PAWNEE COUNTY – A woman charged in connection with the escape of John Freeman Colt from the sex offender treatment program at the Larned State Hospital entered a plea agreement Thursday.

Rachel Rena Perez, 52 of Larned, appeared on bond in the Pawnee County District Court Thursday afternoon before District Judge Bruce Gatterman for a Felony Scheduling Conference. She previously entered a not guilty plea to a fifteen count felony complaint and requested a jury trial.

&nbsp;Rachel Rena Perez, 52, Larned, who originally pleaded not guilty to 15 Felony counts, changed her plea to no contest to three felonies that included Obstructing in the Apprehension or Prosecution of a Registered Sex Offender, Unlawful Sexual Relations with a patient while employed by Kansas Dept. of Aging and Disability Services and Conspiracy to Escape from the Sexual Predator Treatment Program, according to Pawnee County Attorney Doug McNett.

In exchange for the plea, the State agreed to dismiss the remaining charges and Perez will be sentenced to a prison term consistent with a previously sentenced co-defendant Liliana Guadalupe Houser, 45 of Garden City. Houser was sentenced to 16-years in prison after a similar plea agreement in the case.

The charges stem from an investigation by the Pawnee County Sheriff’s Department following the June 30, 2021, escape of Colt from the Sexual Predator Treatment Program (SPTP) located on the campus of Larned State Hospital. Colt was later captured in Wayne Country Utah on September 27, 2021. He is currently back in the custody and is charged with Aggravated Escape from Custody and three&nbsp; counts of Aggravated Violation of the Kansas Offender Registration Act. A preliminary hearing on his charges is scheduled for October 11.. If convicted, under the Kansas Sentencing Guidelines Colt faces between 55 months and 247 months in the custody of the Department of Corrections depending on his criminal history.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634076399777.png" alt="Perez-photo Pawnee Co." />
 <figcaption>Perez-photo Pawnee Co.</figcaption>
 </figure>PAWNEE COUNTY – A woman charged in connection with the escape of John Freeman Colt from the sex offender treatment program at the Larned State Hospital entered a plea agreement Thursday.Rachel Rena Perez, 52 of Larned, appeared on bond in the Pawnee County District Court Thursday afternoon before District Judge Bruce Gatterman for a Felony Scheduling Conference. She previously entered a not guilty plea to a fifteen count felony complaint and requested a jury trial.&nbsp;Rachel Rena Perez, 52, Larned, who originally pleaded not guilty to 15 Felony counts, changed her plea to no contest to three felonies that included Obstructing in the Apprehension or Prosecution of a Registered Sex Offender, Unlawful Sexual Relations with a patient while employed by Kansas Dept. of Aging and Disability Services and Conspiracy to Escape from the Sexual Predator Treatment Program, according to Pawnee County Attorney Doug McNett.In exchange for the plea, the State agreed to dismiss the remaining charges and Perez will be sentenced to a prison term consistent with a previously sentenced co-defendant Liliana Guadalupe Houser, 45 of Garden City. Houser was sentenced to 16-years in prison after a similar plea agreement in the case.<figure>
 <img src="https://media.eaglewebservices.com/public/2021/7/1626191603052.jpeg" alt="Colt as seen on security cameras as he made his escape-photo Pawnee Co. Sheriff" />
 <figcaption>Colt as seen on security cameras as he made his escape-photo Pawnee Co. Sheriff</figcaption>
 </figure>The charges stem from an investigation by the Pawnee County Sheriff’s Department following the June 30, 2021, escape of Colt from the Sexual Predator Treatment Program (SPTP) located on the campus of Larned State Hospital. Colt was later captured in Wayne Country Utah on September 27, 2021. He is currently back in the custody and is charged with Aggravated Escape from Custody and three&nbsp; counts of Aggravated Violation of the Kansas Offender Registration Act. A preliminary hearing on his charges is scheduled for October 11.. If convicted, under the Kansas Sentencing Guidelines Colt faces between 55 months and 247 months in the custody of the Department of Corrections depending on his criminal history.

Plea deal for Kan. state hospital employee in sex offender's escape

SEDGWICK COUNTY —A difficult first day of classes on Monday at Wichita State University.

Just after 9a.m., the university announced on the their web site and on social media, "Attention Shockers: WSU is experiencing a network outage. IT personnel are working on the issue, and it will be restored as soon as possible."

Just before noon, the university reported "Network issues have been resolved. Login issues for some systems may still be affected. ITS continues to work to resolve remaining issues.&nbsp; If you experience any issues, please contact the ITS Help Desk."

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/1/1611092644532.png" alt="" />
 <figcaption></figcaption>
 </figure>SEDGWICK COUNTY —A difficult first day of classes on Monday at Wichita State University.Just after 9a.m., the university announced on the their web site and on social media, "Attention Shockers: WSU is experiencing a network outage. IT personnel are working on the issue, and it will be restored as soon as possible."Just before noon, the university reported "Network issues have been resolved. Login issues for some systems may still be affected. ITS continues to work to resolve remaining issues.&nbsp; If you experience any issues, please contact the ITS Help Desk."

Internet problems on first day of classes at Wichita State

WABAUNSEE COUNTY—Law enforcement authorities are investigating six suspects after a weekend drug bust.

Just after 9a.m. Saturday, sheriff's deputies executed a residential search warrant at a residence located on Lake View Circle, Lake Wabaunsee, according to the Wabaunsee County Sheriff's offe. 

Deputies found six individuals at the residence and they were arrested on scene without incident and transported to the county jail where they remain confined pending bond:

Amber M. Taylor, 28, of Alma, was booked on requested charges of Narcotics Possession w/prior conviction and paraphernalia.

Hollie D. West, 36, of Burlingame, is being held on requested charges of Narcotics Possession and&nbsp; paraphernalia.

&nbsp;Jager D. Simmons, 30, of Topeka, was arrested on requested charges of Narcotics use/possession and paraphernalia.

&nbsp;Jessica M. Lawrence, 32, of Eskridge, was arrested on requested charges of Narcotics Possession. 

Michael Hobsin, 32, of Topeka, was arrested on requested charges of Narcotics Possession and held on outstanding warrant for Failure to Appear. 

John M. Rose, 32, of Lawrence, was arrested on requested charges of Narcotics use / possession and  paraphernalia..

