HHS SAYS U.S. POPULATION GETTING HEALTHIER

FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES

HHS announces progress in disease prevention and health promotion

The nation’s health is improving in more than half of the critical measures that are known to have major influence in reducing preventable disease and death, according to a new report from the U.S. Department of Health and Human Services.

Healthy People 2020 represents the nation’s current 10-year goals and objectives for health promotion and disease prevention. Twenty-six specific measures—in categories such as access to care, maternal and child health, tobacco use, nutrition and physical activity—were identified as high-priority health issues. These Leading Health Indicators (LHI), if addressed appropriately, have the potential to significantly reduce major influences or threats on the public’s health that cause illness and death.

“The Leading Health Indicators are intended to motivate action to improve the health of the whole population. Today’s LHI Progress Report shows that we are doing just that,” says Dr. Howard Koh, Assistant Secretary for Health. Koh also notes that with the full implementation of the Affordable Care Act, we can expect to see more improvements across these indicators.

There are 14 health indicators that have either been met or are improving in this first third of the decade, including:

Fewer adults smoking cigarettes;
Fewer children exposed to secondhand smoke;
More adults meeting physical activity targets; and
Fewer adolescents using alcohol or illicit drugs.
While progress has been made across several indicators, the LHI Progress Report highlights areas where further work is needed to improve the health of all Americans. There are 11 Leading Health Indicators that have not shown significant improvement at this point in the decade, and 1 indicator where only baseline data are available.

PRESIDENT OBAMA'S REMARKS ON NOMINATING SYLVIA BURWELL FOR SECRETARY OF HHS

FROM:   THE WHITE HOUSE 

Remarks by the President Nominating Sylvia Mathews Burwell as Secretary of Health and Human Services

Rose Garden

10:54 A.M. EDT

THE PRESIDENT:  Hey!  (Applause.)  All right, everybody, have a seat.  Have a seat.  Have a seat.  Well, good morning.  In my sixth year in office, I am extraordinarily grateful to have so many aides and advisors who have been there since the earliest days.  But it’s still somewhat bittersweet when any of them leave for new endeavors -- even when their successor is wonderful.

In early March, Kathleen Sebelius, my Secretary of Health and Human Services, told me she’d be moving on once the first open enrollment period under the Affordable Care Act came to an end.  And after five years of extraordinary service to our country -- and 7.5 million Americans who have signed up for health coverage through the exchanges -- (applause) -- she’s earned that right.  I will miss her advice, I will miss her friendship, I will miss her wit -- but I am proud to nominate someone to succeed her who holds those same traits in abundance:  Sylvia Mathews Burwell.  (Applause.)

Now, just a couple things about Kathleen.  When I nominated Kathleen more than five years ago -- I had gotten to know Kathleen when she was governor at Kansas and had shown extraordinary skills there; was a great advisor and supporter during my presidential campaign, and so I knew that she was up for what was a tough job -- I mentioned that one of her many responsibilities at HHS would be to make sure our country is prepared for a pandemic flu outbreak.  I didn’t know at the time that that would literally be her first task.  (Laughter.)  Nobody remembers that now -- but it was.  And it just gives you a sense of the sorts of daily challenges that Kathleen has handled, often without fanfare, often unacknowledged, but that have been critical to the health and welfare of the American people. 

She has fought to improve children’s health, from birth to kindergarten; expanded mental health care; reduced racial and ethnic disparities; brought us closer to the first AIDS-free generation.  She’s been a tireless advocate for women’s health.   

And, of course, what Kathleen will go down in history for is serving as the Secretary of Health and Human Services when the United States of America finally declared that quality, affordable health care is not a privilege, but it is a right for every single citizen of these United States of America.  (Applause.)

Kathleen has been here through the long fight to pass the Affordable Care Act.  She helped guide its implementation, even when it got rough.  She’s got bumps, I’ve got bumps, bruises -- but we did it because we knew of all the people that we had met, all across the country, who had lost a home, had put off care, had decided to stay with the job instead of start a business because they were uncertain about their health care situation.  We had met families who had seen their children suffer because of the uncertainty of health care.  And we were committed to get this done.  And that’s what we’ve done, and that’s what Kathleen has done.

Yes, we lost the first quarter of open enrollment period with the problems with HealthCare.gov -- and they were problems.  But under Kathleen’s leadership, her team at HHS turned the corner, got it fixed, got the job done, and the final score speaks for itself:  There are 7.5 million people across the country that have the security of health insurance, most of them for the very first time.  And that's because of the woman standing next to me here today.  (Applause.)  And we are proud of her for that.  That's an historic accomplishment.  (Applause.)  That's right.

And, by the way, in the meantime, alongside 7.5 million people being enrolled, health care costs under Kathleen’s leadership are growing at their slowest rate in 50 years.  I keep on reading folks saying, oh, they're not doing anything about cost, except they're growing at the slowest rate in 50 years.  What does that mean?  That's in part because of Kathleen’s extraordinary leadership.

Health records are moving from dog-eared paper to high-tech systems.  Kathleen partnered with the Department of Justice to aggressively pursue health care fraud and return billions of dollars -- record sums -- to the Medicare Trust Fund. 

So, all told, Kathleen’s work over the past five years will benefit our families and this country for decades to come.  So we want to thank Kathleen’s husband, Gary, the “First Dude” of Kansas.  (Laughter.)  We got two outstanding sons, Ned and John, who have been willing to share their mom with us these past five years.  And, Kathleen, I know that your dad -- who served as governor of Ohio, and who inspired you to pursue public service and who passed away last year -- would have been so proud of you today.  So, Kathleen, we want to thank you once again for your service to our country.  (Applause.)

Now, we know there’s still more work to do at HHS.  There’s more work to do to implement the Affordable Care Act.  There’s another enrollment period coming up about six months from now.  There’s a whole array of responsibilities to meet over at this large and very important agency.  And I could choose no manager as experienced, as competent as my current Director of the Office of Management and Budget:  Sylvia Mathews Burwell.  (Applause.)

Sylvia is from a small town -- Hinton, West Virginia.  So she brings the common sense that you see in small towns.  She brings the values of caring about your neighbor and ordinary folks to some of the biggest and most complex challenges of her time.  She’s a proven manager who’s demonstrated her ability to field great teams, forge strong relationships, and deliver excellent results at the highest levels.  And she’s done it both in the public and private sectors.

As COO and later president for global development of the Gates Foundation, Sylvia worked on the cutting edge of the world’s most pressing health challenges.  As the head of the Walmart Foundation, and a member of the board at MetLife, she gained firsthand experience into how insurance markets work, and how they can work better for businesses and families alike.

Here, as my Budget Director at the White House, she’s already delivered results.  After all, in the year since she arrived, the deficit has plunged by more than $400 billion.  I’m just saying.  (Laughter.)  That's happened during that time.  (Applause.)

When the government was forced to shut down last October, and even as most of her own team was barred from reporting to work, Sylvia was a rock -- a steady hand on the wheel who helped navigate the country through a very challenging time.  Once the government was allowed to reopen, Sylvia was vital to winning the two-year budget agreement that put an end to these manufactured crises that we had seen here in Washington so that we could keep our full focus on growing the economy and creating new jobs, and expanding opportunity for everybody who is seeking opportunity.  And all the while, she’s helped advance important initiatives to bring the government into the 21st century, including her efforts to speed up job creation by dramatically speeding up the permitting process for big infrastructure projects.

