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Hello and welcome to Single Pair Radio. I'm Paul Hoppe,
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broadcasting from the Habron Building in Louisville on the WFMP 106.5
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Forward Radio Community Network, where news, information, and entertainment is
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available 24 hours a day, 7 days a week. The
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views and opinions expressed on our show are those of
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the speakers and not the station. Single Pair Radio is
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produced by Kentuckians for Single Pair Healthcare in conjunction with
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Physicians for a National Health Program. We produce this program
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because we believe health care is a human right. We
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advocate for a national, not-for-profit, publicly funded, single-payer health care
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system commonly known as Medicare for All. It would cover dental, vision, hearing, prescriptions,
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mental health, and long-term care, covering everyone starting at birth.
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Catch our programs at 2 p.m. Monday, 7 a.m.
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Tuesday, and 11 a.m. on Wednesday.
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We also stream our show on SoundCloud, Apple Podcasts, and
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others so you can listen anytime. And remember, this is
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an all-volunteer radio station and relies on your ideas and
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donations to keep us on the air.
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Today, Drs.
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Mike Flynn and Gene Shively join me as co-hosts with
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their special guest. Let's get started. Dr. Flynn?
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All right. This is Michael Flynn, a retired surgical oncologist
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from the University of Louisville Department of Surgery. Let me
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begin with the usual disclaimer. Any comments I make represent
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my personal views and do not represent the views of
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the Department of Surgery or the University of Louisville. Gene?
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I'm Eugene Shively. I'm a retired general surgeon in Campbellsville, Kentucky.
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I spent all my career at Taylor Regional Hospital, and
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any comments I made are mine and not that of
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Taylor Regional Hospital, nor the Department of Surgery at the
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University of Louisville or the University of Louisville.
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Our topic today are multiple. We're going to discuss Medicaid
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and some of the issues impacting Medicaid by the so-called
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Big Beautiful Bill that was passed by the ideological geniuses
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in the national legislature. perhaps some reproductive rights issues and
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some other issues related to the dysfunctional health care system
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in this country. Now, we have a very special guest.
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Before I introduce the guest, I would like to just
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challenge our listeners that we will talk about a number
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of topics and issues, and there are multiple sources where
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they can double-check the accuracy, the factuality of what we're
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talking about. Just a couple of examples, the Journal of
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the American Medical Association and the New England Journal of
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Medicine have multiple articles dealing with Medicaid, reproductive rights, and
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our health care system in general. Wikipedia, and you can
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just get on Google. A special guest today is Representative
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Joshua Watkins. He is a House Democratic whip and represents
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the Kentucky's 42nd House District, which includes at least part
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of Louisville. Has an MBA from North Carolina University and
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a BA in Community Leadership and Development at the University
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of Kentucky. Representative Watkins, thank you for coming on. If
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there's anything that I've said that wasn't correct, you can
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correct it. As we've done with our previous guests, we're
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going to give you an opportunity to make whatever comments
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you'd like to make. for as long as you'd like
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to make them, and then the conversation will begin. So,
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Representative Watkins, the floor is yours.
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Awesome. Well, good morning.
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Thank you for having me. I'm really looking forward to
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this conversation. I've been looking forward to it for quite
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some time. But good morning to the listeners as well.
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Always grateful to be able to talk to new people.
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As you have said, my name is Joshua Watkins. I'm
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I do have the pleasure of serving in Louisville's 42nd
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House District that covers a pretty wide swath of what
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we know is downtown area. So I
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break up the
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district into three different parts. The eastern part, around Germantown, Schnitzelburg, St. Joseph,
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Mayweather neighborhood, Fort Hill. Parkway Village. And then I go
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through the central part, which is where the University of
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Louisville is. So I have a large portion of that
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around Old Louisville and Limerick neighborhoods. And then I have
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the western part of the district, as we say, with
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the West End, as we know it as the West End,
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which is California, Parkland, Chickasaw, Shawnee, and a portion of
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the Russell neighborhood as well. So 45,000 people represent, completing
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my first term in the Kentucky General Assembly in the
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House of Representatives, where I have also recently concluded my
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very first year as the whip, as you said. So
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my background is in public administration, community development, and government performance.
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Spent about almost 11 years in city government and global
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metro government in varying roles under two mayoral administrations. the
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current mayor, and then the former as well. But I
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had a real estate development background prior to entering into government.
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I do have an MBA that's a concentration in public administration.
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I'm also a certified project management professional.
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And all of the nerdy things that come with that,
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I would just like to add and conclude that in Frankfurt,
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I would say my work has been focused around This
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affordability crisis and that obviously goes to initially one of
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my strong suits is housing.
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I have a very strong housing background.
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Health care access is a close number to public safety,
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economic opportunity, and generally just making sure that government does
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what it says it's going to do.
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I believe that government should work.
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For the people because it is of and for the
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people and that government has a responsibility to empower its citizens.
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to be able to take care of themselves, the people
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they love, and the things they care about. And I
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just try to always keep the people first in everything
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that I do. That's what my approach to public service is.
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So thanks again for having me.
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Well, and thank you for that introduction. Jane, do you
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want to begin the conversation?
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Yeah, I'd like to make another comment about references.
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One of the best references for some of this stuff,
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particularly on health care, is the Kaiser Permanente Foundation and
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they're an independent, not-for-profit organization that does a lot of
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research into health care in America.
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And one of the interesting things.
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About Medicaid, which we're going to talk about, is the
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work requirement, and they have a lot of data on that,
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which shows that only about 8% of people who are
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on Medicaid are not working that probably could work. And
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it's very interesting that the one state that actually tried
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this in the past and were successful in getting it going,
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they found out the administrative cost of doing this was
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more than the money they lost of people being on
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Medicaid who shouldn't have been there. Well, Representative Watkins and
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I met for the first time, I think it was
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in May, and we had a symposium at Council University.
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I attended, and he was one of the speakers, and
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so I asked him if he'd be interested in talking
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about some of the health care problems in Kentucky, and
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he was excited to accept that invitation, and we were
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proud to have him in Campbellsville, and I hope he
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can come back sometime. The first question I have is,
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in a big, beautiful bill, there's going to be a
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rather significant Medicaid cut across the country. And I'd like
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to ask, what is that going to do to Kentucky?
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Well, thank you for the question, Dr. Shadley. And to
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answer just directly, I'm very concerned.
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And worried about what it's going to do to Kentucky.
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But I
want to set the stage here, and you
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all know this well as maybe your listeners. Somebody may not,
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but Medicaid covers about one in three Kentuckians. So it's
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a major source of the obviously health care benefit, but
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also revenue for hospitals and nursing homes, doctors and other providers.
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And over the next 10 years, based on this cut,
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you call it the big, beautiful bill. I like to
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say H.R.1 because I don't think there's anything beautiful about it,
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in my opinion. But that's roughly going to cut our
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spending about $ 900 billion over the next decade. And so
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what does that mean? And what does that mean for
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people in Kentucky? Well, when people in Kentucky lose coverage,
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they don't stop getting sick.
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What do they do? They delay treatments. The conditions get worse.
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And then the hospitals are left providing those care for
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patients they can't afford. So we're probably expecting to see
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some rural hospitals at the minimum cut services.
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That means some may close.
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There's some expectations that some rural hospitals may close based
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on some research and estimates.
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Out there nationally. And closures mean. the loss of jobs.
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And also for those folks that are getting care, it
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means you have to drive longer for the care that
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you're going to get. And that's a damage to the
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local economy as well. We know this is going to
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start in 2027. I'm pretty sure we're going to talk
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a little bit more about it.
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But the last thing I'll.
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Say, if you would allow me, We just wrapped up,
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the House Democratic Caucus wrapped up a Medicaid listening tour.
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Paul, I saw Paul in Prestonsburg and in Lexington.
