Ohio2006 Blog

News, analysis, and comments on Ohio elections.

Friday, September 8

Atty Gen: Dann (D) Predicted Massive BWC Managed-Care Scandal

A few weeks ago, after a press conference on the steps of the federal courthouse in Cleveland, attorney general candidate State Sen. Marc Dann (D-Liberty Township) alerted me that there was a huge scandal pending about excessive payments to managed-care companies by the Ohio Bureau of Worker's Compensation.

Today's editions of the Columbus Dispatch, Cleveland Plain Dealer, and the Toldeo Blade break the story that the BWC's administrative payments to managed-care companies soared 44 percent from 1998 to 2005, despite a drastic decline in injured-worker claims of 42 percent during that time. This privatization of care administration was an ideologically-driven "reform" brought about after Republicans took control of the General Assembly in 1994. Instead of saving money, the change has lead to extra costs exceeding $1.6 billion, far greater than the BWC losses of about $300 related to Tom Noe's fraudulent investments in rare coins and beanie babies and other mismanaged financial deals. Of course, the biggest beneficiary of the privatization scheme, CareWorks of Dublin, Ohio, is a managed-care company put together by political insiders to take advantage of the situation.

This is classic pay-to-play, classic Republican culture of corruption. The managed-care scandal may so engulf the previously exposed corruption and mismanagement at the BWC as to become the historic point of reference for the decline of Republican rule in Ohio. Stay tuned.

3 Comments:

At 9:13 AM, Anonymous Anonymous said...

I read the article about CareWorks that you linked. It looks like it was started by Vern Riffe's top aide, with a very sweethart deal with Paul Tipps, the former head of the Ohio Democratic Party. It looks to me like top Democrats were making some real money off this. I think this makes the Democrats look really bad.

Also, I read the article in The Blade today. It looks like, of all people, MARC DANN took the most (even more than Taft!) in campaign contributions from the alleged wrongdoers. I think this is really going to blow up on us. This is not positive at all. I've lost some real faith in Dann.

 
At 3:06 PM, Anonymous Matt Dole said...

I give you credit for trying to spin this as a victory for Dann, but come on... the anonymous commenter is right - the "Republican" scandal era is over. This is an institutional problem that engulfs Tom Noe, Bob Taft, Marc Dann, and other GOPers and DEMs.

There is no where for Marc Dann to hide anymore - his entire campaign is based on hypocrisy.

 
At 9:52 PM, Blogger Yellow Dog Sammy said...

You two are so full of it! The whole idea of outsourcing care administation was 100% Republican. And, the whole time that the multi-billion dollar losses were piling up, the Reublicans were in complete control of state government . Who failed in their oversight duties - Democrats? NO - Republicans. The Republican scnadal era is just starting. We haven't seen even a small fraction of it yet.

 

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