So Sylvia is a proven manager, and she knows how to deliver results.  And she’ll need to be a proven manager because these are tough tasks, big challenges.  From covering more families with economic security that health insurance provides, to ensuring the safety of our food and drug supply, to protecting the country from outbreak or bioterror attacks, to keeping America at the forefront of job-creating medical research, all of us rely on the dedicated servants and scientists, the researchers at HHS and the FDA and CDC and NIH.  All of them are an extraordinary team, and sometimes the American people take for granted the incredible network of outstanding public servants that we have who are helping to keep us healthy and helping improve our lives every single day.

So I want to thank Stephen, Sylvia’s husband, and Mathew and Helene for sharing wife and mom with us a little bit longer.  We’ll miss seeing you around the White House, but I know that you’re going to do an outstanding job as America’s Secretary of Health and Human Services.  I hope that the Senate confirms Sylvia without delay.  She’s going to do great.  Last time she was confirmed unanimously -- I’m assuming not that much has changed since that time.  (Laughter.) 

And with that, I want to give them both an opportunity to say a few words, starting with Kathleen.  (Applause.) 

SECRETARY SEBELIUS:  Thank you.  Well, I want to start by thanking you, Mr. President, and Mr. Vice President, for giving me the opportunity of a lifetime to serve in this Cabinet.  I want to thank my HHS family, many of whom are here -- at least the health leaders are here -- for their incredible work.  And my personal family, represented today by our older son Ned, and my wonderful daughter-in-law Lisa; my husband Gary is on the Bench in Kansas today doing multiple hearings, which he does each and every day, and our younger son is in Ecuador.  But they’re with us in spirit.

The President has already made this case, but I want to remake it.  HHS is an amazing department.  It’s full of bright and talented and hardworking people who believe strongly in our important mission:  providing health care and essential human services to all Americans.

Now, inscribed on the walls of the Humphrey Building, where your office will be, are the words of the namesake.  And what Hubert Humphrey said is, “The moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadow of life.”  And that really, I think, describes what we do at HHS. 

From our work on birth-to-kindergarten initiatives to providing for the elderly and disabled, our employees help their friends and neighbors every day.  The researchers in NIH labs and scientists working to improve new drugs and devices are helping change the face of humanity by advancing new cures, research and innovation.  We’re advancing public health in the U.S. and around the globe with anti-smoking efforts and promoting maternal and child health. 

Finally, behavioral health and physical health issues will be considered both part of a central treatment, and that’s a big step forward.  Our workers, as the President said, look out for a safe and secure food and drug supply in a global market.  And our smart diplomacy, sharing health expertise and advances, win the hearts and minds of nations across the globe.  We have done transformational work in tribal communities across this country that will never be the same again.

So at any point in our history, that mission would be highly rewarding and some of the most important work anybody could do.  But I’ve had an additional amazing opportunity -- no one has ever had this before -- I got to be a leader of HHS during these most historic times.  We are on the front lines of a long overdue national change -- fixing a broken health system.  Now, this is the most meaningful work I’ve ever been a part of.  In fact, it’s been the cause of my life.  And I knew it wouldn’t be easy.  There’s a reason that no earlier President was successful in passing health reform, despite decades of attempts. 

But throughout the legislative battles, the Supreme Court challenge, a contentious reelection and years of votes to turn back the clock, we are making progress, tremendous progress.  And critics and supporters alike are benefitting from this law.  My professional work as a legislator and insurance commissioner and a governor have been tremendously helpful in navigating the policy and politics of this historic change. 

But at the end of the day, health is personal.  It’s personal to all of us.  Family illnesses and personal health challenges touch us to our core.  I’ve spent time as a daughter navigating care for ill parents.  As a mother and now a grandmother, I have experienced and worried about prenatal care and healthy babies.  We’ve had family health challenges, as all of us have.  And finding the right care can be difficult even with the best contacts and the right resources.

So the personal reward for me at the end of the day are the folks who approach me, the strangers who approach me at a meeting or pass me a note on a plane, or hand me a phone with someone on the other end saying thank you.  Their stories are so heartening about finally feeling secure and knowing they can take care of themselves and their families. 

Unfortunately, a page is missing.  (Laughter.) 

So I’m just grateful for having had this wonderful opportunity.  The President was in Austin yesterday at the LBJ Library, commemorating 50 years in the civil rights efforts led by Lyndon Johnson.  And 50 years ago, my father was part of that historic Congress.  He served in the Congress with the passage of Medicare and Medicaid, with Head Start.  And those programs are now in the agency I’ve had the honor to lead.  It seems like a wonderful passing of the baton.   

And the Affordable Care Act is the most significant social change in this country in that 50-year period of time.  So I am so grateful to have had this opportunity.  I appreciate all of the effort and support.  I thank my Cabinet colleagues who are here on the front row.  And not only are they here today on the front row, but they’ve been part of an all-hands-on-deck effort making sure that that 7.5 million people were able to sign up for affordable health care. 

So thank you, Mr. President.  And what I know is that Sylvia -- in the year I’ve had the opportunity to work with her -- is a trusted and valued friend, a great partner.  She will be a terrific leader for HHS.  So I’ll turn it over to Sylvia.  (Applause.)

MS. BURWELL:  First, I’d like to thank you, Mr. President and Mr. Vice President, for the trust you’ve placed in me at my role at OMB and your confidence in nominating me for this new role.

Second, as we all honor Kathleen’s accomplishments here today, I also want to personally thank her for her support and friendship through this year.  I want to express my heartfelt thanks to the team at the Office of Management and Budget and to our congressional counterparts, with whom I’ve had the privilege to work closely throughout this year.

OMB is an extraordinary institution.  It’s a credit to the professionalism and commitment of OMB’s people that we’ve been able to meaningfully improve our nation’s fiscal policy and government management over the past year.  I also want to thank my family, especially my husband, Stephen.  It’s their support that allows me to serve.

I’m humbled, honored, and excited by the opportunity to build on the achievements that Kathleen, the President, and so many others have put in place.  If confirmed by the Senate, I look forward to carrying on the important work of ensuring that children, families, and seniors have the building blocks of healthy and productive lives, whether it’s through implementing the Affordable Care Act, supporting affordable childcare, or finding new frontiers to prevent and treat disease.

Thank you, Mr. President.  (Applause.)

THE PRESIDENT:  Give these extraordinary women one more big round of applause.  Thank you, Kathleen, for your service.  Thank you, Sylvia, for your great work.  (Applause.)

END
11:16 A.M. EDT

PRESIDENT OBAMA'S REMARKS ON MINIMUM WAGE AT ANN ARBOR, MICHIGAN

FROM:  THE WHITE HOUSE 

Remarks by the President on Minimum Wage -- Ann Arbor, MI

University of Michigan
Ann Arbor, Michigan

2:52 P.M. EDT

THE PRESIDENT:  Hello, Michigan!  (Applause.)  Go Blue!  (Applause.)  This is a good-looking crowd.  (Applause.)  Just happy to be out of class.  (Applause.)  I'm sure that's not true. I'm sure these are all outstanding students.  (Applause.)  Good to see you.

First of all, give Mira a big round of applause for the great introduction.  (Applause.)  I want to say thanks to your president, Mary Sue Coleman, for her years of outstanding leadership here at Michigan.  (Applause.)  We’ve got a few other Michigan leaders who are here today.  We've got Congressman John Conyers.  (Applause.)  We've got Congressman Gary Peters.  (Applause.)  We've got your mayor, John Hieftje.  (Applause.)   Former Congressman Mark Schauer.  (Applause.)  Your Congressman, the legendary John Dingell, could not make it, but his wife Debbie is here.  Give her a big round of applause.  (Applause.)
  