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And we got to hear directly from families who are
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on Medicaid about what this means for them, particularly those
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who are in the waiver programs. And some of these
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folks were saying, you know, if we get any more cuts,
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I'm not going to be able to take care of
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my family.
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Or my loved one.
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And so that's going to mean more people getting sicker,
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us paying for more health care expenditures, and then downstream economically,
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it could mean the loss of jobs for a lot
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of different people too.
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Representative Watkins, we've done a couple of programs with a
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physician from UofL Hospital who spent much of her career
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taking care of underserved populations and folks on Medicaid, and
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a Medicaid recipient named Amber. And one of the things
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that I learned from her, which I was really surprised at,
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is many of our large corporations, Kroger, Walmart, have people
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working in some sort of category that doesn't Indicate that
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they're a full time employee and they don't get access
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to health care supported by those corporations. So my question is,
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are you aware of all this? And what are you?
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Is this just something that something I was totally unaware of?
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Unaware of folks who have sort of mixed job status
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where they don't necessarily work full-time, but kind of come
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in the middle.
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Well, yes, they're put in a category that doesn't allow
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them access to health care coverage by these big corporations
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who are making billions of dollars.
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Oh, sure. I've definitely heard of that before. Yes, okay.
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You think of the full-time work week as probably 40 hours,
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which is customary. There are those who are just right
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below that, around 32.
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And you think of folks who have mixed schedules, particularly
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in the service industries. This definitely.
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And retail is really expressed in retail industry. You're going
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to see that a lot.
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But I also.
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think is really interesting is I shadowed a doctor recently
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in this program.
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That I'm in.
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It's called the White Coat Program. It is open to
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civic leaders and whatnot. It's based in Louisville. It was
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the single most eye-opening experience I have ever witnessed from
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the perspective of a provider. And this was in a
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pain management clinic. I'm preaching to the choir with you all.
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But here's one scenario as I was talking to their
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office manager around the books.
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You know, because you.
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Think about a sole proprietor who is a, you know,
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entrepreneur in this case. And what they said to me
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on about the Medicaid cuts is that the reimbursement rates,
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once those reimbursement rates continue to drop and in some
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cases become non-existent, for them to keep their doors open.
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they would have to see more clients that have private
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health insurance versus those on Medicaid. Or if they're going
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to do that on Medicaid, they would have to see
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a volume much higher. And so I said, well, what
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happens to the folks that, you know, as you are
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getting people on Medicaid who really need your service? And
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he said, well, I mean, it doesn't make sense for
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us financially to do it. It's harder for us to
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do it. So a lot of clinics will just stop
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doing it. And think about if you're the only provider
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in your area and it's too expensive for you to
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carry those costs because you eat those costs if you're
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a provider. That means you stop providing that service altogether
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and then those services disappear from your area. And I
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never saw the math on it until I walked through.
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I was terrified.
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So from a legislative standpoint, are the legislators at all
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interested in addressing this issue for Walmart and Kroger's and
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whatever other corporations have hired people and put them in
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a category where they're not, they don't have access to
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the healthcare insurance that comes with working for that company.
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So we're getting into sort of labor laws and what
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what our legislative remedies are. I
think that there are
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a lot of legislators, I would hope, that would like
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for their constituents to be paid a living wage. My caucus,
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particularly in something that I have supported, is the increase
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of the minimum wage, which.
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Is still $ 7. 25 in Kentucky.
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But in terms of the benefit packages that go along
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with employment. I think that's why it's important for everyday
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citizens who own the means of their labor to be
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able to organize.
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And so one of the things that.
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We see in Kentucky, which is a direct response to
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what they're saying, is the right to work statute. And
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once you repeal that, then you have the ability to
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organize and to fight for fair wages and the benefits
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that come with that. But when you do not have
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that and you work at a Walmart, when you work
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at other large multinational.
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Corporations, then you lose that ability.
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I have been very interested in repealing rights of work
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because I do believe that people who own the means
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of their labor should be able to negotiate with those
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who own the means of production, in most cases, those
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multinational corporations, for what is fair, what is right for
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them and their families.
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So you just expressed a view that in today's times,
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would earn you the title of communist or socialist. And
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that is so ridiculous. It just irks me.
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I hear it so often.
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Well, I think that's interesting because I don't consider myself, well,
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I know I'm not a communist and I know I'm
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not a socialist, but I understand about the ideology. But
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it's very simple to me that if you are going
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to work and you, because of your output in production,
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are helping to make money. You should get a share.
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And what that is, no one wants to do anything
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in this world for free. And so I believe that
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when I work,
I go to work every day before
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I was elected. I mean, I go to work every
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day and I have what I'm supposed to do. And
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whatever that pay period is, I expect as an exchange
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for my labor, I expect to be compensated for it.
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And that to me is what it what it boils
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down to.
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And then a company is supposed to give me that
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sort of compensation package or what they're offering in exchange
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for my labor.
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And that's going to come in the form of a wage.
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And that's going to come in the form of.
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A benefits package, which in that case is a replacement
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for direct wage. So if multinational corporations do not want
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to provide things like health care and for all the
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things we need, dental, vision, going to the doctor, then
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the wage goes up. And so that's pretty much that's
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the exchange of what's supposed to be the free market.
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And to me, the marketplace of labor and production is
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very much within the system that we have.
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I just feel like the everyday person is not getting
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a good deal.
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And when you're not getting a good deal, I think
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everybody wants the ability to negotiate.
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Well, the middle class and the lower classes in this
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country haven't moved forward and increased in their access to
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health care and jobs and salaries for 30 years.
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Exactly.
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So I think. I think when we have these conversations
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about these buzzwords around communism and socialism, what I'm hearing
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on the street in my district and when I travel
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to Prestonburg or as they say from Pikeville to Paducah,
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I've been to mostly all of the corners, the regions
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of Kentucky within this last interim session. When I'm talking
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to everyday people at the coffee shop or at the
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gas station, we're knocking doors as I've knocked for other
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candidates and such this cycle. People aren't talking about socialism
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and communism or even capitalism as a word. They're thinking about,
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am I going to be able to put food on
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the table? Am I going to be able to get
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what I need, take care of my family? If I'm
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going to be able to put something back for a
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rainy day. Well, if I've worked really hard for a.
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Long period of time, am I going to be able
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to retire with some dignity?
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And that to me is a human condition. And I
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think we cheapen the argument when we throw out these
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labels of, you know, are you a capitalist or a
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socialist or a communist? To me, are you for the people?
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And are you defending the rights of what the people
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need to be successful in the Commonwealth within writ large
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the country?
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Yeah, I absolutely agree with you. We are the only
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first world country that does not have some kind of government-run,
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not-for-profit healthcare system that provides access to healthcare for all
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of the citizens. Australia, New Zealand, Canada, Japan, the European Union,
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the Scandinavian countries, and even some South American countries Now,
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in your interaction with the people that you represent, is
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there an understanding about that? I get the impression that
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a lot of the people living in this country really
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don't understand how bad our health care system is compared
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to most of the rest of the world.
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Yeah, I think you're spot on there. Most people... are not.
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Paying attention to the fine print and the details that
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we all may talk about.
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But it's not because they don't care about it.
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Because they don't have the capacity to do all of
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these things at once. I mean, people are working two
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or three jobs just to make ends meet.
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It's an old saying.
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I was raised around a lot of seniors and elders,
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so I have a lot of sort of old euphemisms
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to explain myself, so excuse that in advance, but
Back
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when I was coming up, they would say you had
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more month than money or you try to make a
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dollar out of 15 cents. And a lot of people
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are trying to do that. So they simply don't have
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the capacity to talk about the health care system and
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understand the minutia of insurance and reimbursement rates and prescription
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drug prices and negotiations.
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I mean.
