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tv   Politics and Public Policy Today  CSPAN  September 26, 2016 3:00pm-5:01pm EDT

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between now and november 8, i'm not worrying who to to vote for when i get there. >> that's right, that's right, that's right. >> uh-huh. >> that's exactly right. [ applause ] >> you see why it's my privilege? dr. black. >> good morning. dr. forbes reminds me that the last time i was in the press club, i was here with the rabbi who enlightened me by sharing with me that in the hebrew language, the korld cold, translates voice and it is also the word that translates vote. that every time you hear the word voice in hebrew scripture that you could easily say that god is voting. that god was voting, that creation was good. that when god breathes light and
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became human beings that god indeed was voting, that we are all equal. i suggest to you as dr. forbes has said that our voice is indeed our vote and that we vote every time we speak out, we vote everywhere we go, on every issue. now dr. forbes also talked about 9/11, which everyone agrees was an act of terrorism. but i am a child of the '60s from birmingham, alabama. and there was another affect terrorism that hammed in september, four little girls were bombed in a church across 16th street. i remember the anxiety and angst that come around that day, every year, one of those little girls sister went to school with me. it is also an act of terrorism that this country should do great penance for.
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because, that act of m terrorism, unlike the one on 9/11, is attach ed to the infl t inflected moral aptitude of this country. there is a lie being spread around and most of us are drinking the kool aid. the lie says that all people are not created equal the lie says somebody has to win and somebody has to lose. the lie says that god didn't create enough in abundance for all of human creation and all of creation, period, to live in harmony and all be taken care of. the lie says we don't have enough to make a living wage and everyone to have a decent quality of life. everybody is not due health care, adequate health care and
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adequate housing and adequate food supply. the lie says that the indings now people of this country should be on standing rock fighting for land that was taken from them in the first place. the lie says that women shouldn't have control of their own bodies, but that people who have nothing to do with our reproductive system should care more about our womb than they care about food in our stomachs. the lie says that lesbian, gay, and transgendered people are not considered equal in this country and should not have the same rights and the same benefits afforded from marriage to all. the lie says that the life and the well being of my child is not as important as the life and the well being of somebody else's child, the lie says that the government is not a servant of the people, but the government rules the people, the lie says that god is republican
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or democrat when god doesn't give a hoot about your political convictions. the lie says god is american when god cares about the whole world that god has created. and our voice is our vote. now the question i pose to you today, is will you be prophets of resistance? are you going to be priests of an empire? that is the question. some folk are doing what they are supposed to be doing. there is no lie and no hidden agenda in what's coming out in this political election. but my concern is for those of us who declared that we have been called by a higher power. those of us who are declaring that god indeed reads and directs our path and our words.
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my concern is that we have become come police sat at infected with this toxin. that i say to you is just not racist, but is the desire to be god. at it's core, america's problem. is that we have created god in our image. rather than serving the image in which we are created. so my friends, there is more at stake for us than any political election. there is more at stake for us than who is in the white house. that matters.
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but that changed every eight years. what we are fighting for, what i am marching for, the reason that i'm speaking out is i believe our very soul is on the line. and as we fail to see the god in every created being then we will have failed god. chose this day. who you will serve. chosing whether you will serve the god of capitalism or whether you will serve the god of creation.
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choosing whether you will choose a god of fefr. choose this day. i have made my choice. i pray you've made yours. >> and so you clear ely hear where you'll be joined by rabbis and some who couldn't be here today because we originally planned this on the 29th, and i had a very close friend die and we had to go back, but you hear dr. forbes, you hear dr. blackman i'm going to invite other cler jis and to stand with us as we take questions. look at this map of all the places we're going to have these, this day of action and the places we're going with the revival. now revival doesn't end november
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8th. we do believe we need a revolution of moral values, it's not a moment, it's a movement. we must shock the nation. every age has needed moral defibrillators. whether it was henry david and frederick douglas and harriet tubman in the 1800s or walter a phillip randolph or whether it was of the rabbi.
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i want a conservative to holden to justice. what do you mean? what does that really mean? i'm a theological, evangelical. a conservative, liberal, bibl cyst. who dlds we had to talk like this? to become a euphemism for white christians who believe a certain thing. how can we grab the holiest thing? i knew there was a movement called the redemption movement. sounded religious, but it worked to tear down reconstruction in this country and tear apart blacks and whites. there's also person that calls
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himself a southern strategist after the death of dr. king. it sounds good. you're going to lift up the south, but the goal was to divide the south. and black and brown people are not just people with problems, but the problem people. there's a goal and the line up would certainly create the solid thing. and you have the moral discussion. to prey on home sexuality, where you stand on those issues. somebody will say well this is just a progressive agenda. well there's that too. how can you read christ and grieve moises and not been be for that? moses was so progressive.
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moral agenda. that costs too much. i'm glad there's a peace prize. how much does it cost in money and immorality? agendas that hurt people that are extreme, they do not lift everybody. our constitutionally inconsistent, morally indefensible, but also economically insane. it was insane not to have a living wage. and how can you say on the one hand you want people to have jobs, but or that the minimum wage is already too high? we trait from zero, took us 400 years to get to. # 25, you want to wait another 400 years? health care is economically sane. as jobs, it creates people, the health care, allows them to be able to work. i mean, the fact of the matter is, what we're talking about is
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economically sane. talk about all of the violence we have perpetrated among those that end up creating our systems of violence. that's why i love what loretta king said, what does she think about violence since her husband was snaeted, she said violence is greater than when somebody gets shotter. poverty is violence. police brutality is rienls. not paying people living wage or giving them health care is violence. then she said, even an attitude that doesn't seek to address those issues is a rid of
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violence. about voting morality that says talking about exhibition and banking and health care. those are moral issues. call us when people to want prey on people in their public policy. dr. forbes mentioned it about representing the image of god. because you can't be vote unless you're a citizen. you can't be a citizen unless you're a person. so if you undermine my right to vote, you're suggesting i'm not a person. let me add one tling to that, one of the most immoral things, i come from a state where in the 21st century, in 2016, a governor and legislative were found guilty of intentional
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racist discrimination and vote. but intentional. oofr are in a democracy, not, we didn't know what was going to happen, but intentionally and the fight for voting rights vote rights is about labor rights. it's about health care, if you don't expand electoral. then a certain small group of extremists can control, which is why they tried to narrow the electric. theyen can't begin there's a broad electric. there will be one entire debate on voting rights. we've been talking about national security. let's have one debate on voting rights.
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where do you stand if you run for president? where do you stand on restoring the voting rights? where do you stand -- how can you go through a whole season asking people to vote for us and not deal with this issue of intentional vote and where people stand? then we need to look at this. only filly buster the civil rights act for a little bit over 24 hours. since june 2013, has engaged in filly buster and congressional, what dr. king would call, interposition and nullification for more than 1,235 days, u when i stopped counting.
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we talking about that. moral issue. talk about economic justice. health care, education, so we're glad, we're moving out on the 12. you can go to www.moralrevival.org. we've been doing these revivals since april, and the crowds and people are coming out because people understand woe need a moral revolution. we're not going to do that. i promise you. dr. forbes, if you'll come right on this side so we can easily move to the mike if necessary.