Now, most importantly I know to all of you, we’ve got some Wolverines in the house here.  (Applause.)  We've got Greg Robinson III.  (Applause.)  We've got Jordan Morgan.  (Applause.) We've got Big Ten Player of the Year, Nik Stauskas.  (Applause.) And we've got quarterback, Devin Gardner.  (Applause.)  These guys were outstanding this year.  Give them a bigger round of applause than that.  (Applause.)

You guys had a great run.  That last game was as good of a game as we've seen the entire season.  I know you wish that that turned out a little bit later -- if you’d had five more seconds, it would have been helpful.  (Laughter.)  But I wanted to congratulate the coach, Coach Beilein, and the team for a great season.  (Applause.) 

And I understand that Jordan wanted me to talk about my bracket.  (Laughter.)  My bracket is a mess.  (Laughter.)  I've learned my lesson -- I will not pick against the Wolverines.  (Applause.)  It's not going to happen.  This is the problem with doing these brackets -- people just trash-talk you non-stop.  (Laughter.)  It's terrible. 

And I think it's worth mentioning, I want to congratulate Jordan for playing more games at Michigan than any other player in history -- not only earning an undergraduate degree in engineering -- (applause) -- pursuing a graduate degree in engineering as well.  That's the kind of student athlete we're talking about.  (Applause.)

Now, do some of you guys have chairs?  Because if you’ve got chairs, feel free to sit down.  But if you don't, don't sit down, because I don't want you getting hurt. 

Before I came here today, I stopped at Zingerman’s, which is the -- (applause) -- which is the right thing to do when you're in Ann Arbor.  (Laughter.)  I stopped for two reasons.  The first is the Reuben is killer.  (Laughter.)  So I ordered like the small -- (laughter) -- and it didn’t look that small.  So I gave half to Valerie Jarrett, who’s traveling with us.  And then after I finished the half, I wanted the half back.  (Laughter.)  But it was too late.  All she had left was the pickle.  (Laughter.)  So I took the pickle.  (Laughter.)

So one of the reasons I went was because the sandwiches are outstanding.  The second reason, though, is Zingerman’s is a business that treats its workers well, and rewards honest work with honest wages.  (Applause.)  And that’s worth celebrating.  And that’s what I’m here to talk about today:   How do we rebuild an economy that creates jobs and opportunities for every American?  And I want to focus on something a lot of people in Michigan are working very hard to accomplish right now, and that is raising the minimum wage to help more folks get ahead.  (Applause.) 

Now, here’s the context.  Our economy is doing better.  It’s growing.  Our businesses are creating jobs -- 8.7 million new jobs over the past four years.  (Applause.)  Our manufacturing sector, which had been losing jobs throughout the ‘90s and throughout the -- what do you call it -- aughts?  (Laughter.)  You know, the 2000 to 2010, whatever you call that.  (Laughter.)
But manufacturing had been losing jobs -- about a third of manufacturing had lost -- and obviously that hit Michigan really hard.  But we’re now seeing the manufacturing sector add jobs for the first time since the 1990s.  So that is good news.  (Applause.) 

The housing market is recovering.  Obviously the stock market has recovered, which means people’s 401(k)s, if they have them, are doing a lot better. 

Troops that were fighting two wars, they’re coming home.  (Applause.)   We just went through the first month since 2003 where no U.S. soldier was killed in either Afghanistan or Iraq.  (Applause.)

Today you’ve got companies looking to invest in the U.S. instead of sending jobs overseas.  They want to create more jobs and invest right here in the United States.  We’re more competitive.  We’re more productive. 

Oh, and by the way, 7.1 million Americans have now signed up for coverage through the Affordable Care Act, otherwise known as Obamacare.  (Applause.)  That’s a lot of people -- 7.1.  That’s enough to fill up The Big House 65 times.  (Applause.)  And by the way, that doesn’t count the more than 3 million young people who have been able to stay on their parents’ plans.  (Applause.) So we have seniors here who graduate and then it may take a couple months to find a job, or you’re doing an internship or something that does not provide health care, you’re going to be covered until you get that job that actually provides health insurance.  So it provides you the kind of protection you need.  (Applause.) 

So that’s the good news.  We fought back from the worst economic crisis in our lifetimes.  We’ve laid the foundation for America’s future growth.  But here’s the problem:  There’s been a long-term trend that has really been hitting middle-class folks and folks trying to get into the middle class, and that’s been going on since before most of you were born.  The economy increasingly has folks at the top doing really well, but then middle-class families, people who are struggling to get into the middle class, they’re working harder, but their wages, their incomes aren’t going up. 

And we’re a better country than that.  In America, we do not believe in opportunity just for the few.  We believe that everybody should have a chance at success.  Everybody.  (Applause.)  And we believe our economy grows best not from the top down, but from the middle out, and from the bottom up.  (Applause.)  And we want to make sure that no matter where you’re born, what circumstances, how you started out, what you look like, what your last name is, who you love -- it doesn’t matter, you can succeed.  That’s what we believe.  (Applause.)

We believe that what matters is the strength of our work ethic and the scope of our dreams and our willingness to take responsibility for ourselves, but also for ourselves.  That's what America is about.  That’s the promise that this country is built on.  And for the sake of your generation, we got to make sure that that continues to be the case; that that’s not just something we’re nostalgic about; that that’s something that we project out into the future. 

So I had a State of the Union a while back and I laid out a four-part Opportunity Agenda to make sure everybody has a shot.  And that starts with something I know graduating seniors are thinking about:  More good jobs paying good wages; jobs in high-tech and manufacturing and energy and innovation.  And there are things we can do to create jobs -- rebuilding our infrastructure in this country, investing in R&D, closing wasteful loopholes that don't create jobs.  So we’re providing tax breaks to companies that are creating jobs right here in the United States. Those are things we can do right now.

Opportunity means training more Americans for the skills needed to fill those jobs.  We got to make sure everybody is ready with the skills they need.  Not everybody is going to be lucky enough to be a Wolverine and graduate from Michigan.  (Applause.)  But everybody can get a good, solid base so that they can have a job and a career.

Opportunity means guaranteeing every young people access to a world-class education, and that's got to start with pre-K, all the way through higher education.  (Applause.)  And it means making college more affordable.  (Applause.) 

Some of you may not know this, but before a lot of you even entered college, we took on the student loan system.  It was giving billions of taxpayer dollars to big banks to serve as middlemen in the student loan process.  We said, why do we need the banks?  We cut them out.  We used the savings that were generated, billions of dollars, to expand the grants that help millions of low-income students pay for college.  And we’re offering millions of students who are graduating the chance to cap monthly student loan payments at 10 percent of your income.  (Applause.)

This is something you need to talk to your counselors about, especially if you’re going into teaching or social work, or other professions where it’s a passion but you’re not going to be an investment banker salary situation.  So make sure you find out about this.  You can cap -- I mean, I know Stauskas has got the contract coming up, so he’ll -- (laughter) -- he doesn't have to worry about these things.  But I’m saying later -- I’m not telling him to leave.  (Laughter.)  I wasn’t editorializing on that.  (Laughter.)

My point is we got to make sure that everybody can afford to do things that may not pay huge sums of money but are really valuable to society.

And the good news is more young people are earning college degrees than ever before.  But we’ve still got to do more work to rein in tuition costs.  I talked to your president about this. And we got to help more students who are trapped by student loan debt -- because this country cannot afford striving young people to be priced out of a higher education.  Everybody has got to be able to afford it.  (Applause.)

Finally, opportunity means rewarding the hard work of every American -- not just some Americans, every American.  That means making sure that folks are paid equal for doing equal work.  (Applause.)  I do not want my daughters paid less than somebody else’s sons for doing the same job.  (Applause.)

