This Morning's Headlines / Fri, Nov. 14, 2008
News Alert: DHH rolls out Medicaid transformation plan
Department of Health and Hospitals Secretary Alan Levine this afternoon introduced details of Louisiana Health First, a plan to remake the state's troubled Medicaid system. Among the plan's proposals: expanding access to affordable health care statewide, beginning with offering Medicaid eligibility to parents or caretakers of Medicaid-eligible children living at or below 50% of the federal poverty level as well as to people with chronic diseases. The revamp would also set up Coordinated Care Networks—medical "homes" for Medicaid recipients—made up of public and/or private primary-care providers, specialty-care groups and hospital providers. Medicaid dollars would follow the patient to whatever network they choose. The plan also calls for an academic medical center in New Orleans set up to compete with the country's best teaching and research programs. The state, working closely with LSU and Tulane, is proposing a community-based, not-for-profit governance model for the New Orleans facility. Louisiana Health First could be providing services as early as 2010, pending approval by the Louisiana Legislature and the Federal Centers for Medicare and Medicaid Services. For more details on Louisiana Health First, click here.—Steve Clark
News Alert: Bush wants $25B in loans released to carmakers
The White House on Friday threw its support behind a plan to speed release of $25 billion in existing loans to the Big Three automakers but rejected a Democratic proposal to use money from a financial bailout to help the troubled industry. The $700 billion financial rescue package was never intended to help automakers and shouldn't be now, White House spokeswoman Dana Perino told The Associated Press. But since Democratic leaders in Congress are pressing forward with a proposal to carve out a piece of its for the auto industry, she said the White House has decided to pursue a different approach: accelerating the availability of federal loans Congress first approved in September. Those loans were approved to help automakers build more fuel-efficient vehicles and become more competitive companies in the global marketplace. The administration now supports allowing the loans to be released more quickly than the original legislation prescribed and to be used for more urgent purposes as the companies struggle to stay afloat.
Jindal unveils health care revamp proposal
The Jindal administration is unveiling the details of its proposal to revamp the way the state provides health care to the poor and uninsured. The plan would involve steering money away from charity hospitals and toward managed-care networks that give patients more options for where they receive services. Managed-care providers would get a fee per patient, and doctors and hospitals would get incentives based on their performance. Gov. Bobby Jindal plans to talk about the proposal this afternoon. Department of Health and Hospitals Secretary Alan Levine has been negotiating the proposal with federal officials who would have to sign off on it before it could begin. State lawmakers also would have to agree to the overhaul as well. The administration says the restructuring will help control costs and improve care.
Cox looks to trim companywide workforce by 2%
Cox Communications is looking to reduce the number of employees by 2% companywide, through a combination of attrition and buyouts. Cox, which has about 23,000 employees across the U.S., is reducing staffing because of the economic slump. "We want to be in the best shape we can be in," says David Grabert, a company spokesman. Because the cutting is going on across the country, it isn't known yet how much of an impact it will have on Cox's 850 employees in Baton Rouge and nearly 300 in Lafayette. If the company doesn't reduce 2% of its staff by the end of the year, there could be layoffs in early 2009, Grabert says. "Our first effort is at self selection," he says.—Timothy Boone
Lamar director didn't earn MBA; Reilly sells shares
Thomas Reifenheiser, a director at Lamar Advertising, didn’t earn an MBA from the University of Pennsylvania's Wharton School despite company claims, The Wall Street Journal reports today. Reifenheiser told the newspaper he never completed his studies, and he was aware Lamar's filings inaccurately listed him as a graduate. "It was immaterial as far as I was concerned, and it happened a long time ago," said Reifenheiser, 73. The claim was discovered by a San Diego fraud investigator who compares corporate biographies against a database of college degrees to uncover discrepancies.
Meanwhile, Lamar COO Sean Reilly sold more than 257,000 shares of company stock this week at an average price of $14.07. The move netted Reilly $3.6 million, Barron's Online says. Reilly acquired 250,000 shares last month. The company has been hit hard by the economic downturn; Lamar stock was trading at more than $50 a share this time last year, it's below $15 this week.
Cazayoux considered for U.S. Attorney
State and national Democrats are positioning to have Don Cazayoux appointed as U.S. attorney for Baton Rouge’s Middle District. Some officials believe he was slighted for another term by state Rep. Michael Jackson, who switched from the Democratic Party to run as a nonparty candidate in the 6th Congressional District, chasing the same black votes Cazayoux needed for re-election. When contacted Thursday, Cazayoux said he plans on finishing out the rest of his term and spending time with his family, friends and supporters. “These are my sole concerns in the immediate future, and any further speculation is premature,” Cazayoux says. Any decision is still months away, since President-elect Barack Obama would have to assume office first. Cazayoux’s personal friend, U.S. Sen. Mary Landrieu, a fellow Democrat, is said to have Obama’s ear regarding the position. Others reportedly jockeying for the job include Tony Clayton, the assistant district attorney who rose to fame by prosecuting serial killer Derrick Todd Lee, and former U.S. attorney Brian Jackson, now a criminal defense lawyer. David Dugas, the Middle District’s current U.S. attorney, was in line for a federal judgeship, but that nomination process was held up in 2007 by concerns from Landrieu.—Jeremy Alford
LaPolitics by John Maginnis: Fourth District is Congressional battleground
Both national party congressional campaign committees have begun attacking the opposing candidates with TV ads in the 4th District, the last competitive congressional race in the country this year. The Louisiana election comes four days after the final U.S. Senate battle, a Georgia runoff between GOP Sen. Saxby Chambliss and Democrat Jim Martin. The campaigns of Democrat Paul Carmouche and Republican John Fleming have both released polls showing their candidates in the lead.
