Hagan Campaign Fact Check on AFP’s Newest Misleading

Ad

November 20, 2013

press@kayhagan.com

U.S. Senator Kay Hagan’s campaign today released the following fact check of Americans for Prosperity’s newest misleading ad.

“This is just another baseless smear campaign from a Koch Brothers-backed group that doesn’t disclose its donors, doesn’t speak for North Carolinians, and has a record of airing ads that fact checkers call ‘false,’” said Preston Elliott, Hagan’s Campaign Manager. “The Koch Brothers are trying to buy a Senate seat because they know Kay will always choose the best interests of North

Carolina over their special interest agenda. The only people choosing politics over people are Kay’s opponents who rejected health care for 500,000 North Carolinians, refused to set up a state-based healthcare marketplace and want to take us back to a time when people who got sick got dropped from their insurance and women got charged more for coverage.”

FACT CHECK: AFP FUNNELS EVEN MORE OF ITS DARK

MONEY INTO NORTH CAROLINA, PUSHING ITS SPECIAL

INTEREST AGENDA

TITLE “It's About People, Not Politics” MEDIA TV :30

DATE 11/29/13

AD CLAIM: “People don’t like political ads.” Americans For prosperity’s attack ad from last month was repeatedly rated false by independent

analysts, and yet again, Americans for Prosperity’s attack ad contained no backup

Americans for Prosperity has already funneled millions of dollars into North Carolina in the form

of attack ads, and is now doubling down with millions more

AD CLAIM: “But health care isn't about politics, it's about people.” The North Carolina Legislature has made health care reform entirely about politics by rejecting a state-based exchange and Medicaid expansion – they made the rollout of health care reform more difficult and less efficient, costing the state money and jobs, and burdening North Carolina hospitals

The legislature’s rejection of a state-based exchange will mean higher premiums for North Carolinians

The Medicaid expansion the legislature rejected would have covered 500,000 North Carolinians

AD CLAIM: “Obamacare doesn’t work.” Hagan has supported sensible improvements to Obamacare that make sense for North Carolina

Republicans want to go back to a time when health insurance companies could deny North Carolinians coverage if they have a pre-existing condition or charge women more than men for insurance

AD CLAIM: “Paid for by Americans for Prosperity” The Koch Brothers’ Americans for Prosperity is a shadowy special interest group that does not

disclose donors

The Koch Brothers are the kings of secret money—just last month, secretive political groups linked to the Koch Brothers were fined a record $1 million for violating campaign finance laws

The Koch Brothers help fund ALEC, a special interest-funded group that pushes bills to benefit its

corporate members, which has been active in the North Carolina Legislature under Tillis who has close ties to the group

The Koch Brothers are against the best interests of North Carolina families—they want to privatize

Social Security and end Medicare as we know it, opposed expanding children’s health care, want to keep tax breaks for big oil companies, and supported the legislature’s tax plan that raised taxes on 80% of North Carolinians

AD CLAIMS THE FACTS

VO: "People don't like political ads.

I don't like them either.”

YET AGAIN, AMERICANS FOR PROSPERITY’S ATTACK

AD CONTAINED NO BACKUP

Americans for Prosperity Provided Zero Citations For The Claims In Their Ad. [Americans for Prosperity, AFP holds Hagan accountable on

ObamaCare, 11/19/13, VIDEO]

FLASHBACK: The Americans for Prosperity’s Attack Ad

From Last Month Provided Zero Citations For The Claims In Their Ad. [Americans for Prosperity, Tell Kay Hagan #ExemptMeToo, 10/29/13; VIDEO]

AMERICANS FOR PROSPERITY HAS ALREADY

FUNNELED MILLIONS OF DOLLARS INTO NORTH

CAROLINA IN THE FORM OF ATTACK ADS, AND IS NOW

DOUBLING DOWN WITH MILLIONS MORE

11/19/13: The Koch-Funded Americans For Prosperity Began “Targeting” Three Democrats Up For Re-Election With “A New $3.5

Million Attack Advertising Campaign That Hammers Lawmakers For Supporting President Obama’s Health Care Law.” “Americans for

Prosperity, the political group backed by the billionaire brothers Charles

and David Koch, is targeting three of the most vulnerable Senate Democrats

who are up for re-election next year. The group’s efforts are part of a new

$3.5 million attack advertising campaign that hammers lawmakers for

supporting President Obama’s health care law. The senators — Mark Begich of Alaska, Kay Hagan of North Carolina and Mary L. Landrieu of

Louisiana — are all from conservative-leaning states that voted to elect Mitt

Romney in 2012. The ads will start running in those states on Wednesday.”

[New York Times, 11/19/13]

10/29/13: Americans For Prosperity Announced A “Pricey” New Attack Ad Buy Worth $1.7 Million In North Carolina. “Americans for

Prosperity is targeting two red-state Democrats over Obamacare with a

pricey new ad buy that launches this week. […] The organization devoted

$1.7 million to North Carolina, and a little more than $500,000 to Louisiana, figures that reflect media market prices, Phillips said. Another

$100,000 per state will be devoted to grassroots and social media efforts, he

added.” [Politico, 10/29/13]

AMERICANS FOR PROSPERITY’S ATTACK AD FROM

LAST MONTH WAS REPEATEDLY RATED FALSE BY

INDEPENDENT ANALYSTS

WRAL Fact Check: Americans For Prosperity Claimed “Hagan Supports Waivers For Friends Of Obama And Special Treatment For

Congress And Their Staffs” Which Is Not True, And “Neither Claim

Has Been Substantiated By Prior Fact Checks.” “‘Hagan supports

waivers for friends of Obama and special treatment for Congress and their

staffs.’ It's unclear who AFP might consider ‘friends of Obama,’ and backup material provided by the organization does not address this part of

the claim. However, there have been assertions that the administration has

granted somewhere between 1,100 and 1,200 exemptions to friends of the

president. These claims have largely been rated as bogus by other fact-

checking organizations. […] As to claim Congress is somehow getting special treatment, this has also been debunked. […] Is it true? No. Neither

claim has been substantiated by prior fact checks.” [WRAL, Fact Check,

10/29/13]

WRAL Fact Check: Days After Their Attack Ad Was

Factchecked, Americans For Prosperity Tried To Change

Their Argument To Support Their Claims, Which Was Again Deemed False. “Two days after this post originally posted, Adam Nicholson, state communications manager with

AFP, argued that we had overlooked the real rationale for the AFP claim that Congress was getting a special benefit. This was information the group did not provide in the fact sheet it sent the day the ad was released. ‘The issue is not the subsidy (which, as

you point out, is effectively provided by many corporate health insurance plans) but the OPM’s special rule which is created out of thin air to allow Congress access to the DC SHOP, an opportunity not available to other large organizations (which

face the same issues as Congress, and which would likely benefit from access to a small business exchange),’ Nicholson wrote in an email. […] AFP's argument hinges on Congress being treated favorably when compared to the rest of the country. It does not

appear that Congressional staffers will have access to health plans or pricing that others on the same exchange wouldn't otherwise have. This mechanism appears to be more a matter of administrative convenience than special emolument. […] This

still appears to be a case of making a mountain out of a technical molehill.” [WRAL, Fact Check, 10/29/13]

PolitiFact Rated Americans For Prosperity’s Attack Ad “False.”

“President Barack Obama’s health care law is bound to be a central issue of the 2014 midterm elections. In North Carolina, first-term Democratic Sen.

