Raimondo's Choice for HealthSource RI Failed in Vermont

Kate Nagle, GoLocal Contributor

Raimondo's Choice for HealthSource RI Failed in Vermont

RI's New Obamacare Head Backed Failed Vermont Single-Payer Effort
Rhode Island Governor Gina Raimondo's replacement of Christy Ferguson at HealthSource RI -- Anya Rader Wallack -- comes from the recently failed single-payer effort in Vermont, which has come under national scrutiny for its demise.

 “We can move full speed ahead with what we need without knowing where the money’s coming from,” assured Anya Rader-Wallack in 2012 as Vermont Governor Shumlin’s Special Counsel for Health Care Reform. The comment was cited by Forbes' Avik Roy in "Six Reasons Why Vermont's Single Payer Plan Was Doomed from the Start," on December 21 of this past year.  

Just two years later, the plan, which would have cost tens of million and would have been financed by an 11.5% payroll tax for employers, and a 9.5% tax on all Vermonters, according to the Burlington Free Press, was tabled.   And according to a recent article by Vox, most estimates suggest that the single payer system would cost $2 billion each year ("For a state that only collects $2.7 billion in revenue, that is a large sum of money," wrote Sarah Kilff.

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"Not only would Green Mountain Care cost more by covering more people than Obamacare, it would cost more by forcing everyone to obtain more financially generous coverage than people currently have. Is it any wonder that the costs of such a plan were prohibitive? But Vermont’s single-payer religionists were not to be deterred," wrote Roy. 

As Rhode Island wrestles with the financial viability HealthSource RI, whose budget is $26.3 million for FY16, the fact that the federal government will be pulling back state subsidies for operations at the end of the year has its future uncertain.  

"It's one thing to debate whether or not [Rhode Island] should fund its own exchange or return it to the federal government," said Mike Stenhouse, CEO of the Rhode Island Center for Freedom and Prosperity. "It's another thing, completely against free market principles, for HealthSource RI to be a single payer socialist takeover for the entire health care industry in state."

Changing of the Guard

The decision by Raimondo to replace Ferguson with Wallack was announced on December 30.  

“Anya brings the right mix of policy expertise, management skill and innovative thinking to this job,” said Governor-elect Raimondo at the time.  “We need a leader who can establish HSRI as a sustainable and affordable organization that provides clear return-on-investment to Rhode Island families and employers.”

However, critics of the state-run program question Wallack's past experience, and its potential impact on the state, as elected officials continue to wrestle with how to address HealthSource RI's future.  

Wallack and her husband have given $3500 to former Lt. Governor -- and now head of Health and Human Services -- Elizabeth Roberts (seen here).
"Last year, [Representative] Frank Ferri would have turned HealthSource RI into the top of the pyramid for Medicaid, hospitals, everything.  There would have been a spending cap, a code word for quota -- which would have led inevitably to rationing," said Stenhouse.  "We testified against that bill, we thought it was the most dangerous thing we'd seen in a while.  I called it a plan one could expect to see coming out of Communist China. We hope it's not the role the new Governor and Ms. Wallack look to take." 

"We know that Ms. Wallack apparently backed a similar scheme in Vermont, which has since been found to be too severe for even Vermonters," continued Stenhouse.  "And we believe it is precisely the wrong direction for the new Governor, and for Rhode Island to take and we await to know what Governor Raimondo and Ms. Wallack intend to do."

Rhode Island Ties

In her release, Raimondo touts Wallack's experience in Maine and Massachusetts -- but makes no mention of Wallack's work, or connections, in Rhode Island.  

"Wallack served from 2011-2013 as the first Chair of the Green Mountain Care Board in Vermont, a regulatory agency that oversees insurance rates, hospital budgets and health care payment innovation.  Since 2013, she has chaired the Vermont Health Care Innovation Project, which aims to overhaul provider payment, health information technology and care coordination in the state to achieve cost containment while maintaining high quality care.  Much of Wallack’s work has focused on cost containment efforts in healthcare, including her role as member and chair of the Cost Containment Committee of the Massachusetts Health Care Quality and Cost Council from 2008-2010," wrote the Raimondo camp in their release.  

Wallack's firm Arrowhead Analytics lists on their website two Rhode Island groups as clients -- the Rhode Island Foundation, and the Office of the Rhode Island Health Insurance Commissioner.

"Arrowhead did research on health care reform in 2010 for which it was paid $7,870.25," confirmed Chris Barnett with the Rhode Island Foundation, of the Fall River, MA-based consulting company. 

Rhode Island campaign finance records show that Wallack and her husband, who live in Little Compton, have given over $10,000 to Rhode Island candidates since 2009 -- including $3500 to former Lt. Governor and architect and chief implementer of HealthSource RI, Elizabeth Roberts, in 2009 and 2010 alone.  Roberts is now

Trail from Vermont 

Following her departure from the Green Mountain Care Board in 2013, Wallack's Arrowhead Analytics was awarded a sole source contract for an innovation project with the state in August 2013 for a year contract worth $100,000.   The Vermont Agency of Administration for Health Care Reform confirmed that the contract had been extended in August 2014 for an additional year.  Wallack and her husband Stanley Wallack are the only staff listed on the Arrowhead website; Wallack's husband and his experience is not listed on documents explaining the decision by Vermont to not put the contract out to bid -- just Rader Wallack's. 

Maria Tocco with HealthSource RI said that she could not comment on any prior contracts of Wallack's, but noted that before Arrowhead was formed, Wallack worked as a health policy analysis consultant for the Office of the Rhode Island Health Insurance Commissioner from 2006 to 2009. 


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