Obamacare Causes a $1.5 Billion Flop in Chicago

Blue Cross parent lost $1.5 billion on individual health plans last year

ChicagoTribune: Year 2 of the Affordable Care Act was another financial flop for the Chicago-based parent of Blue Cross and Blue Shield of Illinois but hints of a turnaround are emerging.

Health Care Service Corp.’s financial losses in its individual business, which includes ACA plans, worsened in 2015. The company, which owns Blue Cross affiliates in Illinois and four other states, said it lost $1.5 billion in its individual business, up from $767 million in 2014, the first year of the health law’s state exchanges for buying coverage.

In anticipation of ACA-related losses in 2015, HCSC set aside nearly $400 million in 2014 to boost reserves to $680.9 million. The company spent $657.3 million of those reserves to cover the medical expenses associated with ACA plans in 2015.

HCSC is the latest large insurer to report losses on 2015 ACA business, a troubling sign for the state exchanges that are the heart of President Barack Obama’s health care overhaul. The far-reaching legislation has increased access to insurance coverage by expanding Medicaid and providing tax credits to subsidize the cost of insurance. Though the law has brought new customers to many insurers, much of that growth has been unprofitable, reflecting higher-than-expected medical expenses, regulatory challenges and unexpected shortfalls in federal risk-sharing programs.

UnitedHealthcare said it had losses of about $475 million on its 2015 ACA business. Aetna didn’t break out the loss on its individual health plans but said the operating losses on that line of business were 3 to 4 percent of the sales.

As a result of the losses, some insurers have considered withdrawing from the state marketplaces. Any exodus would threaten the stability of exchanges, making the online marketplaces less attractive to consumers.

“2015 was not a good year as far as the ACA went,” said Stephen Zaharuk, senior vice president at Moody’s Investors Service, who covers the health insurance industry. “Insurers had no idea what to expect.”

Still, no one expected the rollout of some of the biggest reforms in health care to be smooth. The exchanges are a new way to sell health plans to a population that largely was uninsured. Moreover, the law forbids insurers from using consumers’ medical history to set prices. Insurers were essentially groping in the dark.

But with two years of experience under their belts, insurers may be on more secure footing. HCSC, for one, didn’t book a reserve for potential 2016 losses on ACA plans, said Carl McDonald, a divisional senior vice president at the company. Zaharuk said that’s a good sign the company’s individual business may break even this year.

But HCSC officials are not so optimistic that the ACA plans will be profitable in 2016. Company spokesman Greg Thompson said in an email, “Our not booking a (reserve for ACA losses) for 2016 does not indicate nor imply an anticipated level of profitability for the year.”

Despite problems with its ACA-related business, HCSC narrowed its overall loss in 2015, according to a financial statement filed with the National Association of Insurance Commissioners. The filing is primarily an accounting of its fully insured lines of business.

The company reported a loss of $65.8 million, down from $281.9 million in 2014, reflecting higher earnings from its group health plans and an increase in investment income. Premium revenue rose 12.5 percent to $31.2 billion.

HCSC is among the biggest players in the individual market, with 1.64 million members at the end of last year, an increase of 3.4 percent, according to the filing. Nearly one-third of its enrollment is in Illinois, where Blue Cross sold roughly 80 percent of all 2015 individual policies in the state.

HCSC doesn’t disclose how much of its individual enrollment came from ACA plans sold on and off the exchanges. The individual market also includes policyholders who were allowed to keep the plans they had before the health law was implemented through 2017. Insurers blame that last-minute change by the Obama administration for keeping healthier people out of the exchanges.

When the exchanges launched, HCSC’s Blue Cross plans offered some of the lowest-priced policies and largest provider networks. The strategy was to provide cost-effective health care access, reflecting the company’s status as a not-for-profit, customer-owned insurer, analysts said.

However, medical costs and customers’ use of health care services on ACA-related plans were higher than anticipated. In 2014, HCSC’s key medical-loss ratio, which measures the share of premiums used to pay patient medical costs, rose to 86.5 percent, from 85 percent. Last year, the ratio jumped to 90.4 percent, according to the annual statement.

To manage the risk, HCSC followed in the footsteps of its for-profit competitors and made significant changes last year that were not consumer friendly.

The company raised 2016 premiums and redesigned policies to shift more costs to consumers. In Illinois and Texas, its two largest markets, HCSC eliminated its popular PPO plans that were more expensive but had the largest networks of hospitals and doctors. The decision sent Blue Cross customers scrambling to find other plans on the exchanges that included their doctors.

The company even took the hard line of walking away from business. In New Mexico, the company sought a rate increase averaging 51.6 percent, after it said it lost $19.2 million in 2014 on its individual business in the state. New Mexico insurance regulators rejected the request but were willing to approve a lower increase, according to published reports. Instead, HCSC pulled out of the New Mexico exchange.

The company also is cutting expenses. Thompson confirmed that HCSC has laid off employees in its information-technology department but declined to say how many were let go. Last month, the company eliminated commissions to independent brokers in Illinois, Texas and Oklahoma on sales of individual plans that take effect April 1 or later.

After eliminating commissions in Illinois, Blue Cross said it remains committed to “expanding access to quality health care to as many people as possible.” The changes are necessary to continue offering “sustainable” health plan options to members, the company said.

