Explaining The Bill of Rights

Video: Part of a series exploring the first ten amendments of the U.S. Constitution and what they mean.

Law and Politics

Groups Sue After Louisana Legislature 

Overturns Governors Veto 

of Congressional Map


    LOUSIANA - (ACLU) - 3/30/2022 - The Louisiana Legislature has voted to overturn Gov. John Bel Edwards’ veto of the congressional map passed earlier this year, which failed to add a second majority-Black district.

    In response, the NAACP Legal Defense and Educational Fund, Inc. (LDF), American Civil Liberties Union (ACLU), ACLU of Louisiana, and Paul, Weiss, Rifkind, Wharton & Garrison LLP filed a  lawsuit on behalf of the Louisiana State Conference of the NAACP, Power Coalition for Equity and Justice, and individuals Press Robinson, Dorothy Nairne, E. René Soulé, Alice Washington, and Clee Ernest Lowe challenging the map as a violation of Section 2 of the Voting Rights Act.

    “The congressional map passed by the Louisiana Legislature in February rejected basic principles of fairness and equity,” said NAACP Louisiana State Conference President Michael McClanahan. “The Legislature knew that they could pass a map that complied with the Voting Rights Act and honored the will of community members who stood up and spoke out for fair maps during the redistricting process. When they failed to, the governor rightfully vetoed their unlawful and unfair map. We are going to federal court to demand a map that honors the rights and representation of Black Louisianans. We will be tireless in this fight.”  

    Louisiana’s voting-age population is nearly one-third Black. Under the Legislature’s map, Black Louisianans comprise the majority in only one of the state’s six congressional districts.

    With voting patterns in Louisiana breaking down starkly along racial lines, the result is that congressional candidates supported by the vast majority of Black voters never succeed in any of the five other districts. The result is underrepresentation of Black voters in Louisiana’s congressional delegation, with Black voters having an opportunity to elect candidates of their choice in only one — or 16.7% — of the districts.

    Simultaneously, Louisiana’s white population is dramatically overrepresented. While only 58% of Louisiana’s population is non-Hispanic white, white voters — whose votes also break down along racial lines in most of the state—control the outcome in five out of six — or 83.3% — of the districts under the maps. That control has meant that no Black candidate has won election to any of those seats since the 19th century. Governor Edwards recognized this disparity and rightfully vetoed the legislature’s proposed map because, as he stated, it was “not fair to the people of Louisiana and does not meet the standards set forth in the federal Voting Rights Act.” 

    “People from every corner of Louisiana made their voices heard in the redistricting process in a unified call for fair and representative maps,” said Ashley Shelton, president and CEO of Power Coalition for Equity and Justice. “They demanded a second majority-Black congressional district because the math is simple, and the law is clear. One-third of Louisiana voters are Black. One-third of six is two. The Voting Rights Act requires that Black voters have an equal opportunity to participate in our political processes, and our maps must reflect this. The governor did the right thing by vetoing the map and we hope the courts will now intervene to right the wrongs of the Legislature. The people of Louisiana deserve maps that represent all of us and no longer drown out the voices of Black voters.”

Crime and Justice

Addiction Treatment Facility 

Operators Sentenced 

in $112M Fraud Scheme

    (DOJ) - 3/21/2022 - Two brothers who operated multiple South Florida addiction treatment facilities were sentenced to prison Friday for a $112 million addiction treatment fraud scheme that included paying kickbacks to patients through patient recruiters and receiving kickbacks from testing laboratories.

    “These substance abuse treatment facility operators, through brazen tactics driven by greed, took advantage of vulnerable patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These sentences demonstrate the department’s unwavering commitment to protecting patients and prosecuting fraudulent substance abuse treatment facilities through our Sober Homes Initiative.”

    Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, were sentenced in the Southern District of Florida to 188 months and 97 months in prison, respectively.

    According to court documents and evidence presented at trial, the defendants conspired to unlawfully bill for approximately $112 million of addiction treatment services that were medically unnecessary and/or never provided, which were procured through illegal kickbacks at two addiction treatment facilities, Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program. The defendants obtained patients through patient recruiters who offered illegal kickbacks to patients, including free airline tickets, illegal drugs, and cash payments. 

