fbpx
Home - Breaking News, Events, Things-To-Do, Dining, Nightlife

HPNM

Blue Cross subpoenas UMMC officials for communications with media in defamation suit

0

Communications from media outlets Mississippi Today and SuperTalk Mississippi specified in subpoena in BCBS defamation suit against UMMC. 

In the continued insurance coverage renewal battle between the University of Mississippi Medical Center (UMMC) and Blue Cross Blue Shield of Mississippi (BCBS), Blue Cross has subpoenaed multiple individual officials about their communications specifically with two Mississippi news outlets in the current defamation suit it has with the medical center’s leadership.

BCBS claims that employees of the University of Mississippi Medical Center (UMMC) engaged in a defamatory public relations campaign against the company.

RELATED: Blue Cross files defamation lawsuit to set record straight regarding UMMC network negotiations

In the subpoena to UMMC, BCBS requests any correspondence between UMMC and media outlets but went further to specify Mississippi Today, and reporter Kate Royals specifically, as well as SuperTalk Mississippi.

In item 6 of the requested documents, the subpoena states:

“For the period of July 1, 2021, to the present, produce all documents, including without limitation all emails, text messages, written communications and memoranda (including drafts) between UMMC or any UMMC Consultant, on one hand, and the media or any member of the media, on the other hand, concerning or related to BCBSMS, BCBS members, the UMMC/BCBSMS Dispute or the UMMC Public Relations Campaign. For purposes of this request, “media” and “member of the media” shall include, without limitations, the Mississippi Today, Kate Royals, and SuperTalk Mississippi Media.”

Mississippi Today in a story about their being specified in the subpoenas stated the following in an Editor’s Note.

Kate Royals, Mississippi Today’s community health editor since January 2022, worked as a writer/editor for UMMC’s Office of Communications from November 2018 through August 2020, writing press releases and features about the medical center’s schools of dentistry and nursing. A longtime journalist in major Mississippi newsrooms, Royals had served as a Mississippi Today reporter for two years before her stint at UMMC. At UMMC, Royals was in no way involved in management decisions or anything related to the medical center’s relationship or contract with Blue Cross and Blue Shield of Mississippi.

UMMC in 2022 began sponsorship of a podcast produced by Mississippi Today called “The Other Side.”

Three types of responses were requested as part of the subpoena. They include UMMC and communications between the hospital and the media, the Mississippi State Medical Association, employees, consulting firms, or any other entities that were engaged in information regarding the dispute between the two entities, or the social media campaign UMMC engaged in that BCBS is claiming as defamation.

Also included are subpoenas for Lamar Advertising and Revive Marketing, LLC., which were contracted by UMMC to create and distribute the media campaign targeting Blue Cross Blue Shield in question.

It was first reported by Jackson Jambalaya that UMMC has so far spent $278,796 in the public campaign against BCBS which included the purchase of outdoor billboard space with Lamar Advertising for $36,514. These billboards can be seen in Jackson, Gluckstadt, Yazoo City, Grenada, Kosciusko, Greenwood and Winona.  The other $242,282 was spent through Revive Marketing out of Nashville, Tennessee.  Those expenses nor the outlets or media where advertising buys were made on behalf of UMMC were itemized in the public records results.

READ MORE: Where’s the money coming from at UMMC to fund PR offensive against Blue Cross?

When asked where the money for these campaigns came from, Marc Rolph, UMMC’s Executive Director over Communications and Marketing, told Y’all Politics on July 26th that the funds were from “health system revenue accounts,” or essentially patient operations.

These funds are being expended during a time when UMMC has reportedly experienced revenue losseslayoffs, and budget cuts over the last few years.

At the same time, BCBS claims that UMMC is requesting a 30% increase this year and 50% over the next several years, for specific services covered in their benefits agreement, a number BCBS says is significantly higher than other network providers.

You can view the subpoenas below.

Subpoena UMMC by yallpolitics on Scribd

Subpoena Lamar by yallpolitics on Scribd

Subpoena Revive by yallpolitics on Scribd

Blue Cross files defamation lawsuit to set record straight regarding UMMC network negotiations

0

BCBS claims UMMC’s ad campaign is maliciously designed to injure their reputation and improperly coerce them into a new contract that benefits UMMC. 

The insurance giant, Blue Cross Blue Shield of Mississippi (BCBS), is claiming in a recent lawsuit that employees of the University of Mississippi Medical Center (UMMC) engaged in a defamatory public relations campaign against the company.

The suit comes after a very public campaign across the state on multiple online platforms and billboards that insinuates that BCBS dropped UMMC from coverage. That campaign is estimated at roughly $280,000 at this point with more ad placement buys already set.

Y’all Politics reported earlier this week that the funds being used for the UMMC ad campaing against BCBS are being paid through the hospital’s “health system revenue accounts,” or essentially patient operations.

READ MORE: Where’s the money coming from at UMMC to fund PR offensive against Blue Cross?

BCBS says in the complaint that these allegations are not true.  BCBS says that on January 28, Dr. LouAnn Woodward notified BCBS that UMMC was ending its Professional Provider Network Agreement voluntarily. This termination letter was included in the court filings.