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just come up around all of these. these people represent thousands across the country as we said more than 2500. you want to come up, rob? 2500 clergy have signed. thousands of others i'm glad to have one of our great friends. any questions from members of the media? yam, and you are? >> some are still fighting about early voting on sunday. can you talk about why this is an important fight? specifically sunday voting? >> it's not some counties, it's boards of elections. and what happened is the courts ruled the federal courts ruled that the legislature engaged in intentional discrimination in a case filed by the naccp and j
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churches and individuals, the biggest case. op and we won and when that happened, however presidential candidate trump came to our state in charlotte and actually said that the courts were now opening up the possibility of fraud. think about that. the court said this state had been engaged in intentional, racial discrimination, a presidential candidate, rather than saying kbroun, this is wrong, governor, you're wrong, said that what the courts did unanimously was now opening up fraud. then he went further and said it would allow brown people and illegal immigrants, and just the hate you're talking about. after that, the executive director of the republican party sent out a memo. normally we know stuff like this happening, but normally we don't actually have evidence.
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he sent out a memo that was supposed to be secret but made public, telling the republican members of the board of elections to institute voting policies that reflected republican values. not what the courts have said. that's not what abraham lincoln would do. what he was really saying is, implement extremist values and so the board of elections, many of them have done that. and we have a big hearing on the 8th because in north carolina, you have to have a unanimous vote of all three members but the majority are determined by whoever the governor is. so, many democratic members are voting against these plans, but they're trying to -- it's one of the things they want to do is move all of the voting places off college campuses, especially
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hbcu. the other thing is shut down all except at the board of election and only keep it open during working hours. chm the goal is same-day registrations and poor people and other people that can't get off would be able to exercise that right to vote. they want to end sunday voting. and some of them even saturday voting. we're in a major fight. that is, as i said, that's what we're talking about. something's morally wrong with you. with your thinking, in a democracy, you know, democracy, you work to suppress and undermine the vote. something's wrong with that. and we're deeply concerned that, you know, we hear people a lot of about prayerless, but where are you when people are praying on people's voting rights?
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any others? >> september 8th in north carolina. i don't know about other places, but in north carolina specifically, the state board of election meets. and they have to have a hearing on all of these plans that were not voted on unanimously. >> why sunday voting isn't important -- >> it's important. all of rules, sunday voting, same-day registration, early voting, we won those for movement movements. we challenged democrats. god is not democrat or republican. we challenged democrat and we won those things because remember, we did not get protected voting rights until 1965. to return to the congress until 1990. so it was 25 years after the
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voting rights act that north carolina is a southern state once again had one african american in the united states congress. and then in 2007, that same day registration, early voting, many churches, many african american congregations, according to to the statistics would use sunday voting in honor of that. if we were beat on a sunday and bloodied on sunday, we ought to cast our ballot on a sunday. well, it worked, and more than a million black and brown people showed up at the policy doing early voting and same-day registration in 2008. once that happened? when black and brown people started voting in mass numbers and the black vote in north
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carolina went to 70% and black women were higher than any other demographic and 12 it started happening in the south, you get 30% of african americans to rebel strer and vote in the south beyond what you have is no longer solid south which opens up those 11 southern states which opens up the american democracy. and these requested before the laws, give us the statistics of how black people use different rules and the ones that black and brown people use the most were the very ones that they tried to remove, which is why the court said it was surgical. and intentional racism.
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come to the mike. >> i wanted to speak very directly to your specific question. when you live in a country with economic inequities. there's certain ways to show up to marginalized people. so i believe that as a country we should be born with the right to vote. we should have to lose it. no one had me registered to pay taxes. they figured that out, right? and so, every way that we can mobilize people to vote is important. in the last two national elections in st. louis, i've led a voting right mobilization effort because the economic impact of people's ability to have transportation their abilitien to connected with other people that are voting is all impacted. and so when we as faith
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communities begin to mobilize people on sunday, we're able to take our buses and our vans and take people from the pews to the polls. that's why it's important and anyone who is concerned about the democracy in this country should be celebrating that more people have the opportunity to vote than less. if you work a minimum wage job and many of the people i know who work minimum wage jobs work more than one because you can't live off of the salary of one of those jobs. it is hard for you to get off and vote even if the law says they're supposed to let you off, right? so whatever day that you are off, if you can go and vote on that day it matters. and if we want everyone's voice to be heard, we should be a country that is about making it easy to get to the polls. and not hard to get to the polls. and the question becomes whether what are you gaining by not
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helping people make it to the polls? follow the money. when you follow the money, you'll have your answer. and as a faith community, it is incumbent upon us to mobilize every bus, every van, every car to make it happen. the last presidential election we drove someone to the polls who had not voted in the last four elections simply because he did not have transportation. we took people who could not read just because you can't read doesn't mean you can't vote. we took people who couldn't see, registered people who have paid their -- who have been convicted of crimes, have worked their sentence, paid their debt. they should be able to vote.
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that's why it's important. because any time you find people trying to stop something is because they know the power of it. >> we hear a lot these days about making america great i think it's important when we talk about voting to say if you want toed measure how exceptional a nation is or how great it is of greatness has got to be what is the percentage of people who are citizens of your country who believe that their voice matters of the welfare and well being of that nation, so, i think we've got to recognize, you really want to be great,
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think about your vq. the voting kwoegs. and the higher the voting kwoegs, perhaps -- [ inaudible ] you are robbing your nation of the greatness that you talk about or claim you aspire to. >> and you understand why. you hear this articulation. in our moral declaration, it's not just about field, it's about policy. and that's one thing you want to drive home. a lot of times what you see in the current arena is if somebody happens to shake hands with a preacher or pray for them. you can say lord, lord, with your mouth, but your heart or the heart of your policy to be far from the moral standards of that we know are to be true. the bible says where your treasure, not where your heart is, your treasure is. follow the money.
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where your treasure is. what will happen on that day and impact the person, say impacted by voter suppression will tell their story and then a clergy will read our higher ground policy moral declaration. you're registered to draft automatically. we also should be protecting and expanding the voting rights act right now because today, attorney general lynch. we have had two african american attorney generals. in the history of this country. we have the first female african american attorney general, we had a black african american male attorney general after 2013, both of them had less power to enforce the voting rights act than the attorney general had august 7, 1965.
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have figured out how to come together. where there's the potential for that because that is the coalition that can fundamentally shift american politics. king knew it, we know it. so wherever you've scene that
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potential so for instance if you look at the south, violence happened in other places, but i want to explain something here on c-span, then we'll stop. if you take north carolina, virginia south carolina, georgia, mississippi, alabama, florida, tennessee, kentucky, arkansas, texas, and louisiana, if you can control those states with a limited moral message, that's called a bible belt. and all that you talk about that you ought to be concerned about is where they stand on prayer and abortion and what not. if you can get people to accept that, certain folks accept that, that's the moral agenda. if you can fool people to think that those people, black and brown people, are the ones that are costing you jobs, people getting free stuff which was the goal of the southern strategy and strong because they get free
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entitlements. then that's undermining your economic stainability, which in fact, you knead those things. if you need to convince people. and then you can suppress the vote, you control over 160 electoral votes. you control nearly 50% of the united states senate and over 30% of the house of representatives and you haven't gotten to the other 35 states. that's what this is about. flip that over. if you can get people to understand that morality is more than those three things, and understand it's about economics and poverty and health care and voting rights a enif you can get blaengs whites and poor whites and black and latino to understand their comalty that they're not enemies and if they work together, they can determine how policy is set that will help uplift all communities
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and if you can ensure that the votes are not suppressed, and you liberate those states you free up this dmok sip it's time for moral revival and the revolution of moral values in this country. thank you. anymore media? we have to run. they're telling us we have to get out. thank you so much for being here today and please feel free to talk to any persons individually. god bless you. see on september 12th.
