Tag: welfare

‘Obama Phone’ Scam: Florida CEO Headed to Prison, Must Pay $128 Million Fine After Defrauding Government

The owner of a Florida telecommunications company will spend the next five years in prison and his firm must pay a hefty fine regarding an “Obama phone” scam.

Q Link Wireless LLC and its owner, identified as CEO Issa Asad, previously pleaded guilty to conspiring to commit wire fraud and steal federal funds from the Lifeline program that began in the 1980s, Fox News reported Sunday.

The program offers subsidized cellphone services to lower-income people. In 2012, a video emerged of a protester outside a Mitt Romney event who claimed her neighbors received an “Obama phone,” Breitbart News reported at the time.

When asked why she supported Obama, the woman said, “Everybody in Cleveland low minority got Obama Phone. Keep Obama in President, you know? He gave us a phone, he’s going to do more.”

The clip shows the woman standing with other protesters on the side of a roadway while holding signs. The Breitbart News article speculated that she may or may not have been a paid agitator.

In 2013, Breitbart News reported that opposition to the “Lifeline” program was growing as Tracfone Wireless, “the company that most benefits from the government subsidy, is now advertising on inside-the-beltway news websites in an effort to save it.”

The Fox article said Asad was sentenced to prison and he, along with his company, must pay $128 million in fines.

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The Empty Outrage Over Medicaid Cuts

Democrats bemoaning the loss of Medicaid coverage are glossing over a critical fact: States could fund the program themselves if they wanted to. The truth is, Medicaid is not nearly as popular as the taxes needed to keep it afloat.

There is a lot to complain about Trump’s One Big Beautiful Bill (BBB), signed into law last week. For example, it will add trillions to the deficit while allocating billions to be used for deporting hard-working immigrants and even American citizens. Yet Democrats are denouncing it not for its lack of fiscal responsibility, but rather for one of its only positive provisions: its reforms to Medicaid.

Original versions of the bill included various reforms to Medicaid, like work requirements for some able-bodied adults and provisions limiting funds for undocumented immigrants and gender transition procedures. To this, Democrats responded with instant outrage: “Medicaid is a lifeline for millions of kids, seniors, veterans, and people with disabilities in our states and nationwide. Republicans’ proposed cuts would be disastrous.”

The final version of the bill eliminated some of the more thorny cost-saving provisions while keeping the work requirements in place. Yet Democrats are still dissatisfied with the bill, with California Gov. Newsom claiming that “the President and his MAGA enablers are ripping care from cancer patients, meals from children, and money from working families.”

You can tell this is nothing more than political posturing because there are no cuts to Medicaid to begin with. The OBBB only reduces the rate of growth of Medicaid spending, but the overall cost of the program to taxpayers will continue to increase. Cutting means getting rid of something, not reducing the rate at which you add stuff.

Maybe we should not be too hard on the semantics. After all, Americans have very little experience with Medicaid cuts. Throughout its 60-year history, the only time Medicaid spending was truly cut was in 2006, by a mere 0.25%. This should come as no surprise since Medicaid promotes excessive spending by design.

Medicaid is structured in such a way that for every $1 that states spend on Medicaid, the Federal government matches it by up to $9. This design allows state politicians to grant their constituents $10 in political goodies (Medicaid) while only incurring $1 of political cost (higher taxes). Where does the rest of that money come from? Federal taxes and debt.

Now that Washington is cutting back its match rate, this windfall of benefits without costs to states will slow down. States must choose between filling the funding gap themselves (by raising taxes) or reducing coverage. State officials (many of whom will be facing reelection in the next few years) would rather do neither and keep this party going.

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Debunking the 100,000 Medicaid Deaths Myth

“More Americans will die—at least 100,000 more over the course of the next decade,” wrote Yale law professor Natasha Sarin in a June 9 Washington Post column about the Medicaid cuts in President Donald Trump’s One Big Beautiful Bill Act.

“That isn’t hyperbolic,” Sarin added. “It is fact.”

The average reader might be inclined to believe Sarin, who holds a Harvard Ph.D. in economics as well as a Harvard law degree, and served in the Treasury Department during the Biden administration. But contrary to her characterization, her claim is both hyperbole and not “fact.”

Sarin’s assertion reflects a fundamental misunderstanding of the concept of “statistical lives saved.” In particular, she and several other prominent journalists misinterpreted a recent working paper published by the National Bureau of Economic Research (NBER).

As a professional debunker of bad research, I can say with some authority that the authors of that study, Dartmouth economist Angela Wyse and University of Chicago economist Bruce D. Meyer, wrote an excellent paper—a rarity among academic studies these days. But the University of Chicago’s press office trumpeted the paper’s findings, declaring, “Medicaid expansion under the Affordable Care Act saved about 27,400 lives between 2010-22,” which is highly misleading. 