It means making sure that there are decent benefits and, at minimum, that every American has access to quality, affordable health insurance.  It means paychecks and wages that allow you to support a family. 

All of which brings me back to this issue of the minimum wage, giving America a raise.  Now, raising the minimum wage is not going to solve all of our economic challenges.  The majority of folks who are working get paid more than the minimum wage.  As Americans we understand that some people will earn more than others.  But here’s one thing we do believe:  Nobody who works full-time should be raising their family in poverty, right?  (Applause.)  If you’re working, if you’re responsible, you should be able to pay the rent, pay the bills.  (Applause.)

But that's what’s happening right now.  All across the country, you can work full-time on the minimum wage and still be in poverty.  And that’s why, in the year since I first asked Congress to raise the minimum wage, we’ve seen six states on their own pass laws to raise their minimum wage.  Last week, Connecticut became the first state in the country to raise its minimum wage to $10.10 an hour.  (Applause.)  Congratulations, Connecticut. 

You’ve got more states and counties and cities that are working to raise their minimum wage as we speak.  That includes your state legislators from Ann Arbor -- Adam Zemke and Jeff Irwin -- who are trying to raise it here in Michigan.  (Applause.)  We’re proud of them.  Stand up, guys.  Come on.  There they are.  (Applause.)  See, I used to be in the state legislature, so I was kind of partial to -- (laughter.)

But raising wages is not just a job for organizers, it’s not just a job for elected officials, it’s also a job for business.  It was here in Michigan 100 years ago that Henry Ford announced he was doubling his workers’ wages.  And at the time, some of his fellow business leaders thought he had lost his mind.  But Henry Ford understood it was going to be good for business.  Not only did it boost productivity, not only did it reduce turnover, not only did it make employees more loyal to the company, but it meant that the workers could afford to buy the cars that they were building.  (Applause.)  So you were building -- so by paying your workers more, you were building your own market for your products. 

And hugely successful companies today, like Costco, they take the same approach.  And it’s not just big businesses; small businesses, too.  In my State of the Union address, I called on more business leaders to boost their employees’ wages, give them a fair wage.  And since then, you’ve seen businesses across the country -- small ones, like an ice cream parlor in Florida, to a marketing agency in Georgia, to a pizzeria in St. Louis -- they’ve all said, you know what, this is the right thing to do. 

Recently, the Gap decided to raise its base wages, and that benefited about 65,000 workers in the United States -- and it led me to go shopping at Gap.  (Laughter and applause.)  Some of you may have seen the very attractive sweaters that I purchased for my daughters.  (Laughter.)  They have not worn them yet, so if they’re listening, make me feel good, just wear it one time.  (Laughter.) 

Now, Zingerman’s does not have as many workers as the Gap, obviously, but they try to do right by each and every one of them.  You’ve got some big businesses who go to Washington to lobby for special treatment for themselves.  So one of Zingerman’s owners, Paul Saginaw, flew to D.C. to lobby for his workers, to lobby for better treatment for workers through a higher minimum wage.  (Applause.)  That’s the kind of folks who are running Zingerman’s. 

Then afterwards, he held a sandwich summit here in Ann Arbor to help build support for Michigan’s minimum wage going up.  And Paul’s point is simple:  Fair wages and higher profits are not mutually exclusive; they can go hand-in-hand.  That’s what Henry Ford understood.  And Paul opened Zingerman’s doors 32 years ago last month so he knows a little bit about business.  But he and business owners like him believe higher wages are good for the bottom line. 

I happen to believe the same thing.  So I decided several months ago that the federal government should follow their lead. And so I issued an executive order that requires federal contractors, folks who are doing business with the government, to pay their employees on new contracts a fair wage of at least $10.10 an hour.  It’s the right thing to do.  (Applause.) 

And I’m determined to do my part to lift wages, improve take-home pay any way I can.  My attitude is if you cook our troops’ meals, you wash their dishes, your country should pay you a living wage.  (Applause.)

Now, here’s the challenge.  What Zingerman’s can do on its own, what even I can do as the head of the executive branch of the federal government, that doesn’t reach everybody.  If we’re going to do right by our fellow Americans, we need Congress to get onboard.  (Applause.)  We’ve got to have Congress to get onboard.  We’ve got to have state legislators to get onboard.  (Applause.)  Because even though we’re bringing manufacturing jobs back to America, we’re creating more good-paying jobs in education and health care and business services, there are always going to be folks who do critical work, who bust their tails every day -- airport workers, restaurant workers, and hospital workers, and retail salespeople -- who deserve an honest day’s pay for an honest day’s work.  They’re doing necessary jobs -- they should be able to make a living.

So right now there is a bill before Congress that would boost America’s minimum wage to $10.10 an hour.  It’s easy to remember:  10-10.  10-10.  Passing this bill would not just raise wages for minimum-wage workers; it would help lift wages for nearly 28 million Americans, including nearly a million people right here in Michigan.  It would lift millions of people out of poverty right away.  It would help millions more work their way out of poverty right away.  (Applause.)

It wouldn’t require any new taxes.  It doesn’t require new spending.  It doesn’t require new bureaucracy.  But what it would do is help those families and give businesses more customers with more money to spend.  And it would help grow the economy for everybody.

So you would think this would be a no-brainer.  Politically, you’d think that folks would be rushing to do this.  Nearly three in four Americans support raising the minimum wage -- nearly three in four.  Here’s the problem.  Republicans in Congress -- not Republicans out in America, because some of them get paid the minimum wage, so they want to see it raised -- Republicans in Congress don’t want to vote to raise it at all.  In fact, some want to just scrap the minimum wage.  One House Republican said, “It’s outlived its usefulness.”

AUDIENCE:  Booo --

THE PRESIDENT:  No, that’s what he said. 

AUDIENCE PARTICIPANT:  Booo --

THE PRESIDENT:  Don’t boo, organize.  (Applause.)  That’s what you need to do, because they may not hear the boos, but they can read a petition and they can see votes.  (Applause.)

You’ve got some Republicans saying we shouldn’t raise the minimum wage because -- they said this -- because, well, it just helps young people.  Now, first of all, I think it’s pretty good to help young people.  (Applause.)  I don’t know what’s wrong with helping young people.  Folks who say that, next thing you know they’ll say, “Get off my lawn.”  (Laughter.)  I think it’s okay to help young people.  

But the fact is most people who would benefit from a higher minimum wage are not teenagers taking on their first job.  The average age of folks getting paid the minimum wage is 35.  A majority of lower-wage jobs are held by women.  Many of them work full-time, often to support a family. 

And, by the way, what’s wrong with helping young people get ahead?  (Laughter.)  Mira puts herself through college on a base wage of less than $3 an hour, because she’s working in a restaurant.  She works hard -- she does.  So we should be making it easier for your generation to gain a foothold on the ladder of opportunity.  We shouldn’t be making it harder.

Now, the truth is the Republicans’ refusal so far to raise the minimum wage is pretty consistent with their general worldview -- (laughter) -- which says -- it says basically you’re on your own; government doesn’t have a role to play in making sure that the marketplace is working for everybody. 
 
Just yesterday, Republicans in Congress put forward a budget for the country that I believe would shrink opportunity for your generation.  It starts by giving a massive tax cut to households making more than $1 million a year, the very folks who’ve benefited the most over the last 20 years from this economy that is benefiting people at the top.  Then, so they don’t blow a hole in the deficit, they’d have to raise taxes on middle-class families with kids.  Then they’d force deep cuts to the investments that help our economy grow, like research and clean energy, and investments in middle-class families, like education and job training.