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once more, we will have a government of, by, and for the people. >> we are stronger together. and no matter what, remember this, love trumps hate. >> c-span's campaign 2016 continues on the road to the white house. with the first presidential debate tonight, live from hofstra university in hempstead new york. beginning at 7:30 p.m. eastern with a preview of the debate. then at 8:30, the predebate briefing for the audience. at 9:00 p.m., live coverage of the debate followed by viewer reaction.
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the 2016 presidential debate on c-span. watch any time on demand at c-span.org or listen live on the radio app. >> our c-span 2016 campaign bus is in ohio this week. and asking students and voters what question would you ask the candidates at the debate? >> my name's a state representative and right here in dayton, ohio, to me the most important issue in the election are all of the higher education and other issues that affect millennials. as the youngest state elected official in ohio, you know, i think our federal officials in d.c. need to make sure that we're creating higher education that is affordable for students, and also making sure that we don't leave my generation with $17 trillion in debt, and a social security and medicare system that won't be there for us when we need it. >> hi, my name is jeremy and i'm a sophomore at the university, and my important issue this
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upcoming selection education. k-12 level and public university level. i believe that k-12 education needs to be more equitable. i believe that it needs to benefit all students, regardless of their zip code, race, or soes yo economic status and i think we need to find a way to make college more affordable. >> i'm jake. i'm a senior and a medical laboratory science major. for me in this election, the most important issue as an upcoming medical scientist health care and where this direction we'll be seeing. >> hi, i'm josh, i'm a jr. at university, and i think one of the most important issues in the candidacy is the fact of education. i think that fostering it from a young age is something that's really important. and there's some discrepancies between the two candidates. i think we need to expound upon and see what we have to offer here. >> voices from the road. on c-span. >> live coverage of the
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conference for president obama is hosting the leaders of hundred was native american tribes today. the meeting comes as the planned pipeline in fou north dakota is drawing protests from nittive americans, the administration recently ordered work stopped on the section of the pipeline pending further environmental review. the president is scheduled to speak shortly, and this is live coverage on c-span 3.
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a live shot of the andrew melon auditorium in washington d. kr native american triable leaders are gathered for the eighth annual conference. and we are waiting for president obama to address the group here very shortly. this is live coverage here on c-span 3.
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please welcome to the stage, martha martinez and kelly washington from the salt river maricopa indian community and sing e singer. >> eight years ago before you became our president, the great crow nation adopted you and gifted you with a name that means, one who helps people throughout the land acknowledging you as a relative and a leader who had a great responsibility to our people our cultural values guide us as triable peoples to blanket is to remember those we honor those we
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have lost. and those who are going to build our futures. our blankets are as diverse as indian country from the skins of the buffalo and bear to the otters. to the cedar and to the wolf. mr. president, we value your respect for our diversity and recognition that indian country knows what is best for indian country. mr. president, many of the decisions you made over the past eight years have been transformational to indian country through your actions and commitment to sovereignty, triable nations to the return thousands of acres of the lands. hundreds of millions of dollars through triable claims and affirmation of triable rights in healthy communities.
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today, mr. president, please accept the blanket named rhythm of the land by artist susan point with honor and remember as we wrap you in it that we share our love, comfort, and blessings from all of our triable nations and our peoples. you are a part of us we are a part of you and we look forward to continuing together as relatives in the word to uplift and help people throughout our lands. and we've also got a blanket for your best friend, with one person you love more than anyone in this world, the first lady of the united states, michelle obama. and we ask -- [ applause ] we ask you to thank her on behalf of all of our triable
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nations for all of work that she has also done for our great country in supporting you. now it is my pleasure to introduce chief mutawi, many hearts, from the nation the first female chief in the modern times from the gate state of connecticut. [ applause ] >> thank you, brian. [ speaking foreign language ] >> greetings from our people to all of our registrations gathered here today. it is my honor and privilege to introduce a man who truly needs no introduction to the leaders of our great nations. this is a man who has koept his campaign promise of honoring the true nation to nation
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relationship between our representative triable governments and the united states. by doing so, he honors our ancestors, our unique place in this united states and our future generations. it is unprecedented for our alaska nations and american indians nations to have now gathered for the eighth time to continue the dialogue that began eight years ago. our president has worked with our nations as a matter of social justice. he does so in formal recognition of the solemn trust of this united states. he has personally traveled throughout our lands listening to our leaders, our elders, and our youth. he has heard our challenges, he has been moved to act. he hasn't just listened, he has
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acted. among other good works while he's been the president, he has developed the white house council on native affairs and has recently added triable leader participation at our request. he has visited with our youth and developed generation indigit nougs as a result. this president has stood us with to oppose native american mascots. he has provided major increases to our funding stream at the agency level. he has reissued the executive order, requiring consultation on all matters related to triable policy and triable nations. he has challenged and given leadership to all of the federal agencies to develop cross agency partnerships to include coordination and communication which will begin to address the pressing issues that we all face on a range of issues including environmental justice. climate change, language
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preservation, protection of sacred sights and octobers. homelessness, education, indian child welfare, health care, infrastructure, and education. this president has walked on the path with us. he has left his footprints as a legacy for future administrations to follow. and for that, we are so, so very grateful. it is up to us to continue on a path. continue this work and keep our nations moving forward. mr. president, i would like to say -- [ speaking foreign language ] thank you and many blessings upon you. i now present to you the president of our united states, barack obama. [ applause ]
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♪ ♪ [ applause ].
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hello, everybody. thank you. thank you. welcome to the eighth white house tribal conference. what an amazing honor and a kind gesture for the honor song, the blanket and the hat. i have to say that i'm on very is glad that you also have a blanket for michelle so she doesn't steal mine. she would, too. i'm just saying. but that was very moving and is
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a reminder of the great friendships that we've developed over the last eight years. i have a couple of people who i want to acknowledge for the longstanding commitment to indian country. sally jewel, our secretary of the interior. [ applause ]. brian cleduseby, the conference of american indians. we're honored to have here thomas begy, one of the last surviving navajo co-talkers. [ applause ]. >> and some amazing young people i had a chance to meet earlier, including those participating in
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general is raeu intkpweupblg tphous. so today the most important thing i want to say is thank you. after almost eight years as president, i have been so privileged to learn from you and visiting more tribal communities than any other president. [ applause ]. standing rock sioux tribe, choctaw nation, alaska natives. my trips to your nations and communities are days that i will never forget. michelle and i still talk about hosting those remarkable young people from standing rock, sioux nation, and the white house, and taking them out for pizza. my staff still talks about all the wonderful people in alaska who tried -- they tried to teach
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them and tried to stuff them full of meat and caribou fest. and my brothers of crow nation, brothers and sisters here, i may be an adopted son of the crow nation, but i try not to play favorites. because i pledge to all of you when i first ran for president that i'd be a partner with all of you in the spirit of a true nation-to-nation relationship, to give all our children the future they deserve. so we began by elevating native american affairs in the white house and across the federal government. the american people are served by so many dedicated, talented native americans like larry roberts. [ applause ]. >> our principal deputy assistant secretary for indian affairs. morgan rodman.