Kay Hagan, is already facing attacks about Obamacare. Americans for

Prosperity, a conservative political advocacy group, released an ad against

Hagan. It starts out with a series of claims praising women for being

breadwinners and job creators. Then, it pivots: ‘But Kay Hagan just doesn’t

get it.’ ‘Hagan supports waivers for friends of Obama and special treatment for Congress and their staffs,’ the video continues. […] More than 1,000

companies have received Obamacare waivers, but there’s no evidence to

suggest that those groups are all Obama’s ‘friends.’ Meanwhile, Congress

and their staffs do have to adhere to the reform’s individual mandate, and in

a key way are treated worse than other Americans by the law, which is a curious definition of ‘special treatment.’ We rate Americans For

Prosperity’s claim False.” [PolitiFact, 11/7/13]

VO: “But health care isn't about

politics, it's about people.”

THE NORTH CAROLINA LEGISLATURE HAS MADE

HEALTH CARE REFORM ENTIRELY ABOUT POLITICS BY

REJECTING A STATE-BASED EXCHANGE AND MEDICAID

EXPANSION

Raleigh News & Observer Editorial: The North Carolina Legislature

Figured By “Shirking Their Duty” And Refusing To Create A State Exchange, They Could “Score Some Political Points.” “But in most

states in the South (read that: where the most vitriolic opponents of

President Obama are) Republican governors and legislatures surrendered

control of the exchanges through which uninsured people must buy

insurance. […] Doubtless these Republicans also rubbed their hands together and figured that if there were problems with the exchanges, people

would turn against the health care program and against the president who

instigated it. In other words, by shirking their duty, as the GOP leadership

in North Carolina did, they can score some political points. What a dreadful

line of reasoning.” [Editorial, Raleigh News & Observer, 10/22/13]

Raleigh News & Observer Editorial: The North Carolina

Legislature Is “Prepared To Let The People They’re

Supposed To Represent Experience More Complicated Steps

In Getting Health Care In The Name Of Making The President Look Bad.” “Doubtless these Republicans also rubbed their hands together and figured that if there were problems with the exchanges, people would turn against the health care program

and against the president who instigated it. In other words, by shirking their duty, as the GOP leadership in North Carolina did, they can score some political points. What a dreadful line of reasoning. They’re prepared to let the people they’re supposed to

represent experience more complicated steps in getting health care in the name of making the president look bad.” [Editorial,

Raleigh News & Observer, 10/22/13]

Raleigh News & Observer Editorial Board Editor Ned Barnett: “North Carolinians Who Buy Insurance Through The Exchange Will Pay

More Because Of The Republicans’ Temper Tantrum” In Refusing To Operate A State-Based Exchange And Expand Medicaid. “The General

Assembly, in a fit of pique against the Affordable Care Act lawmakers

deride as “Obamacare,” barred the state from any participation in the rollout

of the historic effort to insure the nation’s 48 million uninsured. The

Republican-led legislature and Republican Gov. Pat McCrory rejected

billions of dollars in federal aid to expand Medicaid to about 500,000 low-income state residents. They also refused to set up a state-run marketplace

to sell insurance to individuals. North Carolina left that job to the federal

government. […] North Carolinians who buy insurance through the

exchange will pay more because of the Republicans’ temper tantrum.”

[Editorial page editor Ned Barnett, Raleigh News & Observer, 10/5/13]

Raleigh News & Observer Editorial Board Editor Ned

Barnett: The North Carolina Legislature Should Accept

Medicaid Expansion And Operate A State -Based Exchange

So North Carolinians Don’t “Keep Paying The Price Of Their Protest.” “It’s not too late to fix the problem. The legislature can still accept the Medicaid expansion, and it can set up a state exchange and let North Carolina’s state insurance experts help

North Carolinians. But federal funds that support those moves will dry up before long. It’s up to the Republicans in power. They can get with the program or they can stay on the barricades long after Obamacare has come through and let North Carolinians keep

paying the price of their protest.” [Editorial page editor Ned Barnett, Raleigh News & Observer, 10/5/13]

Raleigh News & Observer Editorial: The Legislature’s Reasoning For

Rejecting Expanded Medicaid Was “Right Out Of The Tea Party

Handbook” Because It Just “Opposes Anything Associated With President Barack Obama.” “Astonishingly, North Carolina Republican

lawmakers running the General Assembly said no. Their reasoning was

right out of the tea party handbook: They said they didn’t trust the federal

government to cover all of the costs. Period. The federal government pays

out Social Security; it has Medicare. It covers all sorts of programs that help people. But Republicans in the General Assembly say that government can’t

be trusted. That’s not their real reason, of course. This generation of

Republican leadership opposes anything associated with President Barack

Obama. And among the members of the tea party, there are those who

demonstrated – during the last government shutdown and the fuss over

raising the debt ceiling – that they were willing to let the economy go off a

cliff in order to repudiate Obama.” [Editorial, Raleigh News & Observer,

10/31/13]

Greensboro News & Record Editorial: “Finding Practical Health Care Solutions For North Carolina Residents Was Not The Priority” For

The Legislature, But Now “Leaders In Raleigh Owe A New Look At

Whether The State Should Belatedly Accept Medicaid Expansion” And Operate A State-Based Exchange. “Unfortunately, finding practical health

care solutions for North Carolina residents was not the priority in Raleigh.

Just like congressional Republicans, state legislative Republicans simply

want Obamacare to go away. If they think they can kill it by shutting down

the government or by letting residents pay higher costs for fewer choices,

they will. They should re-evaluate. ‘I do hope the governor and lawmakers will keep their eyes wide open,’ Goodwin, a Democrat, said. Last year, the

line he heard often was, ‘Let’s see where we are a year from now.’ That’s

now, and where we are is not good. Leaders in Raleigh owe a new look at

whether the state should belatedly accept Medicaid expansion and operate

these exchanges to get a better deal for the people.” [Editorial, Greensboro News & Record, 10/2/13]

Charlotte Observer Editorial: The Legislature Should “Do What’s Best For North Carolinians” And Revisit Operating A State-Based

Exchange. “That not stopping anytime soon, as Republicans in Washington continue to stoke fears about the law. Perhaps, as millions of Americans

begin to realize Obamacare’s core benefits, Republicans will bow to the

law’s inevitability and fix its problems, not kill it. Closer to home, that will

mean revisiting the issue of who should run the state’s insurance exchange.

Maybe then, N.C. Republicans will finally decide to do what’s best for

North Carolinians.” [Editorial, Charlotte Observer, 9/28/13]

THE NORTH CAROLINA LEGISLATURE MADE THE

ROLLOUT OF HEALTH CARE REFORM MORE

DIFFICULT BY PUTTING IT IN THE HANDS OF THE

FEDERAL GOVERNMENT INSTEAD OF CREATING

STATE-BASED SOLUTIONS

Raleigh News & Observer Editorial: “States Such As North Carolina That Rejected A State-Run Exchange Have To Shoulder At Least Some

Of The Blame For The Rollout Problems. The State Would Have

Gotten Millions Of Dollars To Help It With The Exchange And Could

Have Shaped It To Suit This State.” [Editorial, Raleigh News &

Observer, 10/22/13]

North Carolina Insurance Commissioner Wayne Goodwin Said He Would Be More Confident About The Implementation Of Obamacare

If The Legislature Had Agreed To A State-Based Exchange Rather

Than Letting The Federal Government Create It. “There will be

problems. There may be a lot of them. There may not. Beginning this week, Americans will start signing up for health insurance at exchanges across the

country – the most sizable federal endeavor since Social Security. No one is

sure what the impact of Obamacare will be. Not even the insurance

commissioner of North Carolina. But Wayne Goodwin knows this: He

would be more confident about the Affordable Care Act in North Carolina

had state lawmakers not refused this year to participate in a state-based insurance exchange, as Obamacare encouraged states to do. Instead, the