When they put these budgets together, usually they don’t tell you exactly what they’d cut because they know you wouldn’t like it, so you have to kind of do the math.  But compared to my budget, if they cut everything evenly in the amount that they’re talking about, within a few years about 170,000 kids would get cut from early childhood education.  About 200,000 new moms and children would get cut off from the programs that help them to get healthy food.  Funding for 21,000 special education teachers would be cut off.  And if they wanted to make smaller cuts in any of these -- in any one of these areas, they’d have to make bigger cuts in others.  It even cuts Pell grants, which makes it harder for students to pay for a college education. 

Now, to give them credit, they do have one original idea, which is to repeal Obamacare -- (laughter) -- because they haven’t tried that 50 times.  (Applause.)  Fifty times they’ve tried to do that.  (Laughter.)  So that means they would take away health coverage not only for more than 7 million Americans who’ve done the responsible thing, signed up, bought health care for themselves and their families, but for the 3 million young adults who’ve been able to stay on their parents’ plan under this law.  What I just told you about being able to stay on your parent’s plan -- the Republicans don’t like that. 

And their budget guts the rules we put in place to protect middle-class families from another financial crisis like the one that we’ve endured.  So if this all sounds familiar, it should be familiar because it was their economic plan in the 2012 campaign, it was their economic plan in 2010.  It’s like that movie Groundhog Day -- (laughter) -- except it’s not funny.  (Applause.)  If they tried to sell this sandwich at Zingerman’s, they’d have to call it the Stinkburger, or the Meanwich.  (Laughter and applause.)

 Look, here’s the truth.  They’re not necessarily cold-hearted, they just sincerely believe that if we give more tax breaks to a fortunate few and we invest less in the middle class, and we reduce or eliminate the safety net for the poor and the sick, and we cut food stamps, and we cut Medicaid, and we let banks and polluters and credit card companies and insurers do only what’s best for their bottom line without the responsibility to the rest of us, then somehow the economy will boom, and jobs and prosperity will trickle down to everybody. 

And when I say it that way, I know it sounds like I’m exaggerating -- except I’m not.  This is their theory.  They’re pretty unabashed about it.  And it’s not a new theory.  They’ve held it for decades, through good times and bad.  They were making the same argument against FDR when he was setting up Social Security.

 And, look, it does create opportunity for a handful of people who are already doing really, really well.  But we believe in opportunity for everybody.  More good jobs for everybody.  More workers to fill those jobs.  (Applause.)  A world-class education for everybody.  Hard work that pays off with wages you can live on and savings you can retire on and health care you can count on.  That’s what “opportunity for all” means.  (Applause.) That’s what it means.  

 Now, next week, members of Congress have a fresh chance to show which side they’re on.  They’re going to get a yes or no vote on raising the minimum wage all across this country.  And they’ve got to make a clear choice:  Talk the talk about valuing hardworking families, or walk the walk and actually value hardworking families.  (Applause.)  You’ve got a choice.  You can give America the shaft, or you can give it a raise.  (Applause.)

 Here in Michigan, your Senators, Carl Levin and Debbie Stabenow -- (applause) -- your Representatives, John Dingell and John Conyers and Gary Peters, they are already onboard.  But every American deserves to know where their elected representatives stand on this choice.  So those of you -- if you’re going back home for spring break or something or -- did that already happen, spring break? 

 AUDIENCE:  Yes!

 THE PRESIDENT:  I’m sorry.  (Laughter.)  Everybody is all, aw, yeah.  (Laughter.)  Well, I hope you had a good time.  (Laughter.)  But if you have the chance to talk to a congressman who’s not supporting it, you need to ask him, do you support raising the minimum wage to $10.10 an hour?  If they say yes, then you should say thank you -- (laughter) -- because elected officials do not hear that very often.  When they do the right thing, you should reward them. 

 AUDIENCE MEMBER:  Thank you, President Obama!

 THE PRESIDENT:  You’re welcome.  Thank you.  Thank you.  (Applause.)

 Now, if they say no, you shouldn’t yell at them.  Be polite.  Ask them why not.  Ask them to reconsider.  Tell them to join the rest of the country.  For once, instead of just saying no, say yes.  It’s time for $10.10.  It’s time to give America a raise.

 And as I’m looking out at all of you I’m reminded, four years ago I had the privilege of delivering the commencement address at the university, over in the big stadium.  (Applause.) And I said our democracy, it's always been noisy, it’s always been messy.  We have big arguments.  But in the end, we’ve always had the ability to look past our differences and our disagreements and forge a common future.  And we’ve got common values -- hard work, responsibility, pursuing your individual dreams. 

 What the argument is right now about is whether we also affirm the values that make sure we’ve giving everybody a chance; making sure our fellow citizens can also pursue their dreams; that we’re not just looking out for ourselves all the time, but we’re also looking out for the person next to you.  That's also what America is about.  That's what we have to do again.

 We’ve got more jobs to create.  We’ve got more kids to educate.  We’ve got more clean energy to create.  (Applause.)  We’ve got more troops to bring home.  We got more veterans to care for.  We got an immigration system we got to fix.  (Applause.)  We got to build a middle class.  We got to give opportunity for everybody who strives for it.  We got to make sure everybody -- black, white, Latino, Asian, Native American, gay, straight, with or without a disability, folks in the inner city, folks outside the borders of the city -- everybody has got a chance.  (Applause.)   America is a place for everybody.  That's what we’re fighting for.  That's what I need you to go out there and talk about.  (Applause.)

 Thank you.  God bless you.  God bless America.  (Applause.)

END
3:26 P.M. EDT

WHITE HOUSE RESPONSE TO HOUSE REPUBLICAN BUDGET

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on the House Republican Budget 

To build real, lasting economic security for the middle class, the President and Democrats in Congress have a plan to grow our economy from the middle out, not the top down, and create more opportunities for every hardworking American to get ahead.  Unfortunately, Republicans in Congress do not have a plan that works for the middle class and the House Republican Budget is the same old top-down approach.  Because of a stubborn unwillingness to cut the deficit in a balanced way by closing tax loopholes for the wealthy and well connected, the House Republican Budget would slow the economy, stack the deck against the middle class, and threaten the guaranteed benefits seniors have paid for and earned.

The House Republican Budget would raise taxes on middle class families with children by an average of at least $2,000 in order to cut taxes for households with incomes over $1 million. It would force deep cuts to investments in our roads and bridges, scientific research to cure diseases like Alzheimer’s and at every level of education from early childhood to community college. It would end Medicare as we know it, turning it into a voucher program and risking a death spiral in traditional Medicare. Instead of ensuring that Americans earn a fair wage for a hard day’s work and lifting millions of people out of poverty, the House Republican approach undermines Americans working hard to support their families by slashing food stamps and Medicaid. And rather than expanding health coverage for all Americans and making it more affordable, it would repeal the Affordable Care Act, raising health care costs on families and businesses and eliminating coverage for the 3 million young adults who have gained coverage by staying on their parent’s plan, the millions of people who have signed up for private insurance plans through the Marketplaces, and millions more who can continue to gain coverage through Medicaid.

The House Republican Budget stands in stark contrast to the President’s Budget, which would accelerate economic growth and expand opportunity for all hardworking Americans, while continuing to cut the deficit in a balanced way.  The President has put forward a Budget that rewards hard work with fair wages, equips all children with a high-quality education to prepare them for a good job, puts a secure retirement within reach, and ensures health care is affordable and reliable, while at the same time asking the wealthiest to pay their fair share and making tough cuts to programs we can’t afford.  And by paying for new investments and tackling our true fiscal challenges, the President’s Budget builds on the progress we’ve already made to cut the deficit by more than half since 2009 and cuts the deficit as a share of the economy to 1.6 percent by 2024.  It also stabilizes the debt as a share of the economy by 2015 and puts it on a declining path after that.