A 13-year-old child was located in the house, was made safe and taken to the Sheriff's Office as Child in Need of Care. The child has been transferred to the custody of his family.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692627333373.png" alt="Simmons fron an earlier arrest in Shawnee Co." />
 <figcaption>Simmons fron an earlier arrest in Shawnee Co.</figcaption>
 </figure>WABAUNSEE COUNTY—Law enforcement authorities are investigating six suspects after a weekend drug bust.Just after 9a.m. Saturday, sheriff's deputies executed a residential search warrant at a residence located on Lake View Circle, Lake Wabaunsee, according to the Wabaunsee County Sheriff's offe. Deputies found six individuals at the residence and they were arrested on scene without incident and transported to the county jail where they remain confined pending bond:Amber M. Taylor, 28, of Alma, was booked on requested charges of Narcotics Possession w/prior conviction and paraphernalia.Hollie D. West, 36, of Burlingame, is being held on requested charges of Narcotics Possession and&nbsp; paraphernalia.&nbsp;Jager D. Simmons, 30, of Topeka, was arrested on requested charges of Narcotics use/possession and paraphernalia.&nbsp;Jessica M. Lawrence, 32, of Eskridge, was arrested on requested charges of Narcotics Possession. Michael Hobsin, 32, of Topeka, was arrested on requested charges of Narcotics Possession and held on outstanding warrant for Failure to Appear. John M. Rose, 32, of Lawrence, was arrested on requested charges of Narcotics use / possession and paraphernalia..A 13-year-old child was located in the house, was made safe and taken to the Sheriff's Office as Child in Need of Care. The child has been transferred to the custody of his family.

6 arrested, 13-year-old made safe after rural Kan. drug bust

TOPEKA, Kan. (AP) —The police chief who led the raid of a Kansas newspaper alleged in previously unreleased in court documents that a reporter either impersonated someone else or lied about her intentions when she obtained the driving records of a local business owner.

But reporter Phyllis Zorn, Marion County Record Editor and Publisher Eric Meyer and the newspaper's attorney said Sunday that no laws were broken when Zorn accessed a public state website for information on restaurant operator Kari Newell.

<a href="https://apnews.com/article/marion-kansas-newspaper-raid-aca057365ea3925328a69acd615c9893">The raid</a>&nbsp;carried out Aug. 11 and led by Marion Police Chief Gideon Cody brought international attention to the small central Kansas town that now finds itself at the center of a debate over&nbsp;<a href="https://apnews.com/article/marion-county-record-kansas-newspaper-raid-f1e49c4e542ddb3cf19c9ca02a0a21fb">press freedoms</a>. Police seized computers, personal cellphones and a router from the newspaper, but all items were released Wednesday after the county prosecutor concluded there&nbsp;<a href="https://apnews.com/article/marion-kansas-newspaper-police-raid-51993acb6d3769184d28f81dbee66c43">wasn't enough evidence</a>&nbsp;to justify the action.

Late Saturday, the Record's attorney, Bernie Rhodes, provided copies of the affidavits used in the raid to The Associated Press and other news media. The documents that had previously not been released. They showed that Zorn's obtaining of Newell's driving record was the driving force behind the raid.

The newspaper, acting on a tip, checked the public website of the Kansas Department of Revenue for the status of Newell's driver's license as it related to a 2008 conviction for drunk driving.

Cody wrote in the affidavit that the Department or Revenue told him that those who downloaded the information were Record reporter Phyllis Zorn and someone using the name “Kari Newell.” Cody wrote that he contacted Newell who said “someone obviously stole her identity.”

As a result, Cody wrote: “Downloading the document involved either impersonating the victim or lying about the reasons why the record was being sought."

The license records are normally confidential under state law, but can be accessed under certain circumstances, cited in the affidavit. The online user can request their own records but must provide a driver's license number and date of birth.

The records may also be provided in other instances, such as to lawyers for use in a legal matter; for insurance claim investigations; and for research projects about statistical reports with the caveat that the personal information won't be disclosed.

Meyer said Zorn actually contacted the Department of Revenue before her online search and was instructed how to search records. Zorn, asked to respond to the allegations that she used Newell’s name to obtain Newell’s personal information, said, “My response is I went to a Kansas Department of Revenue website and that’s where I got the information.”

She added, “Not to my knowledge was anything illegal or wrong.”

Rhodes, the newspaper's attorney, said Zorn's actions were legal under both state and federal laws. Using the subject's name “is not identity theft,” Rhodes said. "That’s just the way of accessing that person’s record.”

The newspaper had Newell's driver's license number and date of birth because a source provided it, unsolicited, Meyer said. Ultimately, the Record decided not to write about Newell’s record. But when she revealed at a subsequent City Council meeting that she had driven while her license was suspended, that was reported.

The investigation into whether the newspaper broke state laws continues, now led by the Kansas Bureau of Investigation. State Attorney General Kris Kobach has said he doesn’t see the KBI’s role as investigating the conduct of the police.

Some legal experts believe the Aug. 11 raid&nbsp;<a href="https://apnews.com/article/kansas-newspaper-raid-marion-county-record-bead3f49d323c784d40154067141dc7c">violated a federal privacy law</a>&nbsp;that protects journalists from having their newsrooms searched. Some also believe it violated a Kansas law that makes it more difficult to force reporters and editors to disclose their sources or unpublished material.

Cody has not responded to several requests for comment, including an email request on Sunday. He defended the raid in a Facebook post soon after it happened, saying the federal law shielding journalists from newsroom searches makes an exception specifically for “when there is reason to believe the journalist is taking part in the underlying wrongdoing.”

The Record received an outpouring of support from other news organizations and media groups after the raid. Meyer said it has picked up at least 4,000 additional subscribers, enough to double the size of its press run, though many of the new subscriptions are digital.