Republican-led legislature passed Senate Bill 4, which opted North Carolina

out of running a state-based exchange. As a result, North Carolinians who

enroll beginning Tuesday will do so through an N.C. exchange run by the

federal government, and that will affect competition, pricing and the quality of information citizens get about their health care options. ‘I would feel a

lot better today if we had a state-based exchange,’ Goodwin told the

editorial board Friday.” [Editorial, Charlotte Observer, 9/28/13]

North Carolina Insurance Commissioner Wayne

Goodwin: “I Firmly Believe That If It Had Been A North

Carolina Exchange, Most Of The Components Would Have

Functioned Much More Efficiently And At A Better Cost.” “Imagine what might have been if the Department of Insurance

were fully involved. [North Carolina Insurance Commissioner Wayne] Goodwin has. ‘I firmly believe that if it had been a North Carolina exchange, most of the components would have functioned much more efficiently and at a better cost,’ he said.”

[Editorial page editor Ned Barnett, Raleigh News & Observer, 10/5/13]

Raleigh News & Observer Editorial Board Editor Ned Barnett: The

Insurance Commissioner’s Office “Was Barred From Setting Up A More Nimble Exchange Focused On North Carolina’s Needs.” “The

state’s decision not to participate in ‘Obamacare’ means [North Carolina

Insurance Commissioner Wayne] Goodwin’s department was barred from

setting up a more nimble exchange focused on North Carolina’s needs. It

also meant forgoing $27 million in federal money that would have

supported efforts by the Department of Insurance to educate and assist more than a million North Carolinians who are expected to shop for insurance on

the exchanges. ‘It’s extremely frustrating that we can’t help,’ Goodwin

said.” [Editorial page editor Ned Barnett, Raleigh News & Observer,

10/5/13]

Raleigh News & Observer Editorial Board Editor Ned

Barnett: If North Carolina Had Run Its Own Exchange, “The

State Likely Would Have Produced Plans Better Tailored To

The State’s Needs And With More Coverage Per Premium Dollar.” “[North Carolina Insurance Commissioner Wayne] Goodwin, a Democrat and a former state legislator, was eager to set up an exchange that could attract more insurance companies

and offer advice on the new health care law. Involvement by the state likely would have produced plans better tailored to the state’s needs and with more coverage per premium dollar. As it was, a basic compliance review of plans being offered by Blue

Cross and Blue Shield found an error in the numbers, faulty assumptions and a benefit not required under the new law. As a result, Blue Cross policies went onto the exchange at rates 10 percent lower than originally proposed.” [Editorial page editor

Ned Barnett, Raleigh News & Observer, 10/5/13]

Raleigh News & Observer Editorial: North Carolina

Refused To Set Up A State-Based Exchange Even Though It

“Would Be Able To Offer People More Choices, Would

Likely Be More Efficient And Would Be More Nimble At Handling Questions And Problems.” “What Kentucky and

California have in common is that they opted to run their own health care exchanges. But in most states in the South (read that: where the most vitriolic opponents of President Obama are) Republican governors and legislatures surrendered control of the

exchanges through which uninsured people must buy insurance. Not interested, they said, not even if state-run exchanges would be able to offer people more choices, would likely be more efficient and would be more nimble at handling questions and

problems. Don’t care. Let the feds do it all. Now that’s nice public service for you.” [Editorial, Raleigh News & Observer, 10/22/13]

Spokesperson For Coventry Parent Company, Aetna: “There Is Definitely Value In Having A State-Run Exchange Because The State

Knows The State’s Needs.” “Companies prefer doing business with a

state-run exchange in which state officials know the market and can help companies fashion policies that fit it. ‘We really believe that health care is

local,’ said Susan Millerick, a spokeswoman for Aetna, which recently

acquired Coventry. ‘There is definitely value in having a state-run exchange

because the state knows the state’s needs.’” [Editorial page editor Ned Barnett, Raleigh News & Observer, 10/5/13]

Charlotte Observer Editorial: The Legislature Turned Down A $27 Million Grant For Outreach Regarding Options Under Obamacare,

Which Means North Carolinians With Questions Will Have To Reach Out To The Federal Government For Help. “Don’t know what the best

option is for you? Again, the legislature has made things more difficult,

turning down a $27 million federal grant for outreach regarding the

Affordable Care Act. Goodwin estimates in the next six months alone, tens

of thousands of calls will come into state offices with questions about

Obamacare, but state law requires his employees to forward people to the feds if they start asking for help with enrollment. The grant also would’ve

helped his office proactively meet at least some of the uncertainty and

misinformation surrounding Obamacare. ‘I had two emails this morning,’

he said. ‘To me that’s frustrating, because it’s going to cost individuals and

families money.’” [Editorial, Charlotte Observer, 9/28/13]

THE NORTH CAROLINA LEGISLATURE’S REJECTING OF

A STATE-BASED EXCHANGE WILL RESULT IN HIGHER

COSTS FOR NORTH CAROLINIANS

Experts At The Centers For Medicare And Medicaid Services

“Expressed Agreement That The Lack Of Competition In Some States Such As North Carolina Are Making Prices Slightly Higher.”

“Administrators at the Centers for Medicare and Medicaid Services

expressed agreement that the lack of competition in some states such as

North Carolina are making prices slightly higher. ‘Generally, we’re seeing

that where there’s more competition, that does have an effect on keeping rates lower, but it’s not the only thing,’ said Gerry Cohen, the deputy

administrator and director of the Center for Consumer Information and

Insurance Oversight at CMS.” [North Carolina Health News, 9/27/13]

Charlotte Observer Editorial: If The Legislature Had

Agreed To Operate A State -Based Exchange, North Carolina

Would Have Been Able To Create More Competition Among

Insurance Plans, Which “Could Have Resulted In Better Pricing And Insurance Choices.” “But Wayne Goodwin knows

this: He would be more confident about the Affordable Care Act in North Carolina had state lawmakers not refused this year to

participate in a state-based insurance exchange, as Obamacare encouraged states to do. […] ‘I would feel a lot better today if we had a state-based exchange,’ Goodwin told the editorial board

Friday. So might North Carolinians who discover that they’re paying more on average for insurance than residents of most states. N.C. families of four with incomes of $50,000 will pay $880 a month for the mid-range federal plan if they don’t qualify

for subsidies. That’s $106 more than the national average. Participating in a state-based exchange would have allowed the state to create more opportunities for competition, as the N.C. Rate Bureau does for auto insurance companies. ‘With a state-

based exchange, we would’ve been in control over discussions that would’ve incentivized companies to participate,’ Goodwin said. More competition, of course, could have resulted in better pricing and insurance choices, as it has with the 166 companies

participating in auto insurance in the state. With Obamacare, only two companies are participating in the N.C. exchange, leaving North Carolinians with an average of 22 qualified health care plans to choose from, less than half the national average.”