    The defendants shuffled a core group of patients between Compass Detox and WAR in a cycle of admissions and re-admissions to fraudulently bill for as much as possible. Patient recruiters gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of addiction treatment offered by the defendants’ facilities. In addition, therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered, billed for, and paid. Compass Detox patients were given a so-called “Comfort Drink” to sedate them, and to keep them coming back. Patients were also given large and potentially harmful amounts of controlled substances, in addition to the “Comfort Drink,” to keep them compliant and docile, and to ensure they stayed at the facility.

    “To manipulate and exploit patients seeking help in their most vulnerable state is unacceptable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals orchestrated a scheme that sought profits over the well-being of patients, and they will be held accountable for their actions. With the help of our law enforcement partners, the FBI continues to investigate, bring down these criminal enterprises, and protect our citizens.” 

    After a seven-week trial in November 2021, both defendants were convicted of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was convicted of eight counts of health care fraud and Daniel Markovich was convicted of two counts of health care fraud. They were also both convicted of conspiracy to pay and receive kickbacks and two counts of paying and receiving kickbacks. Jonathan Markovich was separately convicted of conspiring to commit money laundering, two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities. He was also convicted of two counts of bank fraud related to fraudulently obtaining PPP loans for both Compass Detox and WAR during the COVID-19 pandemic.

    The FBI’s Miami Field Office, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case.

    Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section prosecuted the case.

    The National Rapid Response Strike Force, Miami Strike Force, and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.

Economic Issues

 

Report: Nursing Homes Under

Serious Financial Stress


Mike Moen, Producer
Public News Service

    (PNS) - 3/5/2022 - South Dakota continues to grapple with staffing shortages at nursing homes, and a new report found some might not be able to recover financially.

    The findings, issued this week by the American Health Care Association (AHCA), showed between 32% and 40% of nursing-home patients in the U.S. live in facilities considered financially "at risk." Separate reports showed close to half of South Dakota care facilities are dealing with staffing shortages.

    Mark Deak, executive director of the South Dakota Health Care Association (SDHCA), said it is a dangerous mix in trying to provide quality care for the state's older residents.

    "The pandemic has just exhausted our caregivers and nursing homes," Deak observed. "Certainly, it's hit other providers in the health-care sector as well, but not as hard as it's hit nursing homes."

    While staffing shortages existed before the pandemic, the AHCA report noted other factors add to the challenge, including higher operating costs, which have prompting calls for better Medicaid reimbursement rates.

    Deak acknowledged South Dakota recently increased its rate by 10%, but it still lags behind other states.

    Advocates argued when a skilled-nursing home does not have enough money to recruit and retain staff, it creates a domino effect. Deak worried there will not be enough options, because the facilities are struggling to operate.

    "You can't take folks that are being discharged from the hospital or who need your services," Deak pointed out. "It makes it very difficult, and sometimes, it gets to the point where, in fact, you have to close your doors."

    According to the SDHCA, nine nursing homes in South Dakota have closed over the past five years. Deak added it creates big problems especially in smaller communities, where these facilities are key contributors to the local economy.
 

    References: Nursing staffing report American Health Care Assn. 03/02/2022

Story credit: Mike Moen, Public News Service, 3/4/2022

Housing Market

 Economist: Rising Rates May Bring

 Balance to Housing Market

 
    SANTA ANA, Calif. - (BUSINESS WIRE) - 2/23/2022 - First American Financial Corporation (NYSE: FAF), a major global provider of title insurance, settlement services and risk solutions for real estate transactions, recently released the December 2021 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

Chief Economist Analysis: Real House Prices Up 21.7 Percent Year Over Year

    “In December 2021, the Real House Price Index (RHPI) increased 21.7 percent compared with December 2020, the highest annual growth rate since 2014. The record increase was driven by rising mortgage rates and rapid nominal house price appreciation, which make up two of the three drivers of the RHPI,” First American Chief Economics Mark Fleming said. “The 30-year, fixed-rate mortgage and the unadjusted house price index increased by 0.4 percentage points and 21.4 percent respectively.