Despite signs of strain, the Obama administration says the exchanges are getting stronger. There were many new customers among the 12.7 million people who chose plans during open enrollment for 2016. In Illinois, enrollment grew nearly 12 percent to about 388,000.

Still, the administration has tweaked some regulations to benefit insurers. It placed a one-year moratorium for 2017 on the annual tax insurers pay, which is generally passed along to customers. The change will save some insurers hundreds of millions of dollars. For 2016, HCSC expects to pay a fee of $538.7 million.

The administration also has tightened some of the eligibility rules for people who sign up for insurance after the enrollment deadlines. Insurers have complained that people are waiting until they are sick to buy plans and then dropping coverage after their health problems are resolved, driving up costs and premiums.

 

Iran’s ICBM on Launch Pad

Iran preparing to conduct new space launch this weekend

FNC: Iran is preparing to launch a new long-range rocket into outer space as soon as this weekend, U.S. officials told Fox News.

The missile is known as a Simorgh and officials are watching the missile on the launch pad as it is being fueled at an undisclosed location inside Iran.

Officials told Fox they have not seen this specific type of rocket launched in the past.

Any test of a new ballistic missile would be an apparent violation of a UN resolution forbidding Iran from working on its rocket program.

A Simorgh rocket is designed to carry a satellite into space.  Officials are concerned that any space launch uses the same technology needed to launch a nuclear-tipped intercontinental ballistic missile or ICBM.

This week, Iran launched multiple ballistic missiles on one day for the first time since 2012, according to defense officials.

UN Security Council Resolution 2231 says Iran is “not to undertake any activity related to ballistic missiles designed to be capable of delivering nuclear weapons, including launches using such ballistic missile technology.”

Thursday, a senior Revolutionary Guard commander said that Iran’s ballistic missile program will continue to move forward, despite threats of international sanctions.

The U.S. State Department says the launches this week were not in violation of the nuclear deal, but “inconsistent” with UN Security Council Resolution 2231, which was tied to the nuclear deal when it went into effect.

Secretary of State John Kerry raised concerns about Iran’s recent missile launches in a phone call with his Iranian counterpart Thursday, including reports that Iran scribbled “Israel must be wiped off the Earth” according to State Department spokesman John Kirby.

Both short and medium-range ballistic missiles tested recently by Iran are capable of carrying nuclear warheads.

“Iran should face sanctions for these activities,” Hillary Clinton said Wednesday.

“The latest missiles launches are further evidence of Iran’s aggression and of how its leaders intend to use the money it is receiving under the Obama nuclear deal.” said House Armed Services Chairman Mac Thornberry, R-Texas.

Kirby said earlier this week that reports of Iran’s recent ballistic missile launches would be brought to the attention of the UN Security Council.

The launches would not violate the landmark nuclear deal implemented in January, according to Kirby.

Vice President Joseph Biden, while meeting with Israeli Prime Minister Netanyahu Wednesday did not acknowledge the missile launch directly, but he issued a strong warning to the Iranians.

“A nuclear-armed Iran is an absolutely unacceptable threat to Israel, to the region and the United States. And I want to reiterate which I know people still doubt here: if in fact they break the deal, we will act,” he said.

Despite reports of Iran repeatedly violating the UN resolution by launching ballistic missiles, the State Department is confident additional sanctions could be called upon unilaterally if needed.

“We always have those tools available to us,” said Kirby this week.

In January, the Obama administration sanctioned nearly a dozen individuals and companies tied to Iran’s ballistic missile program.

Appearing in front of the Senate Armed Services committee in Washington, the outgoing head of U.S. Central Command, Gen. Lloyd Austin said Tuesday, “Some of the behavior we’ve seen from Iran of late is certainly not the behavior you’d expect from a nation that wants to be taken seriously.”

Anthony Cordesman of the Center for Strategic & International Studies says the Obama administration’s policy toward Iran is muddled.

“I don’t think we’ve sent clear signals. We seem to be dealing with the nuclear agreement as if it’s some kind of legacy. It won’t be a legacy if Iran acts out in other ways,” he said.

Israel has been sounding the alarm on this since at least 2010:

Israeli Missile Experts: Simorgh Sets Iran on Path to ICBM

TEL AVIV, Israel — The recent unveiling of a large Iranian satellite launcher with the potential for doubling as an ICBM has injected additional anxiety into rapidly escalating international tension over Tehran’s nuclear weapons program. The new Simorgh is a two-stage liquid-fueled booster with an estimated takeoff weight of 87 tons, nearly four times that of the solid-fueled Sejil and double the weight of the Safir vehicle used to deliver Iran’s first satellite into space. Iran unveiled a full-scale mock-up of the system in Feb. 3 National Space Day ceremonies broadcast live on state-run television. Iranian President Mahmoud Ahmadinejad and Defense Minister Ahmad Vahidi presided over the event, which also featured the launch of the Kavoshgar-3 (Explorer) rocket and its live payload — a turtle, a rat and worms — into space. No first launch date was announced for the Simorgh, but U.S. and Israeli experts say that if Iranian claims are true, and the engine is already developed, it could be readied as a headline event for next February’s National Space Day. In February 2009, Iran marked the occasion with the Safir-2’s successful deployment of the Omid research satellite into low Earth orbit.  More here.

Trump’s Chicago Rally that Wasn’t

Enter the George Soros money and influence as well as other groups as noted in this DO NOT MISS LINK. It is confirmed that Bill Ayers was there and the commie call to action received 10,000 RSVP’s.