Meyer blamed the stress from the raid for the Aug. 12 death of his 98-year-old mother, Joan Meyer, the paper’s co-owner. Her funeral services were Saturday.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692219843330.png" alt="Late Saturday, the Record's attorney, Bernie Rhodes, provided copies of the affidavits used in the raid to The Associated Press and other news media-photo courtesy KWCH" />
 <figcaption>Late Saturday, the Record's attorney, Bernie Rhodes, provided copies of the affidavits used in the raid to The Associated Press and other news media-photo courtesy KWCH</figcaption>
 </figure>By JIM SALTER Associated PressTOPEKA, Kan. (AP) —The police chief who led the raid of a Kansas newspaper alleged in previously unreleased in court documents that a reporter either impersonated someone else or lied about her intentions when she obtained the driving records of a local business owner.But reporter Phyllis Zorn, Marion County Record Editor and Publisher Eric Meyer and the newspaper's attorney said Sunday that no laws were broken when Zorn accessed a public state website for information on restaurant operator Kari Newell.<a href="https://apnews.com/article/marion-kansas-newspaper-raid-aca057365ea3925328a69acd615c9893">The raid</a>&nbsp;carried out Aug. 11 and led by Marion Police Chief Gideon Cody brought international attention to the small central Kansas town that now finds itself at the center of a debate over&nbsp;<a href="https://apnews.com/article/marion-county-record-kansas-newspaper-raid-f1e49c4e542ddb3cf19c9ca02a0a21fb">press freedoms</a>. Police seized computers, personal cellphones and a router from the newspaper, but all items were released Wednesday after the county prosecutor concluded there&nbsp;<a href="https://apnews.com/article/marion-kansas-newspaper-police-raid-51993acb6d3769184d28f81dbee66c43">wasn't enough evidence</a>&nbsp;to justify the action.Late Saturday, the Record's attorney, Bernie Rhodes, provided copies of the affidavits used in the raid to The Associated Press and other news media. The documents that had previously not been released. They showed that Zorn's obtaining of Newell's driving record was the driving force behind the raid.The newspaper, acting on a tip, checked the public website of the Kansas Department of Revenue for the status of Newell's driver's license as it related to a 2008 conviction for drunk driving.Cody wrote in the affidavit that the Department or Revenue told him that those who downloaded the information were Record reporter Phyllis Zorn and someone using the name “Kari Newell.” Cody wrote that he contacted Newell who said “someone obviously stole her identity.”As a result, Cody wrote: “Downloading the document involved either impersonating the victim or lying about the reasons why the record was being sought."The license records are normally confidential under state law, but can be accessed under certain circumstances, cited in the affidavit. The online user can request their own records but must provide a driver's license number and date of birth.The records may also be provided in other instances, such as to lawyers for use in a legal matter; for insurance claim investigations; and for research projects about statistical reports with the caveat that the personal information won't be disclosed.Meyer said Zorn actually contacted the Department of Revenue before her online search and was instructed how to search records. Zorn, asked to respond to the allegations that she used Newell’s name to obtain Newell’s personal information, said, “My response is I went to a Kansas Department of Revenue website and that’s where I got the information.”She added, “Not to my knowledge was anything illegal or wrong.”Rhodes, the newspaper's attorney, said Zorn's actions were legal under both state and federal laws. Using the subject's name “is not identity theft,” Rhodes said. "That’s just the way of accessing that person’s record.”The newspaper had Newell's driver's license number and date of birth because a source provided it, unsolicited, Meyer said. Ultimately, the Record decided not to write about Newell’s record. But when she revealed at a subsequent City Council meeting that she had driven while her license was suspended, that was reported.The investigation into whether the newspaper broke state laws continues, now led by the Kansas Bureau of Investigation. State Attorney General Kris Kobach has said he doesn’t see the KBI’s role as investigating the conduct of the police.Some legal experts believe the Aug. 11 raid&nbsp;<a href="https://apnews.com/article/kansas-newspaper-raid-marion-county-record-bead3f49d323c784d40154067141dc7c">violated a federal privacy law</a>&nbsp;that protects journalists from having their newsrooms searched. Some also believe it violated a Kansas law that makes it more difficult to force reporters and editors to disclose their sources or unpublished material.Cody has not responded to several requests for comment, including an email request on Sunday. He defended the raid in a Facebook post soon after it happened, saying the federal law shielding journalists from newsroom searches makes an exception specifically for “when there is reason to believe the journalist is taking part in the underlying wrongdoing.”The Record received an outpouring of support from other news organizations and media groups after the raid. Meyer said it has picked up at least 4,000 additional subscribers, enough to double the size of its press run, though many of the new subscriptions are digital.Meyer blamed the stress from the raid for the Aug. 12 death of his 98-year-old mother, Joan Meyer, the paper’s co-owner. Her funeral services were Saturday.

Court documents suggest reason for police raid of Kansas newspaper

CRAWFORD COUNTY —Law enforcement authorities are investigating a fatal shooting.

Just after 1a.m. Sunday police were dispatched to a shooting at 202 N. Locust Street in Pittsburg, Kansas, according to a media release.

First responders found that a man later identified as&nbsp;36-year-old Justin E. Krogen, of Pittsburg,&nbsp; had been shot outside of a local bar. He was pronounced deceased at the scene.&nbsp; His body was sent to Kansas City for an autopsy, according to police.

The Kansas Bureau of Investigation is assisting. Investigators believe this to be an isolated incident, and believe it may have stemmed from an argument.&nbsp; Police released no suspect details and have not reported an arrest.

CRAWFORD COUNTY —Law enforcement authorities are investigating a fatal shooting.Just after 1a.m. Sunday police were dispatched to a shooting at 202 N. Locust Street in Pittsburg, Kansas, according to a media release.First responders found that a man later identified as&nbsp;36-year-old Justin E. Krogen, of Pittsburg,&nbsp; had been shot outside of a local bar. He was pronounced deceased at the scene.&nbsp; His body was sent to Kansas City for an autopsy, according to police.The Kansas Bureau of Investigation is assisting. Investigators believe this to be an isolated incident, and believe it may have stemmed from an argument.&nbsp; Police released no suspect details and have not reported an arrest.

Police: Kansas man dies after shooting outside bar

SEDGWICK COUNTY—Law enforcement authorities are investigating a weekend armed robbery.

Just after 4:30a.m. Saturday, police responded to an armed robbery at the Kwik Shop in the 6300 block of E. 13th Street North in Wichita, according to Officer Juan Rebolledo.

 The clerk, while engaging with a customer, noticed two people wearing ski masks walk in and proceeded to the bathroom. The clerk had a suspicious feeling and walked out of the store to call 911. The clerk was forced back inside the store to open the registers at gunpoint.

 The suspects, described as unknown race males in their late teens to early thirties, stole approximately $200 cash from the registers and fled towards 12th Street. 

SEDGWICK COUNTY—Law enforcement authorities are investigating a weekend armed robbery.Just after 4:30a.m. Saturday, police responded to an armed robbery at the Kwik Shop in the 6300 block of E. 13th Street North in Wichita, according to Officer Juan Rebolledo. The clerk, while engaging with a customer, noticed two people wearing ski masks walk in and proceeded to the bathroom. The clerk had a suspicious feeling and walked out of the store to call 911. The clerk was forced back inside the store to open the registers at gunpoint. The suspects, described as unknown race males in their late teens to early thirties, stole approximately $200 cash from the registers and fled towards 12th Street.

Suspects in ski masks took $200 cash from Kan. convenience store

NEW YORK (AP) —&nbsp;<a href="https://apnews.com/hub/donald-trump">Former President Donald Trump</a>&nbsp;confirmed Sunday that he will be skipping Wednesday's first Republican presidential primary debate — and others as well.

“The public knows who I am &amp; what a successful Presidency I had,” Trump wrote on his social media site. "I WILL THEREFORE NOT BE DOING THE DEBATES!" His spokesman did not immediately clarify whether he plans to boycott every primary debate or just those that have currently been scheduled.

The former president and early GOP frontrunner&nbsp;<a href="https://apnews.com/article/trump-2024-republican-presidential-debates-e674cab77b1b37e29dcb834563c9b981">had said for months</a>&nbsp;that he saw little upside in joining his GOP rivals on stage when they&nbsp;<a href="https://apnews.com/article/republicans-debate-2024-president-august-6cc406eb00c72835f4f59acb30d71e95">gather for the first time</a>&nbsp;in Milwaukee Wednesday, given his commanding lead in the race. And he had made clear to those he had spoken to in recent days that his opinion had not changed.