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I'm a legislator, and some of that stuff is confusing
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to me, too. We are the only developed, first world
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developed country in the world that does not have a
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health care system that works for the public good. And
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it's largely because our health care system is profit driven.
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And we've gotten to the point to where I think
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the rub, maybe the initial question you were asking me
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about is how, you know, me as a Democrat and
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my colleagues across the aisle, how we think about it. Well,
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here's the true problem. We don't have a messaging problem.
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We have a math problem. Health care is just too
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expensive in the United States. That's really what it is.
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The difference between my colleagues and I is just we
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have different ways of addressing the cost of health care.
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And my proposition to anybody listening, my pitch, if you will,
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is which way of addressing the cost of health care
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is going to ultimately work for you and your family.
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Take out the ideology.
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Because sometimes when you hear that somebody's a Republican or
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somebody's a Democrat or anywhere on the spectrum, some.
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People tend to cover their ears. And I think that's
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the wrong approach.
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I would like to offer which way is going to,
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are these drastic cuts? Is that, they're trying to, the
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Republicans are trying to adjust the cost because healthcare costs
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are the single largest expense for us in the commonwealth.
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But for us, we want to look at the government
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getting involved because the marketplace is not working for working
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families and those who are poor. So other countries are
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figuring this out, and they are having better outcomes for
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their constituencies.
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And I want to see the same thing.
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I think one of the issues we can bring up
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if they accuse us of being a socialist is that
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throughout Western civilization, The professions, which were included, the ministry, lawyers,
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and doctors were people with higher educations, but they were
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expected to provide care regardless of the patient's or person's
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ability to pay. And that's always been our tradition. But
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we've gotten off track. The other thing is that we
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can provide... health care for everyone, and it doesn't have
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to be so-called socialized medicine like it is in England
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and Canada.
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We could just go.
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To a nonprofit system with a highly regulated system, regulation
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by the government like they have in Switzerland, Germany, and
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some other countries that could provide care and drastically reduce
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the cost. I'd like to point out one other thing.
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It's not just big corporations that hire people that have
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to be on Medicaid.
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For example, our assisted living in.
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Camelsville, almost everyone who works there, the administrator told me,
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was on Medicaid. And then also some of the hospitals
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have people who are working low wages who.
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Are also on Medicaid. Let me ask you another question.
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Does the state of Kentucky have the ability to try
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to correct some of these problems that were getting handed
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down by the federal government, or is there too much
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money involved for a small state like Kentucky to deal with?
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Do you have any specific?
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Well, the total amount of money we get from Medicaid
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Is there any way we could, do we have enough
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reserve to try to stimulate or try to help out
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some of the Medicaid?
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Joshua, you might tell the story about the lockbox that
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you guys have.
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Oh, yeah.
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Well, so I guess to answer, that's a complex question,
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but we do have, does the state of Kentucky have money?
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To fully fund Medicaid? In my opinion, yes.
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Just looking at the budget and the numbers, again, the
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question is going to come largely, federally, the cost of
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health care is what we're going to always come back to.
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With the passage of H.R. 1, federally, This past session,
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the General Assembly, largely on all actually all on party lines,
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passed House Bill 2, which goes further in terms of
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the changes to Medicaid at the state level. And depending
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upon wherever you fall on the political spectrum, you may
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or may not agree or disagree.
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But the facts remain that Hospital 2 did make some
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statewide changes to Medicaid. One of those things also was
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on the work requirements, and I think you talked about
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a little bit more. And we were already facing.
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a Medicaid funding shortfall in the 2026 budget process, even
441
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before the federal changes came in. The governor used about $ 255.
442
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Million in surplus funds. So money, I'd.
443
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Like to refer to the surplus as like a piggy bank.
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Or a safe deposit box.
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We call it the Budget Reserve Trust Fund. We have
446
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a few billion dollars in there to prevent an immediate
447
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4% cut in provider reimbursements. But then the General Assembly
448
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did something else, which I agree with the logic behind this.
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It was to create what's called a Medicaid lockbox. So
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it set aside $ 290 million dollars for Medicaid and put
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it inside of a lockbox that you can only open
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that box.
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With legislative approval.
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And the logic behind that was, if there is shortfall,
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which we believe that there will be, that we would
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be able to go and pull out money to cover
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that gap.
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But we had to prove that there was actual gap
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in such to spend.
460
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Now, I believe and my colleagues believe that we.
461
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Should open that $ 290 million lockbox to.
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Address those immediate needs. But the problem is, my friends,
463
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is that that's one-time money. So we would also need
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to identify additional funding for the next fiscal year when
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the shortfall could become much more serious. And then we
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also have to account for the new financial and administrative costs.
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For implementing the new federal requirements. So there are.
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I think what I'm also thinking about is the risks
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that happen if we wait. If we don't address that
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funding problem, obviously what that means to everyday people. So
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opening the lockbox at $ 290 million, which is something that
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we're going to push forward in this one-to-seven session, will
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help meet those immediate needs, but we also need to
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develop more sustainable funding for the next fiscal year.
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Representative Watkins, do you.
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Well, let me ask this in a different way. I'm
477
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sort of curious to know what is in the heads
478
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of the Republican legislatures coming forward. rural parts of the
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state that with these issues, these Medicaid issues out there
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as a result of, and I agree with you, I
481
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wouldn't call it the big beautiful bill, but I If
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I used the four-letter words I would describe it, Paul
483
00:29:57.089 --> 00:29:59.789
will get me in trouble. So I'm just not going
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to do that. But what, I mean, can you give
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me an idea of what the average representative from a
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rural area in Kentucky where some of these issues, the
487
00:30:17.019 --> 00:30:19.920
impact on health care is going to be really significant,
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where are they with this?
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Again, so all of the legislators that I've talked to,
490
00:30:25.869 --> 00:30:28.710
I've talked to a lot on the House side and
491
00:30:28.829 --> 00:30:31.990
even some on the Senate side that come from rural areas,
492
00:30:32.670 --> 00:30:37.319
they are concerned about the
changes and what it means
493
00:30:37.380 --> 00:30:39.059
to their communities too.
494
00:30:39.420 --> 00:30:40.660
At least that's what they tell me.
495
00:30:42.180 --> 00:30:48.640
They are very aware of some of the provider challenges
496
00:30:49.380 --> 00:30:54.359
with a lot of the medical professionals that are leaving areas,
497
00:30:54.519 --> 00:30:58.329
particularly out East and even Western Kentucky too.
498
00:30:59.029 --> 00:31:02.569
And so they've expressed the need and you can see
499
00:31:02.589 --> 00:31:04.589
it through their floor.
500
00:31:04.369 --> 00:31:10.480
Testimonies and such and comments during committees that they are saying, well, hey,
501
00:31:10.519 --> 00:31:14.440
wait a minute, my community.
502
00:31:14.019 --> 00:31:15.299
Does depend on Medicaid.
503
00:31:15.819 --> 00:31:18.259
So that's what I've heard directly and I've even heard
504
00:31:18.380 --> 00:31:23.440
publicly Again, we come back to the fundamental question.
505
00:31:23.859 --> 00:31:27.440
Which is healthcare in the United States is too expensive.
506
00:31:28.339 --> 00:31:28.920
It just is.
507
00:31:29.940 --> 00:31:33.819
And what we believe are our options to deal with it.
508
00:31:34.289 --> 00:31:38.490
And so I oftentimes ask, and I wanna just stick
509
00:31:38.529 --> 00:31:42.579
on that question moving forward when we go in 27,
510
00:31:42.579 --> 00:31:45.839
back to Frankfort, what do they feel are the tools
511
00:31:45.940 --> 00:31:50.259
necessary to do so? Because cutting spending, looking at the
512
00:31:50.460 --> 00:31:54.640
fiscal health of the state, I understand that. Everybody understands
513
00:31:54.700 --> 00:31:57.089
that in their household that sometimes you gotta cut back
514
00:31:57.430 --> 00:31:59.650
or tighten the belt when money.