[Editorial, Charlotte Observer, 9/28/13]

Charlotte Observer Editorial: The Legislature’s Choice

To Make The Federal Government Create North Carolina’s

Health Insurance Exchange “Will Affect Competition, Pricing

And The Quality Of Information Citizens Get About Their Health Care Options.” “Instead, the Republican-led legislature

passed Senate Bill 4, which opted North Carolina out of running a state-based exchange. As a result, North Carolinians who enroll beginning Tuesday will do so through an N.C. exchange run by the federal government, and that will affect competition, pricing

and the quality of information citizens get about their health care options.” [Editorial, Charlotte Observer, 9/28/13]

Raleigh News & Observer Editorial Board Editor Ned

Barnett: North Carolina Has “Higher Premium Rates” Than

It Would Have Due To “Diminished Competition” Because

“Competition Was Discouraged By The State’s Lack Of

Involvement.” “On top of the 3.5 percent are higher premium rates attributable to diminished competition. The idea behind the health care law is that putting more younger and healthier people into the risk pool will attract more insurance companies, and their

competition will keep rates as low as possible. But in North Carolina, that competition was discouraged by the state’s lack of involvement.” [Editorial page editor Ned Barnett, Raleigh News

& Observer, 10/5/13]

Raleigh News & Observer Editorial Board Editor Ned Barnett: Because The Federal Government Was Forced To Run North

Carolina’s Exchange, They Add 3.5 Percent To Premiums To Cover The Cost. “North Carolinians who buy insurance through the exchange will

pay more because of the Republicans’ temper tantrum. The extra cost is a

mix of hard and soft numbers. One hard number is 3.5 percent. That’s the

percentage the federal government adds to premiums to cover its cost for

running an exchange. If North Carolina had run its own, the cost could have

been lower and broadly dispersed across the state’s tax base – an allocation from the general fund, for instance – with little or no effect on premiums.”

[Editorial page editor Ned Barnett, Raleigh News & Observer, 10/5/13]

THE MEDICAID EXPANSION THE NORTH CAROLINA

LEGISLATURE REJECTED WOULD HAVE COVERED

500,000 NORTH CAROLINIANS…

The North Carolina Legislature, Led By Tillis, Blocked Expanded Medicaid In North Carolina, Which Would Cover An Estimated

500,000 North Carolinians. “Gov. Pat McCrory signed legislation

Wednesday that rejects major components of the federal health care law,

denying about 500,000 low-income people health care coverage under an expanded Medicaid program. The measure also prevents North Carolina

from establishing a state-sponsored marketplace for health insurance, giving

the control to the federal government, which will begin selling policies on

the exchange in October.” [Charlotte Observer, 3/7/13; S.B. 4; voted 69

(Tillis – Y), 2/26/13; became law, 3/6/13]

Raleigh News & Observer: “Since North Carolina, Like 25

Other States, Rejected Medicaid Expansion Earlier This

Year, Many Of The State’s Poorest Residents Will Go

Without Insurance Despite The National Health Insurance

Law That Was Intended To Slash The Number Of Uninsured Americans.” [Raleigh News & Observer, 10/12/13]

…AND THEIR REJECTION WILL INCREASE PREMIUMS

FOR NORTH CAROLINIANS ON THE EXCHANGES

The Health Care Reform Law “Envisioned People Below 138% Of

Poverty Receiving Medicaid And Thus Does Not Provide Premium Tax Credits For The Lowest Income.” [Kaiser Family Foundation, The

Coverage Gap: Uninsured Poor Adults in States that Do Not Expand

Medicaid, October 2013]

Of The North Carolinians Who Would Have Been Eligible For Expanded Medicaid, 200,000 Earn Between 100 And 138 Percent Of

The Poverty Level And Can Qualify For Subsidies On The Insurance

Exchanges. “IOf those eligible for Medicaid expansion, about 200,000

qualify for premium subsidies on the insurance exchange because they earn

between 100 and 138 percent of the poverty level. But the poorest of the

uninsured, who earn less than 100 percent of the poverty level – $11,490 for a single person and $23,550 for a family of four – are not eligible for

subsidies. That’s because authors of the Affordable Care Act assumed they

would be covered by the Medicaid expansion.” [Charlotte Observer,

10/14/13]

The North Carolinians Who Would Have Qualified For

Medicaid But Now Qualify For Insurance Subsidies “Are Widely

Expected To Be In Poorer Health, Prompting Insurance Companies To Boost Rates By An Estimated 2 Percent To

Compensate For The Risk Of Insuring This Population.”

“Additionally, North Carolina officials opted not to expand Medicaid,

the federal insurance program for the poor and disabled, and as a

result, about 200,000 people who would have qualified for Medicaid will now qualify for insurance subsidies. Those people are widely

expected to be in poorer health, prompting insurance companies to

boost rates by an estimated 2 percent to compensate for the risk of

insuring this population, said Mark Hall, a professor of law and public

health at Wake Forest University.” [Charlotte Observer, 10/20/13]

Raleigh News & Observer Editorial: Expanded Medicaid Would Keep More North Carolinians Out Of Emergency Rooms, Which “Drive Up

Costs For The Insured Because Hospitals Have To Make Up What

They Lose Caring For People Who Have No Insurance.” “Under federal

health care reform, North Carolina could have joined many other states, including some run by Republicans, in expanding Medicaid health care

coverage to more lower-income families. New rules raising the maximum

income levels would have allowed half a million more North Carolinians to

qualify for Medicaid, the federal/state health insurance program for the

poor. And it would have cost the state nothing. The federal government

would have covered the entire cost of expansion for three years and in 2020

would have still covered 90 percent of the cost. More North Carolinians

would have had access to health care and, sometimes more importantly, to preventative care, which can keep people out of emergency rooms for

routine care. Those unnecessary ER trips drive up costs for the insured

because hospitals have to make up what they lose caring for people who

have no insurance.” [Editorial, Raleigh News & Observer, 10/31/13]

…AND BURDEN NORTH CAROLINA HOSPITALS,

COSTING THEM $600 MILLION PER YEAR

North Carolina Hospitals “Embraced Medicaid Expansion” Because

“It Meant They Would Be Reimbursed For Treating Poor People Who Are Unable To Pay Hospital Bills.” “Hospitals across North Carolina had

embraced Medicaid expansion. It meant they would be reimbursed for

treating poor people who are unable to pay hospital bills. ‘This was integral

to implementation of the Affordable Care Act,’ said Joe Piemont, president

and chief operating officer of Carolinas HealthCare System in Charlotte. ‘These (uninsured) folks are here, and we’re taking care of them now, but it

certainly would have been a benefit to have them qualify for the Medicaid

expansion.’” [Raleigh News & Observer, 10/12/13]

The North Carolina Hospital Association “Continues To Talk

To State Lawmakers” About Expanding Medicaid, Because

“Hospitals In The State Will Continue To Care For The Uninsured.” “The North Carolina Hospital Association also continues

to talk to state lawmakers. ‘We continue to tell them why we favor

expansion,’ said Don Dalton, vice president of public relations for the

association. Dalton said it is ‘impossible’ to gauge if the discussions

are having an impact. ‘We would certainly hope that legislators and the governor are taking a continuing look at Medicaid expansion and

realize the benefit it could be, particularly for poor North Carolina

patients,’ Dalton said. Expansion of Medicaid would have covered an

additional 500,000 people in North Carolina. As federal

reimbursements decline, hospitals in the state will continue to care for the uninsured.” [Asheville Citizen-Times, 10/26/13]

Rejecting Expanded Medicaid Will Cost North Carolina Hospitals As Much As $660 Million Annually. “Hospitals across North Carolina had

embraced Medicaid expansion. It meant they would be reimbursed for

treating poor people who are unable to pay hospital bills. […] The annual cost to North Carolina’s hospitals of not expanding Medicaid is estimated to

be as much as $660 million, based on an analysis conducted for the N.C.