“Why would I allow people at 1 or 2% and 0% to be hitting me with questions all night?” he said in an interview in June with Fox News host Bret Baier, who will be serving as a moderator. Trump has also repeatedly criticized Fox, the host of the Aug. 23 primetime event, insisting it is a “hostile network” that he believes will not treat him fairly.

Trump had been discussing a number of debate counterprogramming options, including sitting for an interview with ex-Fox News host Tucker Carlson, who has been hosting a show on the website formerly known as Twitter. Carlson was spotted at Trump's Bedminster, New Jersey, golf club ahead of the announcement, according to a person familiar with the visit who spoke on condition of anonymity because they were not authorized to discuss it. The New York Times reported Saturday the interview set to air Wednesday has already been taped.

“We cannot confirm or deny — stay tuned,” said Trump spokesman Steven Cheung.

The idea had been one of several alternatives Trump had floated in conversations in recent weeks. They included possibly showing up in Milwaukee at the last minute or attending but sitting in the audience and offering live commentary on his Truth Social site. He had also discussed potentially calling into different networks to draw viewers from the debate, or holding a rally instead.

The decision marks another chapter in Trump's ongoing feud with Fox, which was once a staunch defender, but is now perceived to be more favorable to his leading rival, Florida Gov. Ron DeSantis. Fox executives and hosts had lobbied Trump to attend, both privately and on the network's airwaves. But Trump, according to a person close to him, was unswayed, believing executives would not have been wooing him if they weren’t concerned about their ratings.

A person familiar had said earlier Sunday that Trump and his team had not notified the Republican National Committee of his plans.

Meanwhile, Trump's rivals had been goading him to appear and&nbsp;<a href="https://apnews.com/article/debate-republican-president-trump-pence-haley-desantis-d3192137ee265d8455ff8af64a5f88ef">preparing in the hopes that he might</a>, concerned that a no-show might make them appear like second-tier candidates and deny them the opportunity to land a knockout blow against the race's Goliath that could change the trajectory of the race.

Former New Jersey Gov. Chris Christie, one of the few candidates willing to directly take on Trump, has been accusing the former president of lacking “the guts to show up" and calling him “a coward” if he doesn't.

A super PAC supporting DeSantis released an ad in which the narrator says: “We can’t afford a nominee who is too weak to debate.” And in a posting Sunday on X, the social media site formerly known as Twitter, DeSantis campaign spokesman Andrew Romeo said the Florida governor looked forward to sharing his vision Wednesday on what he'll do as president because “no one is entitled to this nomination, including Donald Trump. You have to show up and earn it."

Trump has pushed back on the attacks, telling Newsmax’s Eric Bolling that he saw little benefit in participating when he’s already leading by a wide margin.

“It's not a question of guts. It’s a question of intelligence,” he said.

Trump has also&nbsp;<a href="https://apnews.com/article/trump-republican-loyalty-pledge-gop-debate-a3d63a73ef60a2afb1f7aaec68a6d585#:~:text=Former%20President%20Donald%20Trump%20said,the%20conservative%20cable%20network%20Newsmax.">said</a>&nbsp;that he will not sign a pledge to support the eventual Republican nominee if he loses the nomination — a requirement set by the Republican National Committee for appearing on stage.

“Why would I sign it?” he said. “I can name three or four people that I wouldn’t support for president. So right there, there’s a problem.”

Nonetheless, his advisers insisted for weeks that he had yet to make a final decision, even as they acknowledged it was “pretty clear” from his public and private statements that he was unlikely to appear.

It's not the first time Trump has chosen to skip a major GOP debate.

During his 2016 campaign, Trump decided to forgo the final GOP primary face-off before the Iowa caucuses and instead held his own campaign event — a&nbsp;<a href="https://apnews.com/article/-----dbb273322fc740198cf06f3ffd83c678">flashy telethon-style gathering</a>&nbsp;in Iowa that was billed as a fundraiser for veterans.

While the event earned him headlines and drew attention away from his rivals, Trump went on to lose the Iowa caucuses to Sen. Ted Cruz of Texas — a loss some former aides have blamed, at least in part, on his decision to skip the debate.

In 2020, Trump pulled out of the second general election debate against now-President&nbsp;<a href="https://apnews.com/hub/joe-biden">Joe Biden</a>&nbsp;after the Commission on Presidential Debates, a nonpartisan group that has hosted general election debates for more than three decades, sought to make it virtual after Trump&nbsp;<a href="https://apnews.com/article/health-donald-trump-ap-top-news-elections-virus-outbreak-7fece2838ff7a9bd91ccf5ac287348b3">tested positive for COVID-19</a>. Trump refused, saying he would only debate on stage.

Trump is not the only candidate who will likely be missing Wednesday's event. Several lesser-known rivals appear unlikely to reach the threshold set by the RNC to participate. To qualify, candidates must have received contributions from at least 40,000 individual donors, with at least 200 unique donors in 20 or more states. They also must poll at at least 1% in three designated national polls, or a mix of national and early-state polls, between July 1 and Aug. 21.

Candidates who have met the qualifications include DeSantis, Christie, former vice president Mike Pence, tech entrepreneur Vivek Ramaswamy, former South Carolina Gov. Nikki Haley, and South Carolina Sen. Tim Scott.

Beyond the fundraising and polling requirements, the RNC has said candidates must also sign the pledge agreeing to support the eventual party nominee as well as agreeing not to participate in any non-RNC sanctioned debate for the remainder of the election cycle. The RNC is boycotting events organized by the Commission for Presidential Debates, alleging bias.

“I affirm that if I do not win the 2024 Republican nomination of President of the United States, I will honor the will of the primary voters and support the nominee in order to save our country and beat Joe Biden,” reads the pledge, according to a copy posted by DeSantis to the social media site X. Candidates also must pledge not to run as an independent, write-in candidate or third-party nominee.

While several candidates, including Christie and former Arkansas Gov. Asa Hutchinson have taken issue with the requirement, former Texas Rep. Will Hurd so far is the only one who has said definitively that he will not sign the pledge because he refuses to support Trump if he becomes the eventual nominee. Christie has said he will sign whatever is needed to get him on the stage.