The suit contains the following: Count 1 – Defamation, Count 2 – Civil Conspiracy, and Count 3 – Injunction.

The suit claims that UMMC chose to cancel or delay appointments, require full payment before services, deactivate approved patients from transplant lists and refuse care all on their own. BCBS claims that they would continue to pay Network level benefits for covered medical services, despite the agreement termination.

BCBS says that they have been a provider for UMMC for decades, until in 2018 the hospital terminated its Hospital Network Agreements with Blue Cross, saying it should be reimbursed at rates that were “significantly higher than comparable Network providers throughout the state.”  The two ultimately came to an agreement in 2018.

The most recent contract was set to expire in July 2021, but multiple extension requests were made by UMMC and approved by BCBS, until early 2022 when the two began to negotiate new terms.

The lawsuit outlines what then transpired:

“UMMC demanded significant, unrealistic payment increases across all hospital service areas, contending that it and its physicians, nurse practitioners and other allied providers should be paid at rates substantially higher than other Network hospitals and healthcare providers throughout the State. Blue Cross proposed reimbursement increases for certain services and offered additional reimbursements through Blue Cross’ quality program designed to improve patient outcomes. UMMC refused to accept the proposed reimbursement increases and refused to participate in the quality program offering additional increases tied to improved quality measures. Instead UMMC maintained it is entitled to a 30% overall increase year one with escalating increases thereafter annually, which would include a 50% increase for certain services.”

The lawsuit was specifically filed against three individuals: Dr. LouAnn Woodward, the Vice Chancellor for Health Affairs and Dean of the School of Medicine; Associate Vice Chancellor for Clinical Affairs Dr. Alan Jones; and Executive Director of Communications and Marketing Marc Rolph.

UMMC is not named as a defendant because Mississippi law grants it immunity for defamation committed by employees.

The suit presents specific statements made by Woodward, Jones and Rolph regarding the ongoing negotiations with BCBS. This includes comments made by Dr. Woodward after her January 28 termination letter was sent to BCBS.

Some of those statements are shown below from the filing: 

The suit outlines dozens of more statements and public campaign material, that they say are defaming and untrue, regarding the situation surrounding the network negotiations.

The defendants were also found saying, “Blue Cross is denying you uninterrupted access to [UMMC] services,” which BCBS says is not true.

BCBS added that they have informed its members that they can continue to receive treatment at UMMC for which BCBS will reimburse UMMC at Network Level benefits. However, they claim UMMC has refused to treat certain BCBS members for that Network level benefit, but not all.

Blue Cross maintains that under the No Surprises Act, when an uninsured or self-pay patient seeks care at that particular hospital, UMMC is obligated to inform the patient of the right to obtain a good faith estimate of charges. This obligation happens immediately when UMMC terminates, cancels, or delays any treatment simply on the basis that the person is self-pay or uninsured.

Additionally, BCBS says that UMMC is required to provide a good faith estimate for a member who seeks an unscheduled non-emergency treatment.

Mississippi Insurance Commissioner Mike Chaney talks about the “two stubborn Goliaths” – BCBS and UMMC – at the Neshoba County Fair this week, saying the two must negotiate and find a compromise.

You can read the full suit below.

22 180 Complaint by yallpolitics on Scribd

U.S. Senate Democrats push through tax increases, green industry subsidies, IRS funding in marathon weekend voting

0

Republican Mississippi Senators Wicker, Hyde-Smith vote against latest iteration of “Build Back Broke” bill.

With Vice President Kamala Harris’ tie breaking vote in the U.S. Senate on Sunday, the Democrats pushed through the questionably named “Inflation Reduction Act” filled with tax increases, subsidies for the electric vehicle industry, and increased funding for the IRS, among other left-leaning agenda items, in a marathon period of voting over the weekend.

The $740 billion spending package (HR.5376) includes broad aspects of the Green New Deal and more than $300 billion in new taxes on manufacturers and U.S. oil and gas producers.  Republicans says it is a reiteration of the nearly $4 trillion Build Back Better plan initially proposed by President Joe Biden last year which failed.

However, this time, West Virginia Senator Joe Manchin and Arizona Senator Kyrsten Sinema, both Democrats, joined their caucus in seeing the measure through the reconciliation process which bypassed the necessary 60-vote threshold normally required for such measures.

Both of Mississippi’s Senators joined all Republicans in the chamber in voting against the bill.

Senator Roger Wicker joined Y’all Politics ahead of the vote to talk over his concerns with the bill. Wicker said the bill was false advertising from Democrats as it will not reduce inflation but instead make it worse. He also decried what he called a “bailout” of the electric vehicle industry.

“The biggest item listed in the bill is a $313 billion tax on job creators and manufacturers, which are already struggling to survive inflation. The nonpartisan Tax Foundation predicts that this tax alone would reduce our gross domestic product and cost roughly 30,000 jobs. It would also depress worker wages while causing further price increases across the economy,” Wicker wrote in his weekly op-ed.

Senator Wicker pointed out that the bill is “a massive tax hike on job creators and working Americans, all but guaranteeing that we will sink further into a recession.”