    “Even though household income increased 5 percent since December 2020 and boosted consumer house-buying power, it was not enough to offset the impact of higher mortgage rates and rising nominal prices on affordability. In the near term, affordability is likely to wane further, as mortgage rates are expected to continue to rise and the pace of house price appreciation exceeds gains in household income. How buyers and sellers react to higher rates may help the housing market regain some balance.”

Existing Homeowners Locked In?

    “When mortgage rates fall, a potential home buyer can buy the same amount of home for a lower monthly payment or buy more home for the same monthly payment. The 40-year tailwind of declining mortgage rates has allowed homeowners to buy a home at one mortgage rate and then later sell and move into a more expensive home when rates are lower,” Fleming said. “This long-run decline in mortgage rates has encouraged existing homeowners to move out and move up.

    “Faster house price appreciation, modestly rising mortgage rates and record low levels of homes for sale have been the economic dynamics dominating the housing market during the second half 2021. While existing homeowners have historically high levels of equity and may feel wealthier because of it, many have also secured historically low fixed-rate mortgages. There is a financial ‘lock-in’ effect that increases as mortgage rates rise and as the size of a mortgage increases. Rising mortgage rates increase the monthly cost of borrowing the same amount that a homeowner owes on their existing mortgage. The higher the prevailing market mortgage rate is relative to the homeowner’s existing mortgage rate, the stronger the lock-in effect. Why move out and move down?

    “Additionally, the record low level of houses for sale makes it difficult to find a better, more attractive house to buy, so sellers – who are also prospective buyers – don’t sell for fear of not finding something to buy. The good news is that builders have been breaking ground on more new homes, which may alleviate some of the supply crunch and encourage existing buyers to move.

    “Nonetheless, buying a home is often prompted by lifestyle decisions more so than financial considerations. Despite the financial lock-in, homeowners will still make the decision to move based on lifestyle changes, such as needing more space to accommodate a growing family or relocating for a new job or other reason.”

The Housing Market Will Adjust

    “Homeowners may feel rate-locked into their homes, but first-time home buyers have no such financial lock. Yet, first-time home buyers must also contend with the record low supply of homes in a declining affordability environment. But what goes up, must eventually moderate,” Fleming said. “Rising rates may be a housing market headwind in 2022, but as some buyers pull back from the market due to affordability and supply constraints and as new construction adds more supply, house prices will moderate, resulting in a more balanced housing market.”

December 2021 Real House Price Index Highlights

  • Real house prices increased 1.9 percent between November 2021 and December 2021.

  • Real house prices increased 21.7 percent between December 2020 and December 2021.

  • Consumer house-buying power, how much one can buy based on changes in income and interest rates, increased 0.04 percent between November 2021 and December 2021, and decreased 0.2 percent year over year.

  • Median household income has increased 5.2 percent since December 2020 and 69.3 percent since January 2000.

  • Real house prices are 4.8 percent less expensive than in January 2000.

  • While unadjusted house prices are now 44.5 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 33.2 percent below their 2006 housing boom peak.

December 2021 Real House Price State Highlights

  • The five states with the greatest year-over-year increase in the RHPI are: Arizona (+34.3 percent), Florida (+32.0), South Carolina (+29.4 percent), Connecticut (+28.6 percent), and Georgia (+28.4),

  • There were no states with a year-over-year decrease in the RHPI.

December 2021 Real House Price Local Market Highlights

  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year increase in the RHPI are: Phoenix (+36.3 percent), Charlotte, N.C. (+36.0), Tampa, Fla. (+32.9 percent), Raleigh, N.C. (+31.5 percent), and Atlanta (+31.5 percent).

  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, there were no markets with a year-over-year decrease in the RHPI.

Next Release

    The next release of the First American Real House Price Index will take place the week of March 28, 2022 for January 2022 data.

Sources

Methodology

    The methodology statement for the First American Real House Price Index is available at http://www.firstam.com/economics/real-house-price-index.