MoveOn’s statement on the cancellation of the Trump rally in Chicago.

****** There was a time when a financial relationship existing between Trump and Soros, but Soros later successfully concocted a plan of economic and social engineering warfare on America. March 11, 2016 in Chicago was a display of MoveOn’s efforts to interject in the political process and free speech to great affect.
Media preview

Sanders released three television commercials Friday in Illinois. One included Cook County Commissioner Jesus “Chuy” Garcia, who lost Chicago’s mayoral race last year, but forced a runoff contest in Mayor Rahm Emanuel’s re-election bid. Emanual, a former White House aide, endorsed Hillary Clinton.

Sanders blasted Emanuel for his controversial push to close dozens of Chicago schools in 2013 over poor performance. Sanders said, “I want to thank Rahm Emanuel for not endorsing me.”

___

10 p.m.

Ted Cruz is responding to Donald Trump’s cancellation of his Chicago rally, saying the billionaire has created “an environment that encourages this sort of nasty discourse.”

Cruz spoke to reporters at a suburban Chicago Republican dinner about 30 miles away from where his GOP presidential rival was forced to cancel a rally due to safety concerns.

The Texas senator is calling it a “sad day.”

He says, “Political discourse should occur in this country without the threat of violence, without anger and rage and hatred directed at each other.”

Cruz says blame for the events in downtown Chicago rests with the protesters but “in any campaign responsibility starts at the top.”

Cruz says, “When the candidate urges supporters to engage in physical violence, to punch people in the face, the predictable consequence of that is that is escalates. Today is unlikely to be the last such incidence.”

___

9:25 p.m.

A spokesman for the Chicago Police Department says the agency never recommended that Republican presidential candidate Donald Trump cancel his campaign rally in the city.

CPD spokesman Anthony Guglielmi tells The Associated Press that the department never told the Trump campaign there was a security threat at the University of Illinois at Chicago venue. He said the department had sufficient manpower on the scene to handle any situation.

Guglielmi says the university’s police department also did not recommend that Trump call off the event. He says the decision was made “independently” by the campaign.

Trump cancelled the rally in Chicago due to what organizers said were safety concerns after protesters packed into the arena where it was to take place.

Trump afterward told MSNBC in a telephone interview that he canceled the event because he didn’t “want to see people hurt or worse.” He said he thinks he “did the right thing.”

Guglielmi says Trump never arrived at the Chicago venue.

___

8:25 p.m.

Republican presidential candidate Donald Trump says he didn’t “want to see people hurt or worse” at his campaign rally in Chicago, so he decided to postpone the event.

Trump tells MSNBC in a telephone interview that, “I think we did the right thing.”

The Friday night rally at the University of Illinois at Chicago was called off due to security concerns. Supporters and protesters alike had packed into a campus arena, and for the first time during the billionaire businessman’s White House run they appeared to be of equal number.

Trump attributed the protests not to objections to his policies, but to general malaise in the United States — particularly among people upset they haven’t been able to find jobs.

“It’s anger in the country,” he said. “I don’t think it’s directed at me. Just what’s been going on for years.”

But many of the protesters at the event said they were there to stop Trump from speaking. Among them was Jermaine Hodge, a 37-year-old lifelong Chicago resident who owns a trucking company.

He says: “Our country is not going to make it being divided by the views of Donald Trump. Our country is divided enough. Donald Trump, he’s preaching hate. He’s preaching division.”

___

8:15 p.m.

Protesters at the rally for Republican presidential candidate Donald Trump rushed the arena floor in jubilant celebration after the announcement that he was calling off the event due to security concerns.

Many jumped up and down, with arms up in the air, shouting “F— Trump!” ”Bernie! Bernie!” and “We stopped Trump!”

Kamran Siddiqui is a 20-year-old student at the University of Illinois at Chicago, where the event was to take place.

He says: “Trump represents everything America is not and everything Chicago is not. We came in here and we wanted to shut this down. Because this is a great city and we don’t want to let that person in here.”

Siddiqui says he’s a supporter of Democratic presidential candidate Bernie Sanders. He says it “feels amazing” to have stopped Trump from speaking at his own rally.

He adds: “Everybody came together. That’s what people can do. Now people got to go out and vote because we have the opportunity to stop Trump.”

___

8:08 p.m.

Protesters whose presence at a Donald Trump campaign rally forced the Republican White House front-runner to call off the event are celebrating their success at keeping him from taking the stage.

As Trump supporters walk through the anti-Trump crowd outside the University of Illinois at Chicago Pavilion, many of the protesters are chanting: “We stopped Trump! We stopped Trump!”

Others are shouting: “Racists, go home! Racists, go home!”

There were no apparent physical confrontations between the two sides as police officers on foot and horseback worked to keep them apart.

___

7:56 p.m.

Donald Trump’s campaign for president has issued a statement about the decision to cancel a rally in Chicago.

It says: “Mr. Trump just arrived in Chicago and after meeting with law enforcement has determined that for the safety of all of the tens of thousands of people that have gathered in and around the arena, tonight’s rally will be postponed to another date. Thank you very much for your attendance and please go in peace.”

___

7:36 p.m.

Republican presidential candidate Donald Trump has cancelled a rally in Chicago, calling off the event due to safety concerns after protesters packed into the arena where it was to take place.