Institute of Medicine by N.C. Division of Medical Assistance.” [Raleigh

News & Observer, 10/12/13]

Fayetteville Observer Editorial: Tillis Claimed Expanded

Medicaid Would Cost Millions Over The Next 8 Years, But

“Not Expanding Medicaid Is Going To Cost Us Billions,

Much Sooner” And “If It Leaves A Landscape Strewn With

Closed, Underfunded Or Understaffed Hospitals, That Will Be The Heaviest Cost Of All.” “The rationale for the

legislature's decision was that Medicaid is ‘broken’ because its cost rose as more people sought assistance while recovery from a record recession lagged. The illogic of that position must be drawing some political heat. This week Senate and House leaders

took to filming a protest and doing head counts of protesters and journalists - small-bore politics. ‘An expansion of Medicaid would cost North Carolina taxpayers hundreds of millions of dollars through 2021,’ they said in a joint release. Probably so.

But not expanding Medicaid is going to cost us billions, much sooner. If it leaves a landscape strewn with closed, underfunded or understaffed hospitals, that will be the heaviest cost of all.” [Editorial, Fayetteville Observer, 10/28/13]

September 2013: Vidant Pungo Hospital Was Forced To Close, And Lose 100 Jobs, In Response To North Carolina’s Rejection Of

Expanded Medicaid. “Vidant Health System executives, pointing to North

Carolina’s decision not to participate in federally funded Medicaid

expansion, stunned residents and officials in Belhaven on Wednesday with

a unanimous vote to close the hospital within six months. Vidant Pungo Hospital’s phased closing will eliminate 90-100 jobs in the community of

about 1,700 people, CEO David Herman said at a news conference.”

[Greenville Daily Reflector, 9/5/13]

…AND COST THE STATE JOBS AND REVENUE

Charlotte Observer Editorial: North Carolina’s Rejection Of

Expanded Medicaid Is “Bad For Business” Since The State Will Lose Out On “Revenue For Hospitals And Health Care Businesses – And

More Jobs In The Health Care Industry.” “What the governor’s

comments did do, however, is remind us all who gets hurt by the Medicaid

refusal. […] in its ruling affirming the legality of Obamacare last year, the

U.S. Supreme Court also said that states could decline the Medicaid money. North Carolina has, and the decision brings an unintended consequence –

it’s bad for business. A Kaiser Foundation study of all 50 states reported

this month that states participating in the Medicaid expansion will see

double the Medicaid spending growth as states that don’t. That’s more revenue for hospitals and health care businesses – and more jobs in the

health care industry.” [Editorial, Charlotte Observer, 10/23/13]

North Carolina Institute Of Medicine: Expanded

Medicaid Would Create 18,000 Jobs By 2021 And Generate

More Than $1.3 Billion In Additional State Domestic Product Each Year. “Expanding Medicaid is also projected to create about 25,000 new jobs by 2016, which is expected to decline

slightly to 18,000 sustained jobs (by 2021). The new federal funds would also help generate an additional $1.3-$1.7 billion in state domestic product per year.” [North Carolina Institute of Medicine, Examining the Impact of the Patient Protection and

Affordable Care Act in North Carolina, January 2013]

North Carolina Institute Of Medicine: Expanded

Medicaid Would Save North Carolina $65 Million From SFY 2014-2021. “The gross service costs to the state [under expanded Medicaid] would be $840.9 million and the new administrative costs would be $116.3 million between SFY 2014-2021.

However, these new costs would be offset by pharmaceutical rebates ($60.9 million), redirecting existing state appropriations for other programs ($464.9 million), and the new tax revenues likely to be generated as a result of the increase in state domestic

product from the infusion of $14.8 billion in new federal dollars ($496.9 million). Because of the high federal match rate, the offsets, and the new tax revenues, the state will actually experience a net savings of between $38 - $124 million/year from

SFY 2014-2017. Beginning in SFY 2018, North Carolina will be required to contribute towards the costs of services to the newly eligibles. By, SFY 2021, the net new expenditure will be approximately $118.7 million to cover almost 540,000 people.

Because of the large savings in the early years, North Carolina will be expected to save $65.4 million over the SFY 2014-2021 time period.” [North Carolina Institute of Medicine, Examining the Impact of the Patient Protection and Affordable Care Act in

North Carolina, January 2013]

Raleigh News & Observer Editorial: Rejecting Expanded Medicaid Is

“A Costly Rejection Of Both Federal Funds And Long-Term Savings In Health Care Costs.” “Senate Republicans say the Medicaid deal looks

appealing, but it’s a ‘bait-and-switch.’ They say the program will grow

larger and eventually the cost to the state will grow. So they say the prudent

course is to reject the federal government’s generous offer. But the Senate bill isn’t a long-term cost-saver. It’s a costly rejection of both federal funds

and long-term savings in health care costs. Even McCrory appears uneasy

with letting this much money go. ‘We believe additional time is necessary

to evaluate the serious financial ramifications of Senate Bill 4 to North

Carolina taxpayers,’ wrote Fred Steen, the governor’s chief lobbyist. Despite what the Republican senators say, the reason behind this bill isn’t

prudence. It’s spite.” [Editorial, Raleigh News & Observer, 2/5/13]

VO: “It's not about a website that

doesn't work. It's not about poll

numbers or approval ratings. It's about people. And millions of people

have lost their health insurance.

Millions of people can't see their

own doctors. And millions are

paying more, but getting less. Obamacare doesn't work. It just

doesn't work. Tell Senator Hagan to

stop thinking about politics and start

thinking about people."

HAGAN HAS SUPPORTED SENSIBLE IMPROVEMENTS TO

OBAMACARE THAT MAKE SENSE FOR NORTH

CAROLINA

HAGAN ASKED THE ADMINISTRATION TO DELAY OPEN ENROLLMENT AND THE INDIVIDUAL MANDATE PENALTY FOR

TWO MONTHS, TO ENSURE NORTH CAROLINIANS CAN ENROLL

Hagan Proposed Delaying The Open Enrollment Deadline And

Individual Mandate Penalty By Two Months In Response To Technical Problems With The Obamacare Website. “North Carolina Sen. Kay

Hagan wants the Obama administration to delay by two months the period

in which individuals can sign up for health insurance through the new

government website and when financial penalties begin for those remaining

uninsured. Hagan announced her appeal Thursday while calling problems with the federal exchange ‘absolutely unacceptable.’ She said extra

enrollment and penalty delays are needed to make up for lost time while the

site has not been functioning. The open enrollment began Oct. 1 and lasts

until March 31. The White House says consumers who sign up through

March should not face the financial penalty that was scheduled to start in

mid-February. Hagan wants to extend enrollment through May 31 and delay the penalty until after that date, too.” [Associated Press, 10/24/13]

Hagan Called Obamacare Exchange Website Glitches

“Unacceptable,” And Said She Was “Frustrated On...Behalf

Of The Constituents In North Carolina” Because “We’ve Got To Have These Exchanges Working.” “United States Sen. Kay

Hagan of North Carolina said the computer glitches keeping many Americans from signing up for the new healthcare offerings are ‘unacceptable,’ as she gathered with a small group of business

leaders at the Charlotte Chamber’s uptown office Wednesday morning. Hagan, a Democrat, was in town to announce a ‘Hire a Hero’ bill, one that would make permanent a set of expiring tax

incentives that encourage business owners to hire veterans. ‘I am frustrated on...behalf of the constituents in North Carolina,’ Hagan said. ‘We’ve got to have these exchanges working. We’ve got to have the website open, so that individuals can read what’s

out there for them, look at the cost, and sign up and get the care they so ably deserve.’ She also assured that President Barack Obama and his staff were working hard to get the issues resolved.” [Charlotte Observer, 10/23/13]