Budgets are about choices and values.  House Republicans have chosen to protect tax breaks for the wealthiest rather than create opportunities for middle class families to get ahead.  The President believes that is the wrong approach and that we should instead be making smart investments necessary to create jobs, grow our economy, and expand opportunity, while still cutting the deficit in a balanced way and securing our nation’s future.

ASSISTANT AG DELERY'S ADDRESSES CBI PHARMACEUTICAL COMPLIANCE CONGRESS

FROM:  JUSTICE DEPARTMENT 
Assistant Attorney General Stuart F. Delery Delivers the Keynote Address at the CBI Pharmaceutical Compliance Congress
Washington, DC ~ Wednesday, January 29, 2014

Thank you, Cindy [Cetani, Chief Compliance Officer of Novartis Pharmaceuticals Corporation].   And thank you to the Pharma Congress co-chairs and organizers for inviting me to be here this morning.

I am especially pleased to have the chance to speak to you at a gathering dedicated to compliance in the pharmaceutical industry.   As head of the Civil Division at the Department of Justice, I oversee much of the federal government’s civil litigation in courts across the country.   Attorneys in the Civil Division litigate cases involving national security and immigration policy.   They defend federal statutes, regulations, and programs, ranging from the Affordable Care Act to actions taken in response to the financial crisis.

Yet among these significant matters, one of my top priorities is the work the Civil Division does to enforce the Food, Drug, and Cosmetic Act; the False Claims Act; and other laws protecting the safety and well-being of patients and the general public.

Why is health care enforcement so important?   A major reason is the importance of the health care industry itself.   From compliance officers to physicians, from corporate executives to nurses and researchers, you contribute to producing the drugs and medical devices on which we and our loved ones rely.   Your efforts help to ensure that, when we are sick, the medicines we take will heal us effectively; that when we are in pain, we can obtain relief safely.

This Administration shares your commitment to improving the nation’s health care system.   It has undertaken a comprehensive effort to ensure that more people have access to quality coverage, and that treatments are available at a lower cost to all of us – to patients, to health care providers, and to taxpayers.   The innovative reforms and anti-fraud measures under the Affordable Care Act are a part of this effort.

So, too, is the Health Care Fraud Prevention and Enforcement Action Team, or HEAT, a cabinet-level initiative to increase coordination between the Civil Division and our partners at the Food and Drug Administration, the Centers for Medicare and Medicaid Services, and U.S. Attorneys’ offices around the country.   This coordination has produced historic results.   Since 2009, judgments and settlements under the FCA and FDCA have totaled over $20 billion.

But monetary results tell only part of the story.

Through our enforcement efforts, the government aims to promote an environment in which all of us can count on the soundness and efficiency of the health care system.   If a pharmaceutical company pays kickbacks to physicians who prescribe its drugs, patients lose confidence that their doctors are making independent judgments about treatment options.   If a Medicare provider bills for unnecessary services, taxpayers lose faith that our money is being well spent and health care becomes more expensive for everyone.   If a manufacturer markets its products for uses that were never approved as safe and effective by the FDA, we worry that our loved ones might be receiving treatments that will harm them rather than help them, and that they may not elect the treatment with the best chance for a cure.

We are pursuing a broader range of health care fraud matters than ever before.   We have cracked down on elder abuse in nursing homes, bringing criminal and civil cases against companies that harm seniors by providing grossly deficient care.   We have pursued doctors who put patients at risk by performing unnecessary procedures to increase their bills, like a Florida dermatologist who performed thousands of unnecessary skin surgeries, participated in an illegal kickback scheme, and ultimately paid one of the largest False Claims Act settlements ever by an individual – $26.1 million.   We have gone after the manufacturers of defective medicines or medical devices, as in our criminal and civil cases against a Boston Scientific subsidiary for knowingly selling defective cardiac defibrillators.   We have sued companies that produce sterile products in non-sterile conditions, risking contamination and threatening patients with the possibility of dangerous infections.   In short, we have demonstrated a commitment to targeting health care fraud and abuse wherever we find it.

By going after the practices that shake our trust in the marketplace and risk harm to us when we need medical care, we seek to make our health care system work better.

And in that respect, we all need to be allies and partners.   When the focus is on financial recoveries, or on a specific investigation, it is easy to think of government and industry as adversaries.   But when the goal is ensuring that Americans can trust the drugs they take and the medical advice they receive, it is clear that we are on the same side, attempting to stop unlawful practices that affect the safety and affordability of pharmaceuticals and medical devices.

And so I want to focus my remarks on three ways in which I believe the Civil Division’s anti-fraud enforcement interests align with your interests as corporate compliance officers, executives, and advisors.

First, we have a common interest in promoting an ethical corporate culture instead of maintaining a compliance program in name only.

No matter how well-designed a compliance program is, it cannot achieve its goals without achieving buy-in at all levels of the company.   People must have the right incentives to see, report, and fix problems.

A common thread in many of our cases is that numerous individuals – ranging from executives to safety technicians – saw signs that misconduct was taking place and did not act.   For example, in May 2013 the generic drug manufacturer Ranbaxy pleaded guilty to felony charges relating to producing and distributing adulterated drugs from two of its manufacturing facilities in India.   Ranbaxy acknowledged that it had continued to distribute drugs that had failed critical tests, violated current Good Manufacturing Practices, and falsified records to cover up systematically incomplete testing, sometimes performing stability tests weeks or months after the dates reported to the FDA.

The conduct that gave rise to Ranbaxy’s guilty plea took place over a period of years, during which the company received early warnings that something was wrong.   The company hired auditors and started to investigate evidence of abuses.   But its actions never translated into real change.   Four years after the first signs of trouble, those problems led the company to distribute an epilepsy drug that failed tests, had unknown impurities, and would not maintain its expected shelf life.   The ultimate result was a $500 million resolution – the largest drug safety settlement ever with a generic drug manufacturer.

A scenario like this is, in many ways, a compliance officer’s worst nightmare.   And it demonstrates how a company can have the tools it needs to avoid violations of law, and yet have such violations happen anyway. To be sure, Ranbaxy’s compliance operation could have done more than it did – its auditors, for instance, said that the company badly needed cGMP training; that training never happened.   But policies alone are not enough.

That is why we have put a renewed emphasis on identifying non-monetary measures that will help us to prevent the recurrence of misconduct. That happened with Ranbaxy, where an earlier civil consent decree called, among other things, for the company to establish an Office of Data Reliability that would work with its manufacturing, testing, approval, and compliance operations to ensure that all future drug applications are audited for accuracy before submission.   Indeed, just last week, the consent decree allowed FDA to move swiftly and respond forcefully when it learned of problems at yet another Ranbaxy facility.

Non-monetary measures were also a key feature of our $1.5 billion criminal and civil resolution in 2012 with Abbott Laboratories for conduct relating to its epilepsy drug Depakote.   Working with the company and with our partners in Office of the Inspector General of the Department of Health and Human Services, we crafted a resolution designed to ensure high-level accountability for the company’s compliance efforts.   It imposes a term of probation for five years which requires Abbott to report any probable violations of the FDCA, and requires that its CEO personally certify compliance with this reporting requirement.   It contains a corporate integrity agreement with the HHS-OIG that requires, among other things, Abbott’s board of directors to review the efficacy of the company’s compliance effort.   And it demands that Abbott institute policies to ensure that its scientific research and publications foster increased understanding of scientific, clinical, or healthcare issues.

As these settlements have made clear, we are not interested in merely collecting a large fine and moving on to the next case.   We strive to give companies the incentives – and the tools – to craft better compliance practices in the future.   And we want to work together with you, the people most responsible for compliance, to achieve real change.