The announcement that Trump would postpone the rally for another day led the crowd inside the University of Illinois at Chicago Pavilion to break out into raucous cheers.

Meanwhile, supporters of the candidate broke out into chants of “We want Trump! We want Trump!”

There was no sign of Trump inside the arena on the college campus, where dozens of UIC faculty and staff had petitioned university administrators to cancel the rally. They cited concerns it would create a “hostile and physically dangerous environment” for students.

___

6:55 p.m.

Donald Trump supporters and protesters alike have packed into an arena on the campus of the University of Illinois at Chicago for an evening rally with the Republican candidate for president.

Many of those who were waiting in line to get into the Friday night event identified themselves as protesters. UIC student G.J. Pryor said he wanted to disrupt Trump’s speech, adding he would only do so if he felt safe.

Some Trump supporters walking toward the arena chanted, “USA! USA!” and “Illegal is illegal.” One demonstrator shouted back, “Racist!”

There’s a heavy police presence outside the rally, with barricades and mounted police keeping most protesters and Trump supporters apart.

Trump supporter Veronica Kowalkowsky says she has no ill will toward the protesters. But the 18-year-old says she has felt their ill will, adding: “I feel a lot of hate. I haven’t said anything bad to anyone.”

___

6:30 p.m.

President Barack Obama is laying into Republicans and their front-runner for the presidential nomination, saying they’ve allowed the race to devolve into “fantasy and schoolyard taunts and selling stuff like it’s the Home Shopping Network.”

At a Democratic fundraiser in Austin, Texas, Obama taunted Donald Trump as “the guy who was sure that I was born in Kenya!”

Obama hasn’t endorsed a Democratic successor and isn’t expected to campaign broadly until the summer. Still, he seemed ready. The president was unscripted and loose in front of the boisterous crowd of young Democratic contributors.

He revived a critique of the GOP he offered earlier in the week, only this time with more bite.

Obama dismissed the idea that he is to blame for the current political climate: “The notion is, Obama drove us crazy. What they really mean is their reaction to me was crazy and now it has gotten out of hand.”

___

4:30 p.m.

Hillary Clinton apologized Friday after gay-rights and AIDS activists assailed her for saying Nancy Reagan helped start a “national conversation” about AIDS in the 1980s. At the time, protesters were struggling to get more federal help in fighting the disease.

Clinton, one of two contenders for the Democratic presidential nomination, made her initial comments in an interview with MSNBC during its coverage of Nancy Reagan’s funeral. After the outcry, she apologized on her Twitter account, saying she “misspoke” about the Reagans’ record on AIDS.

Many activists remain bitter at Ronald Reagan and his administration for what they view as a devastatingly slow response to AIDS. Though initial reports of the disease surfaced in 1981, President Reagan did not make his first public speech about it until 1987.

___

2:42 p.m.

Republican presidential front-runner Donald Trump says he “doesn’t quite get” why some people preferred the more mellow performance he delivered in Thursday’s debate.

The billionaire businessman left his usual barbs and personal insults behind at the debate in Miami. He says he told himself ahead of time he wasn’t going to talk about “Lying Ted,” his nickname for rival Ted Cruz.

But Trump told a rally in St. Louis on Friday that the other Trump is more exciting.

He says: “Last night on the debate — I don’t quite get this — I got these phenomenal reviews, right? Because I was, like, nice. But isn’t the other more like exciting? Don’t we like the other better?”

Trump’s rally was repeatedly interrupted by protesters.

___

2:15 p.m.

Protesters are roiling a Donald Trump rally in St. Louis, repeatedly interrupting the Republican candidate for president as he seeks to speak at a rally ahead of Tuesday’s elections in Missouri and four other states.

Trump says, “these are not the people who made our country great.”

He’s complimenting the police and security officers who are escorting the protesters out of the rally at the city’s Peabody Opera House.

Trump says the media is focusing too much on the protests that interrupt his rallies, and not enough on “the love that’s in these rooms.”

But he adds, “this is more exciting that having a speech.” The billionaire says he’ll still deliver his speech, but it will just take a little bit longer.

___

1:15 p.m.

A large crowd is turning out for a Donald Trump rally in St. Louis, the first public campaign event for the Republican presidential front-runner since one of the billionaire’s supporters was charged with punching a protester at a Wednesday rally.

The line waiting to get into Friday’s lunchtime rally at the city’s Peabody Opera House circled several blocks. Most were turned away — the theater holds just 3,100 people.

Dozens of city police officers stood at various points in the line. Others watched from rooftops of neighboring buildings.

Several protesters marched outside, mostly in an area confined behind a makeshift fence. Some exchanged shouts with Trump supporters.

Trump is seeking support ahead of Missouri’s presidential primary on Tuesday. Rival Ted Cruz is speaking at a rally Saturday in the St. Louis County town of Ballwin. Democratic candidate Hillary Clinton also is holding a St. Louis rally on Saturday.

___

1:00 p.m.

Donald Trump boasts that he can win the Hispanic vote in a general election and next week, he faces his first major test in the winner-take-all primary in Florida, a highly contentious swing state with a large and diverse population of Latino voters.

His tough stance on illegal immigration plays well among Florida’s more conservative Latinos. Many Cuban-Americans, especially, view illegal immigration through the same lens as many of their white Republican peers who see immigration as an achievement, not as a right, that shouldn’t be taken for granted by those who come to America illegally.