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[ applause ]. our executive director of the white house on native american affairs, karen diver. [ applause ]. >> tracy goodlock native american affairs in the white house. that's just a few. by creating the white house council of native american affairs we created a memory institution with a long-term cabinet level focus on indian country, one that involved you through the decision-making process. so i've been proud of what we have been able to do together. we haven't solved every issue. we haven't righted every wrong. but together we have made significant progress in almost every area. together we've permanent any protected sacred lands for future generations. we have restored more than 428,000 acres of tribal homelands to their original
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owners. by signing a settlement in law, we consolidated individual indian lands and restore them to tribal trusts. together we have strengthened your sovereignty, reauthorize the violence against women act so tribes can prosecute those who commit domestic violence against women, whether native american or not. we've worked in ensure your right to equal justice under the law and give more power to courts and police. i know that many of you who have come together across tribes and across the country to support the community at standing rock. and together you're making your voices heard. [ applause ]. in the spirit of cooperation and mutual respect, we have made a lot of progress for indian cup the past eight years. this moments highlight why it is so important we redouble our
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efforts to make sure that every federal agency truly consults and listens and works for you sovereign to sovereign. together we work to create jobs and expand opportunity by investing in clean energy, infrastructure and high-speed internet that connects you to the breeder economy. we work for quality affordable health care through the affordable care act, including the reauthorization of the indian health care improvement act. [ applause ]. we have invested in job training is and tribal colleges and universities. and together we have worked to return control of indian education to tribal nations so that as we prepare our young people for the demands of a global economy we are teaching them their own language and their own culture. [ applause ]. because we believe that all our
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native americans deserve a future as bright as any american child without having to leave the land of their fathers and mothers. that's what has driven our work. we have worked to connect more of our young people to each other in one big network of opportunity across the country. so that's just some of the progress we have made together. we have to keep fighting to the finish line. even after my time in this office comes to an end, i'm going to be standing alongside you because i believe, yes, progress depends on whether they're setting the right priorities but it depends on all of us. it depends on making the decisions that are good and right and just and our willingness to mobilize, organize and keep pushing for opportunity. i'm optimistic that you will
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continue on the path forward that we've set. i'm optimistic that our progress will continue. the young people who i have met on this journey more than anyone else who made me feel optimistic. the students who sang the lakota national anthem and shared with us their dreams for the future. the students at the middle school in alaska who taught me a traditional yopik dance. well -- i can only do it when they're around because i'm basically just watching them. they were very patient with me. a young woman named lindsey early of the commanche nation in oklahoma who earlier this year wrote me a letter to tell me she was at a camping speech i gave in texas way back in 2008 where i pledged i would do my best to
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represent native americans. and lindsey said in her letter when she heard my pledge to her people in the middle of my speech she screamed a as loud as she could from the balcony. look, if you're president and somebody screams, that can mean many things usually. sometimes it's good. sometimes it's not so good. but according to lindsey, it was good. and i answered back. i hear you, girls. and when i'm elected, i won't forget you. eight years later, lindsey has gone to to accomplish pretty remarkable things. she was raised by a single mom like me and didn't have a lot of money or obvious advantages in life. but she earned a scholarship and graduated from college, moved back home to help her mom care for her 92-year-old grandmother. she took a job developing a new assisted living facility owned and operated by the common kheu nation. and after that opened she joined teach for america.
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and now she teaches kindergarten by day and college students at night. this is a woman who knows the meaning of giving back. [ applause ]. some day she would go off in the world and make big changes. but she came to a realize in school. it was not going off that would make indian country better but returning with education and the insight education brings. my students have a sense of pride in them about who they are as indigenous individuals. more than anything, they realize they're in control of their own destinies. and that's such a powerful thing. so you listen to somebody like lindsey who understands she's in charge of her own destiny and is able to transmit that to the next generation.
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how can you not be optimistic the future of all nation represented here. lindsey, i heard you. i didn't forget you. and i want all the people in this auditorium and all the folks back home in your respective communities to know that this whole time i've heard you i have seen you, and i hope i have done right by you. and i hope i've set a direction that others will follow. [ applause ]. i hope i've set a direction that others will follow. and i hope i have given more of our young people like lindsey and her students that sense of hope and that sense of what an incredible gift they are to this country and that they're in control of their own destinies and they will upshake the future of the united states of america. thank you all for your partnership. thank you for this journey. i'll see you on the other side.
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may god bless you. god bless the united states of america. [ applause ]. ♪
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♪ ♪
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♪ ♪ once more we will have a government by and for the people. >> we are stronger together. and no matter what, remember
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this. love trumps hate. >> c-span's campaign 2016 continues on the road to the white house with the first presidential debate don't live from hofstra university in hempstead, new york, beginning 7:30 eastern with a preview of the debate. then at 8:30, the predebate briefing for the audience. at 9:00 p.m., live coverage of the debate, followed by a viewer reaction. the 2016 presidential debate on c-span. watch any time on demand at c-span.org or listen live on the free c-span radio app. >> c-span bus is in ohio this week asking what question would you ask the candidates of the debate. >> my name is state representative here in dayton, ohio. to me the most important issue in the election are all the higher education and other
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issues that affect millennials. i think our federal officials in d.c. need to make sure that we're creating higher education that is affordable for students. and also making sure we don't leave my generation with $17 trillion in debt and a social security and medicare system that won't be there for us when we need it. >> hi. my name is jeremy. i'm a sophomore on the otterbein university. i believe that k-12 education needs to be more equitable. i believe that it needs to benefit all students regardless of their zip code, their race or their socioeconomic status. we need to find a way to make college more affordable. i'm a medical laboratory science major. for me in this election the most important issue is health care. >> my name is josh, junior at
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otterbein university. it is really important. there's some discrepancies between the two candidates. i will need to ex pound to see what we have to offer here. >> voices from the roaded on c-span. a house oversight hearing examined the health care law since march 2010 enact including rising health care premiums. witnesses include representatives from the blue cross blue shield association and the national association of insurance commissioners. the house oversight and government reform committee is chaired by representative jason shave its. >> ladies and gentlemen, i ask all of our guests today to please take their seats.