That take was echoed in coverage of the study by major news outlets. “The expansion of Medicaid has saved more than 27,000 lives since 2010, according to the most definitive study yet on the program’s health effects,” reported Sarah Kliff and Margot Sanger-Katz in The New York Times. Their May 16 article was headlined “As Congress Debates Cutting Medicaid, a Major Study Shows It Saves Lives.” 

The story was also picked up by Time (“Medicaid Expansions Saved Tens of Thousands of Lives, Study Finds”), NPR (“New Studies Show What’s at Stake if Medicaid Is Scaled Back”), NBC News (“Proposed Medicaid Cuts Could Lead to Thousands of Deaths, Study Finds”), and several other news outlets. These journalists either didn’t read the study, didn’t understand it, or willfully misrepresented its findings for partisan reasons. 

In the past, conservative opponents of Medicaid have been equally guilty of misconstruing academic research to support their policy views. That is what happened with the most famous study on the subject, The Oregon Experiment—Effects of Medicaid on Clinical Outcomes, which The New England Journal of Medicine (NEJM) published in 2013. The NBER and NEJM papers offer a similar account of Medicaid’s impact on health, but both have been misinterpreted.

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Trump’s Deputies Use Medicaid Data to Help ICE Find Migrants

President Donald Trump’s deputies have completed a data-sharing deal to let ICE agents use government Medicaid data while enforcing the nation’s popular immigration laws, according to a report by the Associated Press.

Under a new agreement, “ICE will use the CMS [Centers for Medicare & Medicaid Services] data to allow ICE to receive identity and location information on aliens identified by ICE,” the agreement says,” the AP reported Thursday, adding:

The department’s assistant secretary, Tricia McLaughlin, said in an emailed statement that the two agencies “are exploring an initiative to ensure that illegal aliens are not receiving Medicaid benefits that are meant for law-abiding Americans.”

Millions of illegal migrants have shared their identities and addresses to use the taxpayer-funded Medicaid system, often via emergency rooms and state-funded clinics.

The data is not being copied to ICE. Instead, ICE will be allowed to verify identities and addresses during regular work hours.

The information-sharing deal reflects the determination of Trump’s deputies to remove a myriad bureaucratic and regulatory barriers to the enforcement of the nation’s immigration laws.

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85 Minnesota Autism Clinics Under Investigation for Millions in Medicaid Fraud

About 85 autism clinics in Minnesota are under investigation for tens of millions in Medicaid billing fraud.

The state’s Department of Human Services (DHS) is under a microscope for paying out outrageous amounts for services supposedly delivered by the state’s burgeoning autism treatment sector, according to KSTP-TV.

The records show that DHS paid out claims totally about $700 million since the state’s autism program began in 2014. But millions of that seems to be paying for services that were never rendered. And investigators say that some $20 million has been fraud.

Now, DHS is reportedly visiting every one of the state’s locations after data shows that at least 85 of them fraudulently billed the program.

One expert says that the state ignored the warning signs.

Dr. Eric Larsson with the Lovaas Institute Midwest says that some of the bills were obviously suspicious. “No apparent email address, no website. Nobody is answering the phone,” he said. “They’re certainly not trying to deliver services.”

The problem first came to light last December when the FBI raided two Minnesota autism clinics under suspicions of fraudulent billing, KROC radio reported at the time.

State DHS officials are now scrambling to make sure that the hundreds of autism centers in the state are submitting legitimate bills.

Two of the clinics under investigation are Smart Therapy Center, LLC in Minneapolis and Star Autism Center LLC in St. Cloud, which also had ties to the Feeding Our Future child meal fraud case.

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Netflix And Chill: Farage’s DOGE Uncovers INSANE Government Funded Perks For Illegal Aliens

A British version of DOGE instituted in areas where Nigel Farage’s Reform won seats in the last round of elections has found that local government is spending hundreds of thousands in taxpayer money on unnecessary perks for illegal immigrants, including subscriptions to Netflix.

Not content with putting them up in luxury hotels and giving them loaded debit cards, at least ten local councils are providing illegal aliens with subscriptions to streaming services such as Netflix and Disney +, as well as spending close to £120,000 on fast food such as Dominoes Pizza and McDonalds.

The local governments have also handed out gift cards for electrical stores Currys and Argos, presumably so the illegals can get a TV to watch their Netflix, and even paid for outings, including trips to safari parks, the circus, and mini golf.

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Taxpayers will no longer fund illegal aliens’ education

Taxpayers will no longer pay for the education of noncitizens in the U.S. illegally, the U.S. Department of Education said Thursday.

The department said “it will end taxpayer subsidization of illegal aliens in career, technical, and adult education programs.”

A news release said that this change takes place due to an interpretative rule issued Thursday in which “the Department rescinded a Dear Colleague letter from the Clinton Administration that enabled non-qualified illegal aliens to access federal public benefits in contravention of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA).”