Hagan Was “Lobbying The Obama Administration To

Make Concessions In Light Of The Glitches Still Affecting

The Federal Health Insurance Marketplace And HealthCare.gov.” [Washington Post, Post Politics, 10/24/13]

HAGAN CO-SPONSORED A BILL TO ENSURE NORTH

CAROLINIANS CAN KEEP THEIR HEALTH INSURANCE PLANS

Hagan Signed On To Legislation To Ensure Americans Can Keep Their Insurance Plans, Saying “I Have Said That There Will Need To

Be Commonsense Fixes Made To This Law.” “In response to an earlier

question, Weiner said Hagan supports U.S. Sen. Mary Landrieu's bill to

modify the grandfather clause of the ACA. That's the part of the bill that led the president, Hagan and others to promise people they could keep their

insurance if they liked it. The idea behind Landrieu's bill is to shrink the

fairly enormous asterisk we now know that promise included. […] Said

Hagan, via email: ‘Ever since we passed the Affordable Care Act, I have

said that there will need to be commonsense fixes made to this law – just as

there is with any law. The vast majority of people who receive insurance outside the individual market will not have to change their plan. But people

were told they would be able to keep their plans if they like them, and I am

supporting the Landrieu bill to keep that promise for those in the individual

market, plain and simple. For those whose current plans are ending, I hope

they will explore all their options in the exchanges where they can get better coverage and many will qualify for tax credits. My efforts to make

reasonable updates to this law have always been aimed at making it work

better so that it best serves the people of North Carolina.’” [Greensboro

News & Record, Travis Fain, 11/7/13]

HAGAN IS LEADING THE CHARGE FOR AN INDEPENDENT INVESTIGATION TO FIGURE OUT WHAT WENT WRONG WITH

THE OBAMACARE WEBSITE AND HOLD PEOPLE ACCOUNTABLE

Hagan Proposed Writing A Letter To The Government Accountability

Office Asking For “A Complete, Thorough Investigation To Determine The Causes Of The Design And Implementation Failures Of

HealthCare.gov.” “Senators will ask the Obama administration for a full

investigation into the bungled launch of HealthCare.gov, according to a

letter being circulated by Sen. Kay Hagan. The North Carolina Democrat is

collecting signatures this week for a letter to Government Accountability Office Comptroller General Gene Dodaro and Health and Human Services

Inspector General Daniel Levinson asking for ‘a complete, thorough

investigation to determine the causes of the design and implementation

failures of HealthCare.gov.’ ‘These problems are simply unacceptable, and

Americans deserve answers and swift solutions. Taxpayers are owed a full and transparent accounting of how the vendors contracted to build the site

failed to launch it successfully,’ a draft of the letter reads. Hagan will ask

watchdogs at GAO and HHS to report to Congress how much the

construction of HealthCare.gov was supposed to cost and how much it will

end up costing. She’s also seeking to determine the size of contracts,

whether contractors were paid for unsatisfactory work and how much more is currently being spent to fix the website. The administration has told

Senate Democrats the website will be functioning as intended by the end of

November. The letter also asks why it took more than a year after the

Affordable Care Act was signed into law to award the primary

HealthCare.gov contract and why the contract was opened to only a limited pool of bidders.” [Politico, 11/11/13; Letter to GAO, November 2013]

Hagan’s Letter: “These Problems Are Simply

Unacceptable, And Americans Deserve Answers And Swift

Solutions. Taxpayers Are Owed A Full And Transparent

Accounting Of How The Vendors Contracted To Build The

Site Failed To Launch It Successfully.” [Politico, 11/11/13]

HAGAN HAS FOUGHT TO REPEAL THE MEDICAL DEVICE EXCISE

TAX

Hagan “Disagreed With The President’s Position” On The Medical Device Excise Tax, Saying: “My Number One Priority Is Getting North

Carolinians Back To Work, And I Am Concerned About The Effects

Of The Planned Medical Device Tax In North Carolina.” “United States

Senator Kay Hagan (D-NC) has recently stated that she is opposed to the

immediate implementation of the new tax on biomedical devices that will start on January 1st, 2013 under Obamacare health care plan. The senator is

urging a delay in the tax on medical devices… Today, President Obama

said in an interview that he would not support delaying the tax because he

felt the tax would actually help biomedical device companies. ‘It’s going to

be great for business and they’re doing really well right now and they’re going to get 30 million more customers as a consequence, so this additional

tax essentially comes back to them as new customers,’ said the President in

an interview with WCCO. In statements to the media, Senator Hagan

essentially disagreed with the President’s position and also said that she

opposed the tax when it was first proposed. ‘My number one priority is

getting North Carolinians back to work, and I am concerned about the effects of the planned medical device tax in North Carolina,’ said Hagan.

‘The medical device industry is critical to North Carolina’s dynamic

bioscience economy and when the tax was first proposed, I opposed its

adoption. Democrats and Republicans must now work together to find a

solution that does not harm our economic recovery.’” [Raleigh Telegram, 12/14/12]

October 2009: Hagan Signed A Letter Expressing

Concern About The Medical Device Excise Tax. [Letter To Majority Leader Reid, Chairman Baucus, And Chairman Harkin, 10/8/09]

December 2012: Hagan Signed A Letter To Majority

Leader Reid Encouraging Him To Delay The Implementation

Of The Medical Device Excise Tax Before January 2013. [Congressional Quarterly News, 12/10/12]

March 2013: Hagan Voted To Repeal The Medical Device

Excise Tax. [Amendment No. 297 to S. Con. Res. 8, Budget Resolution, 2014, Vote 47, passed 79-20, 3/21/13]

September 2013: Hagan Co-Sponsored A Bill To Repeal

The Medical Device Excise Tax. [S. 232, Medical Device Access and Innovation Protection Act, co-sponsored 9/23/13]

HAGAN ENDORSED REPEALING THE INDEPENDENT PAYMENT ADVISORY BOARD

Hagan Supported Repealing The Independent Payment Advisory

Board, Which “Is Charged With Recommending Ways To Cut Medicare Costs If They Exceed A Certain Threshold.” “A national

health care association is sending mailers to thousands of North Carolina

residents touting Sen. Kay Hagan's support for a measure to repeal a

provision in the federal health care law. […] Spokesman Mike Freeman

said the council wanted to recognize Hagan for supporting a bill to repeal the Independent Payment Advisory Board. The board of unelected

representatives is charged with recommending ways to cut Medicare costs if

they exceed a certain threshold, he said. Those recommendations would

likely include cuts to reimbursements received by the association's

members. Hagan, who is seeking re-election in 2014, is one of two

Democrats to co-sponsor a bill repealing the board.” [Raleigh News & Observer, Under the Dome, 9/18/13]

Hagan Spokesperson: Senator Hagan Supports Repealing

IPAB Because Patients, Doctors And Hospitals “Are

Concerned IPAB Could Result In Larger Reductions In

Medicare Spending Than Anticipated” And “As With Any

Law, If There Is A Way To Improve It, Senator Hagan Is Open To It.” “Hagan spokeswoman Sadie Weiner said Hagan supports the federal health care law but continues to work to refine it. ‘Senator Hagan supports repealing IPAB because doing

so would not undermine the Affordable Care Act's primary mission of expanding health insurance coverage and lowering costs, and because she's heard from patients, doctors and hospitals that they are concerned IPAB could result in larger reductions in