515
00:31:59.490 --> 00:32:02.970
Is getting low. But what's hard for me to wrap
516
00:32:02.990 --> 00:32:07.690
my mind around is money that we would spend elsewhere
517
00:32:08.650 --> 00:32:12.470
or approaches that we would do like cutting the state
518
00:32:12.589 --> 00:32:17.410
income tax. Like those two things, like a half a
519
00:32:17.450 --> 00:32:21.650
percent cut in the state income taxes is equivalent to
520
00:32:21.690 --> 00:32:23.329
something like $ 700 million.
521
00:32:23.690 --> 00:32:27.630
And so I just find it difficult to reconcile the two.
522
00:32:28.440 --> 00:32:32.680
That if we have needs of people who, these are
523
00:32:32.720 --> 00:32:35.319
not people who are gaming the system. These are not,
524
00:32:35.880 --> 00:32:38.799
you know, folks that are in their parents' basement playing
525
00:32:38.880 --> 00:32:39.619
video games.
526
00:32:40.269 --> 00:32:44.230
You know, these are real people that are out there working.
527
00:32:44.529 --> 00:32:50.549
These are our seniors. These are our young families. These
528
00:32:50.609 --> 00:32:53.910
are folks that are disabled.
529
00:32:53.150 --> 00:32:56.509
And those who care for them. We don't have enough
530
00:32:56.569 --> 00:32:57.289
money to do that.
531
00:32:57.990 --> 00:33:01.250
Then why are we continuing cutting our revenue when we
532
00:33:01.269 --> 00:33:02.539
can take that money to do it?
533
00:33:02.809 --> 00:33:06.450
So that's my question to my Republican colleagues.
534
00:33:07.230 --> 00:33:09.059
And I think that should be a question that I
535
00:33:09.099 --> 00:33:11.579
know that they're being asked every time they go back
536
00:33:11.599 --> 00:33:11.970
to the district.
537
00:33:12.460 --> 00:33:15.059
Well, what kind of answers do they give? Because I
538
00:33:15.759 --> 00:33:20.660
keep seeing people on television talking about decreasing the state
539
00:33:20.839 --> 00:33:26.569
income tax to the extent that there wouldn't be any. And,
540
00:33:28.390 --> 00:33:34.819
you know, the impact of that on infrastructure and just
541
00:33:34.839 --> 00:33:41.400
the fundamental needs of a population of citizens is just incredible.
542
00:33:42.319 --> 00:33:43.539
Yeah, I totally agree.
543
00:33:43.960 --> 00:33:47.910
Some of the things that I get in response when
544
00:33:47.990 --> 00:33:51.890
I say that to them, it comes back to the
545
00:33:51.970 --> 00:33:53.130
biggest expense that we.
546
00:33:53.069 --> 00:33:55.990
Have in the Commonwealth is healthcare spending.
547
00:33:56.390 --> 00:34:01.069
So they think about the whole picture and the state
548
00:34:01.569 --> 00:34:04.910
of the Commonwealth, the financial state of the Commonwealth.
549
00:34:05.170 --> 00:34:06.329
And I understand that.
550
00:34:06.670 --> 00:34:09.039
A lot of them point back to me saying, well,
551
00:34:09.059 --> 00:34:11.500
when we were not in the majority, we didn't even
552
00:34:11.579 --> 00:34:15.559
have any savings. And so after 10 years of being
553
00:34:15.860 --> 00:34:18.300
in the majority, we have this savings for a rainy day.
554
00:34:18.380 --> 00:34:21.599
And they'll point back to the budget reserve trust fund.
555
00:34:21.840 --> 00:34:24.420
And I'll say, okay, well, if it's a rainy day,
556
00:34:25.460 --> 00:34:28.550
meaning we have a crisis or an issue or an emergency,
557
00:34:29.309 --> 00:34:31.070
then we need to be able to pull from that
558
00:34:31.130 --> 00:34:35.090
money to address it. But then they'll come back and say, well, yeah, sure,
559
00:34:35.570 --> 00:34:37.909
but the costs are too expensive.
560
00:34:38.010 --> 00:34:39.309
It almost sounds like.
561
00:34:41.099 --> 00:34:45.599
It's thinking federally about how we address health care. And
562
00:34:45.679 --> 00:34:48.960
I think that's really what I find the benefit of
563
00:34:49.039 --> 00:34:51.860
this program and what you all talk about, which are
564
00:34:51.920 --> 00:34:55.139
what our options are. We talk about a single payer system,
565
00:34:55.179 --> 00:34:58.139
but why is that attractive? It's because the current system
566
00:34:58.159 -->
00:35:01.099
that we have is just entirely too expensive. So I
567
00:35:01.420 --> 00:35:05.579
also want to challenge my colleagues to, as we look
568
00:35:05.619 --> 00:35:08.500
at the numbers, to understand that our colleagues in the
569
00:35:08.539 --> 00:35:11.260
majority do have the power.
570
00:35:11.960 --> 00:35:13.059
They're in the majority for now.
571
00:35:14.039 --> 00:35:17.159
They do have the power to address issues some of
572
00:35:17.179 --> 00:35:18.699
the immediate needs that we have, and.
573
00:35:18.679 --> 00:35:19.519
I know they want to.
574
00:35:20.460 --> 00:35:22.179
And I think that we need to do that, and
575
00:35:22.219 --> 00:35:25.480
our budgets should reflect that as well. But I don't
576
00:35:25.500 --> 00:35:27.559
think you can do both. I don't think that you
577
00:35:27.599 --> 00:35:31.280
can adjust our urgent and immediate health care needs and
578
00:35:31.340 --> 00:35:34.690
continue to go down to zero in our state income tax.
579
00:35:35.530 --> 00:35:39.409
You know, there are a number of issues and situations
580
00:35:39.730 --> 00:35:43.650
in the health care system And maybe Jean would make
581
00:35:43.690 --> 00:35:46.030
a comment about this, but one of the things we've
582
00:35:46.090 --> 00:35:51.550
talked about on previous programs has been the impact of
583
00:35:51.690 --> 00:35:58.469
private equity companies buying up various health care systems, everything
584
00:35:58.510 --> 00:36:06.269
from hospitals to surgical care centers to nursing homes. And Jean,
585
00:36:06.309 --> 00:36:09.860
if I'm correct on a previous program, you let us
586
00:36:09.949 --> 00:36:14.599
know that Almost all the nursing homes around where you
587
00:36:14.659 --> 00:36:19.440
live are owned by private equity companies. The goal of
588
00:36:19.500 --> 00:36:22.400
a private equity company is not health care. It's to
589
00:36:22.440 --> 00:36:27.480
make a profit from whatever health care activities are going
590
00:36:27.619 --> 00:36:28.000
on there.
591
00:36:29.139 --> 00:36:33.760
Yes, I think all the nursing homes in my county
592
00:36:33.800 --> 00:36:39.539
and surrounding counties are now owned by private equity companies. And,
593
00:36:39.559 --> 00:36:42.280
of course, they're out of town. They're being managed by
594
00:36:42.380 --> 00:36:46.559
people who don't know the community. I know of one
595
00:36:46.599 --> 00:36:51.039
nursing home where they brought in new doctors and nurse
596
00:36:51.099 --> 00:36:55.800
practitioners who don't know the patients. We had had previous
597
00:36:56.280 --> 00:37:00.260
physicians and nurse practitioners who knew almost all the patients
598
00:37:00.340 --> 00:37:05.929
very well and had a very good relationship with the patients.
599
00:37:07.210 --> 00:37:11.130
So it's more than... not just money, it's the way
600
00:37:11.170 --> 00:37:14.610
they operate them. It's like we've.