John Maginnis publishes LaPolitics Weekly at Lapolitics.com
Financial roundup: Retail sales plunge by record amount in October … Bernanke leaves door open for another rate cut … FDIC says plan could help 1.5 million keep homes
Consumers cut back sharply on spending: The Commerce Department said today that retail sales fell by a record 2.8% last month, surpassing the old mark of a 2.65% drop in November 2001 in the wake of the terrorist attacks that year. The decline in sales was led by a huge drop in auto purchases, but sales of all types of products from furniture to clothing fell as consumers retrenched. The 2.8% drop marked the fourth consecutive monthly decline in retail sales, the longest stretch of weakness on record, and was much bigger than the 2% fall economists expected. In a second report showing weakness, the government said businesses cut back on their inventories by 0.2% in September, the first decline since March 2007 and the biggest setback in more than three years.
Markets remain under ‘severe strain’: Warning that financial markets remain under "severe strain," Federal Reserve Chairman Ben Bernanke pledged today to work closely with other central banks to fix global financial problems and left open the door to a fresh interest rate cut to help brace the sinking U.S. economy. The Fed chief's remarks appeared to reinforce the view of Wall Street investors and economists that the Fed probably will lower interest rates again on Dec. 16, its last regularly scheduled meeting this year. The Fed's key rate is now at 1%.
FDIC publishes $24 billion plan: The Federal Deposit Insurance Corp. proposed today to use $24 billion in government funding to help 1.5 million American households avoid foreclosure. The FDIC posted the plan on its Web site two days after Treasury Secretary Henry Paulson rejected the idea of using money from the $700 billion bailout of the financial industry to pay for such a proposal. A Treasury spokeswoman declined comment. The agency's plan would guarantee 2.2 million modified loans—mainly risky loans made to borrowers with weak credit or small down payments—through the end of next year. Borrowers would get reduced interest rates or longer loan terms to make their payments more affordable.
ESPN college basketball analyst projects LSU in NCAA tourney
The LSU men’s basketball team doesn’t open the season until Saturday, but that hasn’t stopped ESPN.com’s Bracketology expert from projecting the Tigers into the NCAA Tournament. Joe Lunardi has LSU—in its first season under former Stanford Coach Trent Johnson—as a No. 13 seed in the South Regional against No. 4 seed Oklahoma at the Sprint Center in Kansas City, Mo. In one of those twists of fate the NCAA’s tournament committee seem to enjoy, the LSU-Oklahoma winner would advance against either No. 5 Miami or No. 12 Nevada, where Johnson coached from 1999-2004 before going to Stanford. Lunardi’s No. 1 seeds are North Carolina (Midwest), UCLA (West), Louisville (South) and Connecticut (East). The Tigers are one of five SEC teams Lunardi has bracketed in the tournament along with Florida (No. 2 in the South), Tennessee (No. 4 in the Midwest), Kentucky (No. 8 in the West) and Alabama (No. 11 in the East). Of course, there’s the matter of the regular season to get through. LSU opens Saturday against Jackson State at 1 p.m. in the Pete Maravich Assembly Center.
Poll: Most expect gas to stay above $2
Sixty-three percent of people who responded to a Daily Report poll say they expect a gallon of regular unleaded gas will be more than $2 a gallon by Thanksgiving. Forty-eight percent say the average price in Baton Rouge will be between $2.01 and $2.55 a gallon in two weeks, while 15% say the price will increase to more than $2.26 a gallon. Twenty-nine percent say a gallon of regular gas will be between $1.76 and $2 in time for the holiday. More than 1,750 people participated in the survey. According to AAA, the average cost for a gallon of regular unleaded in metro Baton Rouge is $2.21, in New Orleans and Shreveport, the average price is only a hair above $2 a gallon.
Today's question: How should the state handle the potential loss of $1.3 billion in revenue from oil and gas royalties?
News roundup: LSU students finalists for international scholarships … D.C. school chief takes on tenure … La. exports see big jump
Big brains: John Casey Jr. and Michael Rhea, two LSU Honors College students, are finalists for the British Marshall Scholarship. Casey, a native of Mandeville who is studying biological engineering, also is a finalist for a Rhodes Scholarship. Rhea, a native of DeRidder, is an international studies and political science major. Four LSU students have earned Marshall Scholarships, which allow students to study at any United Kingdom institution. Fourteen LSU students have earned Rhodes Scholarships, which allow students to study at the University of Oxford.
Reform-minded: The New York Times profiles Michelle Rhee, the hard-charging chancellor of the Washington, D.C. public school system. Rhee is pushing to give $40,000 raises to teachers who are willing to give up tenure. It's part of a push to raise teacher quality. An Advocate column suggested that East Baton Rouge Parish school officials look for someone like Rhee to turn around the local school system. Read the profile here.
Selling to the world: Louisiana exports are up nearly 59% through the first nine months of the year, shattering last year's record. The World Trade Center of New Orleans credits soaring oil and grain prices with driving exports up to $32.4 billion through September. Last year, the value of Louisiana exports set a record at $30.3 billion. Total U.S. exports are up 17.6% during the first nine months of the year.