Medicare spending than anticipated,’ she wrote in a reply to questions. ‘As with any law, if there is a way to improve it, Senator Hagan is open to it.’” [Raleigh News & Observer, Under the Dome, 9/18/13]

HAGAN HELPED REPEAL A BURDENSOME REPORTING REQUIREMENT IN HEALTH CARE REFORM

Hagan Supported The Repeal Of A Provision In The Health Care Law

Requiring Businesses To File A 1099 Form When They Make Payments For Goods Of More Than $600. “The U.S. Senate voted Tuesday to repeal

a health-care reform provision that requires businesses to file a 1099 form

with the Internal Revenue Service any time they spend more than $600 a

year with another business. By an 87-12 vote, the Senate passed legislation

repealing the 1099 provision, which was included in health-care reform as a

way to help pay for that measure. Third-party reporting of income makes businesses less likely to try to hide income from the IRS, supporters of the

provision say. Businesses already are required to file 1099s for payments of

more than $600 to unincorporated service providers. The health-care reform

bill expanded that requirement in 2012 to goods as well as services, and

applied it to all types of vendors. Small businesses contend the expansion would create a paperwork nightmare, forcing many of them to file hundreds

of 1099 forms instead of just a few. […] Sen. Kay Hagan (D-N.C.) was

among those voting in favor of repeal.’” [Charlotte Business Journal,

4/5/11]

Hagan Said 1099 Repeal “Will Allow The Nation’s Small-

Business Owners To Spend Less Time On Government Red

Tape, And More Time Expanding Their Businesses And

Adding Jobs” And Called The Requirement “Unworkable.” “The U.S. Senate voted Tuesday to repeal a health-care reform provision that requires businesses to file a 1099 form with the

Internal Revenue Service any time they spend more than $600 a year with another business. […] Sen. Kay Hagan (D-N.C.) was among those voting in favor of repeal. ‘This bill will allow the nation’s small-business owners to spend less time on government

red tape, and more time expanding their businesses and adding jobs,’ said Hagan, a member of the Senate Small Business Committee. ‘When I travel across North Carolina, small-business owners tell me time and again this reporting requirement is

unworkable. I listened, and today is a real win for our small businesses, which are the key to a full economic recovery.’” [Charlotte Business Journal, 4/5/11]

REPUBLICANS WANT TO GO BACK TO A TIME WHEN

HEALTH INSURANCE COMPANIES COULD DENY NORTH

CAROLINIANS COVERAGE IF THEY HAVE A PRE-

EXISTING CONDITION OR CHARGE WOMEN MORE

THAN MEN FOR INSURANCE

Under Health Care Reform, Starting In 2014 Americans With Pre-Existing Conditions Will No Longer Be Denied Health Insurance.

“Today, insurers can no longer deny coverage to children because of a pre-

existing condition, like asthma or diabetes, under the health care law. And

beginning in 2014, health insurers will no longer be able to charge more or deny coverage to anyone because of a pre-existing condition.” [HHS, North

Carolina, accessed 8/15/13]

There Are As Many As 4 Million Non-Elderly North

Carolinians With A Pre-Existing Health Condition. “As many

as 4,099,922 non-elderly North Carolinians have some type of pre-existing health condition, including 539,092 children.” [HHS, North Carolina, accessed 8/15/13]

o Of The 4 Million North Carolinians With Pre -Existing

Conditions, 500,000 Are Children Who Can Already No Longer Be Denied Health Insurance Due To Their Conditions. “As many

as 4,099,922 non-elderly North Carolinians have some type of pre-existing health condition, including 539,092 children. Today, insurers can no longer deny coverage to children because of a pre-existing condition, like asthma or diabetes, under the health care law. And

beginning in 2014, health insurers will no longer be able to charge more or deny coverage to anyone because of a pre-existing condition.” [HHS, North Carolina, accessed 8/15/13]

Already, More Than 5,000 North Carolinians With A Pre -

Existing Condition Have Obtained Coverage Under A Temporary Program. “As many as 4,099,922 non-elderly North

Carolinians have some type of pre-existing health condition, including 539,092 children. Today, insurers can no longer deny coverage to children because of a pre-existing condition, like asthma or diabetes, under the health care law. And beginning in

2014, health insurers will no longer be able to charge more or deny coverage to anyone because of a pre-existing condition. The health care law also established a temporary health insurance program for individuals who were denied health insurance

coverage because of a pre-existing condition. 5,866 North Carolinians with pre-existing conditions have gained coverage through the Pre-Existing Condition Insurance Plan since the program began.” [HHS, North Carolina, accessed 8/15/13]

Under Health Care Reform, Insurance Companies Will No Longer Be Able To Charge Women more Than Men For Coverage. “The health

care law will engineer a complete makeover of individual coverage next

year through a series of revisions that are designed to make newly issued

policies more generous, accessible, affordable and transparent. The new

rules guarantee access to individual coverage regardless of current or past

health problems, require each plan to cover at least 60 percent of costs and

limit annual out-of-pocket costs such as co-payments and deductibles. They

also require beefed-up mandatory benefits, limit the amount that older plan members may be charged, outlaw annual benefit-spending limits and no

longer allow insurers to vary rates based on a person’s gender, occupation

or medical claims history.” [Raleigh News & Observer, 6/17/13]

11/19/13: “Americans For

Prosperity, The Political Group Backed By The Billionaire

Brothers Charles And David

Koch” Announced An Attack Ad

Against Hagan. [New York Times,

11/19/13]

THE KOCH BROTHERS’ AMERICANS FOR PROSPERITY

IS A SHADOWY SPECIAL INTEREST GROUP THAT DOES

NOT DISCLOSE DONORS, AND IT WAS JUST REVEALED

THEY SPENT A RECORD $122 MILLION IN 2012

Americans For Prosperity Does Not Disclose Its Donors. “Non-profit organizations such as Americans for Prosperity do not have to report

contribution information, including the identity of donors, to the Federal

Election Commission.” [New York Times, accessed 9/21/13]

Americans For Prosperity “Spent A Staggering $122 Million Last Year” Which Was “More Than The Total Amount The Group Had

Previously Spent From Its Formation In 2004 Through 2011.”

“Americans for Prosperity — the main political arm of billionaire

industrialist brothers Charles and David Koch — spent a staggering $122

million last year as it unsuccessfully attempted to defeat President Barack Obama and congressional Democrats, according to a Center for Public

Integrity review of documents filed in Colorado. That's more than the total

amount the group had previously spent from its formation in 2004 through

2011. During its previous eight years of existence, Americans for Prosperity

spent a combined $72 million, a review of Internal Revenue Service records

indicates. The group’s unprecedented spending in 2012 is a fivefold increase over 2010, a year when a surge of conservative voters helped

Republicans regain control of the U.S. House of Representatives. And it

represents a more than 1,600 percent increase above the $7 million it spent

in 2008, when voters first elected Obama to the White House.” [Center for

Public Integrity, 11/14/13]

THE KOCH BROTHERS ARE THE KINGS OF SECRET

MONEY—JUST LAST MONTH, “SECRETIVE” POLITICAL

GROUPS LINKED TO THE KOCH BROTHERS WERE

FINED A “RECORD” $1 MILLION FOR VIOLATING

CAMPAIGN FINANCE LAWS…

New Yorker: “A Secretive Political Group Linked To The Billionaire

Conservative Activists Charles And David Koch Has Agreed To Pay A Record Fine For Violating California’s Laws Requiring The Disclosure