In addition to voicing opposition to the loyalty pledge, Trump has suggested he is opposed to boycotting general election debates hosted by the Commission on Presidential Debates. “You have, really, an obligation to do that," he said in a radio interview this spring.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1691534237207.png" alt="The decision marks another chapter in Trump's ongoing feud with Fox,- File photo courtesy CSPAN" />
 <figcaption>The decision marks another chapter in Trump's ongoing feud with Fox,- File photo courtesy CSPAN</figcaption>
 </figure>NEW YORK (AP) —&nbsp;<a href="https://apnews.com/hub/donald-trump">Former President Donald Trump</a>&nbsp;confirmed Sunday that he will be skipping Wednesday's first Republican presidential primary debate — and others as well.<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692582211518.png" alt="\" />
 <figcaption>\</figcaption>
 </figure>“The public knows who I am &amp; what a successful Presidency I had,” Trump wrote on his social media site. "I WILL THEREFORE NOT BE DOING THE DEBATES!" His spokesman did not immediately clarify whether he plans to boycott every primary debate or just those that have currently been scheduled.The former president and early GOP frontrunner&nbsp;<a href="https://apnews.com/article/trump-2024-republican-presidential-debates-e674cab77b1b37e29dcb834563c9b981">had said for months</a>&nbsp;that he saw little upside in joining his GOP rivals on stage when they&nbsp;<a href="https://apnews.com/article/republicans-debate-2024-president-august-6cc406eb00c72835f4f59acb30d71e95">gather for the first time</a>&nbsp;in Milwaukee Wednesday, given his commanding lead in the race. And he had made clear to those he had spoken to in recent days that his opinion had not changed.“Why would I allow people at 1 or 2% and 0% to be hitting me with questions all night?” he said in an interview in June with Fox News host Bret Baier, who will be serving as a moderator. Trump has also repeatedly criticized Fox, the host of the Aug. 23 primetime event, insisting it is a “hostile network” that he believes will not treat him fairly.Trump had been discussing a number of debate counterprogramming options, including sitting for an interview with ex-Fox News host Tucker Carlson, who has been hosting a show on the website formerly known as Twitter. Carlson was spotted at Trump's Bedminster, New Jersey, golf club ahead of the announcement, according to a person familiar with the visit who spoke on condition of anonymity because they were not authorized to discuss it. The New York Times reported Saturday the interview set to air Wednesday has already been taped.“We cannot confirm or deny — stay tuned,” said Trump spokesman Steven Cheung.The idea had been one of several alternatives Trump had floated in conversations in recent weeks. They included possibly showing up in Milwaukee at the last minute or attending but sitting in the audience and offering live commentary on his Truth Social site. He had also discussed potentially calling into different networks to draw viewers from the debate, or holding a rally instead.The decision marks another chapter in Trump's ongoing feud with Fox, which was once a staunch defender, but is now perceived to be more favorable to his leading rival, Florida Gov. Ron DeSantis. Fox executives and hosts had lobbied Trump to attend, both privately and on the network's airwaves. But Trump, according to a person close to him, was unswayed, believing executives would not have been wooing him if they weren’t concerned about their ratings.A person familiar had said earlier Sunday that Trump and his team had not notified the Republican National Committee of his plans.Meanwhile, Trump's rivals had been goading him to appear and&nbsp;<a href="https://apnews.com/article/debate-republican-president-trump-pence-haley-desantis-d3192137ee265d8455ff8af64a5f88ef">preparing in the hopes that he might</a>, concerned that a no-show might make them appear like second-tier candidates and deny them the opportunity to land a knockout blow against the race's Goliath that could change the trajectory of the race.Former New Jersey Gov. Chris Christie, one of the few candidates willing to directly take on Trump, has been accusing the former president of lacking “the guts to show up" and calling him “a coward” if he doesn't.A super PAC supporting DeSantis released an ad in which the narrator says: “We can’t afford a nominee who is too weak to debate.” And in a posting Sunday on X, the social media site formerly known as Twitter, DeSantis campaign spokesman Andrew Romeo said the Florida governor looked forward to sharing his vision Wednesday on what he'll do as president because “no one is entitled to this nomination, including Donald Trump. You have to show up and earn it."Trump has pushed back on the attacks, telling Newsmax’s Eric Bolling that he saw little benefit in participating when he’s already leading by a wide margin.“It's not a question of guts. It’s a question of intelligence,” he said.Trump has also&nbsp;<a href="https://apnews.com/article/trump-republican-loyalty-pledge-gop-debate-a3d63a73ef60a2afb1f7aaec68a6d585#:~:text=Former%20President%20Donald%20Trump%20said,the%20conservative%20cable%20network%20Newsmax.">said</a>&nbsp;that he will not sign a pledge to support the eventual Republican nominee if he loses the nomination — a requirement set by the Republican National Committee for appearing on stage.“Why would I sign it?” he said. “I can name three or four people that I wouldn’t support for president. So right there, there’s a problem.”Nonetheless, his advisers insisted for weeks that he had yet to make a final decision, even as they acknowledged it was “pretty clear” from his public and private statements that he was unlikely to appear.It's not the first time Trump has chosen to skip a major GOP debate.During his 2016 campaign, Trump decided to forgo the final GOP primary face-off before the Iowa caucuses and instead held his own campaign event — a&nbsp;<a href="https://apnews.com/article/-----dbb273322fc740198cf06f3ffd83c678">flashy telethon-style gathering</a>&nbsp;in Iowa that was billed as a fundraiser for veterans.While the event earned him headlines and drew attention away from his rivals, Trump went on to lose the Iowa caucuses to Sen. Ted Cruz of Texas — a loss some former aides have blamed, at least in part, on his decision to skip the debate.In 2020, Trump pulled out of the second general election debate against now-President&nbsp;<a href="https://apnews.com/hub/joe-biden">Joe Biden</a>&nbsp;after the Commission on Presidential Debates, a nonpartisan group that has hosted general election debates for more than three decades, sought to make it virtual after Trump&nbsp;<a href="https://apnews.com/article/health-donald-trump-ap-top-news-elections-virus-outbreak-7fece2838ff7a9bd91ccf5ac287348b3">tested positive for COVID-19</a>. Trump refused, saying he would only debate on stage.Trump is not the only candidate who will likely be missing Wednesday's event. Several lesser-known rivals appear unlikely to reach the threshold set by the RNC to participate. To qualify, candidates must have received contributions from at least 40,000 individual donors, with at least 200 unique donors in 20 or more states. They also must poll at at least 1% in three designated national polls, or a mix of national and early-state polls, between July 1 and Aug. 21.Candidates who have met the qualifications include DeSantis, Christie, former vice president Mike Pence, tech entrepreneur Vivek Ramaswamy, former South Carolina Gov. Nikki Haley, and South Carolina Sen. Tim Scott.Beyond the fundraising and polling requirements, the RNC has said candidates must also sign the pledge agreeing to support the eventual party nominee as well as agreeing not to participate in any non-RNC sanctioned debate for the remainder of the election cycle. The RNC is boycotting events organized by the Commission for Presidential Debates, alleging bias.“I affirm that if I do not win the 2024 Republican nomination of President of the United States, I will honor the will of the primary voters and support the nominee in order to save our country and beat Joe Biden,” reads the pledge, according to a copy posted by DeSantis to the social media site X. Candidates also must pledge not to run as an independent, write-in candidate or third-party nominee.While several candidates, including Christie and former Arkansas Gov. Asa Hutchinson have taken issue with the requirement, former Texas Rep. Will Hurd so far is the only one who has said definitively that he will not sign the pledge because he refuses to support Trump if he becomes the eventual nominee. Christie has said he will sign whatever is needed to get him on the stage.In addition to voicing opposition to the loyalty pledge, Trump has suggested he is opposed to boycotting general election debates hosted by the Commission on Presidential Debates. “You have, really, an obligation to do that," he said in a radio interview this spring.