Senator Hyde-Smith said the legislation may be a watered-down rehash of President Biden’s bad ideas, but it still has the power to make things worse.

“There is no way hard-working middle-class families won’t end up paying the price for increased taxes and government mandates on job creators, energy producers, and companies,” Hyde-Smith said.  “American workers today continue to pay the price for the record-high inflation caused by an unnecessary $1.9 trillion stimulus forced on us by the same folks who are now pushing this reckless, green dream on us.  The same people who have taken a recovering economy and pushed it into recession.”

Hyde-Smith went on to say that the legislation has been described by a supporter as “the beginning of a long, forced march.”

“I fear that will become true—a long, forced march toward more economic hardship and more government in our lives,” Hyde-Smith said.

Senator Hyde-Smith shared the following provisions in the bill that Republicans viewed as problematic for the American people and the U.S. economy:

  • Negligible effect on inflation, doing next to nothing to lower the 9.1 percent inflation rate.
  • Imposes billions in taxes and restrictions on U.S.-produced oil and natural gas even as Americans pay record gas prices and energy prices.
  • Hikes taxes an estimated $330 billion overall as the economy has suffered from two consecutive quarters of negative GDP growth, the established definition of a recession.
  • Usurps committee responsibilities to write new farm bills with $40 billion in spending and programmatic dictates.
  • Expends $370 billion to jam through Democrats’ radical Green New Deal climate agenda, including tax breaks to wealthy Americans to buy electric vehicles and kitchen appliances.
  • Spends $80 billion to make the Internal Revenue Service one of the largest federal agencies in history, with 87,000 additional IRS agents to audit Americans in order to find revenue to pay for the bill.

FBI raids Trump home

0

Congressman Guest says he is calling for an immediate Congressional inquiry into the FBI’s actions.

In an unprecedented action, the Florida home of former President Donald Trump was raided by FBI agents on Monday on behalf of the National Archives investigating whether he took classified records from the White House when he left office in January 2021.

Trump’s son, Eric, went on FoxNews Monday night saying that the raid occurred because “the National Archives wanted to corroborate whether or not Donald Trump had any documents in his possession.”

This action by the FBI escalates the probe into whether Trump took official documents.  Some such documents were discovered in boxes at the former President’s Mar-A-Lago home prior to this raid following the hurried exit from the White House on Inauguration Day 2021.

As of this report, the White House and FBI have declined to comment.  For their part, the White House is claiming that they had no prior knowledge of this FBI action.  That claim has raised suspicions as well as many onlookers find it hard to believe that such an action would not have reached the President’s desk before being executed.

A copy of the warrant and the judge who approved it have not been released at this time.

The former President said in a statement that these are dark times for our nation.

“These are dark times for our Nation, as my beautiful home, Mar-A-Lago in Palm Beach, Florida, is currently under siege, raided, and occupied by a large group of FBI agents,” Nothing like this has ever happened to a President of the United States before,” Trump said. “After working and cooperating with the relevant Government agencies, this unannounced raid on my home was not necessary or appropriate.”

 

Trump’s team wasted no time in characterizing the raid as a weaponization of the Department of Justice and a Democrat attempt to keep him from running for President again in 2024.  Trump is said to be considering another run with a decision forthcoming.

The timing is also suspect given that the November Midterm Elections are just 13 weeks away.

House Republican Leader Kevin McCarthy took to Twitter telling Attorney General Merrick Garland to preserve his documents and clear his calendar.  McCarthy said when Republicans win the majority back in the House in the November Midterms they would conduct an immediate oversight of the Justice Department.

“I’ve seen enough. The Department of Justice has reached an intolerable state of weaponized politicization,” McCarthy said.

Mississippi Congressman Michael Guest, a former prosecutor and District Attorney, also took to Twitter after learning of the FBI raid on Trump’s residence.

“This [Biden] administration has failed to secure our borders and to stop out of control violent crime and has instead targeted the former President with their law enforcement resources,” Guest said.  “The American people are questioning the motivation behind this unprecedented raid, and I will be calling for an immediate Congressional inquiry into these actions to get answers.”

Guest is a member of the House Homeland Security Committee.

Congressman Steven Palazzo said the Biden Administration is pulling out all of the stops before the Midterms.

“The Biden Administration is pulling out all the stops, no matter how despicable, before the midterms,” said Palazzo. “President Biden weaponizing the DOJ and going after a former president is setting a dangerous precedent for our country and every American should be concerned by this. Republicans in Congress should act immediately to investigate the reasoning behind the raid of President Trump’s home and hold Democrats accountable for their blatant corruption.”

Congressman Trent Kelly also released a statement late Monday evening, saying he was troubled by what unfolded.

“I am troubled by the FBI raid on President Trump’s personal residence at Mar-a-Lago. This administration has ignored the crisis at our borders and the out-of-control violent crime,” Kelly said on Facebook. “Instead, they are focusing resources on former President Trump. This unprecedented raid is questionable at best and I will be calling for an immediate congressional inquiry into these actions.”

U.S. Senator Cindy Hyde-Smith shared the concerns raised by the Congressmen.

