Thursday, May 22, 2008
Bipartisan proposal would let states reform health care
A bipartisan proposal to take a state-based pilot program approach to health care reform is gaining momentum in Washington, D.C.
The State-Based Health Care Reform Act is authored by U.S. Sen. Russ Feingold (D-Wis.) and Sen. Lindsey Graham (R-S.C.). The proposal gained the support today of Sen. Susan Collins (R-Maine).
Additional support for the bill coincides with a Badger Poll conducted by the University of Wisconsin Survey Center that finds a majority of Wisconsinites think states would do a better job reforming the health care system rather than the federal government.
The Feingold-Graham bill, which Collins is now co-sponsoring, would launch pilot programs in several states to achieve health care coverage in the best way the states see fit. States could use single-payer systems, expansion of current programs, market-based reforms or adopt completely new ideas in their efforts to cover the uninsured.
The bill, also co-sponsored by Sen. Sherrod Brown (D-Ohio), was originally introduced in 2006 to break the political stalemate in Congress preventing health care reform.
"I am so pleased Sen. Collins has joined this bipartisan effort to ensure all Americans have access to good health care," Feingold said. "It is long past time for Congress to break the logjam preventing action on health care reform. As I continue to hear from Wisconsinites concerned about the state of our health care system, I will keep pushing legislation to give states the flexibility they need to develop plans to bring health care coverage to all their residents."
Collins said, "This initiative which will help to 'jumpstart' our health care reform efforts by encouraging states to adopt innovative programs to make health coverage more available and affordable and to reduce the numbers of uninsured. The states have long been laboratories for reform, and they should be encouraged in the development of innovative programs that can serve as models for the nation. I am pleased to join Senator Feingold and applaud his efforts to cover the uninsured."
Among the terms of the bill:
Authorize funding for pilot projects so that a few states can ensure health care coverage to all residents.
Give flexibility to states to use their own approach to achieve health care coverage for all, as long as they meet certain coverage requirements and provide low-income protections.
Pilot programs would last for five years and would be funded through a grant application program overseen by the Health Care Reform Task Force established in the legislation.
The Task Force would evaluate state applications, select state projects and oversee implementation of the states' proposals.
Participating states would be required to submit an annual report to the Task Force, detailing their progress.
The Task Force will be responsible for submitting an evaluation of all pilot projects to Congress at the end of the initial five-year grant period. The recommendations will be based on states' experiences, and the bill requires congressional debate of these recommendations and findings.
More information about the health care reform plan is available at http://feingold.senate.gov/~feingold/releases/07/12/20071228.html. More information about the Badger Poll conducted by the University of Wisconsin Survey Center is available at http://www.uwsc.wisc.edu/BP26Release4_HC2008.pdf.
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Federal report shows home prices falling
Prices of homes in the United States fell 3.1 percent in the first quarter from the same period a year ago, the largest such decline in the 17-year history of the Office of Federal Housing Enterprise Oversight (OFHEO) purchase-only house price index (HPI).
The index, which is based on data from home sales, was 1.7 percent lower on a seasonally-adjusted basis in the first quarter, exceeding the 1.4-percent price decline between the third and fourth quarters of 2007 and is the largest quarterly price decline on record.
The figures were released today by OFHEO director James Lockhart as part of the agency's quarterly report analyzing housing price appreciation trends.
“These substantial home price declines bring positive and negative news,” Lockhart said. "For homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets. To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates."
Lockhart said homes financed with prime, conforming mortgages continue to hold up better than those financed with other types of mortgages.
"The large overhang of real estate inventory awaiting sale continues to force price declines in many areas, but particularly in places that had seen very sharp appreciation in previous periods," said OFHEO chief economist Patrick Lawler.
To view the full report, visit http://www.ofheo.gov/newsroom.aspx?ID=435&q1=1&q2=None.
Gas prices skyrocket ahead of holiday weekend
Gasoline prices in the Milwaukee area shot up overnight to $4.20 per gallon at many local gas stations, in anticipation of tight oil supplies as demand picks up over the Memorial Day weekend.
Crude-oil futures edged higher in volatile trading today after surging to a record high of $135.09 per barrel earlier in the session.
The American Petroleum Institute today reported a fall of 4.1 million barrels in crude oil supplies. Analysts had expected a rise in inventories.
For more on the rising gas prices and where some of the best deals are, visit www.wisn.com, the web site of SBT media partner WISN Channel 12 in Milwaukee.
Merge Healthcare finds financing to settle lawsuit
Cash-strapped Merge Healthcare Inc. has agreed to terms to receive $20 million in financing that will enable the company to settle a class action securities lawsuit.
The West Allis-based medical imaging software and services provider announced today that it has entered into a securities purchase agreement and related agreements with Merrick RIS LLC for $20 million in financing through a private placement. The company intends to sell a $15 million senior secured term note due 2010 and 6.8 million shares of the company's common stock as partial consideration for the term note and 14.3 million shares of the company's common stock for 35 cents per share.
The private placement is scheduled to close on or about June 3.
After accounting for transactions costs, closing fees and the payment of prepaid interest, the net proceeds of the private placement to the company will be approximately $16.6 million.
The term note will bear annual interest at 13.0 percent, payable quarterly.
In connection with the private placement, Merrick will be entitled to designate five people on Merge's 11-member board.
Merge Healthcare also today announced that it has entered into an agreement in principle with the plaintiff in the consolidated securities class action suits filed against the company. The suit alleged that the company and some of its key officers misrepresented the firm's financial health. With the agreement, Merge will pay $3.0 million to the plaintiff, and Merge's insurance carriers will pay $13.0 million to settle the complaint.
On Nov. 22, 2006, the U.S. District Court for the Eastern District of Wisconsin granted a motion to approve Southwest Carpenters Pension Trust as lead plaintiff in the case.
"We are pleased that Merrick has partnered with the Company and provided this financing package. The financing should provide us with the necessary liquidity as we continue our attempts to grow our revenues and align expenses with the revenues of the business and regain our position as a growing and profitable provider of healthcare diagnostic imaging software and services," said Merge Healthcare president and chief executive officer Kenneth Rardin. "The agreement in principle to settle the securities class action is another significant step forward for Merge Healthcare, especially when coupled with the previously announced agreement in principle to settle the company's derivative action. We are excited that we can now focus on the go forward strategy of Merge Healthcare."
State headlines: Oshkosh Waterfront project moves forward
The proposed Waterfront development in downtown Oshkosh cleared a hurdle Wednesday. The project would include office space occupied by the Davis & Kuelthau law firm and the Oshkosh Chamber of Commerce. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.
Local stocks bounce back
The BizTimes Stock Index lost 2.82 points to close at 161.26 Wednesday, but local stocks showed some signs of life in early morning trading today, led by Brady Corp. (up $1.75 to $35.85) and Johnson Outdoors Inc. (up $1.60 to $17.00). The largest local decliners this morning were Manpower Inc. (down $1.09 to $64.53) and Johnson Controls Inc. (down 40 cents to $33.91). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.



