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Court denies Blagojevich health care expansion
By John O’Connor
AP Political Writer
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SPRINGFIELD -- Gov. Rod Blagojevich’s administration doesn’t know who it’s signed up for an enlarged health insurance program, how much money in premiums it’s collected or even where that money is, according to a court ruling Friday that blocked the program’s expansion.

Illinois’ First District Appellate Court in Chicago upheld a lower court’s decision to deny Blagojevich permission to broaden FamilyCare after he was rebuffed by the General Assembly and the secretary of state.

The Democratic governor went ahead anyway, offering FamilyCare to participants with higher incomes, up to $83,000 a year for a family of four. The higher the incomes, the larger the premiums.

In a lawsuit filed by a lawyer and two business-group representatives, Blagojevich lawyers admitted they had virtually no record of the program, according to the opinion written by Judge James Fitzgerald Smith.

Administration officials “cannot identify program participants, provide them with notice, or monitor payments, they do not even know (or at least have refused to reveal) where the premiums they have collected are kept and how much remains,” Smith wrote.

“You’ve got an agency which is totally incompetent and a governor and agency head who are breaking the law,” said Ron Gidwitz, one of the plaintiffs.

Annie Thompson, spokeswoman for Blagojevich’s Department of Healthcare and Family Services, said the agency has the information, but just couldn’t produce it on the spot at a hearing last spring.

But the plaintiffs never received the information as requested, a spokesman said. Thompson countered the court never ordered the agency to turn it over and would not reveal any of the data Friday, saying a Freedom of Information Act request would have to be submitted.

Unless Blagojevich appeals and the state Supreme Court accepts the case, the issue goes back to circuit court, which would conduct a hearing on whether the program is legal. But injunctions typically are granted when the plaintiffs have a good case.

Blagojevich said in a prepared statement that his staff is reviewing the opinion “to determine what implications, if any, it has for the FamilyCare Program.”

“We will take whatever actions are necessary to protect working families’ access to needed health care,” the Democratic governor said.

Greg Baise, president of the Illinois Manufacturers Association and a plaintiff, called the lack of records “appalling” and said it’s likely plaintiffs will ask the judge to appoint an outside monitor to “unwind” the program because Blagojevich can’t be trusted.

Auditor General William Holland’s reviews have repeatedly chastised the Blagojevich administration for its lackluster record-keeping and inability to follow rules in a variety of programs and agencies.

To justify the expansion, Smith said, Blagojevich was picking favorable parts of federal welfare law to enroll participants who don’t even qualify for welfare.

“The FamilyCare program, then, is in direct contradiction to the unambiguous language of the code defendants rely upon to operate it,” Smith wrote.

In early 2007, Blagojevich proposed a $2 billion-a-year universal health insurance program paid for by income-based premiums and $7 billion in new business taxes that lawmakers quickly rejected.

He then focused on a $40 million expansion of FamilyCare, increasing the income maximum for participation from 185 percent of the federal poverty level, or about $38,000 for a family of four, to 400 percent, for 147,000 additional participants.

When lawmakers nixed that, too, he proposed an emergency rule, based on uncertainty in Washington over federal support of the program. But the Joint Committee on Administrative Rules, a bipartisan legislative body, said “no” twice.

He argued in later court action aimed at forcing the secretary of state to publish the rules that JCAR is an advisory body that governor’s not bound to follow.

The administration began enrolling newcomers anyway, and when ordered to stop by the circuit court, announced it would continue to cover those who had signed up.

“It’s unfortunate it’s taken this long to point out what we felt from the beginning, the governor and his administration had overstepped their bounds,” Baise said.

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Reader comments on this story - 4 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

pseudo-intellectual wrote on Sep 27, 2008 12:54 PM:

" As buggy as our courts can be I applaud them and the plaintiffs in this case on exposing Blagojevich and his minions. Notice Blago had from last spring until now to produce information on this healthcare swindle and has been unable or unwilling to do so. Yet they continue to insist they are protecting us (while hording who knows how much money- and for what?) What we need is protection from them! "

BigBrother wrote on Sep 27, 2008 12:34 PM:

" Does anyone remember the diverted funds from 2 years ago? Blago diverted millions from the budget to fund this health insurance program. The big question is going to be WHO was paid from the funds and for what health care? A supoena of the bank records and WHO recieved any of the funds is in order! "

2tired wrote on Sep 27, 2008 11:42 AM:

" Cannot come up with the documents, this is starting to become common practice with this admin "

albundy54 wrote on Sep 27, 2008 7:31 AM:

" What a crook this so called governor is. Where are the federal indictments is what I am wondering. Where is Patrick Fitzgerald and his corp of counsel ready to indict this criminal in office? If this is not organized theft by deception on the public I would like for some liberal. legal mind to come into this forum and attempt to explain to me how this is not an illegal act. Come on Meh, ES, LOL liberal, Vic Connor, surely one of you know it all libs have to be able to explain how this guy can get away with this stuff. I challange any liberal chat room lawyer to come into this forum and attempt to explain how and why this man is not breaking the law. I am just waiting now to see whos next in line to recieve the brunt of Hot Rods anger because he was shot down again. "
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