," Sanders said. "And it means guaranteeing health care to everyone through Medicare with no premiums, no deductibles and no copays."
Democrats are trying to coalesce around a single health care message, much like they did in 2018 to take back the House.
Some on the left maintain that backing Medicare for All legislation is a must for anyone who wants to secure the Democratic presidential nomination next year, but moderate candidates are wary of giving President Trump and Republicans an opening to accuse Democrats of pushing for a “socialist” takeover of health care.
Polls show that voters like the idea of Medicare for All, though most don’t know that the legislation would eliminate private insurance.
June survey by the Kaiser Family Foundation found that despite what the authors of two Medicare for All bills in Congress have said, a majority of poll respondents thought they would still be paying premiums, deductibles and co-pays.
A similar Kaiser poll from January found that support for Medicare for All dropped from 56 percent to 37 percent when respondents were told it would eliminate private health insurance.
Robert Blendon, a health policy professor at Harvard University, said most candidates will be deliberately vague about Medicare for All, even the ones who are co-sponsors of the Sanders bill.
“I think many candidates signed onto the principle,” Blendon said. “They want a Medicare dominated system but didn’t fully understand that today’s Medicare … has a private alternative which is very popular. I just don’t think they are aware of that.”
Candidates like Sanders, who has been advocating for single-payer for years, understand the nuances, Blendon said, but most others are new to the debate.
“They wanted to show they are committed to moving the country … and now this issue has surfaced in the primary, and it will definitely surface in the general election about a private alternative if you want one,” Blendon said.
Before last week’s debate, Warren had drawn some criticism from the left for equivocating about her health care policy. But on Wednesday, she left no doubt about her position, and made an aggressive play for the progressive vote.
“I’m with Bernie on Medicare for All,” Warren said on the debate stage. She added that politicians who say Medicare for All isn’t feasible just aren’t willing to fight for it.
Warren’s shift puts pressure on Sanders, and was praised by progressive groups.
“When it mattered most, and with millions of people watching, she made the strongest case yet,” said Adam Green, co-founder of the Progressive Change Campaign Committee.
“There’s a huge difference between checking a box on a position, versus actually making the case for the public and persuading them you are right,” Green added. “If all you do is check a box, you aren’t prepared with strong rebuttals to the obvious Republican attacks.”
But Warren’s embrace of Medicare for All also makes her a prime target for attacks from Trump and his GOP allies. Trump has relished attacking Medicare for All, and brought it up again last week, unprompted, as he signed an executive order about health cost transparency.
“More than 120 Democrats in Congress support Bernie Sanders’s socialist takeover of American healthcare. It’s very dangerous,” Trump said. “The Democrat plan would terminate the private health insurance of over 180 million Americans who are really happy with what they have.”
Democratic candidate Sen. Amy Klobuchar (Minn.) touched on those attacks during the debate. She supports a Medicare public option, but is not a co-sponsor of the Medicare for All bill.
“I am just simply concerned about kicking half of America off their health insurance in four years, which is what this bill says,” Klobuchar said.
   
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A game plan for newly formed defense industry giant begins to take shape


July 1, 2019– Mary Greeley News – L3Harris Technologies is wasting no time now that its deal is complete. The new $43 billion aerospace and defense giant, the result of a so-called merger of equals between Harris Corporation and L3 Technologies, has officially become the sixth largest U.S. defense contractor. The new company has $17 billion in annual revenue.
On Monday, L3Harris unveiled plans to return some cash to shareholders through a 10% dividend hike and a new $4 billion share repurchase program authorized by a newly composed board of directors. The company expects to repurchase $2.5 billion in shares over the next twelve months, replacing Harris’ and L3′s existing share repurchase programs. Additionally, the dividend will to be re-evaluated in the first quarter of calendar year 2020.
To oversee the financials, Jesus “Jay” Malave Jr. is becoming chief financial officer as well.
L3Harris is also organizing its portfolio of aerospace and defense technology and communications offerings into four segments: Integrated Mission Systems, which includes intelligence, surveillance and reconnaissance; Space and Airborne Systems, which includes space payloads, cyber defense, avionics; and electronic warfare; Communication Systems, which Includes tactical communications, broadband communications and night vision; and Aviation Systems, which Includes defense and commercial aviation products, air traffic management, and pilot training.
‘We are a technology company’
With the deal done, the management team, headed by chief executive and chairman, Bill Brown, and chief operating officer and vice chairman, Chris Kubasik, will assess the different businesses and determine if and what will be divested – a game plan they discussed in an interview over the weekend.
A game plan for newly formed defense industry giant begins to take shape
“At the end of the day, we are a technology company, so we are going to be in businesses where technology investments drives differentiation,” explains Brown, who will run the company as CEO for the first two years, before ceding that role to Kubasik. “Twenty thousand of our 50,000 employees are engineers and scientists, so it’s fundamental to what we do and who we are, and we will use that clearly as an important lens for the business we will be in. “We want to be a leader in the segments we are in and offer an attractive return to owners, so that’s how we will look at it,” adds Brown. “No decisions are made yet.”