601
00:37:14.449 --> 00:37:21.769
Got people
from out of town whose thought process is
602
00:37:21.829 --> 00:37:26.969
mainly how much money we can make and not how
603
00:37:27.030 --> 00:37:33.480
much care or empathy we can give to these patients.
604
00:37:34.400 --> 00:37:37.019
I mean, just think about yourself if you had a
605
00:37:37.099 --> 00:37:41.119
loved one in a nursing home Why should 15% of
606
00:37:41.239 --> 00:37:47.980
the amount of money you pay go to private equity
607
00:37:48.119 --> 00:37:49.159
or stockholders?
608
00:37:49.199 --> 00:37:52.579
This is, to me, seems insane.
609
00:37:53.219 --> 00:38:02.949
But America has become obsessed with profits and health care.
610
00:38:03.849 --> 00:38:09.610
Representative Watkins, do you know, or I guess ask the question,
611
00:38:10.409 --> 00:38:13.800
are the members of the House of Representatives aware of
612
00:38:13.840 --> 00:38:17.420
these issues? Do they have any thoughts about it, or
613
00:38:17.440 --> 00:38:19.639
is it just a non-issue there?
614
00:38:20.460 --> 00:38:21.219
Some of us do.
615
00:38:21.679 --> 00:38:25.139
I would imagine that a lot of us are looking
616
00:38:25.289 --> 00:38:31.610
at the presence of private equity companies owning many different assets.
617
00:38:32.519 --> 00:38:37.940
Many different businesses from hospitals to hospital systems, physician practices,
618
00:38:37.960 --> 00:38:39.239
and especially housing.
619
00:38:39.630 --> 00:38:41.369
We definitely see this in the housing market.
620
00:38:41.989 --> 00:38:45.010
There was legislation that was introduced by one of my
621
00:38:45.070 --> 00:38:49.639
colleagues to ban private equity and large-scale companies from just
622
00:38:49.699 --> 00:38:53.940
swooping in and buying up. all of the available rental
623
00:38:53.980 --> 00:38:56.940
housing on the market. And so it's no different than
624
00:38:57.000 --> 00:39:01.639
hospitals and hospital systems. I've seen a growing number. I've
625
00:39:01.659 --> 00:39:05.369
seen actually more scrutiny, I would say nationally, of private
626
00:39:05.429 --> 00:39:11.369
equity owning in other industries, because typically, like you mentioned,
627
00:39:11.449 --> 00:39:14.769
when they jump in into an industry, it's all about efficiency.
628
00:39:15.389 --> 00:39:20.820
And so those cuts are To generate profits typically mean.
629
00:39:20.579 --> 00:39:22.559
A reduction in quality and service.
630
00:39:23.179 --> 00:39:25.679
And in health care, this is not like a restaurant,
631
00:39:25.829 --> 00:39:28.260
for example, but in healthcare, those consequences when you do
632
00:39:28.280 --> 00:39:32.900
those cuts can be very, very serious. If a restaurant
633
00:39:32.960 --> 00:39:37.559
cuts corners, you know, customers, your favorite restaurant stops to
634
00:39:37.579 --> 00:39:40.340
change its recipes or cuts corners, you can go somewhere else.
635
00:39:40.840 --> 00:39:43.420
But if a nursing home reduces staffing.
636
00:39:43.039 --> 00:39:47.070
Or a hospital cuts services, patients don't really have that
637
00:39:47.110 --> 00:39:51.260
many alternatives based on what's in the market. So And
638
00:39:51.280 --> 00:39:55.019
then I've also seen, as recently as like a month ago,
639
00:39:55.039 --> 00:40:01.289
some articles talking about patient safety problems because of private equity.
640
00:40:01.030 --> 00:40:02.369
Acquisition in hospitals.
641
00:40:03.010 --> 00:40:05.190
And again, we're going to keep coming back to the
642
00:40:05.210 --> 00:40:09.909
cost of health care because everything is just increasing. because
643
00:40:09.949 --> 00:40:13.989
hospitals and medical practice, they do have to be financially sustainable,
644
00:40:14.489 --> 00:40:18.610
but we should be asking whether or not staffing is adequate,
645
00:40:19.000 --> 00:40:21.920
whether or not patients are receiving the quality of care
646
00:40:21.940 --> 00:40:25.860
that they need, and how does a financial decision affect
647
00:40:25.900 --> 00:40:27.840
the services available to those communities?
648
00:40:28.380 --> 00:40:31.519
We should be asking those questions more so than, are
649
00:40:31.559 --> 00:40:32.280
you making money?
650
00:40:34.389 --> 00:40:40.130
Yes, every study that's been done on the access of
651
00:40:41.690 --> 00:40:47.090
nursing homes by private equity companies has indicated that the
652
00:40:47.179 --> 00:40:52.480
quality of care goes down. And because of some of
653
00:40:52.519 --> 00:40:58.099
the things you've mentioned, they reduce the staff, they have
654
00:40:58.199 --> 00:41:03.079
fewer physicians there. I mean, there's a whole set of
655
00:41:03.800 --> 00:41:09.320
situations that have to do with saving money that is
656
00:41:09.739 --> 00:41:15.360
generally needed to provide decent care for the individuals that
657
00:41:15.400 --> 00:41:16.519
are in the nursing homes.
658
00:41:17.440 --> 00:41:21.480
You know, nationwide, that number Gene said down in his area,
659
00:41:21.519 --> 00:41:25.519
it's all of the nursing homes. But nationwide, it's over
660
00:41:25.519 --> 00:41:28.480
70 percent of all the nursing homes are owned by
661
00:41:28.559 --> 00:41:29.539
private equity now.
662
00:41:29.639 --> 00:41:30.960
Yes, that's correct.
663
00:41:31.380 --> 00:41:34.199
Well, and it's going to get worse as we look
664
00:41:34.280 --> 00:41:37.380
at You know, we hear this in the policy lens.
665
00:41:37.619 --> 00:41:39.539
I know private equity knows this as well.
666
00:41:40.000 --> 00:41:43.440
When we look at the silver tsunami, what it's called,
667
00:41:43.460 --> 00:41:46.099
I know you all know about it too, with the
668
00:41:46.119 --> 00:41:48.860
baby boomer generation, the largest generation.
669
00:41:49.699 --> 00:41:52.199
In America at the time, I think before.
670
00:41:52.559 --> 00:41:56.579
Millennials, millennials, which I'm a millennial, I think we surpassed
671
00:41:56.940 --> 00:42:00.000
the baby
boomer generation, but that's my parents' generation.
672
00:42:00.199 --> 00:42:02.139
My parents are 69 and 71, respectively.
673
00:42:04.949 --> 00:42:09.079
So they're retiring, going off the scene in terms of
674
00:42:09.099 --> 00:42:12.260
the workforce and then changing needs relating to health care
675
00:42:12.280 --> 00:42:13.539
and housing and food.
676
00:42:13.239 --> 00:42:14.159
Stability and such.
677
00:42:14.219 --> 00:42:18.570
And so the need for multiple forms of care, whether
678
00:42:18.590 --> 00:42:22.789
it be in-home care, assisted living facilities, et cetera, that's
679
00:42:22.929 --> 00:42:27.110
only going to continue to grow and actually explode in
680
00:42:27.130 --> 00:42:30.630
the next decade. And so I know that private equity
681
00:42:30.670 --> 00:42:33.519
looks at that population as like, OK, that's an ability
682
00:42:33.559 --> 00:42:37.820
to turn a profit. But I think for us, especially
683
00:42:37.840 --> 00:42:40.989
as legislators, and then there's everyone. My dad always says,
684
00:42:41.010 --> 00:42:42.710
you're gonna get old one day if you keep moving.