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the chair will recognize himself for an opening statement. today's hearing is is especially timely as we learn startling news of the summer confirming our worst fears that some of the most significant health insurers, united health, aetna, humana, are opting out of the affordable care act health insurance exchanges. this is concerning on many levels. the most basic individuals are paying more only to get less. one of the most ambitious aspects of the aca was the creation of the health insurance marketplaces. proponents of the aca said it would increase market competition and lead to lower costs for consumers and
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insurers. but in fact, just the opposite is happening. consumer health insurance options are more limited and insurers have been driven out of the aca marketplace. the exchanges have faced numerous problems. lower than expected enrollment with sicker people enrolling, larger, unpredictable, operational costs and insurance leading the exchanges. this week two reports were released detailing the lack of real safeguards in the exchanges. of the 18 fictitious applications gao made for subsidized plans in 2015, 17
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received coverage. also of interest, section 1322 of the aca established the consumer operated and oriented plan, co-op program. these two are fail, one as recently as tuesday. and disrupting coverage for thousands of enrollees co-ops were set up to increase competition. but instead of the original 23 co-ops funded with 2.3 billion tax payer dollars, only six are still in existence, further reducing coverage for thousands of people. in the middle of the plan year, resulting in higher out-of-pocket costs and changing doctors. our oversight and investigations committee has conducted critical
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work in this area as well. as on the functionality of state basic changes. the staff reports we will review today are thorough and provide a sad reminder of the failed promises that this misguided law delivers. we have before our committees today, some of the officials who can answer our questions surrounding these troubling reports. the acting cms administrator, the hhs # oig for audit services inspector general, and the government accountability office. i look forward to hearing about the work contacted by oig and improving the exchange worse and co-op programs. the chair now recognizes the ranking member of the health subcommittee mr. green. five minutes for his opening statement. >> thank you, mr. chairman.
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it's just six years since enactability and three years since the major reforms. the aca went into effect. the law has delivered on a principle goal of covering millions of previously uninsured americans. 20 million more have health insurance. all of this is achieved in spite of constant efforts to undermine and chip away at the law. in the past, long pastime for some to accept the aca is the law of the land and get back to work on behalf of the american people. prior to the affordable care
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act, the individual health insurance market was deeply broken. people were sold junk plans at high costs. many individuals with pre-existing conditions were essentially locked out of the market altogether. and plans could drop you the moment you got sick, the time you need the coverage the most. as a result, the aca, newly insured, previously insured are protected from the worst abuses of the industry and the standard for with what plans must cover significantly more robust. marketplace premiums are currently 12% to 20% lower than the budget office preticketed when the aca was passed. premiums for 150 million americans with employer coverage have is grown more slowly than before the law was enacted. the marketplace is relatively infancy. but with almost every new market there is an adjustment period in the early years. we saw this when mediciare
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advantage and part d were created. we have seen similar headlines in years before. but the reality on the ground is yet to reflect the predictions of doom and gloom. insurers will enter and exit the marketplace as they 1/2 gate the nuland scape of millions of new customers and consumer protections. no surprise companies are adapting at different rates. they compete for business on cost and quality rather than cherry picking customers and denying coverage to people with pre-existing conditions. the affordable care act is working like any law. it's not perfect. it would take an earnest effort on the part of congress and the states and regulators to bring forth solutions that further stabilize the market. this can only be done if we're overblown betray als that don't reflect the meaningful critiques. 2017 is a unique transition year. programs designed to are ending
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and you will have a one time effect on cost. we see the marketplace strengthen by robust outreach efforts young adults not yet taking advantage of the opportunity to get coverage. the department of health and human services, hhs is also taking steps such as developing new processes to prevent misuse of special enrollment periods and curb use of short-term plans to keep healthy customers out of the risk pool. 19 states also need to expand medicaid. in my district is in texas, and texas is one of those 19 states, if they expanded medicaid 50,000 of my constituents would have medicaid if the state expanded it. the law was designed on the assumption that all states would and refusal to do so distorts the health care eco system. a recent report from hhs shows that not only does medicaid have enormous economic benefit but on the average marketplace premiums
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they are 7% lower than those nonexpansion states. the aca has led to higher consumer satisfaction, lower uninsured rates, data supports the further stabilization of the marketplace in the future. it's now time for congress to put aside partnership and finally come together and improve the law. the american people are counting on it. and i look forward to hearing from our witnesses. and i thank you, mr. chairman and i yield back my time. >> the chair thanks the gentleman. and now recognize the gentleman from pennsylvania, dr. murphy. five minutes for opening statement. >> thank you, mr. chairman. this committee began its investigation of a state-based exchanges in the spring of 2015. we aimed to examine why the state exchanges failed to effectively utilize billions in federal grant funding. they asked and received documents from the 17 original state exchanges and over the course of two hearings we have heard testimony from state exchanges is, leaders and
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federal officials. the centers for medicare and medicaid cms wasted $4.6 billion in grants due to excessively careless management and oversight. disappointingly and despite the fact that 4 out of 17 state exchanges from now closed down. a very small and eufpb consequential of improperly spent federal dollars have been recooped by cms. we were told state exchanges would be self sustaining by january 1st, 2015. and afterwards any use of federal grant money would be illegal. today every state exchange is still using federal money. moreover, some state exchanges went so far as to violate federal rules and use medicaid dollars to pay for an allowable state-based exchange expenses. the details and findings from the committee investigations are outlined in our report that was released yesterday, september 13th, 2016. in addition to the work that we have done on state exchanges,
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the subcommittee held a hearing last november on the co-ops and their costly failures. we examined the factors that contributed to the collapse of now 17 out of 23 co-ops. since the hearing in november, five more co-ops from closed leaving only six of the 23 remaining. and these failed co-ops cost the tax payers $1.8 billion. similar to the state exchanges, the committee's investigation into the co-ops found they were disadvantaged from the start. rigorous loan agreements, restrictions to obtain outside capital and flawed premium stabilizations made financial stability here impossible. what ultimately contributed to the failure of co-ops was miss math as they failed on numerous occasions to assist co-ops when
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needed. recently hhs oig released a report saying that the majority are reaching bankruptcy, making it highly unlikely the remaining six will pay back any of their loans. this will result in the loss of more tax payer money and leave millions displaced with health care coverage. the details are outlined in our report that was released yesterday. while we look forward to a productive dialogue with our witnesses today, on behalf of this committee, we are deeply troubled by the findings of this investigation. ultimately what we are seeing is the affordable care act failing the american people. the objective of the law was to provide health insurance to those who could not afford it. yet the findings proved that the aca is accomplishing just the opposite. hundreds of americans have been uprooted from their plans and left without any insurance coverage. thousands, i should say.
