Tag Archives: Michael Pieciak

There Are Two Ways This Can End, and They’re Both Terrible

Anne Galloway, the Captain Ahab of Vermont journalism, has returned to port with another big bloody chunk of the Great White Whale.

The whale is the EB-5 scandal, about which fundamental questions remain unanswered because a lot of information has yet to be made public. I don’t agree with how VTDigger is stonewalling its union, but this is an example of why we need Digger. Galloway is doing a tremendous public service by chasing a complicated story that no other media outlet has been willing to tackle.

Should I do a brief recap of the EB-5 thing? Is that possible? Well, here we go.

EB-5 is a program that offers green cards to foreign investors who put money into development projects in designated rural and/or poor areas. It was a small thing in Vermont until the great recession of 2008-9, when it suddenly took off. State oversight failed to keep up with its rapid growth. A lot of good projects got built, but Ariel Quiros allegedly committed large-scale fraud by taking money for projects he never built. He was assisted in these efforts by Vermont businessman Bill Stenger.

The state of Vermont, particularly the Shumlin administration, either failed to detect the fraud or tried to cover it up. Which one? Probably both, but we don’t know because a lot of key documents are still, several years later, being kept under wraps.

VTDigger has been diligently pursuing those documents, and keeps winning partial victories. Which then gives them reams upon reams of documents to go through.

On Wednesday, Digger posted another installment in its series. This time, it reports that state officials knew there was fraudulent activity two years before the the scandal was revealed by federal regulators in 2016.

Yikes.

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A case study in the pitfalls of free market health insurance

Seems like it was just the other night I was writing about a certain candidate who believes the cure for the health care crisis is to give insurance companies free rein. A Thousand Flowers Will Bloom, goes the fantasy. Problem is, when you let your garden grow, you get a thousand flowers and a million weeds.

A classic example of this was (briefly) in the news earlier this month, when the Vermont Department of Financial Regulation imposed its largest-ever fine against an insurance company.

The offender, Companion Life Insurance of South Carolina, was fined for selling cartoonishly bad health care policies to Vermont college students between 2014 and 2016 without ever seeking the requisite DFR approval. If the policies had been submitted to the state, they would have been found in violation of both state and federal law.

The policies did not cover most of the medical conditions that commonly befall college students: athletic injuries, mental health coverage, substance use treatment, immunizations, preventative screenings (including for STDs) and contraceptive management.

This is the kind of thing the Meg Hansens of the world see as the bright shiny free-market future of health care. Fortunately for us, we do regulate insurance.

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