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Call Off $100,00 Medicaid Law Firm Signing Bonus
Dear Neighbors: Today Rep. Sam Kito III and I called on those suing the Governor over Medicaid Expansion to save the state money, in a few ways. First, as you know, I think spending $450,000 on a lawsuit instead of passing the pending Medicaid Expansion & Reform bill (which would result in $330 million in budget savings over just the first six years) is imprudent. It's hiring lawyers to dig a deeper budget hole. Second, the legal contract is excessively priced. The outside firm hired by lawsuit proponents will charge $100,000 "upon execution" of the contract and then a total of $400,000 if the case is appealed. Lawsuit proponents should look for volunteer attorneys, and drop this contact, which has not been "executed" yet. This is a straightforward case that essentially involves legal research and writing. It doesn't warrant $400,000 in legal fees. Below is today's press release, and an e-mail I sent to the Legislative Affairs Agency where we ask that the lawsuit stop and the contract be stopped from execution. As always, call if we can help. My Best,
*** Democrats Say There is Still Time to Get Out of Expensive Medicaid Expansion Lawsuit Contract Contract Should be Stopped Before it’s Formally Executed ANCHORAGE – Today, Democratic Representatives Sam Kito (D-Juneau) and Les Gara (D-Anchorage) called on the Alaska Legislative Council to drop the lawsuit filed against Alaska Governor Bill Walker over his decision to accept federal funding to provide healthcare to thousands of hard-working Alaskans. Dropping the Medicaid expansion lawsuit will save the state hundreds of thousands of dollars on a legal contract that is excessive and above market rates. “Based on the actions by the Alaska Superior and Supreme Courts, we should drop this lawsuit and save the state money,” said Rep. Kito, who serves on the Legislative Council and voted against the contract. Rep. Kito also voted against suing the Governor over Medicaid expansion. “If they will not drop the lawsuit, they should at least renegotiate the contract so the Legislature receives pro bono or more reasonably priced services.” “Paying a law firm a $100,000 signing bonus is excessive in a time of budget deficits. Paying a law firm $450,000 for a basic case that essentially involves straightforward legal research and writing is also excessive,” said Rep. Gara. “Since this contract has not yet been executed, the Legislative Council can still stop the signing bonus by dropping this wasteful lawsuit, finding a law firm that will work cheaper, or finding a volunteer law firm that will work pro-bono just like the Governor did.” The Legislative Affairs Agency has confirmed the contract has not been “executed,” so the $100,000 signing bonus that’s part of the $450,000 contract does not yet apply. Rep. Gara is a former attorney and Assistant Alaska Attorney General. He contacted a former Alaska judge and litigator who confirmed that the legal contract is excessively priced. For more information contact Rep. Les Gara at (907) 250-0106 or Rep. Sam Kito at (907) 465-4766. The professional services contract between the Alaska Legislative Council and Bancroft, PLLC is available here. *** Hi Pam. I appreciate your response, and can accept that legislators disagree over this issue of Medicaid Expansion and Reform. I do hope we reach a bi-partisan consensus so this $450,000 in attorney fees will stop. As you know, I'd rather see the case dropped, and a vote allowed on the pending Medicaid Expansion and Reform. Spending money on a lawsuit to stop a policy that saves the state money is effectively hiring lawyers to dig a deeper budget hole for the state. That was stated more formally in a letter from our Independent Democratic Caucus, and I appreciate the respectful, pergent views in the response we received. Here are my requests on the litigation issue we have written back and forth on. I would respectfully ask to see the executed contract. Do you have an estimate of when that will become available? Also, it seems that since the Outside law firm started their work under this current version of the contract it should be public, and if terms are changed in a later version, any changes should be public too. In an effort to save money, I would also ask that you relay to Council members that this kind of contract is not especially common. If the Legislature drops the suit, we will have lost $100,000 at the starting gate under this contract's terms, as you've related them. I hope those terms can be rewritten since the contract hasn't been "executed", and hope the lawsuit is dropped for that matter. For the Council's information, I have spoken to a well-respected practicing attorney, who is a former judge and well respected in private practice. He and others consider the contract cost, for what is essentially straightforward legal research and legal briefing, to be higher than what is warranted. As emotional as this issue is for some, emotion and politically charged issues don't mean a case is complex or deserving of a high legal fee. Better yet, if the case continues, I hope staff might seek volunteer attorneys, as the Governor has secured, since it appears this contract is not finalized. The attorneys the Governor secured on a volunteer basis are among the best in the state, so I am sure the Council can find similar volunteer help. You are free to relay these concerns, many of which follow up on sentiments in the letter my Caucus sent last week. Thank you. Les
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