The second common interest between the government and industry that I want to highlight is transparency about the conduct we investigate.

The impact of the cases we bring extends beyond the individuals and companies whose wrongdoing is at issue. Given the size, scope and reach of the pharmaceutical industry, we recognize that our efforts can have a profound impact, not only on the pharmaceutical industry, but also on the lives of countless Americans.   Each victory we achieve in fighting a single instance of fraud helps to deter others from following the same path.

In order for this comprehensive approach to be successful, we must be clear about what misconduct gave rise to a criminal or civil resolution.   As a result, we continue to emphasize the importance of   explaining the conduct that has given rise to the settlements we negotiate.

That kind of transparency benefits the industry by clarifying the factual basis for the actions we take.   And it benefits the American people by maximizing the impact of each dollar spent on health care fraud prevention and by prompting other companies to avoid the same risks to patient health and safety.

Being transparent about our enforcement efforts also means distinguishing conduct that is lawful and even beneficial from conduct that is illegal and harmful.   For example, we recognize the value of giving doctors the freedom to decide, in consultation with their patients, what treatments to use.   And we acknowledge the importance of an open dialogue in which pharmaceutical companies and physicians share truthful information about a product’s likely effects.

That said, where a company crosses the line and distributes its products intending them to be used in ways that are not approved as safe and effective by the FDA, we will act aggressively.

Many of you are familiar with November’s $2.2 billion settlement with Johnson & Johnson.   In that case, the government alleged, among other things, that a J&J subsidiary, Janssen Pharmaceuticals, distributed the antipsychotic drug Risperdal to the nation’s most vulnerable patients – elderly nursing home residents, children, and individuals with mental disabilities – for uses that the FDA had never approved.   Indeed, according to the government, Janssen distributed the drug to health care providers for elderly, non-schizophrenic dementia patients despite knowing that those uses were not approved and that the drug posed serious health risks to the elderly, including an increased risk of stroke.

Misbranding like this undermines the regulatory regime that we rely on to ensure that medicines and medical devices are safe.   And it can have catastrophic consequences for patients.   That is why the government will continue to bring these cases, and why we think it is so important that the public – and the industry in particular – understand the conduct at issue.

Finally, third, we have a common interest in ensuring that corporate compliance not only is the right thing to do but also is a winning business strategy.

That means pursuing companies that seek an unfair advantage by breaking the law.   The World Health Organization, for example, estimates that more than half of the drugs sold online are counterfeit and contain useless or even harmful ingredients.   And so the Civil Division has a team of attorneys who pursue counterfeit pharmaceutical fraud.   These efforts are critical to protecting the millions of Americans who purchase their medications through online pharmacies.   But they are also critical to protecting the legitimate businesses that suffer when fraudulent conduct distorts the marketplace.   We want to ensure that companies that are committed to doing things right have the opportunity to compete on a level playing field.

Rewarding compliance also means acknowledging when companies and individuals do the right thing and voluntarily disclose wrongdoing.   We recognize that most pharmaceutical companies are trying to play by the rules, that navigating the health care landscape is not always easy, and that many companies and individuals do their best to get it right.  

We want to make clear that the decision to come forward is the right one.   When a company or individual acts responsibly by timely and voluntarily disclosing unlawful conduct, we will give serious consideration to that disclosure in deciding whether or how to charge or resolve the matter.    Likewise, we will credit actions taken once the government has started to investigate.

Of course, each case is unique, so there is no one formula for cooperation – just as there is no formula for the penalty for wrongdoing.   But if we all aim to encourage a culture of compliance, to implement policies that can identify problems early, and to work together when fraud is found, your companies and your customers will be in the best possible position.

I want to close by emphasizing how seriously the Justice Department takes its responsibility to ensure that fraud does not pay – to ensure that all of you who encourage your organizations to act ethically are rewarded for doing so.

We reject the pernicious idea that a company can succeed by violating the law and treating health care fraud enforcement as a cost of doing business.   We continue to insist on resolutions that eliminate any economic incentive to engage in and attempt to conceal unlawful conduct.   We continue to seek criminal penalties, against both companies and individuals, under appropriate circumstances.   We continue to demand accountability by vigilantly enforcing federal laws against those who seek an unfair advantage at the expense of patients and taxpayers.

A competitive health care marketplace, undistorted by fraud, is good for providers as well as patients.   That is why I am so pleased to be here and so convinced that events such as this are vital.   These gatherings enhance our respective practices and our understanding of our respective positions.   They allow all of us to consider new ideas and varying perspectives.   And they allow us to explore new ways to work together to enhance Americans’ trust in their health care systems.

I thank the organizers for the chance to address these issues with you, and I look forward to continuing to work with all of you in the future.  

Thank you.  

EMAIL SPAMMER CHARGED WITH AFFORDABLE CARE ACT FRAUD SCHEME

FROM:   FEDERAL TRADE COMMISSION 
FTC Charges Email Spammer with Tricking Consumers With Phony Information About the Affordable Care Act

The Federal Trade Commission is taking action against a website operator that allegedly tricked consumers – in advance of the roll-out of the Affordable Care Act (ACA) – with spam emails that falsely claimed that consumers would be violating the ACA if they did not immediately click a link to enroll in health insurance.

The case against Kobeni Inc. and its president, Yair Shalev, is the first the agency has brought alleging ACA-related fraud.  According to the FTC’s complaint, from at least May 2013 through August 2013, the defendants sent consumers email with statements such as:

Today is the deadline to make your election or be in violation of federal law

Must Receive Your Election Or You Will Be In Violation of Federal Law.

Effective Monday (08-05-13) health coverage is REQUIRED BY LAW.

Why is this mandatory? New Federal Law signed by the President made it mandatory for all U.S. residents to have active coverage.  You will be in violation and face penalties if you do not elect.

You Must Select One of These 5 Options

As stated in the complaint, links in the email messages led to websites with advertisements for insurance.  The websites’ operators paid the defendants when consumers clicked links contained in the ads.  Insurance companies whose ads appeared on the websites did not authorize the email messages.

The FTC charges the defendants with violating the FTC Act by falsely representing that consumers would violate federal law if they did not select health insurance by the dates that appeared in their email messages.  The complaint alleges that the defendants violated the CAN-SPAM Act by not providing consumers who received the spam email messages with a clear and conspicuous notice that they had the right to opt out of receiving future commercial email messages from the defendants, and by sending commercial email messages that did not include the sender’s physical postal address.

The Commission vote authorizing the staff to file the complaint was 4-0.  The complaint was filed in the U.S. District Court for the Southern District of Florida.

50 YEARS AFTER SURGEON GENERALS REPORT ON HEALTH RISKS OF SMOKING

FROM:  HEALTH AND HUMAN SERVICES 
50th Anniversary of the Surgeon General’s Report on Smoking and Health
A statement by HHS Secretary Kathleen Sebelius

Fifty years ago today, Dr. Luther Terry released the landmark Surgeon General’s Report – the first of its kind on smoking and health – concluding that smoking causes lung cancer. In the five decades since, we’ve learned: that smoking damages nearly every organ in the body; it is responsible for an enormous burden of disease, death and economic cost in the United States; and, exposure to secondhand smoke can have devastating health consequences. Yet, since this first report was released, we’ve also shifted the perception of smoking from an accepted national pastime to a discouraged threat to health – and more than halved smoking rates in this country.

Later this month, we will release a new Surgeon General’s Report that will highlight 50 years of progress in tobacco control and prevention, present new data on the health consequences of tobacco use, and detail initiatives that can end the tobacco epidemic in the United States.