Trump explains why he will skip GOP presidential primary debates

SEDGWICK COUNTY —Law enforcement authorities are investigating a drowning that occurred over the weekend.

Just after 2:30 p.m. Saturday, police responded to the 200 block of N. Crestway in Wichita, according to a media release.

First responders found a 40-years-old man who had been pulled from a pool.&nbsp; EMS transported him to a local hospital where he was pronounced deceased. Police have not released the victim's name or additional details.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692613233034.png" alt="Plice on the scene of the emergency response on Saturday -photo courtesy KWCH" />
 <figcaption>Plice on the scene of the emergency response on Saturday -photo courtesy KWCH</figcaption>
 </figure>SEDGWICK COUNTY —Law enforcement authorities are investigating a drowning that occurred over the weekend.Just after 2:30 p.m. Saturday, police responded to the 200 block of N. Crestway in Wichita, according to a media release.First responders found a 40-years-old man who had been pulled from a pool.&nbsp; EMS transported him to a local hospital where he was pronounced deceased. Police have not released the victim's name or additional details.

Man drowns in backyard pool at Kansas home

CHEROKEE COUNTY—The Kansas Highway Patrol is investigating a fatal hit-and-run collision that occurred just after 11:30p.m. Saturday in Cherokee County and after asking the public for help have successfuly located the truck and driver involved.

According to the KHP, a light colored, maroon or red 2017 or 2018 Ford Raptor truck&nbsp; was eastbound on Kansas 66 on the west edge of the city of Galena and struck a pedestrian.

Anyone with information is asked to contact the KHP.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692572107679.png" alt="Image KHP" />
 <figcaption>Image KHP</figcaption>
 </figure>CHEROKEE COUNTY—The Kansas Highway Patrol is investigating a fatal hit-and-run collision that occurred just after 11:30p.m. Saturday in Cherokee County and after asking the public for help have successfuly located the truck and driver involved.According to the KHP, a light colored, maroon or red 2017 or 2018 Ford Raptor truck&nbsp; was eastbound on Kansas 66 on the west edge of the city of Galena and struck a pedestrian.Anyone with information is asked to contact the KHP.

KHP asks for help to locate truck in fatal hit-and-run

KANSAS CITY, Mo. (AP) — A former Missouri respiratory therapist who&nbsp;<a href="https://apnews.com/article/therapist-charged-hospital-deaths-missouri-e1ee052d92853b581db18815f7367925">pleaded guilty</a>&nbsp;in the deaths of two hospital patients has been sentenced to 18 years in prison.

Jennifer Hall was initially charged with two counts of first-degree murder but pleaded guilty in April to reduced first-degree involuntary manslaughter counts in the deaths of 75-year-old Fern Franco and 37-year-old David Wesley Harper. She also pleaded guilty to one count of attempted second-degree assault. She was sentenced Friday,&nbsp;<a href="https://www.kctv5.com/2023/08/19/missouri-respiratory-therapist-jennifer-hall-sentenced-deaths-2-patients/">KCTV-TV</a>&nbsp;reported.

Franco and Harper were among nine patients who died at Hedrick Medical Center in Chillicothe over several months in 2002 in what charging documents describe as “medically suspicious” events.

“A sentence 20 years in the making,” Livingston County Prosecuting Attorney Adam Warren said in a statement. He noted that Hall will eventually be eligible for parole. “But for now, we all sleep better knowing she is behind bars,” he said.

From December 2001, when Hall started working at the hospital, until she was placed on administrative leave the following May, there also were 18 cardiac arrests or “Code Blue” events, up from an average of one a year before then.

The case was revived after an analysis of Franco’s tissue samples found morphine and a powerful muscle relaxant used in anesthesia in her system. Neither drug was prescribed or ordered for her by her doctors, investigators said.

Some staff at the hospital believed Hall was responsible because of her proximity to the stricken patients, her access to deadly pharmaceuticals, and because she notified staff of every patient’s cardiac emergency, according to court documents.

Hall had previously denied any involvement in the deaths.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/5/1652449498878.png" alt="Jennifer Hall, 41, was arrested in Johnson County, Kansas, on Thursday evening under the name Jennifer Semaboye, of Overland Park, Kansas," />
 <figcaption>Jennifer Hall, 41, was arrested in Johnson County, Kansas, on Thursday evening under the name Jennifer Semaboye, of Overland Park, Kansas,</figcaption>
 </figure>KANSAS CITY, Mo. (AP) — A former Missouri respiratory therapist who&nbsp;<a href="https://apnews.com/article/therapist-charged-hospital-deaths-missouri-e1ee052d92853b581db18815f7367925">pleaded guilty</a>&nbsp;in the deaths of two hospital patients has been sentenced to 18 years in prison.Jennifer Hall was initially charged with two counts of first-degree murder but pleaded guilty in April to reduced first-degree involuntary manslaughter counts in the deaths of 75-year-old Fern Franco and 37-year-old David Wesley Harper. She also pleaded guilty to one count of attempted second-degree assault. She was sentenced Friday,&nbsp;<a href="https://www.kctv5.com/2023/08/19/missouri-respiratory-therapist-jennifer-hall-sentenced-deaths-2-patients/">KCTV-TV</a>&nbsp;reported.<figure>
 <img src="https://media.eaglewebservices.com/public/2022/5/1652204964045.png" alt="Livingston Co. Sheriff" />
 <figcaption>Livingston Co. Sheriff</figcaption>
 </figure>Franco and Harper were among nine patients who died at Hedrick Medical Center in Chillicothe over several months in 2002 in what charging documents describe as “medically suspicious” events.“A sentence 20 years in the making,” Livingston County Prosecuting Attorney Adam Warren said in a statement. He noted that Hall will eventually be eligible for parole. “But for now, we all sleep better knowing she is behind bars,” he said.From December 2001, when Hall started working at the hospital, until she was placed on administrative leave the following May, there also were 18 cardiac arrests or “Code Blue” events, up from an average of one a year before then.The case was revived after an analysis of Franco’s tissue samples found morphine and a powerful muscle relaxant used in anesthesia in her system. Neither drug was prescribed or ordered for her by her doctors, investigators said.Some staff at the hospital believed Hall was responsible because of her proximity to the stricken patients, her access to deadly pharmaceuticals, and because she notified staff of every patient’s cardiac emergency, according to court documents.Hall had previously denied any involvement in the deaths.