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it is my hope that we are able to have an honest and open conversation about the reality of this legislation and discussion solutions rather than continue to identify its well-known problems. i thank the witnesses for testifying today. with that, mr. chairman, i yield back. >> the chair thanks the gentleman and nows the oversight committee member from can co. five minutes for opening statement. >> thank you so much, mr. chairman. i've been wondering about the affordable care act. do you know if it covers treatment for deja vu? because there seems to be a massout break of that on capitol hill when it comes to the aca. here are some of the symptoms. one, between the health subcommittee and oversight subcommittee as you heard that i'm ranking member of, we have had over 40 hearings on the aca
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since it became law in 2010. two, we have been through six years of efforts to repeal and undermine the law. three, we've seen any number of administration officials, some of whom are sitting here today interrogated by hostile members of congress about their work to implement the law. these same officials have been the target of countless letters requesting briefings and documentation of every single aspect of their work. but despite the hours and hours spent on these efforts, house republicans have nothing to show for it. mr. murphy, my chairman on the oversight subcommittee, just mentioned the recent oversight investigation hearings that we have had in our committee. instead of conducting good faith review of these issues, followed up by targeted thoughtful bipartisan legislation to improve the law as congress did
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on other major pieces of health care legislation like medicare part d that was passed by the republican congress some years ago. this congress has used its oversight powers to highlight failures over and over again while offering no solutions. as we just heard frmurphy, we he had two hearings. but today we're foggy to hear about today how some states struggled to set up stkhaeupbgs and make them work as official hreur as possible. as you heard, we had a hearing earlier about the co-ops. and i'm sure we're going to hear today again the fact that many co-ops, including one in my state of colorado, have failed or are facing challenges. this is not news, folks. what would be news is if the majority would sit down with us and try to work out some solutions to help more and more
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americans get affordable and expense itch health care insurance. i'm not saying they are not worth congressional attention. but what i am saying is it's time to stop having this qaa bookie dance over and over again and trying to figure how to fix the affordable care act. it requires a will in congress. and at this point my colleagues on the other side of the aisle don't seem to be willing to admit to the public that the law has actually helped millions of people. and it simply needs fixing rather than being repealed. many of my khraoes on the other side of the aisle offer that's that perhaps we can work on this together in the next congress. but in the meantime all we're doing is having hearing after hearing and wasting a lot of time money that could be spent
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getting more insurance to more people on these hearings. let me just briefly in the final remaining seconds that i have remind people of what the aca has done. even with the flaws that it has. we have had historic reductions in the number of uninsured people in this country. the cdc reported last week that the uninsured rate is at a historic low. the lowest that we've had in four decades. that's an accomplishment. since the passage of the aca, 20 million previous americans have coverage. this includes millions of young adults who can now stay on their parents's plans until age 26. i just want to interject a personal note. my daughter francesca, who everybody on this committee knows, she just graduated from college. she's 22 years old. she's also a type 1 diabetic. she left to go teach in madrid for a year, teach english. and she's auto my insurance.
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and because of the affordable care act, she can't get thrown off of my insurance because she has a pre-existing condition or because she's over 21. further more, we were able to get her a years worth of diabetic supplies before she left for madrid. there are thousands of families in the united states who are benefiting in the way my family has. i'm going to fight to the end to make sure they can keep these benefits and that we can keep expanding it so every american has high quality health insurance. i yield back. >> the chair thanks the gentlelady and recognizes the chairman of the full committee mr. upton. five minutes for that statement. >> thank you, mr. chairman. so in 2009, the american people were promised a new health care system, one that would give a one stop shop is to choose a plan that would be affordable. we remember the president saying you will have your choice of a number of plans that offer a few different packages.
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but every plan would offer an affordable basic packages. so six years the facts tell a different story. aetna, humana, united fleeing the exchanges. leaving one-third and sevenen desire states with one carrier. 17 co-ops have now closed their doors, costing tax payers nearly $2 billion and results in tens of thousands of americans without a plan. and today just 12 states are running their own exchange. 12. premiums are off the charts. competition has dramatically declined. the everyday patient is left paying for fewer choices. but every number has a name. and each one of these patients indeed have a story to tell. karen from michigan tells us she paid $700 for insurance. she and her kids are in the process of choosing between having a home
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or having health insurance and moving back with her folks. she says because the affordable care act, my insurance has doubled. please, you have to do something to help the hard working middleclass in this country. lisa lives about an hour east of karen and her kids. she's paying $744 a month for a plan with a $3,000 deductible. before the aca, she paid less than $300 a month for her family's health care. my bet is she wishes she had the plan she would before. greg lives with his wife of 40 years in kalamazoo is feeling the pain. the aca is a disaster and has been from the start. i think he's right. when this law was sold to struggling michiganders they were e promised 21 million would get covered by the end of 2016. sadly, this number is set to come in at about half. simply one reason why house republicans have offered a better way to help patients get
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and keep health insurance. our solution puts patients first, lowers health care costs, restores freedom and flexibility and keeps patients on their parents's insurance until they are 26 years old and will not deny coverage based on pre-existing conditions. we want to lead the world in cures and treatments and our plan builds upon this important work outlined in the 21st century to help deliver cures now. the reform plan found the solutions would in fact, lower premiums 10 to 25%. all while cutting the deficit by half a trillion dollars over the next decade. an ambitious plan. everyone in michigan. this across america deserves access to quality and affordable health care. i yield the balance of my time
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to the gentlelady from tennessee. >> thank you, mr. chairman and thank you all for talking with us today. we do like this plan. and we realize the affordable care act product is unaffordable and indeed on shaky ground as the hearing title reflects. i will spend some of my time today talking with you about these special enrollment periods. i come from tennessee. we had ten care. we know the special enrollment periods have a ten den sip to get these programs into trouble. lack of verification. inappropriate verification. delayed verification. all of a sudden what you do is end up with a plan that's on shaky ground and without a balance risk pools. we'll want to drill down on that just a little bit. i do have legislation hr 5489
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that would get to the heart of this issue because it is a problem that worsens every single day. and when you have an sep where there is not the appropriate oversight or due diligence, then you do end up with the imbalances in these risk pools. so welcome. we look forward to the hearing. and i yield back. >> the chair thanks the gentlelady. now recognizes the ranking member for five minutes for opening statement. >> thank you, mr. chairman. this would be our committee's 10th hearing on the law of the affordable care act just this congress. while i continue to hope that my republican colleagues will can come to their senses and finally hold a hearing to work in a bipartisan way to improve the aca, unfortunately once again this will not be that day. it is clear that the gop just wants to repeal the aca and continue to point out problems with the health care system in general without proposing any
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alternatives. and we're here to discuss four reports on different aspects of the affordable care act, two of which made available to the staff and public on monday. by the office of the inspector general on co-ops found no wrongdoing occurred. the report simply found that the co-ops were in compliance with cms guidance and the county principles when converting start-up loans. another report released this month examines health insurance market concentration and competition 2014 finding that enrollees tend to be concentrated among only a few issuers. prior to implication of the aca insurance exchanges, it does not shed light on the market concentration. we will discuss a report that is a continuation of the gao's fake shopper investigation in which gao used fake identity and fake documents to attempt to enroll
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coverage through the health insurance marketplaces and medicaid. let me start by saying that i will continue to be critical of the way the gao carried out this investigation. it is inconceivable to me that anyone would be skilled enough or motivated enough to fraudulently gain health insurance coverage this way, particularly since there is no possible scenario in which someone could gain from the system. if someone were to obtain health care insurance with fraudulent, they would still have to pay premiums. gao continues with this farce. they created false identity and attempted to enroll in coverage, including that the system remains vulnerable to fraud. republicans translated this to mean that this sort of fraudulent is rampant in the marketplace. and i think to use this deeply flawed gao report to try to say people could get so-called free
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health insurance is utterly ridiculous. the fake shoppers paid premiums and did not seek any health care. is is this a real problem? if it is, how can we fix it? gao has not provided cms with the information and the fake fake identities it created. once again, i suspect this hearing is not about oversight but about headlines. as i've already said, it seems entirely unrealistic that people would have the desire, time, money and expertise to fraudulently gain coverage the way gao did in their study and g a's lack of recommendation is very disappointing. we rely for unbiased reports and recommendations and these fake shoppers provide neither. now, let me talk about the
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success of the aca because republicans would make you think that the health care system was better off before the aca. we can't forget thanks to the aca the uninsured rate is at an all time mo low. 21 million more have health care. pause of the aca, americans now have access to free preventive services. kids can stay on their parents's plan up to 26. no lifetime or annual limits. unnecessary hospital readmissions and medicare have fallen for the first time on record resulting in 100,000 fewer readmissions in 2015 alone. the aca marketplace is new. consumer protections are new.