“If the Biden Justice Department was comfortable setting a new precedent by raiding the home of a former President, then it should explain these actions quickly to the American people.  Tell us what you were looking for and what you found,” Hyde-Smith told Y’all Politics on Tuesday.  “Otherwise, there should be congressional inquiries about this raid and why the Justice Department is using its resources on this when there are so many other problems facing the American people, including rampant violent crime.  The DOJ and FBI risk further erosion of public trust and confidence if more people believe they are engaged in the selective, politically-motivated application of our laws.”

For his part, Senator Roger Wicker kept his comments short, saying, “This raid is unprecedented. The American people need and deserve answers.”

Mississippi State Representative Steve Hopkins joined a growing chorus of state lawmakers expressing their displeasure with the FBI’s actions.  Hopkins and Republican lawmakers in other states are asking Governors to sever ties with the Department of Justice.

“I am formally requesting Governor [Tate] Reeves to call an emergency Special Session to amend our laws regarding Federal Agencies and sever all ties with the DOJ,” State Rep. Hopkins wrote on Facebook.  “Any FBI agent, thereafter, operating outside of State Law should be arrested on sight.”

Mississippi Governor Tate Reeves has not yet weighed in on the FBI raid at the former President’s home.

Hyde-Smith, in rare deviation from the party line, votes to cap insulin prices

In a rare vote that set her apart from most Senate Republicans, U.S. Sen. Cindy Hyde-Smith voted on Saturday to keep a proposal in the Inflation Reduction Act that would have capped the price of insulin at $35 per month for patients with private health insurance. 

The U.S. Senate passed a major budget package that will invest hundreds of billions of dollars into clean energy, health care subsidies and deficit reduction, but not before Republican senators forced the removal of the insulin price cap proposal. 

Seven Republicans voted with Democrats to keep the insulin price cap in the bill, including Hyde-Smith. However, the 57-43 vote to waive budget rules still fell short of the 60 votes needed to keep the proposal in the final bill. 

Republicans did not challenge a provision that places the same price cap on insulin for Medicare patients. 

The vote from Hyde-Smith was surprising because of her opposition to the bill as a whole, which she voted against. Hyde-Smith supported the insulin proposal because of the aid it would provide her constituents, she said in a statement to Mississippi Today. 

Mississippi had the highest rate of diabetes in the nation in 2016, according to the Mississippi Department of Health, with over 308,000 adults estimated to be living with the disease. Mississippi has the second-highest diabetes mortality rate in the nation in 2020, according to Centers for Disease Control and Prevention data

“We must find a sensible solution to lower drug prices for the American people, especially now that everyone is struggling from the pressures of high inflation,” Hyde-Smith said. “I strongly opposed the Democrats’ tax and spend plan, but liked the chance of capping insulin costs even if that plan may not have been a perfect fix.  I will continue to work toward improving access to affordable insulin for Mississippians and others across the nation with diabetes.”

The price of insulin in the United States is far higher than in any other country. According to a Rand Corporation study from 2020, the average price of a vial of insulin in the U.S. was $98.70 in 2018, while the same insulin only costs $12 in Canada and $7.52 in the United Kingdom. 

The price disparity was worse when Rand looked at the price of rapid-acting insulin. The average cost of this insulin in 35 other countries was just over $8. In the U.S., it cost $119. 

Sen. Roger Wicker voted against the insulin price cap, citing an opposition to government price controls, but supported a separate amendment proposed by Sen. John Kennedy, R-La., that would have lowered insulin costs by providing $3.1 billion to federally qualified health centers to cover the costs of discounted insulin and epinephrine for certain patients through 2026. That amendment also failed due to a 50-50 vote split evenly along party lines. 

“ … I believe that imposing government price controls on private insurance is the wrong way to lower costs. Instead, I have pushed for alternatives that would help lower-income Americans get access to cheaper insulin and end regulatory barriers that have kept lower-cost insulin away from the market,” Wicker said in a statement to Mississippi Today.

He continued: “I hope to continue working with Senator Hyde-Smith and my other colleagues on a truly bipartisan package to help lower insulin costs without setting a government price control.”

The post Hyde-Smith, in rare deviation from the party line, votes to cap insulin prices appeared first on Mississippi Today.

‘We can do our job’: Disability rights group wins access to mental health agency’s records

0

When the state’s advocacy organization for people with disabilities couldn’t get the Department of Mental Health to turn over records that could show abuse or neglect at state-run psychiatric facilities, it sued. This week, the two parties reached a settlement that will allow the advocacy group to access reports of serious incidents involving staff and residents through an online system. 

“The Department of Mental Health is going to allow us to see what we need to see,” said Polly Tribble, executive director of the nonprofit Disability Rights Mississippi, the group that sued the mental health department. “We can do our job.”

Department spokesperson Adam Moore said in an email to Mississippi Today that the settlement will provide extra transparency. 

“Though the incident reports included in this agreement were already being reported to the Attorney General’s Office and all other required licensure entities, Disability Rights will now be able to access these reports at any time and request additional documentation if needed,” he said. 