For that reason, Trump has surged in the polls ahead of this crucial contest, even as two Cuban-Americans — Florida’s own Sen. Marco Rubio, and Texas Sen. Ted Cruz — look to use their heritage in their favor. For Rubio especially, who has collected only two wins so far — one of them in Puerto Rico — Florida’s all-or-nothing contest could be his campaign’s swan song if he doesn’t win.

___

12:15 p.m.

Republican presidential candidate Ted Cruz hedged on a question about whether former-rival-turned-supporter Carly Fiorina would be on his vice presidential short list if he gets the nomination.

Cruz was joined onstage at a forum in Orlando Friday by Fiorina and Fox News television host Sean Hannity. Fiorina endorsed Cruz this week.

Cruz praised Fiorina but didn’t directly answer a question from Hannity about whether Fiorina would be his pick for a running mate.

Meanwhile, Fiorina said front-runner Donald Trump needs to “man up” and not complain about the number of debates in the presidential primary race.

Trump said after Thursday’s debate that there had been too many debates.

___

12:00 p.m.

Republican presidential candidate Marco Rubio says he hasn’t thought much beyond what happens in Tuesday’s crucial Florida primary.

He says he’s focused on winning the March 15 winner-take-all primary, dismissing several polls in the last week showing him trailing GOP front-runner Donald Trump his home state.

Rubio is predicting “a close election” but says he’s going to win.

Rubio also says he’s not had any talks or meetings with rivals Ted Cruz or John Kasich to team up to defeat GOP front-runner Donald Trump.

He says he’s “not open” to any such talks about joining forces.

___

11:50 a.m.

Republican presidential candidate Ted Cruz says he was happy the latest GOP debate was more civil than previous ones.

Cruz said Friday during a forum with Fox News talk show host Sean Hannity in Orlando that the past debates had gotten ugly.

Cruz also said he was happy GOP rival Donald Trump’s anatomy wasn’t a topic of discussion during Thursday night’s debate in Miami.

Cruz answered questions at an Orlando megachurch filled with almost 1,000 supporters during a forum that will air on Hannity’s show.

___

11:45 a.m.

Marco Rubio’s campaign is urging people in Ohio to vote for his rival, Ohio Gov. John Kasich, to stop rival Donald Trump from clinching the prized contest.

Alex Conant told The Associated Press Friday that the only way to stop Trump from sweeping next week’s basket of winner-take-all contests is to vote for Kasich in Ohio and Rubio in Florida.

Conant said that “If you want to stop Trump in Ohio, Kasich’s the only guy who can beat him there.”

Conant added: “Marco is the only guy who can beat him in Florida.”

Kasich spokesman Rob Nichols says that his candidate is going to win in Ohio without Rubio’s help “just as he’s going to lose Florida without our help.”

___

10:30 a.m.

Republican presidential candidate Ted Cruz has secured the endorsement of Missouri Rep. Ann Wagner.

In a statement on Friday, Wagner said that Republicans “must unite to win behind a strong, constitutional conservative like Ted Cruz.”

The congresswoman has served as co-chair of the Republican National Committee during President George W. Bush’s first term and was U.S. ambassador to Luxembourg.

Cruz has the backing of some half dozen House members, but only one endorsement from a fellow senator, Mike Lee of Utah.

___

9:50 a.m.

Republicans in the Virgin Islands caucused into the night Thursday, and when they finished counting the votes Friday morning, the winner was … no one.

Party chairman John Canegata says all nine delegates from the U.S. territory will go to the Republican National Convention as uncommitted delegates. That makes them free agents, free to support the candidate of their choice.

Canegata says more than 300 voters cast ballots.

The AP delegate count thus far:

— Donald Trump: 459.

— Ted Cruz: 360.

— Marco Rubio: 152.

— John Kasich: 54.

Needed to win the nomination: 1,237.

___

9:35 a.m.

Donald Trump says he felt the response of his supporters to an episode of violence at one of his rallies this week was “very, very appropriate.”

Speaking at a Palm Beach press conference on Friday, Trump said the “audience swung back” at a white man who was caught on video hitting a black man as he was escorted out of a Trump rally by deputies.

Trump praised the police as “amazing,” saying they were “very restrained” in response to the incident.

He said that the man — identified as John Franklin McGraw — began hitting people, and the audience hit back. “That’s what we need a little bit more of,” he said.

___

9:30 a.m.

Democrats and Republicans have painted a dark vision of America, a place where jobs are vanishing, leaders are corrupt and threats loom from across the globe.

Democratic candidate Bernie Sanders describes a nation in “real crisis,” with a “rigged economy.” Americans are “a bunch of suckers” who’ve “lost everything,” Republican front-runner Donald Trump says.

Washington is “killing jobs,” as Iranian leaders conspire to “murder us,” warns Republican Texas Sen. Ted Cruz.

Gloomy assessments of the country’s future have emerged as a constant refrain of the 2016 presidential contest, as candidates woo a frustrated and anxious electorate. That insecurity, which pollsters say pervades discussions about economic, domestic and foreign policy issues, is setting the stage for an emotionally-charged general election — no matter who wins the primary contests.

___

9:20 a.m.