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there are absolutely ways that we can improve upon the aca successes. affordable coverage and reduce the number of uninsured. unfortunately no one on the republican side wants to improve anything. we'll hear from my colleagues on the other side is negativity. my colleague from tennessee who i love is still talk building ten care. i don't know how many times i'm going to talk about ten care. i don't think it exists anymore. if it does, it is certainly not what it was. and this is what we get. we get the constant hearings, efforts to say, oh, everything is terrible. everything stinks. whenever we have any suggestion -- i don't hear anything from the other side of the aisle other than whatever has been proposed and whatever we have done to change the system is and make it better which has been successful. needs to be repealed, needs to be thrown out, without any suggestion about any alternative that is meaningful. so obviously i'm not too happy with this hearing today, mr. chairman.
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nonetheless, it will continue. >> the chair thanks the gentleman for his opening statement. as usual, all the members's written opening statements will be made part of the record. at this point i'll introduce our panel. we have one panel and i'll introduce them in the order of their presentation. first, mr. andy slavik of the center for medicare and medicaid services, cms. mr. gore ya jar mapp, deputy inspector general for audit services in the office of audit services within the office of inspector general, u.s. department of health and human services. and mr. sato bagdoyan director of forensic odd skpeuts investigative services for the u.s. government accountability office. thank you for coming today.
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we look forward to your testimony. your written testimony will be made part of the record. you will each be recognized five minutes for a summary. you are aware that the committee is holding an investigative hearing. and when doing so, has had the practice of taking testimony under oath. do you have any objection to testifying under oath? the response is no. the chair then advises you that under the rules of the house and the rules of the committee, you're entitled to be advised by counsel. do you desire to be advised by counsel during your testimony today? the response is no. in that case, if you would please rise and raise your right hand i will swear you in. do you swear that the testimony you are about to give is the truth, the whole truth, and nothing but the truth?
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the response is i do. you are now under oath and subject to the penalties set forth in title 18, section 1001 of the united states code. you may now give a five-minute summary of your written statement. the chair recognizes mr. slavic for five minutes. >> chairman pence, murphy, and members of the subcommittees, thank you for the invitation to this hearing to discuss the progress we have made as a country under the affordable care act as well as key priorities for improvement. with the enactment of the law we have taken a significant step together as a nation to provide for the first time access to quality care to all americans regardless of their health or financial status. for millions of americans, this represents the largest shift in how our care system works since
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the creation of medicare more than 50 years ago. as you all know well, medicare, which has lifted millions of seniors out of poverty was launched amid great uncertainty. it has succeeded by continually evolving to reflect the needs of our seniors, adjusting to cover prescription drugs, new modes of treatment, payments which support high quality care delivery. i continue to appreciate congress's leadership on medicare's latest evolution macra and hope we can work together to fulfill your vision of a payment program focused on affordable, high quality patient care. under taking fundamental change is relatively easy. from the outset, we knew like medicare the implementation of the affordable care act would be a multiyear process. as we look to the fourth open enrollment, we were very proud of what we accomplished so far. more than 20 million people now
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have coverage because of the law. 8.6% the insured rate for americans is the lowest on record. let me turn to our priorities. first, cms is learning from early years of implementation using data and feedback to refine our policies to a strong, sustainable marketplace. the recommendations and input of the gao and oig have together conducted over 50 aca audits, have been special valuable in our efforts to strengthen our processes and controls. in this vane, we have made improvements to the marketplace so it continues to function predictably, securely. this includes changes to risk sharing, program integrity, and eligibility rules. we are targeting bad actors who are using the marketplace inappropriately, and we have is significantly increased compliance with document a eugz requirements. our mantra is to continually
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learn and adjustment. second, we stand ready to work with states to expand medicaid eligibility. expanding medicaid not only do you gain access to care, but marketplace premiums for middleclass families. they are 7% lower in states that expand medicaid. third, we know the costs are critical consideration both for purchasing coverage and for tax payers. the good news for the vast majority is the affordable care act offers important supervisions to keep coverages affordable. even if they were to rise substantially the vast majority will still be able to choose a plan for less than $75 per month. and the good news for tax payers is we have achieved historic coverage gains at 25eu% lower cost than the cvo originally
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projected. this has benefited newly covered americans. going into 2017, inspect experts calculate that marketplace premiums are currently 12% to 20% lower than initial predictio predictions. no question as a country more people are paying less, getting more and with greater consumer protections than before the aca. of course any conversation on the confident of health insurance is actually a conversation about the overall cost of care and the value that we get for the money that we spend. at cms, access and affordability for the 140 million americans we serve is critical. this is why we must work to keep affordable medications why we have a special task force. the lack of competition have long created concerns. personally, it's been very rewarding to seven cms during a
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time of so much transformation. for the vast majority of 25 years in health care, it didn't seem possible we would ever achieved a real reduction in the uninsured rate or see a time pre-existing condition didn't disqualify a person from coverage. as the marketplace continues to grow and mature, we will continue to listen, at new capabilities and. thank you. i'll be happy to answer any questions. >> the chair thanks gentleman. five minutes for your summary. >> good morning, chairman pitts, murphy and other members of the subcommittee. thank you for the opportunity to testify about the oversight of health insurance market places. as part of the strategic plan to oversee limitation of the affordable care act, we have completed significant body of audits and evaluations addressing federal and state marketplaces and other aca
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provisions. our oversight work focuses on payment accuracy, management and administration and security and data systems. my testimony today focusing on our most recent warm which is consumer operated and oriented plans or co-ops and state market places. regarding our co-op work we recently looked at the conversion of start-up loans into surplus notes. they are issued to provide capital. we conducted this review to assess whether they complied with centers for medicare and medicaid guidance and principles. they generally complied with this guidance and applicable accountable principles when converting start-up loans into surplus notes. however, cms did not adequately document the convergence of the federal government's ability to recover the loan payments if the co-ops were to fail.