685
00:42:43.409 --> 00:42:48.329
So you wanna make sure there are things that we
686
00:42:48.369 --> 00:42:51.409
need to care about. And as a millennial, I also
687
00:42:51.429 --> 00:42:53.929
think about, well, what is the healthcare system gonna look
688
00:42:53.949 --> 00:42:57.150
like when I'm 65? And how, I mean, if we
689
00:42:57.190 --> 00:43:00.389
can barely afford to do things now, can you imagine
690
00:43:00.429 --> 00:43:01.050
in the next 20, 25 years?
691
00:43:02.570 --> 00:43:05.730
I I'm glad you do think about that, Joshua, because
692
00:43:06.250 --> 00:43:08.369
I think a lot, a lot of young people now
693
00:43:08.630 --> 00:43:11.610
are already convinced it's not going to be there. And
694
00:43:11.650 --> 00:43:13.230
I don't know what they think is going to happen
695
00:43:13.250 --> 00:43:17.730
to them, but it's time they need, they get involved.
696
00:43:18.130 --> 00:43:18.590
I'll tell you.
697
00:43:18.610 --> 00:43:19.849
Yeah.
698
00:43:20.409 --> 00:43:23.010
Well, that's why I'm sorry. That's why I think this
699
00:43:23.070 --> 00:43:27.780
question is so important at a larger scale, Paul and Paul,
700
00:43:27.880 --> 00:43:32.030
actually my interactions with you, over the last month or
701
00:43:32.070 --> 00:43:35.630
so have really clarified my focus.
702
00:43:35.469 --> 00:43:38.969
In this space. Because oftentimes, when we're up there, we're
703
00:43:38.989 --> 00:43:42.530
a part-time legislator. I'm a part-time legislator.
704
00:43:42.570 --> 00:43:46.170
We are a part-time legislature as a governing body, meaning
705
00:43:46.289 --> 00:43:52.019
we don't have year-round session. We meet alternative years for
706
00:43:52.039 --> 00:43:55.099
a portion of the calendar year. On the even years,
707
00:43:55.820 --> 00:43:58.639
we meet until April. On the odd years, we meet
708
00:43:58.760 --> 00:44:02.269
until March. but that there's a whole chunk of the
709
00:44:02.309 --> 00:44:04.389
rest of the year that we are not in session,
710
00:44:04.829 --> 00:44:07.530
meaning we don't pass laws and things aren't changing in
711
00:44:07.550 --> 00:44:11.130
that regard. And so once I started talking to you,
712
00:44:11.230 --> 00:44:15.690
particularly about, you know, Medicaid expansion, Medicare, single payer systems,
713
00:44:15.750 --> 00:44:20.750
et cetera, it started, it made me get down to
714
00:44:20.929 --> 00:44:24.510
why are we not agreeing about this? You know, it
715
00:44:24.550 --> 00:44:27.269
just seems like it should be so common sense, but again,
716
00:44:28.170 --> 00:44:29.530
The question that I come back.
717
00:44:29.369 --> 00:44:30.989
To, and I'm going to sound like a broken record,
718
00:44:31.030 --> 00:44:33.230
you all may not ever have me on this program.
719
00:44:32.969 --> 00:44:37.210
Again, but it is, are we actually making health care
720
00:44:37.289 --> 00:44:40.760
less expensive, or are we just changing who gets stuck
721
00:44:40.780 --> 00:44:41.340
with the bill?
722
00:44:42.059 --> 00:44:45.960
Here's one key takeaway that's very important, and I haven't
723
00:44:45.980 --> 00:44:49.019
brought this up yet, but I will now, is that
724
00:44:49.079 --> 00:44:53.719
we usually recognize we have 32 developed countries in the
725
00:44:53.760 --> 00:44:56.800
world that we measure against. And, of course, out of
726
00:44:56.820 --> 00:45:01.579
the 32, only one cannot provide a single-payer system or
727
00:45:01.659 --> 00:45:04.260
universal health care for its citizens. And we know which
728
00:45:04.340 --> 00:45:07.360
one that is, obviously. And then we hear the thing
729
00:45:07.429 --> 00:45:11.389
that health care is too expensive. But if you take
730
00:45:11.429 --> 00:45:15.150
that one country, we spend twice as much as the
731
00:45:15.349 --> 00:45:21.429
average of the other 31 countries per capita on health care.
732
00:45:21.530 --> 00:45:23.010
We're already spending that money.
733
00:45:23.820 --> 00:45:27.369
Well, we're not spending it on healthcare. That's the problem.
734
00:45:28.050 --> 00:45:33.610
The money that is being spent is being siphoned off
735
00:45:34.150 --> 00:45:41.429
for profit, for political contributions by investors. So it's not
736
00:45:41.780 --> 00:45:47.280
that we're paying for healthcare. We're paying into a healthcare
737
00:45:47.539 --> 00:45:54.579
industry that is driven by making profit from healthcare activities.
738
00:45:54.659 --> 00:45:55.059
Exactly.
739
00:45:55.099 --> 00:45:57.480
Mike, jump right in on that, uh, bringing up that
740
00:45:57.639 --> 00:45:58.800
big elephant in the room.
741
00:46:00.639 --> 00:46:04.510
Well, it's approximately a third of all of, uh, I
742
00:46:04.570 --> 00:46:09.210
think it's $ 5. 5 trillion we're going to spend this year
743
00:46:09.309 --> 00:46:12.769
on healthcare. About a third of that is wasted. Uh,
744
00:46:12.829 --> 00:46:16.190
for example, uh, we're the only country in the world
745
00:46:16.230 --> 00:46:21.760
that allows doctors and hospitals and pharmaceuticals to advertise, uh,
746
00:46:23.590 --> 00:46:32.170
Our profit is huge, at least 15%. And pharmacy benefit
747
00:46:32.210 --> 00:46:40.250
managers and the huge administrative cost, these are all unnecessary
748
00:46:41.110 --> 00:46:44.849
costs that we could eliminate if we would just go
749
00:46:44.949 --> 00:46:49.110
to some type of not-for-profit system.
750
00:46:50.869 --> 00:46:52.070
Joshua....
751
00:46:52.679 --> 00:46:57.460
Has pharmacy benefit managers been discussed in the legislature, to
752
00:46:57.500 --> 00:46:58.119
your knowledge?
753
00:46:58.139 --> 00:47:02.440
Yeah, broadly, I would say.
754
00:47:02.960 --> 00:47:04.219
Okay.
755
00:47:04.449 --> 00:47:09.769
Mainly in the conversation of, well, of course, with Medicaid.
756
00:47:09.849 --> 00:47:11.909
But I want to say my.
757
00:47:13.550 --> 00:47:20.699
Very first session, there was this really large discussion relating
758
00:47:20.820 --> 00:47:25.960
to There's a program that's going to come to me.
759
00:47:26.960 --> 00:47:27.940
I think it's 340B.
760
00:47:28.440 --> 00:47:28.900
Yeah, sure.
761
00:47:29.420 --> 00:47:30.260
Yeah, the.
762
00:47:33.030 --> 00:47:33.230
340B.
763
00:47:33.650 --> 00:47:37.889
Imagine somebody having their first session and everything moves. You
764
00:47:37.909 --> 00:47:41.090
all know Frankfurt. Frankfurt moves at a million miles a
765
00:47:41.110 --> 00:47:43.260
minute when you're in session.
766
00:47:43.699 --> 00:47:44.019
But then.
767
00:47:44.519 --> 00:47:47.059
It's like the fastest and slowest place on earth at
768
00:47:47.099 --> 00:47:50.480
the exact same time. You're talking about everything and every time,
769
00:47:50.539 --> 00:47:53.420
but it takes you 25 years to get one thing done.
770
00:47:53.460 --> 00:47:56.079
I mean, it's such a paradox.