Republican front-runner Donald Trump says he will defeat the Islamic State group if he is elected president, but he will let the generals “play their own game.”

Speaking at a press conference in Palm Beach, Florida on Friday, Trump said he is going to “find the right generals” to do the job, but he will allow them to then call the shots on how the military should approach the war.

Trump has said he wants to loosen the laws that limit the use of torture if he’s elected to the White House, but then appeared to reverse his stance on the use of torture after he was criticized by top Republican national security experts who called his policy views “wildly inconsistent and unmoored in principle.”

___

9:10 a.m.

Former Republican presidential candidate Ben Carson says he and Donald Trump have “buried the hatchet” after months of political wrangling, and he is endorsing the GOP front-runner’s White House bid.

At a press conference in Palm Beach, Florida on Friday, Carson, who left the race earlier this month, described “two Donald Trumps” — the persona reflected on stage, and a private, “very cerebral” person who “considers things carefully.”

In his introduction to Carson Friday, Trump described the retired neurosurgeon as a “special, special person — special man,” and a “friend” who is respected by everyone.

Carson warned that it is “extremely dangerous” when political parties attempt to “thwart the will of the people,” and urged politicians to “strengthen the nation,” rather than create divisions.

 

Gitmo: Open for More Detainees

As Barack Obama is nearing his visit to Cuba this month, there has been much speculation regarding whether he will expand more trade and concessions with the island and include the option of terminating the treaty and lease of the Guantanamo Naval Base which includes the enemy combatant detention center.

Meanwhile, Special Forces captured a significant terrorist in February that once worked for Saddam Hussein. The problem is there is no place to hold this man. We have him only for a short term and from there he will be turned over to Iraq.

US hands over ISIS chemical weapons chief to Iraqi government, Pentagon says

FNC: The Pentagon transferred the head of the Islamic State terror group’s chemical weapons development unit to the Iraqi government Thursday shortly after the U.S. captured him in a raid, Pentagon press secretary Peter Cook announced.

Cook stressed the U.S. would keep ISIS detainees only for the “short term,” handled on a “case by case” basis. “We have a government on the ground in Iraq, a partner in the fight against ISIL, that we feel confident we can rely on in this instance.”

A defense official who would not reveal his identity reached by Fox News after the briefing confirmed the Pentagon has no plan on handling ISIS detainees. Cook would not say whether the U.S. government had access to ISIS detainees once turned over to the Iraqi government. Many GOP lawmakers have urged the Pentagon to send the detainees to Guantanamo Bay, which President Obama has vowed to close.

A GOP congressional aide told Fox News, “The law requires a comprehensive detainee policy. By definition, ‘we’ll figure it out if we ever capture anyone’ is not a comprehensive policy.”

U.S. special forces captured Sulayman Dawud al-Bakkar, also known as Sleiman Daoud al-Afari, in a raid last month in northern Iraq, according to Iraqi and U.S. officials. The special commando unit was deployed to Iraq to conduct raids and collect intelligence on the ground.

The Pentagon press secretary said al-Bakkar’s capture and transfer could be “a template for future cases.”

Cook said the airstrikes conducted as a result of al-Bakkar’s capture “disrupted and degraded” the group’s chemical weapons capabilities, but did not necessarily eliminate the problem. More here.

All is not lost on some Senators and they are moving to take offensive measures.

GOP resolution calls for sending captured ISIS fighters to Gitmo

TheHill: Over a dozen GOP senators, including presidential candidates Marco Rubio and Ted Cruz, introduced a resolution Thursday to send detained Islamic State in Iraq and Syria (ISIS) fighters to Guantánamo Bay.

The resolution comes a day after the Pentagon said it captured an ISIS leader on the battlefield, sparking new questions about how to handle such prisoners.

The commander of U.S. Special Operations Command Gen. Joseph Votel said on Tuesday there was a need to detain some terror suspects long-term, but where they would be held was under debate.
The Republican senators say the military prison at Guantánamo, which President Obama is working to close, should house the ISIS detainees.


“More than seven years in, the Obama administration still does not have a coherent detention policy that will give our military and intelligence community the best opportunity to extract valuable intelligence to help defeat ISIS, Al Qaeda and other terrorist networks,” said Rubio. “This White House would rather release terrorists from Guantánamo Bay and hope for the best.”
“Jihadists who seek to kill Americans should not be brought to American soil. The security of our people, not political expediency, should guide decisions regarding prisoners held at Guantánamo Bay,” added Cruz.
Introduced by Sen. Steve Daines (R-Mont.), the resolution is just the latest vigorous protest by Republican senators against Obama’s plan to transfer all eligible detainees out of the facility. The president wants to bring the remaining 30 to 60 detainees to an alternate location in the U.S.
Earlier this week, Sen. Pat Roberts (R-Okla.) introduced a resolution to block Obama from closing the facility.
“Last week when I was at Guantánamo Bay I saw plenty of vacant cells,” Daines said. “Terrorists captured by U.S. forces belong in Guantánamo, a location that has played a pivotal role for collecting intelligence from detainees and keeping terrorists off the battlefield in the global war on terror.”