Last year, Disability Rights began hearing about how staffing shortages were leading to neglect at the state hospitals. The group is Mississippi’s “protection and advocacy (P&A) system,” charged by the U.S. Congress with advocating for people with disabilities and investigating abuse and neglect at programs that serve them. Each state has a P&A. 

The advocacy group sought incident reports from 10 mental and behavioral health facilities around the state, a broad request intended to identify potential patterns and trends. But the state refused to turn over the reports, arguing that the group hadn’t shown “probable cause” to launch a systemic investigation and was undertaking “a fishing expedition.”

The Department of Justice sued the state of Mississippi over its failure to provide adequate community-based mental health services in 2016. U.S. District Judge Carlton Reeves sided with the federal government and last year ordered the state to comply with a reform plan overseen by a special monitor. 

Disability Rights sued the agency in November after months of negotiations over the records.

Tribble was surprised the lawsuit was necessary; her organization has always had a good relationship with the Department of Mental Health, she said. 

On Wednesday morning, Disability Rights staff used the new system to access incident reports for the first time, though there are still some technical kinks to work out. 

“Our intention all along has been to look at the reports and see if there’s any patterns of abuse by a particular staff person, but also to see if the staffing shortage is having an effect on incidents,” she said. “Which I suspect it is. But we don’t know.”

The Justice Department filed an amicus brief siding with the advocacy organization in March. The brief asked the court to order the department to turn over the incident reports from its facilities. 

“During its routine monitoring activities, DRMS advocates observed troubling issues, including understaffing, unreported incidents, patient neglect, nonuse of COVID protocol and precautions by onsite staff, and staff-on-resident injuries and incidents,” the brief said. “Most importantly, the existence of incident reports regarding specific individuals inherently indicates that unusual events involving those individuals, such as harm or an error or omission in care, have occurred.”

A spokesperson for the Department of Justice declined to comment for this story. 

Lawyers at the attorney general’s office represented the Department of Mental Healthin the suit. 

“The State remains committed to serving Mississippians in need of mental health and substance use services and we were pleased to be able to reach a resolution in this case,” Michelle Williams, chief of staff for Attorney General Lynn Fitch, said in a statement.

Earlier this year, the advocacy group settled another lawsuit with the department after it denied a request for records relating to the Mississippi State Hospital’s forensic unit, which serves people who have been diverted from jail or prison, usually because they have a mental illness that makes them unfit to stand trial. The organization wanted to investigate after getting reports of mistreatment. 

Tribble said that settlement, too, allowed her organization to get the records it had initially sought. 

Even as the Department of Mental Health says it is trying to comply with the court-ordered settlement agreement and expand community mental health services, the state attorney general is still fighting the ruling. Last year, the office appealed to the U.S. Court of Appeals for the Fifth Circuit, where it is arguing that the department is already providing needed services and that Reeves has unconstitutionally installed “perpetual federal oversight” of the state agency. 

Oral arguments have been tentatively scheduled for the week of Oct. 3.

The post ‘We can do our job’: Disability rights group wins access to mental health agency’s records appeared first on Mississippi Today.

‘A whitewash’: Emails show MDHS pushed to hamstring probe into welfare misspending

0

The Mississippi Department of Human Services hired an accounting firm, using welfare dollars, to ostensibly get to the bottom of who stole or misspent millions in federal grant funds and try to recoup them.

But never-before-published emails Mississippi Today obtained through a records request show Gov. Tate Reeves’ appointed MDHS director pushed to limit who and what the hired forensic audit could examine. And he tried to keep the state auditor and other law enforcement agencies out of the mix.

“This is nothing but a whitewash to show that MDHS was not complicit in this problem, except for (former MDHS Director) John Davis,” a deputy in state Auditor Shad White’s office wrote to White in April of 2020 after reviewing the proposal MDHS drafted to solicit an auditing firm.

White’s office was to be a “third party” to a contract with a forensic auditor. But MDHS pushed to limit the Office of the State Auditor’s involvement and even at one point omitted language requiring the independent auditor to contact OSA or other law enforcement if it spotted potential crimes — a standard practice in audit contracts.

Gov. Reeves said he appointed MDHS Director Bob Anderson, a former prosecutor, in March of 2020 to clean up the welfare agency. Weeks into Anderson’s administration, he clashed with White over the forensic audit proposal, records show. White pushed to expand the breadth of the review and provide more OSA involvement.

“We should be on the same side – the side of the taxpayers, trying to find the misspending that happened at DHS and all the people responsible,” White wrote to Anderson in April of 2020 during heated negotiations about the forensic audit proposal. “In my view, you are either for an audit that will reveal those things, like the audit we have proposed, or you are not. Your proposal as it stands would waste taxpayer money and not reach the issues that need to be reached.”

Neither Reeves nor Anderson would agree to an interview about the forensic audit issues or provide comment in response to Mississippi Today’s findings.

READ MOREWelfare head says surprise subpoena led to attorney’s firing. Emails show it wasn’t a surprise

White, who is involved in separate state and federal criminal investigations into the welfare scandal, appeared to win some concessions on the final forensic audit contract. At the same time, he objected to MDHS having access to the auditor’s office’s workpapers.