Respiratory therapist arrested in Kan. sentenced in deaths of patients

WICHITA, KAN. – A federal grand jury in Wichita returned three related indictments charging a total of 12 people following a large scale law enforcement investigation into an alleged drug trafficking ring, according to a media release from the United State's Attorney.

In the first indictment, Rafael Turner, 33, of Phoenix, Arizona, and formerly of Wichita is charged with one count of distribution of fentanyl, two counts of attempted distribution of fentanyl, two counts of conspiracy to distribute fentanyl, and four counts of possession with intent to distribute fentanyl.

The grand jury also indicted Rafael Turner on 24 counts of use of a telephone to facilitate drug trafficking, one count of maintaining a drug premises, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud in relation to identification documents, and six counts of money laundering.

Andrea Bohanon, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, one count of maintaining a drug premises, and six counts of money laundering,

Antwain Gails, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, nine counts of use of a telephone to facilitate drug trafficking, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents.

Antonio Turner, 55, of Wichita is charged with one count of distribution of fentanyl, one count of possession with intent to distribute fentanyl, one count of conspiracy to distribute fentanyl, and nine counts of use of a telephone to facilitate drug trafficking,

Wayne Turner, 30, of Wichita is charged with one count of conspiracy to distribute fentanyl.

As part of a second indictment, William Parks, 27, of Salina was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.

Santino Dupree, 29, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.

Tehran Wilson, 30, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of use of a telephone to facilitate drug trafficking.

Justice Johnson, 27, of Wichita was indicted on one count of possession with intent to distribute fentanyl.

In a third indictment, a federal grand jury charged Kayla Dean, 21, of Southfield, Michigan, Isaiah Gails, 34, of Wichita, and Marquez Gails, 42, of Wichita on one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents. Dean was also indicted on six counts of money laundering, and Isaiah Gails was also indicted on one count of possession with intent to distribute fentanyl.

The Federal Bureau of Investigation (FBI), Wichita Police Department, Sedgwick County Sheriff’s Office, IRS-Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations (HSI) are investigating the case.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692464531855.png" alt="Andrea Bohanon-photo from a January arrest in Sedgwick County" />
 <figcaption>Andrea Bohanon-photo from a January arrest in Sedgwick County</figcaption>
 </figure>WICHITA, KAN. – A federal grand jury in Wichita returned three related indictments charging a total of 12 people following a large scale law enforcement investigation into an alleged drug trafficking ring, according to a media release from the United State's Attorney.In the first indictment, Rafael Turner, 33, of Phoenix, Arizona, and formerly of Wichita is charged with one count of distribution of fentanyl, two counts of attempted distribution of fentanyl, two counts of conspiracy to distribute fentanyl, and four counts of possession with intent to distribute fentanyl.The grand jury also indicted Rafael Turner on 24 counts of use of a telephone to facilitate drug trafficking, one count of maintaining a drug premises, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud in relation to identification documents, and six counts of money laundering.Andrea Bohanon, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, one count of maintaining a drug premises, and six counts of money laundering,Antwain Gails, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, nine counts of use of a telephone to facilitate drug trafficking, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents.Antonio Turner, 55, of Wichita is charged with one count of distribution of fentanyl, one count of possession with intent to distribute fentanyl, one count of conspiracy to distribute fentanyl, and nine counts of use of a telephone to facilitate drug trafficking,Wayne Turner, 30, of Wichita is charged with one count of conspiracy to distribute fentanyl.As part of a second indictment, William Parks, 27, of Salina was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.Santino Dupree, 29, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.Tehran Wilson, 30, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of use of a telephone to facilitate drug trafficking.Justice Johnson, 27, of Wichita was indicted on one count of possession with intent to distribute fentanyl.In a third indictment, a federal grand jury charged Kayla Dean, 21, of Southfield, Michigan, Isaiah Gails, 34, of Wichita, and Marquez Gails, 42, of Wichita on one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents. Dean was also indicted on six counts of money laundering, and Isaiah Gails was also indicted on one count of possession with intent to distribute fentanyl.The Federal Bureau of Investigation (FBI), Wichita Police Department, Sedgwick County Sheriff’s Office, IRS-Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations (HSI) are investigating the case.

Indictment: 12 accused of fentanyl trafficking in Kansas

JOHNSON COUNTY —Law enforcement authorities are investigating retail theft in Kansas and have recovered thousands in stolen merchandise.

Earlier this year, police in the city of Shawnee, Kansas received information that resulted in a months-long cooperative investigation with assistance from area law enforcement agencies and corporate retail loss prevention personnel, according to a media release.

This week, investigators served a search warrant at a home in the city of Shawnee and detectives recovered 479 items believed to have been stolen from multiple area retailers.&nbsp;

During the investigation, detectives recovered an estimated $138,000 worth of stolen merchandise comprised largely of power tools.&nbsp;&nbsp;

The case will be submitted to the Johnson County District Attorney for charges. Police did not release names of suspects or additional details as the investigation continues.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692359721827.png" alt="Photo Shawnee Police" />
 <figcaption>Photo Shawnee Police</figcaption>
 </figure>JOHNSON COUNTY —Law enforcement authorities are investigating retail theft in Kansas and have recovered thousands in stolen merchandise.Earlier this year, police in the city of Shawnee, Kansas received information that resulted in a months-long cooperative investigation with assistance from area law enforcement agencies and corporate retail loss prevention personnel, according to a media release.This week, investigators served a search warrant at a home in the city of Shawnee and detectives recovered 479 items believed to have been stolen from multiple area retailers.&nbsp;During the investigation, detectives recovered an estimated $138,000 worth of stolen merchandise comprised largely of power tools.&nbsp;&nbsp;The case will be submitted to the Johnson County District Attorney for charges. Police did not release names of suspects or additional details as the investigation continues.

$138,000 in stolen merchandise recovered at Kansas home

By JULIE APPLEBY <a href="https://www.kcur.org/news/2021-01-14/private-practice-doctors-patients-wonder-when-its-their-turn-for-the-covid-19-vaccine">Kaiser Health News</a>

A simple enough question, featured on a&nbsp;<a target="_blank" href="https://www.youtube.com/watch?v=eyUx06Bfzfc">new TV and online advertisement</a>, posed by a man who just wants something cold.

A woman behind the counter responds with a smile: “Prices? No, we don’t have those anymore. We have estimates.”

The satirical ad pretends to be a news report highlighting a “trend” in which more retail outlets take up “the hospital pricing method”: substituting estimates for actual prices for the cost of meals, merchandise on store shelves, and clothing. The scene ends with a partially deleted expletive from the ice cream-seeking man.

While the use of estimates in retail settings is imaginary and preposterous, the advertisement is part of an ongoing campaign by the advocacy group Patient Rights Advocate, which contends that some hospitals are still falling short of a law that went into effect in 2021 requiring them to publicly post their prices. Even then, said Cynthia Fisher, the group’s founder and chairperson, too many post estimates rather than exact dollar-and-cent figures.