“Instead of closing Guantánamo Bay, the Administration should transfer detained ISIL fighters to the facility,” added co-sponsor Sen. Cory Gardner (Colo.), using an alternate name for the group. “This resolution paves the way to do just that, while preventing grants of new rights to terrorists.”
Other co-sponsors of the resolution include Republican Sens. Tom Cotton (Ark.), Mark Kirk (Ill.), Orrin Hatch (Utah), Joni Ernst (Iowa), Johnny Isakson (Ga.), John Boozman (Ark.), James Inhofe (Okla.), Tim Scott (S.C.), Jerry Moran (Kan.) and David Vitter (La.).
The senators argue that as more terrorists are captured on the battlefield, there should be a place to hold and interrogate them for more intelligence.
“President Obama’s default foreign policy strategy has been to kill off high-ranking ISIL fighters with drones instead of attempting to detain them to glean valuable intelligence information,” Inhofe said. “This has weakened our nation’s ability to more quickly make advancements in the Middle East.”


Opponents of the plan also argue that continuing to transfer detainees to other countries poses a threat to the U.S.
On Monday, the intelligence community released its latest statistics on recidivism, which showed that the number of detainees suspected of reengaging in terrorism after being released by President Obama doubled from six to 12 in the six months prior to January.
“No other facility can house terrorists as securely as Guantánamo, which is where we should be sending ISIS terrorists when they are captured by our brave servicemen and servicewomen in the field,” said Kirk, a retired Navy reservist who faces a tough reelection fight this year.
“We should detain ISIS terrorists at Guantánamo as we cannot afford to release them into Iraqi custody and risk that these terrorists will end up right back on the battlefield,” added Ernst, a retired Army lieutenant colonel.
Opponents also argue that the presence of detainees on U.S. soil could pose a threat to local communities. The Pentagon has surveyed potential U.S. sites in Kansas, Colorado and South Carolina.
“Captured militants affiliated with ISIL and other terrorist groups are dangerous and should be held at Guantánamo Bay, not in Kansas or anywhere else in the United States,” said Moran.
The administration argues that Gitmo provides propaganda for terrorists and is too expensive to maintain, at several million dollars per detainee.
But some opponents say the administration is bent on fulfilling a campaign promise to close the facility.

 

Comprehensive Details on Hillary Server Provided to FBI

Source: Clinton IT specialist revealing server details to FBI, ‘devastating witness’

FNC: Former Hillary Clinton IT specialist Bryan Pagliano, a key witness in the email probe who struck an immunity deal with the Justice Department, has told the FBI a range of details about how her personal email system was set up, according to an intelligence source close to the case who called him a “devastating witness.”

The source said Pagliano told the FBI who had access to the former secretary of state’s system – as well as when –and what devices were used, amounting to a roadmap for investigators.

“Bryan Pagliano is a devastating witness and, as the webmaster, knows exactly who had access to [Clinton’s] computer and devices at specific times. His importance to this case cannot be over-emphasized,” the intelligence source said.

The source, who is not authorized to speak on the record due to the sensitivity of the ongoing investigation, said Pagliano has provided information allowing investigators to knit together the emails with other evidence, including images of Clinton on the road as secretary of state.

The cross-referencing of evidence could help investigators pinpoint potential gaps in the email record. “Don’t forget all those photos with her using various devices and it is easy to track the whereabouts of her phone,” the source said. “It is still boils down to a paper case. Did you email at this time from your home or elsewhere using this device? And here is a picture of you and your aides holding the devices.”

A source close to Pagliano did not dispute the basic details of what was provided to the FBI, but said the highly skilled former State Department IT specialist had met with the bureau on a “limited basis” and was at best a “peripheral” player in the investigation.

At a Democratic debate Wednesday evening, Clinton brushed off the question when asked by the moderator whether she would withdraw from the presidential race if faced with criminal charges.

Univision’s Jorge Ramos asked, “If you get indicted, will you drop out?” Clinton responded, “My goodness. That is not going to happen. I’m not even answering that question.”

She then added her now standard explanation that nothing she sent or received was marked classified at the time. While technically correct, the distinction appears misleading. The January 2009 classified information non-disclosure agreement signed by Clinton says she understood that classified information could be marked and unmarked, as well as verbal communications.

Classification is based on content, not markings.

The intelligence source said the FBI is “extremely focused” on the 22 “top secret” emails deemed too damaging to national security to publicly release under any circumstances, with agents reviewing those sent by Clinton as well her subordinates including former chief of staff Cheryl Mills.

“Mrs. Clinton sending them in this instance would show her intent much more than would receiving [them],” the source said. “Hillary Clinton was at a minimum grossly negligent in her handling of NDI [National Defense Information] materials merely by her insisting that she utilize a private server versus a [U.S. government] server. Remember, NDI does not have to be classified.” According to the Congressional Research Service, NDI is broadly defined to include “information that they have reason to know could be used to harm the national security.”

It was emphasized to Fox News that Clinton’s deliberate “creation” and “control” of the private server used for her official government business is the subject of intense scrutiny. Pagliano knows key details as to how the private server was installed and maintained in her home.

The 22 “top secret” emails are not public, but in a Jan. 14 unclassified letter, first reported by Fox News,  Intelligence Community Inspector General I. Charles McCullough III notified Congress of the findings of a recent comprehensive review by intelligence agencies identifying “several dozen” additional classified emails — including specific intelligence known as “special access programs” (SAP).

That indicates a level of classification beyond even “top secret,” the label previously given to other emails found on her server, and brings even more scrutiny to the presidential candidate’s handling of the government’s closely held secrets.