But in the end, the prominent national accounting firm Clifton Larson Allen hired for the audit noted it was limited — and in some cases “severely limited” — in what and whom it could examine in its probe and said it could likely have found more misspending if allowed freer rein.

MDHS recently lamented the forensic audit’s limitations, and attempted to lay those limitations off on Auditor White’s office. But communications between the two during spring of 2020 indicate MDHS pushed for severe limits on the probe.

“If I were you, I would want to know where the misspending happened and who is responsible, not spend my time negotiating downward an audit with OSA,” White wrote to Anderson. “If you want to spend DHS money on this audit so that the current staff can avoid looking bad, without you discovering who was involved with the misspending, then you will bear the responsibility for that and any additional misspending that happens going forward. I will not participate.”

Gov. Reeves, who oversees MDHS and appointed Anderson, recently said the CLA forensic audit is the lodestar for the state’s lawsuit against numerous people and businesses to try to recover some of the at least $77 million in misspent welfare money. He also made clear he’s calling the major shots at MDHS when it comes to the lawsuit.

Reeves fired the attorney MDHS had hired to recover the money after the attorney went beyond the scope of the forensic audit. The attorney tried to subpoena records about possible involvement of former Gov. Phil Bryant and his wife, former NFL football star Brett Favre and the USM Athletic Foundation — many of whose board members are large campaign donors and political supporters of Reeves. Reeves said attorney Brad Pigott should have stuck to the metes and bounds of the forensic audit, and accused him of having a political agenda and seeking the media spotlight when he went beyond it.

READ MOREGov. Tate Reeves says ousted welfare scandal lawyer had ‘political agenda,’ wanted media spotlight

White has criticized Pigott’s firing and said the state should seek to recover all the misspent money it can. He said he will make sure state and federal criminal investigators have the records Pigott attempted to subpoena.

At the time MDHS was preparing the forensic audit proposal request, White was already gearing up to release a report in May of 2020 that questioned $94 million in MDHS spending and illustrated systemic failures of the welfare department.

White’s audit found that the welfare department continually violated the law by spending funds from a federal program called Temporary Assistance for Needy Families, a federal block grant notorious for being used as a slush fund in some states on projects that did not fulfill the purposes of the grant or did not serve the needy.

But the forensic audit by an independent firm, not White’s report, would be the document the state would use to determine who to bring civil litigation against to recoup misspent funds.

Some people, including at least one criminal defendant arrested in February of 2020, expected a forensic audit to significantly contradict White’s narrative about widespread misuse. An email White sent his deputies alludes to the perception some had that the auditor’s office had an agenda in going after MDHS.

“I’m also tempted to tell them this is a great way to determine if we’re auditing to ‘frame’ a ‘narrative’ or not: just let a private CPA have broad leeway to confirm or disprove our findings,” White wrote.

Emails Mississippi Today obtained now reveal that MDHS’s current leadership may have attempted to place its thumb on the scale to mitigate exposure for the agency as a whole, including dozens of employees who reviewed expenditures and contracts.

“To be completely honest — this is a half-hearted attempt to complete a forensic audit that has completely erased our input,” wrote Stephanie Palmertree, financial and compliance audit director for the state auditor’s office who headed up much of its MDHS probe. “And seeing how MDHS is defending the clearly fabricated contract procurements that they have completed, I’m not sure I would trust the current staff to choose an independent auditor. This is a PR attempt at making MDHS look like they did all they could.”

READ MORE: 7 baffling things about Mississippi’s welfare fraud scandal case

As part of the discovery process in the civil case, Mississippi Community Education Center, the nonprofit founded by criminal defendants Nancy New and her son Zach New, has asked for communication from MDHS related to the forensic audit to examine how it may have artificially targeted select vendors. 

In his email response to a missive from White in April 2020, Anderson said, “My objective is and has been since I arrived here at MDHS to ferret out the misspending and the responsible parties … We’re trying to fashion an RFI (Request for Information) that captures the agreement between both the agencies and that defines the parameters of what will be an expensive and lengthy audit undertaking.”

The contract with CLA was for up to $2.1 million. But according to a review of expenditures on the state’s transparency website, MDHS has only paid the firm less than $800,000, one of few times the agency has appeared frugal with spending federal welfare dollars on things other than poor people.

At one point, in response to White’s office suggesting changes to the audit proposal, Anderson said, “Much of what we took out relates to the criminal investigation … which is not the purpose for this forensic audit since the criminal case is already indicted …”

White took umbrage with this and responded: “You are aware that the statement ‘the criminal case is already indicted’ is incorrect; I’ve told you and the public that the case is still being investigated. More indictments are possible. Even if the investigation were not still ongoing, one would want criminal activity reported to law enforcement.

“… I’m not sure why you removed both your previous language and OSA’s language on reporting criminal activity,” White wrote to Anderson. “… Also, there is some confusion about what a ‘forensic’ audit is. The AICPA (American Institute of Certified Public Accountants) notes that “the term forensic means to be suitable for use in a court of law. Removing the language that says this audit may serve as evidence in a legal proceeding is to remove part of the audit’s very purpose.