771
00:47:56.590 --> 00:48:01.690
But 340B, as a freshman legislator, that was one of
772
00:48:01.710 --> 00:48:05.079
the most complicated things. items to try to wrap my
773
00:48:05.139 --> 00:48:09.820
head around in the last three days of session around changes.
774
00:48:09.480 --> 00:48:10.380
To that program.
775
00:48:10.519 --> 00:48:13.260
And the pharmacies and hospitals were arguing over it. I mean,
776
00:48:13.280 --> 00:48:16.190
it was just, it was a nightmare. But so I
777
00:48:16.230 --> 00:48:19.409
would say I've seen it in that context with that
778
00:48:19.449 --> 00:48:21.929
specific program and then broadly with Medicaid overall.
779
00:48:22.550 --> 00:48:23.750
It's very interesting.
780
00:48:24.469 --> 00:48:27.849
As we speak, I found an article yesterday where the
781
00:48:27.869 --> 00:48:35.059
University of Kentucky is suing CVS over 340B, CVS was
782
00:48:35.099 --> 00:48:39.159
apparently
managing that, and the University of Kentucky thinks they
783
00:48:39.179 --> 00:48:47.070
were mismanaging it, and money was not properly allocated. So
784
00:48:48.530 --> 00:48:57.170
both CVS and 340B is extremely complicated. Sometimes I wonder
785
00:48:57.230 --> 00:48:59.699
if they don't make it complicated so the rest of
786
00:48:59.780 --> 00:49:00.820
us can't understand it.
787
00:49:01.880 --> 00:49:05.219
Yeah, I think, so the session right before I got there,
788
00:49:05.280 --> 00:49:08.559
which was in 2024, that was what, Senate Bill 188
789
00:49:08.559 --> 00:49:16.010
that did, that established the additional pharmacy benefit managers oversight,
790
00:49:16.250 --> 00:49:19.670
like the network requirements and reporting and protection for pharmacies.
791
00:49:20.219 --> 00:49:23.159
But I want to say The Department of Insurance, we
792
00:49:23.360 --> 00:49:27.449
know DOI, said that those provisions generally do not apply
793
00:49:27.469 --> 00:49:30.750
to Medicaid or Medicaid Part D claims, which.
794
00:49:32.289 --> 00:49:33.429
I don't want to assume.
795
00:49:33.170 --> 00:49:36.989
That everybody even understands what a pharmacy benefit manager is
796
00:49:37.710 --> 00:49:41.019
or a PBM is that may be listening. But essentially,
797
00:49:41.039 --> 00:49:44.480
they're like the intermediary or the middle person between the
798
00:49:44.519 --> 00:49:48.280
health insurance or the drug manufacturers and the pharmacies. They're
799
00:49:48.300 --> 00:49:52.920
supposed to negotiate drug prices and rebates. amongst a whole
800
00:49:53.949 --> 00:49:59.030
host of other things, process prescription claims and establish reimbursement
801
00:49:59.090 --> 00:50:03.329
arrangements for pharmacies. And in theory, they use their purchasing
802
00:50:03.369 --> 00:50:07.409
power to negotiate lower prices. And I think the concern
803
00:50:07.449 --> 00:50:10.449
that you're raising and probably others are sharing is whether
804
00:50:10.469 --> 00:50:16.070
or not those negotiated savings actually reach patients, employers, and taxpayers.
805
00:50:16.820 --> 00:50:20.079
That's a good point. It's actually the big health care companies,
806
00:50:20.159 --> 00:50:24.599
UnitedHealthcare and CVS, and I'm sure there are others, they're
807
00:50:24.659 --> 00:50:30.289
vertically integrated. They actually own their own management systems.
808
00:50:30.909 --> 00:50:32.030
And why is that an issue?
809
00:50:32.349 --> 00:50:34.230
Because it brings up the question of whether or not
810
00:50:34.269 --> 00:50:38.429
there's a conflict there between when they determine which pharmacies
811
00:50:38.469 --> 00:50:43.280
participate and how much they're paid. When one company owns
812
00:50:43.599 --> 00:50:47.639
everything up and down the vertical stack, then you will
813
00:50:47.719 --> 00:50:49.820
always have those questions of whether or not there's a
814
00:50:49.860 --> 00:50:53.579
conflict there between those different interrelated parts.
815
00:50:54.260 --> 00:51:02.309
CVS also owns a health insurance company. I think it's Adenham.
816
00:51:03.210 --> 00:51:06.269
And then they also own some doctors. And I think
817
00:51:06.409 --> 00:51:10.130
that in some places they have their doctors and nurse
818
00:51:10.170 --> 00:51:16.210
practitioners in the pharmacy and the drugstore. So You know,
819
00:51:16.230 --> 00:51:20.070
if you go to see a doctor in the drugstore
820
00:51:20.170 --> 00:51:24.079
and they write you a prescription, it's pretty convenient just
821
00:51:24.119 --> 00:51:25.760
to get a feel there at CVS.
822
00:51:26.380 --> 00:51:26.719
Yeah.
823
00:51:27.159 --> 00:51:29.739
There are a couple of other things that I've heard
824
00:51:29.860 --> 00:51:35.809
some interesting scrutiny around, aside from the vertical integration that
825
00:51:35.829 --> 00:51:40.590
you were talking about, whether a pharmacy company owns, you know,
826
00:51:41.230 --> 00:51:42.130
other operations.
827
00:51:42.329 --> 00:51:44.130
It's the rebate arrangements.
828
00:51:45.000 --> 00:51:47.280
I think that's really interesting as I'm starting to learn
829
00:51:47.710 --> 00:51:52.690
more about like a PBM. That's what I'm going to
830
00:51:52.730 --> 00:51:56.929
call the benefit managers for those listening. But the PBM,
831
00:51:57.380 --> 00:52:00.880
they may get a rebate that can or is supposed
832
00:52:00.900 --> 00:52:06.139
to create some incentive to favor drugs with drugs. larger
833
00:52:06.159 --> 00:52:10.039
rebates rather than lower the actual net cost of the drug.
834
00:52:10.559 --> 00:52:14.880
That's really interesting. And then the pricing, the spread pricing,
835
00:52:14.940 --> 00:52:17.659
I think, is another one, which is whether or not,
836
00:52:18.380 --> 00:52:23.300
you know, PBM charges an insurer or Medicaid plan more
837
00:52:23.429 --> 00:52:28.670
for a prescription than it reimburses the actual dispensing pharmacy.
838
00:52:28.989 --> 00:52:31.250
And then they retain that difference. But that's profit.
839
00:52:33.329 --> 00:52:37.210
These are all examples of the dysfunctional health care system.
840
00:52:38.269 --> 00:52:42.849
Representative Watkins, let me ask you a little different political question.
841
00:52:42.949 --> 00:52:47.409
I'm curious to know your thoughts about this. As you know,
842
00:52:47.429 --> 00:52:54.389
this program is sponsored by Kentuckians for Single Payer, promoting
843
00:52:54.449 --> 00:53:00.960
Medicare for All. Can you give us a sense of the...
844
00:53:02.679 --> 00:53:10.949
The consideration of that by your fellow politicians, both on
845
00:53:11.030 --> 00:53:16.949
the Democrat and Republican side, I just look down the
846
00:53:17.010 --> 00:53:21.980
road and with the political climate we live in today,
847
00:53:22.000 --> 00:53:25.920
I don't see a whole lot of change going in
848
00:53:25.980 --> 00:53:29.889
that direction. I'd be curious
to know what your thoughts are,
849
00:53:30.929 --> 00:53:36.090
what your political colleagues think and feel about this, and
850
00:53:36.159 --> 00:53:41.869
if you have any sense of what the constituents that
851
00:53:41.909 --> 00:53:46.489
you represent have some thoughts or feelings or even an
852
00:53:46.670 --> 00:53:50.079
awareness of the prospect of Medicare for All?
