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...David Axelrod, Obama's top political adviser, explained the overarching Democratic campaign message during a recent interview with the National Journal. "[If] they want to stand with the insurance industry on health care and protect the status quo, then let them defend that in an election," he said. "If they want to stand with the banks and the financial industries and protect the status quo, then let them explain that in an election." (See pictures of TIME's Wall Street covers...

Author: /time Magazine | Title: Taking on the Banks: Obama's New Populist Pitch | 1/15/2010 | See Source »

...wonder that the sweetheart deal Senator Ben Nelson got for his home state of Nebraska as part of the Senate health reform bill has caused such consternation among his colleagues. In exchange for his vote, say critics, Nelson was promised that the Federal Government would pay 100% of the cost of expanding the Medicaid program in Nebraska. The 49 other states, by contrast, would have full federal funding for a few years but would eventually have to pick up part of the tab. As soon as word of the special treatment broke, the deal became known as the "Cornhusker Kickback...

Author: /time Magazine | Title: What if All 50 States Get Ben Nelson's Medicaid Deal? | 1/15/2010 | See Source »

...Nelson's deal has been a blessing to those states like New York that were feeling left out. It brought the issue back into public recognition," says James Tallon, a former New York state assemblyman and current president of the United Hospital Fund, a nonprofit philanthropic group that studies health care in New York. (See 10 players in health care reform...

Author: /time Magazine | Title: What if All 50 States Get Ben Nelson's Medicaid Deal? | 1/15/2010 | See Source »

Helping states by extending the Nebraska deal nationwide or by upping federal contributions to future Medicaid costs would certainly relieve some unwelcome pressure. Along with Schwarzenegger, who had previously been a reliable Republican proponent of Democratic health care reform, many other governors - including New York's David Paterson, a Democrat - have publicly protested the legislation on the basis of the Medicaid expansion, saying it amounts to an unfunded mandate. In addition, at least 13 state attorneys general have said Nelson's special deal is unconstitutional. But extending the Cornhusker Kickback to all 50 states would be a lot more than...

Author: /time Magazine | Title: What if All 50 States Get Ben Nelson's Medicaid Deal? | 1/15/2010 | See Source »

...Medicaid program has not garnered nearly as much attention as the public option or sweeping new insurance regulations, it's critical to the Democrats' reform strategy. The plan called for under the House and Senate bills would cover about 15 million new people - half of those currently without health insurance who would enter the system under reform. This plan terrifies most states but especially those like California and New York, where Medicaid benefits are already far more generous than most states in the South. That's because under the formula called for in reform bills, generous states would, paradoxically...

Author: /time Magazine | Title: What if All 50 States Get Ben Nelson's Medicaid Deal? | 1/15/2010 | See Source »

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