“The same could be said for removing the language about how auditors may be called to testify in court,” White wrote. “And the same could be said for removing language requiring misappropriations to be ‘listed by individual, as could be proven in a legal proceeding.’ This audit should trace expenditures to completion and show, with findings that could stand up as evidence in court, who directed that spending, whether those people are inside or outside DHS.”

Asked for comment about limitations on CLA’s forensic audit, a spokesman for White’s office said, “We will let CLA’s audit speak for itself on areas where CLA believed they had adequate information to conduct the audit and where CLA was limited.”

In its audit reports delivered in September of 2021, CLA noted that it was not given access to former DHS Director John Davis’ computer hard drive and it was initially limited in whose emails it could examine.

“CLA was unable to obtain a copy of John Davis’ MDHS hard drive, as it was in the possession of the (Office of State Auditor) investigative division. Additionally, the scope of work limited CLA’s review of emails to include only John Davis’ MDHS emails. If other electronic evidence had been made available to CLA, additional information not currently known to CLA could impact the findings communicated in this report.”

READ MORE: ‘It doesn’t look good’: At 3-year mark, more questions than answers in Mississippi welfare fraud scandal

White’s spokesman said: “As we have explained previously, the hard drive (it was actually his computer) was obtained through our criminal investigation. We do not make evidence obtained in a criminal investigation available to anyone outside of law enforcement. That includes private CPA firms. Of course, we obtained that computer from DHS. If DHS backed up any files on the computer to their network, that could be made available per a public records request. We would also remind you that, while we will not provide the computer to a private CPA firm, we have made all of our evidence, including the hard drive, available to the FBI.”

CLA also noted that the New nonprofit, Mississippi Community Education Center, did not provide records to the auditors and did not cooperate with its probe. Much of the theft and misspending in the scandal occurred through MCEC, which was helping run a statewide anti-poverty program called Families First for Mississippi.

White’s spokesman said: “Despite pledging to assist auditors, the News failed to provide MCEC’s original documentation of spending to CLA, as CLA noted. CLA was given access to copies of all the MCEC documents (contracts, invoices, general ledger reports, etc.) that the auditor’s office had. Unfortunately, copies are not considered original documentation. Only MCEC could provide original documentation. Without original documentation, CLA had to note that their audit was limited. DHS ultimately decided to not pursue obtaining original documents from MCEC after MCEC failed to cooperate. OSA was asked to use our subpoena power to obtain documents from Heart of David, and we did.”

But in a supplemental forensic audit report released in April, Clifton Larson Allen noted that they didn’t even have access to a lease agreement that the State Auditor possessed, and were forced to retrieve it from a news article.

Another deputy in White’s office who reviewed MDHS’ drafts for a forensic audit proposal, at the time noted, “Very limited scope outside of TANF (federal welfare dollars). We know SSBG, CCDF and SNAP funds were also misused. They’ve even limited the scope to contracts directed by Davis to only TANF contracts … Firm is only required to alert MDHS of potential criminal activity, not us, the federal government or law enforcement.”

White, at the time, wrote to Anderson: “Obviously criminal activity should be reported to us, not just DHS, as we are the state’s chief law enforcement agency for crimes involving public funds. DHS’s failure to report criminal activity to the Auditor’s office has been a problem in the past.”

White’s spokesman this week explained that OSA auditors, as routine, repeatedly asked DHS staff over several years if they knew of fraud at the agency, and “… Staffers repeatedly failed to report any fraud in these meetings.”

While it was admittedly incomplete, the forensic audit report released in October 2021 did not significantly reverse White’s findings. It determined a total of $77 million was misspent: $36.1 million in welfare purchases that broke federal rules, including $12.4 million worth of possible fraud, waste or abuse, plus an additional $40 million that auditors said they did not have proper documentation to analyze.

THE BACKCHANNEL: Full coverage of Mississippi’s welfare scandal

The post ‘A whitewash’: Emails show MDHS pushed to hamstring probe into welfare misspending appeared first on Mississippi Today.

Mississippi families are paying the price of solar switch

0
image

The United States has seen a tremendous uptick in solar energy over the last decade, but in Mississippi having these heightened solar initiatives costs taxpayers an abundance of additional funds.

Solar energy is lauded as an efficient and affordable alternative to fossil fuels, something many climatologists argue can soon replace their natural gas counterparts. Since April 2020, the Public Service Commission has approved over $1 billion dollars worth of solar utility-scale projects, enough to more than double the current solar capacity of the state. One Public Service Commissioner in Mississippi has claimed that solar farms and projects are “cost-competitive”, without apparently being able to show how these investments will save consumers money.

While the Public Service Commissioner claims solar energy lowers costs, research published by the Mississippi Center for Public Policy says otherwise.

For example, Entergy Corporation, an energy company in the Southwest United States, announced it was either operating or in the process of building five solar farms in 2021. In order to have solar energy, Entergy’s customers were paying an additional $83 annually, or a 5-percent increase from the approximate $1,584 per year they were previously paying.

MCPP’s report, written by Investigative Journalist Michelle Brodsky, argued that while solar energy has proven to have made tremendous gains over the last few decades, some solar projects ultimately have more negative effects than positive ones.