As part of the deal, Harris Corporation said it would sell its night vision business to the U.S. subsidiary of Israeli contractor, Elbit Technologies, for $350 million. To get the merger done, regulators made that divestiture a condition; Harris had already struck the deal with Elbit.
Military radios, space hardware
A game plan for newly formed defense industry giant begins to take shape
Harris and L3 shareholders now own roughly 54% and 46% of the combined company, respectively. The deal became official on June 29th, on the heels of the closure of Harris’ fiscal 2019, which ended with the Friday trading day.
Melbourne, Fla.-based L3Harris now has a portfolio that includes military radios, air-traffic-control systems and space hardware. It is dedicating 4 percent of revenue to independent research and development (IRAD), focusing on three areas: actionable intelligence, war-fighter effectiveness, and spectrum superiority.
“Ultimately it’s about resilience and secure communications – electronic warfare is an example. We need to be able to have situational awareness in all domains…and get those to work together,” explains Kubasik.
At a time when the concept of connectivity and network rollouts like 5G are in the global spotlight, spectrum superiority is a crucial area of focus. L3Harris plans to dedicate roughly 40 percent of its investment dollars to spectrum superiority. “People talk about spectrum as being both congested and contested, and L3Harris brings to the table the ability to transmit information in any spectrum for network resilience and that’s really a key part of the capabilities,” says Brown.
A game plan for newly formed defense industry giant begins to take shape
UFO
In addition to L3Harris there have been a spate of deals within the aerospace and defense sector, including, last month, another proposed merger of equals between United Technologies and Raytheon – a mega deal that stunned experts and for which skepticism has been raised by both President Trump and several high-profile United Technologies shareholders.
Some analysts have questioned whether the renewed consolidation of the sector more broadly over the past several years could be signaling a peak for defense dollars.
But Brown points out that over the last three years the Department of Defense budget is up and, for fiscal 2020, whether it’s the mark-ups coming out of the administration and Senate or the House of Representatives, the budget is poised to increase again this coming year.
Increasing global threats
Currently, the Senate’s legislation proposes a top-line number of $750 billion, while the House’s bill would be $733 billion. The overall fiscal 2019 defense budget is $716 billion. Looking to the future, the five-year plan proposed by the Trump administration would increase the defense budget each year.
“The reality is we live in an environment where there are numerous global threats, plenty of competition in places like China Iran, North Korea, and Russia,” says Brown.
Also, significant, Kubasik points out, is the increasing amount of money the federal government is looking to allocate to research and development: “I think it highlights how the Department of Defense wants more agile, affordable systems. It gives us the opportunity to get on these newer systems and newer programs.”
In other words, L3Harris believes the domestic defense budget is lining up with its capabilities.
International sales – which currently account for about 23 percent of revenue — will also be in focus, with management calling it one of the key parts of the company going forward.
“When you think about the combination of L3Harris together, we are offering a whole lot more innovation because we are investing a lot of R&D, we’re an efficient solutions provider, and 40% of our total savings are going back to the customer in the form of cost-plus contracts that drive more affordability,” says Brown.
Adds Kubasik: “It does create another competitor and that’s…why it’s been so well received by customers, Wall Street and our workforce… are you creating competition or eliminating it. Ours clearly creates it.”
Shares of Harris Corp. and L3 Technologies had both surged more than 45 percent in the past six months. Beginning Monday, the newly combined company will trade under the ticker “LHX” on the New York Stock Exchange.


Mary Greeley News
www.marygreeley.com
credit: In part with https://www.cnbc.com/2019/07/01/l3harris-newly-formed-defense-company-on-monday-unveils-dividend-buyback.html

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