While significant progress has been made over the last 50 years, the battle is not yet won. I am extremely proud of the Obama Administration’s tobacco control record – from expanding access to cessation services without cost-sharing through the Affordable Care Act, to giving the Food and Drug Administration comprehensive authority to regulate tobacco products through the Tobacco Control Act. But ending the devastation of tobacco-related illness and death is not in the jurisdiction of any one entity. To end the tobacco epidemic, we must enlist all sectors of society to share in this responsibility. Together we can make the next generation tobacco-free.

HHS WORKS ON LIVING OPTIONS FOR OLDER PEOPLE WITH DISABILITIES

FROM:  HEALTH AND HUMAN SERVICES 
HHS strengthens community living options for older Americans and people with disabilities

The Centers for Medicare & Medicaid Services (CMS) issued a final rule today to ensure that Medicaid’s home and community-based services programs provide full access to the benefits of community living and offer services in the most integrated settings. The rule, as part of the Affordable Care Act, supports the Department of Health and Human Services’ Community Living Initiative. The initiative was launched in 2009 to develop and implement innovative strategies to increase opportunities for Americans with disabilities and older adults to enjoy meaningful community living.

Under the final rule, Medicaid programs will support home and community-based settings that serve as an alternative to institutional care and that take into account the quality of individuals’ experiences.  The final rule includes a transitional period for states to ensure that their programs meet the home and community-based services settings requirements.  Technical assistance will also be available for states.

 “People with disabilities and older adults have a right to live, work, and participate in the greater community.  HHS, through its Community Living Initiative, has been expanding and improving the community services necessary to make this a reality,” said HHS Secretary Kathleen Sebelius. “Today’s announcement will help ensure that all people participating in Medicaid home and community-based services programs have full access to the benefits of community living.”

In addition to defining home and community-based settings, the final rule implements the Section 1915(i) home and community-based services State Plan option. This includes new flexibility provided by the Affordable Care Act that gives states additional options for expanding home and community-based services and to target services to specific populations.  It also amends the 1915(c) home and community-based services waiver program to add new person-centered planning requirements, allow states to combine multiple target populations in one waiver, and streamlines waiver administration.

ADJUSTMENTS PROPOSED TO EXCEPTED BENEFITS REGULATIONS

FROM:  U.S. DEPARTMENT OF LABOR 

Obama administration proposes adjustments to excepted benefits regulations
WASHINGTON — The U.S. Departments of Labor, Health and Human Services, and Treasury today proposed rules that would adjust regulations under the Health Insurance Portability and Accountability Act of 1996 regarding excepted benefits to include employee assistance programs (EAPs). The proposed rules would also provide added options for employees and employers in connection with the Affordable Care Act.

"This proposal would give employers and workers more options for their health-care coverage while staying true to the consumer protections put in place by the Affordable Care Act," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "This is another example of federal agencies listening to public concerns and responding with solutions."

Under the HIPAA, excepted benefits are exempt from certain health reform requirements, including some requirements added by the Affordable Care Act. Since the passage of the Affordable Care Act, employers, employees and other stakeholders expressed concerns that past HIPAA definitions should be updated in light of new Affordable Care Act standards.

The proposed rules would amend current regulations to treat certain EAPs as excepted benefits, effective immediately. EAPs are typically free programs offered by employers that can provide wide-ranging benefits to address circumstances that might otherwise adversely affect employees’ work and health. Benefits may include short-term substance abuse or mental health counseling or referral services, as well as financial counseling and legal services. Under the proposed rules, EAPs would be considered excepted benefits if the program is free to employees and does not provide significant benefits in the nature of medical care or treatment. As excepted benefits, EAPs would be exempt from private insurance market reforms, and EAP coverage would not make individuals ineligible for a premium tax credit for enrolling in qualified health plans through the Health Insurance Marketplace.

Similarly, under the proposed regulations, vision and dental benefits provided by employers on a self-insured basis would be able to qualify as excepted benefits effective immediately, even if they do not require contributions from employees. Insured vision and dental benefits, as well as self-insured vision and dental coverage that requires employee contributions, already qualify as excepted benefits.

Effective for plan years starting in 2015, the proposed rules also would treat as excepted benefits certain limited coverage provided by plan sponsors that "wraps around" an individual market policy. The "wraparound" coverage would be available to employees for whom the plan sponsor’s primary group health coverage is not affordable and who instead get coverage through a nongrandfathered individual market policy. The wraparound coverage would provide extra benefits or broader networks, and may also reduce cost sharing. The proposal would not allow the wraparound coverage to substitute for employment-based coverage. The value of the wraparound coverage could not exceed 15 percent of the value of the primary coverage offered by the plan sponsor, which must be affordable for at least the majority of employees.

PRESIDENT OBAMA'S WEEKLY ADDRESS FOR NOVEMBER 23, 2013

FROM:  THE WHITE HOUSE 

Weekly Address: Working with Both Parties to Keep the Economy Moving Forward

WASHINGTON, DC— In his weekly address, President Obama said our economy is moving in the right direction. We have cut our deficits by more than half, businesses have created millions of new jobs, and we have taken significant steps to reverse our addiction to foreign oil and fix our broken health care system.

The audio of the address and video of the address will be available online atwww.whitehouse.gov at 6:00 a.m. ET, November 23, 2013.

Remarks for President Barack Obama

Weekly Address

The White House

November 23, 2013

Hi, everybody.  Over the past couple months, most of the political headlines you’ve read have probably been about the government shutdown and the launch of the Affordable Care Act.  And I know that many of you have rightly never been more frustrated with Washington.

But if you look beyond those headlines, there are some good things happening in our economy.  And that’s been my top priority since the day I walked into the Oval Office.

After decades in which the middle class was working harder and harder just to keep up, and a punishing recession that made it worse, we made the tough choices required not just to recover from crisis, but to rebuild on a new foundation for stronger, more durable economic growth.

Five years later, we have fought our way back.  Our businesses have created 7.8 million new jobs in the past 44 months.  Another 200,000 Americans went back to work last month.

The American auto industry has come roaring back with more than 350,000 new jobs – jobs churning out and selling the high-tech, fuel-efficient cars the world wants to buy.  And they’re leading the charge in a manufacturing sector that has added jobs for the first time since the 1990s – a big reason why our businesses sell more goods and services “Made in America” than ever before.

We decided to reverse our addiction to foreign oil.  And today, we generate more renewable energy than ever, more natural gas than anybody, and for the first time in nearly 20 years, America now produces more oil than we buy from other countries.

We decided to fix a broken health care system.  And even though the rollout of the marketplace where you can buy affordable plans has been rough, so far, about 500,000 Americans are poised to gain health coverage starting January 1^st.  And by the way, health care costs are growing at the slowest rate in 50 years.

And one more thing: since I took office, we’ve cut our deficits by more than half.  And that makes it easier to invest in the things that create jobs – education, research, and infrastructure.

Imagine how much farther along we could be if both parties were working together.  Think about what we could do if a reckless few didn’t hold the economy hostage every few months, or waste time on dozens of votes to repeal the Affordable Care Act rather than try to help us fix it. 

In the weeks ahead, I’ll keep talking about my plan to build a better bargain for the middle class.  Good jobs.  A good education.  A chance to buy a home, save, and retire.  And yes, the financial security of affordable health care.  And I’ll look for any willing partners who want to help.

Because of your hard work and tough sacrifices over the past five years, we’re pointed in the right direction.  But we’ve got more work to do to keep moving that way.  And as long as I’m President, I’ll keep doing everything I can to create jobs, grow the economy, and make sure that everyone who works hard has a chance to get ahead.  Thanks, and have a great weekend.