THE HILL
Online auction and shopping giant eBay is the latest tech company to
cut ties with the conservative American Legislative Exchange Council
(ALEC).
"After our annual review of eBay Inc's memberships in
trade associations and third party organizations we've decided not to
renew our membership with American Legislative Exchange Council," the
company said in a statement on Friday.
The move comes months after
other major tech companies began an exodus from the group, with some
citing ALEC’s resistance to climate change legislation.Ryan Canney, a
senior campaigner at Forecast the Facts — an environmental action group
that has been pressuring companies to ditch ALEC — called the move “a
major victory.”
“Denying climate change has no place in the modern
economy, and this decision shows the credibility of eBay’s commitment
to climate change,” he added.
The move follows similar decisions from Google, Microsoft, Facebook,
Yelp and other companies, which have come under pressure to ditch the
organization over its conservative stance.
ALEC offers draft
legislation for state lawmakers and lobbies them to support conservative
and market-friendly policies, which has earned it wide support from
many businesses.
Those same policies have also earned it ire, however, especially from green groups pushing for new environmental protections.
EBay
declined to say why it was leaving the group, but executive director
John Donahoe has previously opposed its stance on climate change and
other issues.
“We only are with ALEC on one issue: Internet,”
Donahoe told activists earlier this year. “So, on climate change and
other things, we are not with them. We’re with many other organizations —
so, it’s that one small issue."
The recent tech exodus was prompted by Google, after executive chairman Eric Schmidt accused the company of “literally lying” about climate change.
“The
facts of climate change are not in question anymore,” he said during an
interview on NPR in September. "And so we should not be aligned with
such people.”
Now that eBay has left the organization, Forecast
the Facts said that it was going to target AT&T, Verizon, FedEx and
UPS next to leave the organization.
"In the simple version, it would be like with your own bank account,
you are transferring money from your savings account to your checking
account," Duane Goossen, former Republican state legislator and state
budget director who now blogs independently, told TPM in a phone interview on Friday.
The Kansas Health Institute first outlined
what was happening in a story last week. They noted that Kansas Budget
Director Shawn Sullivan didn't credit the federal law when explaining
why the state would be able to use that money to close the gap.
"The additional revenue from the rebates is the result of
higher-than-expected pharmacy utilization among the Kansas Medicaid
population and better pharmacy program administration by the MCOs in the
state,” Sullivan said, per KHI.
When contacted by the news agency, a state health department
spokesperson initially told reporter Andy Marso that Obamacare "doesn't
have a role" in the $55 million that will help save the state's
finances. But the spokesperson later corrected themselves, saying they
"had gotten incorrect information about the ACA's role in the pharmacy
rebate program."
The rebate program is complicated, but here is the gist, as it was
explained to TPM on Friday by George Washington University professor
Brian Bauen. Under the program, pharmaceutical companies pay rebates to
states and to the federal government, based on a percentage of their
sales to the Medicaid program that year.
What the ACA did was allow Medicaid managed care (which is different
than traditional fee-for-service) to participate in the drug rebate
program. Kansas has recently reformed its Medicaid program to include
significantly more managed care, though a health department spokesperson
told TPM that the reforms had not been made because of the federal
health care law.
Obamacare also increased the rebate rates, from 15.1 percent of the
average manufacturer price for most brand-name drugs to 23.1 percent,
and from 11 percent to 13 percent for generic drugs. The exact impact
can be hard to suss out, but according to Bauen's analysis of federal
data, Kansas saw an increase in rebates from $60 million in 2009 to $90
million in 2012.
So while Brownback's administration seems to want to credit more drug
purchases and its own Medicaid reforms for the revenue that it is now
using to fill its budget hole, Obamacare would also have played a role,
as the health department spokesperson eventually acknowledged to KHI.
"Oh yeah, they definitely are saving money," Bauen said. The ACA "would have increased the revenue from rebates."
There are no legal restrictions for what states can do with the
Medicaid rebate money, Bauen said. According to Goossen, it has
historically been used to help pay for the state's Medicaid program. But
desperate times, desperate measures.