Title IV of PRWORA “generally limits eligibility for ‘federal public benefits’ to U.S. citizens, permanent residents, and certain categories of ‘qualified aliens,’” the release said.

Federal public benefits include “any retirement, welfare, health, disability, public or assisted housing, postsecondary education, food assistance, unemployment benefits, or any similar benefits for which payments or assistance are provided to an individual, household, or family eligibility unit.”

In 1997, “the Clinton Administration issued a Dear Colleague Letter that erroneously exempted career, technical, and adult education programs from being subject to PRWORA,” the release said.

“In doing so, the Department’s interpretation mischaracterized the law by creating artificial distinctions between federal benefit programs based upon the method of assistance,” the release said. “Congress made no such distinction in PRWORA.”

The department’s release said that Thursday’s interpretive rule “also ensures that postsecondary education programs authorized under the Higher Education Act (HEA), such as Pell Grants and student loans, continue to be inaccessible to illegal immigrants.”

U.S. Secretary of Education Linda McMahon said in the release: “Postsecondary education programs funded by the federal government should benefit American citizens, not illegal aliens.”

“Under President Trump’s leadership, hardworking American taxpayers will no longer foot the bill for illegal aliens to participate in our career, technical, or adult education programs or activities,” McMahon said.

“The Department will ensure that taxpayer funds are reserved for citizens and individuals who have entered our country through legal means who meet federal eligibility criteria,” McMahon said.

Director of Policy Studies Jessica M. Vaughan at the Center for Immigration Studies told The Center Square that “taxpayers should not have to subsidize vocational or other post-secondary education for illegal aliens, who aren’t allowed to work in this country.”

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Trump Admin Ends Taxpayer Subsidies For Illegal Aliens

The departments of Health and Human Services (HHS), Education, Agriculture, Labor, and Justice are ending illegal aliens’ abilities to leech off the American taxpayer by taking advantage of federal programs.

The departments announced on Thursday that illegals will no longer be able to access the government programs, as they have been able to do since the Clinton administration. The Trump administration made the move to “ensure that taxpayer-funded program benefits intended for the American people are not diverted to subsidize illegal aliens,” HHS said in its announcement.

In doing so, the federal government rescinded a 1997 Dear Colleague letter that exempted such programs from being subject to the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), which limits “federal public benefits” to U.S. citizens, permanent residents, and some “qualified aliens.”

The Education Department said that the Clinton-era letter “mischaracterized the law by creating artificial distinctions between federal benefit programs based upon the method of assistance.”

The move brings various programs in line with an executive order signed by President Donald Trump called “Ending Taxpayer Subsidization of Open Borders.”

The White House said that the Department of Justice “is closing longstanding loopholes that have allowed illegal aliens to access taxpayer-funded benefits,” but did not go into more detail, and the department has not yet released more information.

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Does Medicaid demand accountability for doctors for dishonorable or even illegal behavior?

ATexas pediatrician’s controversial social media post mocking flood victims, insinuating that it would be good if Trump supporters were not protected from the disaster, and suggesting that people who voted for Trump deserve to die, raises larger questions about whether federal health officials are using any tools to hold doctors registered to provide services under Medicaid or other government programs accountable. 

In fact, a review of the federal database used for Medicaid billing shows that the federal government has repeatedly failed to remove doctors from the system who have been convicted of crimes ranging from fraud to improperly distributing opioids, calling into question the health administration’s willingness to hold medical professionals accountable for the appropriate standards of conduct and care.

According to the Department of Health and Human Services (HHS), individual Medicaid programs vary according to each state’s statutes within broad Federal guidelines. Medical professionals are responsible for knowing and abiding by state-specific rules where they furnish services and for each of the programs for which they furnish services.

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US food poverty doubles in 4 years – Axios

Food insecurity among American adults has nearly doubled since 2021, Axios reported on Sunday, citing data from Morning Consult. The striking statistic comes amid steep cuts to federal food assistance programs in the world’s largest economy, fueling concerns about the welfare of millions.

US President Donald Trump’s “Big, Beautiful Bill” signed into law last week includes $230 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) over the next decade. The legislation imposes stricter work requirements, extending mandates to individuals up to age 64 and reducing exemptions for parents.

The proportion of US adults reporting that they sometimes or often do not have enough to eat has been steadily rising in recent years, according to the survey.

In May, 15.6% of adults were classified as food insecure, nearly twice the rate recorded in 2021. At that time, expanded SNAP benefits and an enhanced Child Tax Credit had helped reduce poverty and increase access to food.

The increase in food insecurity comes as the US economy shows signs of strength and stock markets hit record highs.

John Leer, chief economist at Morning Consult, noted a problem: “There’s such a disconnect now between record highs on Wall Street and elevated levels of food insecurity.”

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