The Mississippi Sunflower Solar Station, located in Ruleville, is the largest utility-owned solar installation in the state, and while it helps bring power to approximately 16,000 homes, it also spikes its consumers’ electricity bills. According to Entergy’s 2018 Motion to Intervene, each resident pays an additional $16.56 per year for the Sunflower County solar farm. Instead of paying roughly $1,584 each month, residents will pay $1,667 for the privilege of having five solar farms as a source of electricity.

“My research has shed light on the fact that solar energy raises utility bills and customers’ yearly costs will continue to go up with every new solar facility that is approved by the PSC,” Brodsky said.

Solar, to the public view, may appear less expensive than coal or other fuels, but Brodsky said this can be misleading, citing that solar actually costs users more money due to energy subsidies, transmission costs and storage that energy companies sometimes do not add into the equation.

While all public power companies are openly required to report their prices, private entities such as Cooperative Energy, a Mississippi-based energy company, are not mandated to do so, causing consumers to not know exactly what their dollars are being spent on and leaving the true cost of green energy with missing pieces.

CE announced plans for a solar facility in Covington County, Mississippi, amounting to approximately $9,000,000, but because the company is not required to report its spending, the public does not know the exact amount of how much taxpayer dollars went to the project, such as funds for transmission lines. Transmission lines are a necessary part of the calculation because the energy needs to get from the solar farms, many of which are far away from residential areas, to people’s homes. Based on a follow-up report filed by CE, Brodsky said an additional $100,000 was placed into this facility but not reported in the initial Motion to Intervene.

“When I initially went to the Public Service Commission’s website to look for Cooperative Energy’s costs, I could not find their initial investments because they’re not required to report them,” Brodsky said. “I was able to calculate the approximate cost of the facility based on other facilities that were half the size of this one. Conveniently, however, neither transmission costs nor battery storage was included in the report, and I had to scour through a host of government archives in order to discover that just the transmission lines themselves cost $100,000.”

Brodsky’s final portion of the report shows that batteries create additional costs as well. For example, Tesla can hold 129 megawatts at a time to operate its batteries. Using this figure as a benchmark, Brodsky estimated that Mississippi would need $87 billion in order to meet its current consumption of about 48.2 terawatt hours of energy the state roughly uses per year to power batteries, based on how much Tesla uses per day. That amounts to an additional $1,237.68 each consumer would have to pay every year.

“Despite what the Public Service Commission may say, solar energy is not a cheaper alternative,” Brodsky said. “The numbers that it cites only take initial costs into account. The facilities not only have to be built and run, but the electricity has to be able to get to consumers and be stored. Otherwise, when the sun isn’t shining, the solar farms will be unable to produce.”

Read original article by clicking here.

Juanyana Holloway Pleads Guilty to Embezzlement

0

JACKSON, Miss. – Today State Auditor Shad White announced Juanyana Holloway has pleaded guilty to embezzlement in Lamar County. She is a former deputy municipal clerk in the Town of Sumrall. District Attorney Hal Kittrell’s office prosecuted the case in Judge Prentiss Harrell’s courtroom.

Special Agents from the Auditor’s office arrested Holloway in November 2021. Holloway embezzled cash as Sumrall residents paid their water bills. To conceal the scheme, Holloway did not include cash collections on daily bank deposit slips. From summer 2018 to summer 2020, Holloway embezzled over $13,000 from the Town of Sumrall.

“This is another instance of a person working in a small utilities office who was stealing from the people she was supposed to be serving,” said Auditor White. “I am thankful to the investigators and prosecutors for their hard work.”

Judge Harrell ordered Holloway to pay $25,000 to her surety bond company, a $1,000 fine, and all court costs. Juanyana Holloway is now convicted of a felony offense and can never handle taxpayer money again.

The State Auditor’s office has already recovered the entire amount of Holloway’s demand letter and returned it to the appropriate deserving entities.

Suspected fraud can be reported to the Auditor’s office online at any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275.

The post Juanyana Holloway Pleads Guilty to Embezzlement appeared first on Mississippi Office of the State Auditor News.

Mississippi state revenues continue to exceed estimates in first month of FY 2023

0

The FY 2022 budget year is estimated to exceed $1.575 billion when it is officially closed out.

For the first month in the new fiscal year, Mississippi continues to see collected revenue numbers exceed budgetary estimates, continuing a trend that saw last year’s revenues outpace estimates by over a billion dollars.

The FY 2023 July state revenues collections were $44,675,714, or 8.41% above the legislature’s sine die revenue estimate.  This represents nearly $2.2 million more than the same month last fiscal year.

The FY 2023 Sine Die Revenue Estimate is $6,987,400,000.

Also of note in the latest Mississippi Legislative Budget Office’s revenue reporting is that when compared to the total General Fund appropriations for FY 2022 of $5.8 billion, the General Fund will end the 2022 fiscal year with an estimated excess of $1.575 billion including reappropriations.

During the FY 2022 close-out period of July and August 2022, additional revenues may be recorded, and subsequent adjustments could be necessary, LBO says.

The chart above shows that taxes on sales, income, and gaming for July exceeded the prior year’s collections while corporate and use taxes were down year-over-year.