Pagliano’s lawyer offered no on-record comment for this report. Clinton recently told CBS, “I’m delighted that [Pagliano] has agreed to cooperate, as everyone else has. And I think that we will be moving toward a resolution of this.”

The FBI has not commented beyond the public statements of FBI Director James Comey, who recently told Congress: “I can assure you is that I am very close personally to that investigation to ensure that we have the resources we need, including people and technology, and that it’s done the way the FBI tries to do all of its work: independently, competently and promptly.”

The intelligence source described the morale of agents as “very good and nobody is moping around which is the first sign a big case is going south.”

Bryan Pagliano: 5 Fast Facts You Need to Know

Heavy: Bryan Pagliano, a former IT specialist with the State Department during the tenure of Hillary Clinton as Secretary of State, has been under intense scrutiny for his role in setting up Clinton’s private email server, through which she may have illegally received classified information. After pleading the Fifth through several House Committees, Pagliano was granted immunity by the Justice Department and will cooperate with the FBI in its investigation into the matter.

Pagliano served in the State Department for four years, during part of which he was paid personally by Clinton for “IT services” that include setting up the server in question. In less controversial work, Pagliano helped expand remote work arrangements in the State Department from a D.C.-only option to give worldwide access.

Here’s what you need to know:

He Was Paid off the Books for His Work with Clinton

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Pagliano, here with wife Carrie Pagliano and Hillary Clinton, was paid by Clinton personally for “IT services” while employed at the State Department. (Getty)

Pagliano first worked for Clinton as the IT director of her 2008 Presidential campaign, then worked for her political action committee after she suspended her first quest for the White House. In 2009, he joined her State Department team as an IT specialist, but continued to work for the Clintons as a private consultant to their family, and was personally paid by the Clinton family.

Pagliano did not disclose the job or salary on State Department financial disclosure forms, an act that internal documents show could lead to a $10,000 fine or imprisonment. His immunity deal likely prevents these outcomes.

He Pled the Fifth at Several House Committees

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Pagliano leaving the Capitol after his call to testify in Benghazi hearings. (Getty)

The question of Hillary Clinton’s emails first arose during the scandal regarding the Benghazi attack. Pagliano, having left the State Department at the time, was subpoenaed by House Select Committee on Benghazi chairman Trey Gowdy regarding information “related to the servers or systems” Clinton used while Secretary of State. Pagliano’s lawyers released the following statement in response:

While we understand that Mr. Pagliano’s response to this subpoena may be controversial in the current political environment, we hope that members of the Select Committee will respect our client’s right to invoke the protections of the Constitution. For these reasons, we respectfully request that the Select Committee excuse Mr. Pagliano from personally appearing on Sept. 10, 2015.

Pagliano was not excused, but did not answer a question during the committee’s hearing. The Justice Department’s grant of immunity means that Pagliano can be compelled to testify.

He Received Immunity & Is Cooperating with the FBI

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Pagliano after his House testimony. (Getty)

On March 2, the Justice Department announced that Pagliano would be granted immunity in exchange for his testimony regarding the email scandal. As the name suggests, this means that nothing he says can be used against him, but also means that he cannot invoke the Fifth Amendment to avoid answering questions.

Journalists and legal experts mark this as a major turning point in the inquiry. National Review writer and former prosecutor Andrew McCarthy suggested Pagliano’s immunity deal meant there was “probably” a grand jury for Pagliano. Though he didn’t share McCarthy’s certainty, Charles Tiefer at Forbes suggested the immunity deal meant the case was coming to a conclusion.

His Deal Could Be a Bad Sign for Hillary

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Hillary Clinton and longtime aide Huma Abedin both face significant scrutiny in the email scandal. (Getty)

Whether Pagliano’s immunity deal was sought by his legal team or by the FBI to circumvent his Fifth Amendment invocations, his testimony is “potentially damaging” to others facing scrutiny. A key part of the investigation into Clinton involves whether she knew the information she sent and received through the private server was classified, which requires speaking to her state of mind. Free from fear of his own prosecution, Pagliano can testify (or be forced to testify) to that state of mind. Other top aides, like Huma Abedin and Jake Sullivan, may also be implicated by his testimony.

Clinton, though, doesn’t seem worried. In an interview with CBS News, she dismissed concerns about any upcoming indictment:

It’s a security review. I’m delighted that he has agreed to cooperate, as everyone else has, and I think we’ll be moving toward a resolution of this…I think we’re getting closer and closer to wrapping this up. I also know that there were reports today about the hundreds of officials and the thousand emails that they were sending back and forth that have been looked at and classified retroactively. This really raises serious questions about this whole process, I think.

In His Government Career, He Pioneered Remote Work for State Employees

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Not all of Pagliano’s work was particularly controversial. The State Department’s remote work, or “teleworking,” capabilities were initially confined to the Washington, D.C. area. Pagliano stated in an interview with Trezza Media Group, part of which is seen above, that Foreign Service Officers rotating into D.C. as part of their duties gave rave reviews of the system and wanted access in their regular embassies. Pagliano, as a member of the Information Resource Management Bureau, helped expand the system around the world.

Pagliano left the State Department in 2013 to serve as an analyst at technology firm Gartner, a position he held for one year. While at Gartner, however, Pagliano continued to perform contract work for the State Department, which was terminated at an unknown time and announced one day after his being granted immunity.