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based on our findings, we recommend they improve the decision-making process for start-up loans to surplus notes and document any potential negative impact from changes in distribution priority and to quantify the likely impact on the federal government's ability to recover loan payments. following up on these recommendations, we are currently reassessing the co-op's financial condition to determine if any improvements were made in 2015 and 2016. we are also monitoring the actions made by cms to address underperforming co-ops. this work is expected to be issued during fiscal year 2017. we recently completed a series of reviews to determine whether marketplace had effective internal columbus to ensure individuals signing up for health insurance and receiving assistance are eligible. we have reviewed the first open
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enrollment period as seven state market places. we found certain controls were effective. however, most of the state market places had some controls ensuring several were enrolled in accordance with federal requirements. with respect to establishment grant funds, we are in the process of completing a series of marketplace reviewing is and their use of these funds. this work primarily focusing on whether marketplaces allocated cost to their establishment grants in accordance with federal requirements. recently issued reports have determined that some states review use allocation percentage based on outdated data. we recommend states refund mis allocated accounts. with respect to privacy and security of state marketplaces, the completed reviews of data and systems security at five states and are close to
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completing reviews of two others. all the states for which we have completed reviews have implemented some security controls to protect personally identifiable information. however, existed in those states, and each had at least one viulnerability could have exposed pii and other sensitive information. states generally agreed to improve security and many instances took corrective action. in closing, we appreciate the committee's interest in this important issue and continue to urge cms to fully address our recommendations to oversight and financial sovereign. oig is committed to help ensure they operate efficiently, effectively and economically. this concludes my testimony. i would be happy to answer your
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questions. thank you. >> thanks, gentle lady. now recognizes mr. seto. >> thank you. chairman pitts, murphy, degette, members of the subcommittees, i'm pleased to be here today to discuss three recently issued gao reports on health care issues. this morning, at the subcommittee's request, i'll focus my remarks on undercovertiundercover testing used by the federal marketplace in the california state marketplace under the aca f coverage year 2016. i note these are not definitive. our work focused on identifying indicators of potential enrollment fraud, vulnerability and risk for further review as i'll highlight shortly. we discussed our results with cms and the california exchange, and their responses are included in our final report.
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in terms of what is at risk, aca coverage is a substantial commitment for the federal government. about 11 million enrollees have coverage, of which up to 85% receive subsidies, estimating fiscal year 2017, at about $56 billion, and totaling $866 billion for the next ten years. in this regard, i would note that while subsidies are paid directly to insurers, they nevertheless represent the financial benefit to enrollees in the form of reduced overall cost, that is, premiums and deductibles. turning to the coverage year 2016 results, we initially obtained subsidized health plans or medicaid. in doing so, we successfully worked around all primary enrollment process checks, namely, identity proofing,
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submitting documents to clear inconsistencies, and filing tax returns to reconcile subsidies. we subsequently maintained coverage for 11 applicants to the present that is well into the coverage year. even though some had not filed tax returns or submitted documentation to clear information inconsistencies as required. our subsidies totaled about $60,000 on an annual basis. we failed to maintain coverage for three applicants because of payment issues, and for one applicant, whose coverage was eventually terminated because of intentional failure to give documentation. the results combined from our earlier work involving 2014 and 2015, form a consistent pattern of three principle inter related fraud risk indicators, which we're pursuing further during our ongoing aca related work.
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first, no year on year changes in the enrollment process and controls are readily apparent, suggesting these remain fundamentally vulnerable along the entire speck rumspectrum. second, applicants intending to act fraudulently to obtain coverage for which they're not entitled, such as the fictitious applicants, could exploit enrollment process, such as self-station, relaxed standards for resolving inconsistencies to their advantage and maintain policies through the coverage year. even if they're flag dollars and lose their coverage for administrative compliance issues, they're able to apply for new coverage the following open season as allowed by program rules, thus engaging essentially in a form of health
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coverage arbtage. this scope and scale is inherently at risk for fraudulent activity, and accordingly it is essential preventative controls up front to help narrow the window of opportunity for such risk. and safeguard the government's substantial investment. in this regard, cms told us that it is responding to eight recommendations we made in our february 2016 report, and if executed well and then sustained, this represents a major opportunity to address the vulnerabilities we identified reduce risks and enhance program integrity. chairman pitts and murphy, this concludes my remarks. i look forward to the subcommitt subcommittee's questions. >> chair, thanks to the gentlemen. i'll begin the questions and recognize myself, five minutes for that purpose. let me just say in the beginning, gao has been a great
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government watchdog for taxpa r taxpaye taxpayers, and while the undercover enrollment for the exchanges is thorough and helpful, troubling to learn how bad the vulnerabilities remain. mr. bag i do yeah, in your testimony, offered a preview, let's examine a few of the numbers, talk about the fictitious scenarios. as i understand it, this is the first year eligibility must be verified to determine whether an applicant who previously received an exchange plan filed federal tax returns. is that correct? >> yes, mr. chairman, that's correct. >> the gao tested fictitious for planned year 2014, now, of the 15 applicants that you attempted to gain coverage for, all 15 were enrolled in plans. it is my understanding that still today, 10 of these fictitious applicants are receiving monthly advance premium tax credit, aptc, about
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$1,100 a month, and all ten qualify for cost sharing reduction or csr payments. are any of these ten fictitious in 2014 who never paid federal taxes. >> four of those, mr. chairman, are essentially revived ident y identities from the work. >> mr. slavitt, atpc and csr would be ended for 2016 enrollees who received aptcs in 2014, but did not reconcile them on their federal taxes. in one of these fictitious cases, a federal marketplace representative initially told the enrolly, they were not approved for subsidies, but after they verbally attested that they had filed a return to represent approved the subsidized coverage, even though it was a false attest tation.
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why do they allow then to self-attest for premium credit? put your mike on. >> thank you, chairman pitts. thank you to mr. bagdoyea, for the work you've done. with respect to the people, we call them people who have failed to reconcile, who have received an advance premium tax credit, but haven't yet filed, many of those and i work with the irs turn out to be people filing taxes for the first time. so what happened is, when they came back to get coverage in 2015, if the irs didn't have a file for them, that they filed, they were not able to get coverage. we did allow people to attest, if they had an extension, or if they had filed taxes and they claimed that the irs hadn't received them. to the heart of your question, we had 19,000 people who so
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attested. and many of them have since demonstrated that they have paid their taxes, and then as of this month, those that we have -- that have not yet demonstrated that, those people will be terminated from advance payment tax -- >> how many individuals have had their coverage ended due to violating this safeguard? >> as of this months, it will be several thousand i don't have the exact figure. >> i also point that february 2016 report from gao recommend the risk assessment of potential exchange fraud. has cms conducted a risk assessment of the application eligibility and enrollment process? >> i'm not entirely sure what you're referring to. i do know the gao gave us a recommendation earlier to create a risk assessment framework through which we assess all of the potential risks to the exchanges, and we have indeed
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implemented that and it has been extremely helpful to us. >> can you provide the km it o committee with a copy of that report? >> the report from the gao? >> yeah, the recommendations. >> sure, we'll get that. >> all right. we now have three years of undercover testing. the results have not improved and i know i speak for taxpayer as cross pennsylvania and our country when i say this is frustrating, and alarming. i'll yield, i'm past my time. [ inaudible ] audio not able to be heard. >> oh, thanks. our state insurance commissioner recently approved premium increases for 2017. on ra average, they're increased by over 13%. rate increases like these are being seen across the country

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