Of Campaign Donations.” [New Yorker, 10/25/13]

October 2013: “Two Groups That Are Part Of A Conservative Political

Network Maintained By Billionaire Industrialists Charles And David Koch Have Agreed To A Record $1 Million Civil Settlement With The

California Fair Political Practices Commission, The Largest Campaign

Fine In State History.” [Washington Post, 10/24/13]

The Koch-Backed Groups Were Also Required To Return

$15 Million In Donations That Were Improperly Reported. [Washington Post, 10/24/13]

Washington Post Editorial: The California Investigation Offered “A

Rare Glimpse Of The Dark Money Coursing Through U.S. Politics”

And “The Network Of Transfers — Millions Of Dollars Being Handed Off In The Shadows — Should Spark Renewed Efforts To Expose Dark

Money To Sunlight.” [Editorial, Washington Post, 10/27/13]

Fair Political Practices Commission Chair: “This Is A

Nationwide Issue. These Groups Exploit Loopholes In State

Law To Undermine The Clear Purpose Of The Law.” [Washington Post, 10/24/13]

Fair Political Practices Commission Chair: “This Case

Highlights The Nationwide Scourge Of Dark Money

Nonprofit Networks Hiding The Identities Of Their

Contributors.” [California Fair Political Practices Commission, Press Release, 10/24/13]

…AND RECENTLY, A NEW SECRETIVE KOCH BROTHERS

GROUP WAS REVEALED, WHICH SPENT $250 MILLION IN

2012 (MORE THAN ALMOST ANY OTHER CONSERVATIVE

GROUP) WITHOUT ANYONE’S KNOWLEDGE

Politico Headline: “Exclusive: The Koch Brothers' Secret Bank.”

[Politico, 9/13/13]

September 2013: A New Mysterious Koch Brothers Entity, “Whose Existence Until Now Was Unknown To Almost Everyone In Politics”

Was Revealed – Freedom Partners Raised And Spent About $250

Million In 2012. [Politico, 9/13/13]

“A Totally Unknown Group Was The Largest Sugar

Daddy For Conservative Groups In The Last Election,

Second In Total Spending Only To Karl Rove’s American

Crossroads And Crossroads GPS, Which Together Spent About $300 Million.” [Politico, 9/13/13]

Freedom Partners “Is Organized Under The Same Section Of The Tax

Code As A Trade Association, A 501(c)6, Which Allows The Group To

Conceal Its Donors.” [Politico, 9/13/13]

THE KOCH BROTHERS HELP FUND ALEC, A SPECIAL

INTEREST-FUNDED GROUP THAT PUSHES BILLS TO

BENEFIT ITS CORPORATE MEMBERS…

ALEC Is Funded By The Koch Brothers, Who Have Likely Given The

Group More Than $1 Million To Push Their Agenda. [The Nation, 7/12/11]

ALEC Exists To Bring Corporations And State Legislators Together To Write “Model Bills” – Pieces Of Legislations That Corporations

Would Like TO Become Law, Which Is Often Favored Tax Treatment Or Reduced Regulations. [Bloomberg BusinessWeek, 5/3/12]

Edwin Bender Of The National Institute On Money In State Politics: “Corporations Can Implement Their Agendas Very

Effectively Using ALEC.” [CNN Money, 1/10/11]

ALEC Is “Funded Mostly By Corporations And Conservative Foundations” And “Exists To Bring Business-Friendly State

Lawmakers Together With Lobbyists For Corporations.” [CNN

Money, 1/10/11]

ALEC Is Organized As A Charity, “Despite The Intimate Involvement Of Lobbyists.” [CNN Money, 1/10/11]

ALEC’s Organization As A Charity Means That

Corporate Members Can Deduct Their Yearly Dues, And

ALEC Doesn’t Have TO Disclose The Names Of Legislators And Executives Who Attend Meetings. [Bloomberg

BusinessWeek, 5/3/12]

Public Interest Groups Have Criticized ALEC For Refusing To Publish

The Names Of Its Legislative Members And Corporate Sponsors, Or The Names Of The Individuals Representing Corporations On ALEC

Committees. [Center for Media and Democracy, PR Watch, Press Release,

3/15/13]

…WHICH HAS BEEN ACTIVE IN THE NORTH CAROLINA

LEGISLATURE UNDER TILLIS, WHO HAS SHOWCASED

HIS CLOSE TIES TO THE GROUP

Charlotte Observer: “ALEC’s Influence Has Shown Up In A Variety Of Bills” Under The Leadership Of Tillis, Including Voter ID, School

Vouchers, And Rejecting Health Care Reform. [Charlotte Observer,

5/30/13]

At Least Two Dozen Bills Introduced In North Carolina

Legislative Contain Language Identical to ALEC Template Legislation. [Winston-Salem Journal, 5/6/13]

Tillis Said ALEC Is a Great “Collaboration Between Legislators and Businesses.” [Winston-Salem Journal, 5/6/13]

2011: Tillis Won ALEC’s “Legislator Of The Year”

Award. [WRAL, @NCCapitol, 5/2/13]

2013: Tillis Joined The ALEC Board Of Directors. [Raleigh News & Observer, Under the Dome, 3/14/13]

AMERICANS FOR PROSPERITY AND THE KOCH

BROTHERS ARE AGAINST THE BEST INTERESTS OF

NORTH CAROLINA FAMILIES--THEY WANT TO

PRIVATIZE SOCIAL SECURITY AND END MEDICARE AS

WE KNOW IT, AND THEY OPPOSED EXPANDING

CHILDREN’S HEALTH CARE AND ENDING TAX BREAKS

FOR BIG OIL COMPANIES

Americans For Prosperity Foundation Advocated For Privatizing Social Security. [Americans for Prosperity Foundation, 6/6/05]

Americans For Prosperity: “Overall, AFP Supports The Ryan Plan.” [Americans For Prosperity, 3/14/13]

The Ryan Plan “Would End Traditional Medicare By

Capping Spending And Offer Vouchers To Buy Private Insurance.” [Bloomberg, 8/13/12]

The Ryan Plan “Would Essentially End Medicare.” [Wall Street Journal, 4/4/11]

Americans For Prosperity Praised President Bush’s Veto Of An Expansion Of The Children’s Health Insurance Program. [Americans

for Prosperity, 10/16/07]

Koch Industries Has Spent Millions Lobbying To Protect Tax Breaks

For Oil And Gas. [Reuters, 4/6/11]

AMERICANS FOR PROSPERITY EVEN RAN ADS IN

NORTH CAROLINA TO PROMOTE THE LEGISLATURE’S

TAX PLAN, WHICH RESULTED IN 80% OF NORTH

CAROLINIANS FACING HIGHER TAXES

May 2013: Americans For Prosperity Ran TV Ads In North Carolina Promoting The Legislature’s Tax Plan, Since “Public Polling And

Anecdotal Interviews Suggest A Skeptical Public Needs A Good Bit Of Convincing.” [Raleigh News & Observer, Under the Dome, 5/29/13]

North Carolina Budget and Tax Center: Compared To 2013 -- When North Carolinians Benefitted From The Earned Income Tax Credit --

Under The Legislature’s Tax Plan The Bottom 80% Of Taxpayers

Would See Higher Taxes. [Budget & Tax Center, Final Tax Plan Falls Short Of True Reform, August 2013]

Under The Legislature’s Tax Plan, “Both Proponents And

Opponents Of The Plan Acknowledge That The Biggest Breaks Will Go To The Highest Income Earners.” [WRAL, 7/18/13]