853
00:53:50.539 --> 00:53:53.460
Yeah, so that's a really great question, and I hope
854
00:53:53.480 --> 00:53:57.340
you would allow me to answer it in a few ways. One,
855
00:53:57.980 --> 00:54:02.559
what I think the general sense of my district is,
856
00:54:02.980 --> 00:54:07.989
secondly being the overall general assembly, then my own individual take.
857
00:54:08.010 --> 00:54:08.630
I think.
858
00:54:10.030 --> 00:54:12.369
Going back to something that we said earlier, a lot
859
00:54:12.389 --> 00:54:16.460
of people don't get into the weeds, as we call it,
860
00:54:16.659 --> 00:54:21.280
around the different health care options. So if you were
861
00:54:21.300 --> 00:54:25.739
to ask a On a random day like today, you
862
00:54:25.780 --> 00:54:28.860
just walk into the 42nd House District and you were
863
00:54:28.880 --> 00:54:31.480
to find the first person you met and say, do
864
00:54:31.519 --> 00:54:35.039
you know about Medicaid for All? I would imagine that
865
00:54:35.440 --> 00:54:39.300
a lot of people would say, well, what is that?
866
00:54:39.320 --> 00:54:41.889
A lot of people don't even know what it is.
867
00:54:42.150 --> 00:54:44.469
I think that's one of the things that makes the
868
00:54:44.550 --> 00:54:49.869
conversation about healthcare costs and spending so difficult. It's just
869
00:54:50.289 --> 00:54:55.300
there's not a broad knowledge of any alternative to the
870
00:54:55.340 --> 00:55:00.340
parent system. In terms of the General Assembly, I think
871
00:55:00.400 --> 00:55:05.260
you would find, possibly along party line, more of an
872
00:55:05.320 --> 00:55:12.449
appetite to discuss single-payer systems on the Democratic side. But,
873
00:55:13.170 --> 00:55:14.949
and there are plenty of members that have been in
874
00:55:14.989 --> 00:55:17.809
the General Assembly a lot longer than me, I believe
875
00:55:17.849 --> 00:55:20.969
that the General Assembly has a higher degree of understanding
876
00:55:21.730 --> 00:55:25.030
of things like Medicaid for all than obviously the average person,
877
00:55:25.090 --> 00:55:28.309
because that's what we're seeing every day. And I would
878
00:55:28.349 --> 00:55:30.869
imagine that there are people on the Republican side of
879
00:55:30.909 --> 00:55:33.989
the aisle that know just as much, if not more,
880
00:55:34.130 --> 00:55:35.150
than members on my.
881
00:55:35.010 --> 00:55:37.570
Side about the program and what it could be.
882
00:55:38.409 --> 00:55:40.530
I would venture to say that I find a lot
883
00:55:40.550 --> 00:55:44.949
of my colleagues across the aisle to be highly intelligent
884
00:55:45.550 --> 00:55:47.809
about a lot of these issues, simply because they've been
885
00:55:47.849 --> 00:55:52.579
around for so long. And some actually have the backgrounds
886
00:55:53.239 --> 00:55:56.360
that relate, but some just have been around so long
887
00:55:56.400 --> 00:55:59.280
in the General Assembly, they just have learned from session
888
00:55:59.300 --> 00:56:02.920
to session the pros and.
889
00:56:02.860 --> 00:56:08.929
Cons and the different arguments. Individually, I am very.
890
00:56:09.820 --> 00:56:13.780
very aware of the appeal of universal health care because
891
00:56:13.820 --> 00:56:17.139
I think it's straightforward. And for me, as somebody who
892
00:56:17.179 --> 00:56:18.570
likes to make sure I have a pulse of what
893
00:56:18.610 --> 00:56:21.670
people are saying, people want to know if they can
894
00:56:21.710 --> 00:56:24.869
get medical treatment when they need it without worrying about
895
00:56:24.949 --> 00:56:28.510
financial ruin. And as I get older, that's something that
896
00:56:28.530 --> 00:56:33.730
I think about too. So the advantages are out there.
897
00:56:34.969 --> 00:56:40.659
because it simplifies administration and the cost of it, consistent coverage,
898
00:56:41.019 --> 00:56:45.300
greater leverage. I mean, I'm seeing coverage variances in my
899
00:56:45.539 --> 00:56:50.489
own health care choices, which, you know, they concern me.
900
00:56:50.630 --> 00:56:56.329
So I think for me, as someone who has sponsored
901
00:56:57.190 --> 00:57:00.889
bills on Medicaid and supported things. I actually sponsored legislation
902
00:57:00.949 --> 00:57:04.989
to extend postpartum Medicaid coverage. I presented that to the
903
00:57:05.030 --> 00:57:08.230
Medicaid Oversight and Accountability Board. I wanted to expand that
904
00:57:08.590 --> 00:57:11.909
from 12 to 24 months. Universal health care is very.
905
00:57:11.730 --> 00:57:12.670
Attractive to me.
906
00:57:12.769 --> 00:57:16.369
Representative Watkins, I don't want to interrupt you. We're down
907
00:57:16.409 --> 00:57:19.690
to our last two minutes. So first of all, I'd
908
00:57:19.730 --> 00:57:22.070
like to thank you for coming on. I think this
909
00:57:22.110 --> 00:57:26.570
has been a really interesting and informative discussion. And I'd
910
00:57:26.630 --> 00:57:29.489
like to give you an opportunity to make whatever few
911
00:57:29.570 --> 00:57:33.860
comments you'd like to make in the last few minutes
912
00:57:33.889 --> 00:57:36.460
we've got left for the end of the program.
913
00:57:36.960 --> 00:57:39.440
Well, just to talk about a little bit of my
914
00:57:39.579 --> 00:57:42.659
own work, I talked about expanding both part of Medicaid
915
00:57:42.699 --> 00:57:47.170
coverage of also supported budget amendments to address Medicaid funding
916
00:57:47.230 --> 00:57:53.429
shortages and to provide additional assistance to rural hospitals. But
917
00:57:54.869 --> 00:57:58.699
I would be very interested in a national conversation about
918
00:57:59.519 --> 00:58:03.539
a national overhaul of our healthcare system. But I won't
919
00:58:03.579 --> 00:58:06.760
hold my breath for Congress to do something like that.
920
00:58:06.840 --> 00:58:11.570
So hopefully good showing in the midterms will force that conversation.
921
00:58:11.909 --> 00:58:14.829
But I will just say, finally, we don't have to
922
00:58:14.949 --> 00:58:18.489
wait for that national overhaul in Kentucky. We can do
923
00:58:18.550 --> 00:58:23.230
things like addressing Medicaid, medical debt, mental health care, strengthening
924
00:58:23.289 --> 00:58:26.949
our rural hospitals simply by what we choose to pay for.
925
00:58:27.510 --> 00:58:30.690
We've learned that over our Medicaid listening tour. And I
926
00:58:30.710 --> 00:58:34.050
think those experiences that we've heard there and things even
927
00:58:34.070 --> 00:58:36.610
discussed here should be applied in.
928
00:58:36.570 --> 00:58:37.349
The General Assembly.
929
00:58:37.469 --> 00:58:41.480
And it's something that coming January of 2027, as we
930
00:58:41.500 --> 00:58:45.760
look about funding those Medicaid shortages, me and my colleagues
931
00:58:45.780 --> 00:58:46.739
are going to be pushing for.
932
00:58:47.059 --> 00:58:49.980
Well, thank you again. And this was a great program, Paul.
933
00:58:51.159 --> 00:58:53.880
I just want to thank our listeners today for joining us.
934
00:58:54.420 --> 00:58:56.679
And I hope you enjoyed the program. See you again
935
00:58:56.739 --> 00:58:58.800
next time. Have a wonderful rest of your day.