“People need price certainty,” said Fisher. “Estimates are a way of gaming the people who pay for health care.”

Although government data shows that hospitals’ compliance with price transparency rules has improved, updating the requirements of that law is the focus of a&nbsp;<a target="_blank" href="https://www.federalregister.gov/documents/2023/07/31/2023-14768/medicare-program-hospital-outpatient-prospective-payment-and-ambulatory-surgical-center-payment">new proposal by the Biden administration</a>, which aims to further standardize the required data, increase its usefulness for consumers, and boost enforcement. Even with all that, however, the goal of exact price tags in every situation is likely to remain elusive.

“We’re closer to that, but we’re not there,” said Gerard Anderson, a professor at the Johns Hopkins Bloomberg School of Public Health, who studies hospital pricing using the data that hospitals have already posted.

The proposed rule is designed to make it easier for consumers to learn in advance exactly what they might owe for nonemergency hospital care — though that was what the original price transparency rules were supposed to do.

Requiring hospitals to post their prices is part of a larger effort to make medical costs less opaque, which could help individual consumers predict their expenses and possibly slow health cost inflation, if it leads employers and insurers to contract with less expensive providers.

But the data files themselves are massive, often hard to find, and complex to decipher.

“Even for us, it’s really hard to use,” said Anderson.

Under current regulations, hospitals must publicly post prices for every service they offer, from drugs to stitches to time a patient spends in an operating room, as well as show all the bundled costs associated with 300 “shoppable” services, which are things people can plan for, such as a hip replacement or having a baby. Several different prices are required, including those they’ve negotiated with insurers and what they charge cash-paying customers.

Similar regulations, but with more prescriptive details and tougher penalties for noncompliance,&nbsp;<a target="_blank" href="https://www.npr.org/2022/07/02/1109557961/health-insurers-are-now-required-to-post-prices-they-pay-to-hospitals">went into effect for insurance companies</a>&nbsp;in 2022, requiring them to post prices not only for hospital care, but also for outpatient centers and physician services.

The new hospital requirements proposed by the Centers for Medicare &amp; Medicaid Services help “catch up to what they did with health plans,” said Hal Andrews,&nbsp;<a target="_blank" href="https://www.trillianthealth.com/company">CEO and president of Trilliant Health</a>, a market research and analysis company.

“It’s a step down the path to making the data more accessible” to data analysis firms that create online price comparison tools, said Jeff Leibach, a partner at the&nbsp;<a target="_blank" href="https://guidehouse.com/">consulting firm Guidehouse</a>. “And, ultimately, consumers who want to shop will then find this data more easily.” Many hospitals, insurers, and third-party data firms have made such cost comparison tools available.

Even the new requirements may not resolve the demand that is central to the dystopian ad’s ice cream-seeking man: getting exact prices, in dollars and cents. Such specificity may remain elusive for some consumers, if only because of the nature of medical care.

“Each patient is unique and uses a slightly different bundle of services,” said Anderson of Johns Hopkins. “You might be in the operating room for 30 minutes, or it might be 45. You might need this lab test and not that one.”

The proposed rule&nbsp;would, for one thing, further standardize the data required so that reporting is more comparable between facilities. It also mandates hospitals make their data sets easier to find on their websites, which could help data aggregators and consumers alike, and puts administrators in the hot seat to attest that their hospitals have posted all the required information accurately.

Individual hospitals that fail to post properly would face additional publicity by federal regulators: “Consider it a public naughty list,” said Marcus Dorstel, vice president of operations at data analysis firm Turquoise Health, which provides an online tool consumers can use to check prices across hospitals.

In addition, the proposal adds a data category awkwardly called “consumer-friendly expected allowed charges,” aimed at giving more information tied to the varied ways hospitals set prices. In plainer language, those allowed amounts are what hospitals expect to be reimbursed by insurance companies.

For example, Dorstel said, currently a service might not be listed as a particular dollar amount, but the hospital will show the price is based on “70% of charges.”

“Without the expected allowed amount, that doesn’t tell you anything,” Dorstel said.

Still, critics — such as Patient Rights Advocate, the group behind the new ad campaign — say that nodding to such allowed amounts will lead to even more estimates, rather than what they prefer: dollar-and-cent assessments.

“You and I would not buy a blouse at an average estimated amount,” said Fisher.

Health care isn’t like blouses or ice cream, responded executives from the American Hospital Association when asked about the advertisement and Fisher’s concerns about exact, upfront amounts. In many situations, for example, it may be hard to know ahead of time exactly what kind of care a patient will need.

“Very few health services are so straightforward where you can expect no variation in the course of care,” which could then result in a different cost than the original assessment,” said Molly Smith,&nbsp;<a target="_blank" href="https://www.ahip.org/people/molly-smith">AHA’s group vice president for public policy</a>. “Organizations are doing the best they can to provide the closest estimate. If something changes in the course of your care, that estimate might adjust.”

While hospitals’ compliance with posting price information has improved, it still falls short, said Fisher, whose group&nbsp;<a target="_blank" href="https://www.patientrightsadvocate.org/july-semi-annual-compliance-report-2023">in a July report</a>&nbsp;said only 36% of 2,000 hospitals it reviewed complied with all aspects of the current law, marking as deficient those that had incomplete data fields or used formulas instead of dollar prices.

But the American Hospital Association says Fisher’s group “<a target="_blank" href="https://www.aha.org/press-releases/2023-07-25-aha-statement-patient-rights-advocate-price-transparency-report">misconstrues” hospital compliance</a>, in part because hospitals are allowed to leave spaces blank, if, for example, they don’t have a cash-only price. And formulas are allowed if that is how the prices are set.

The hospital group points instead to a&nbsp;<a target="_blank" href="https://www.aha.org/news/headline/2023-02-16-cms-70-hospitals-compliance-price-transparency-rules">CMS report from earlier this year</a>&nbsp;that showed compliance was increasing year over year. It said 70% of hospitals were compliant with the current requirements of the law.

It took some doing to get that far. Since 2021, the federal government has sent more than 900 warning letters to hospitals about their posted data, with most resolving those concerns, according to the proposed rule. Four hospitals have been fined for failing to comply with the transparency law.

<a target="_blank" href="https://kffhealthnews.org/about-us">KFF Health News</a>&nbsp;is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about&nbsp;<a target="_blank" href="https://www.kff.org/about-us">KFF</a>.

By JULIE APPLEBY <a href="https://www.kcur.org/news/2021-01-14/private-practice-doctors-patients-wonder-when-its-their-turn-for-the-covid-19-vaccine">Kaiser Health News</a>“How much is the ice cream?”A simple enough question, featured on a&nbsp;<a target="_blank" href="https://www.youtube.com/watch?v=eyUx06Bfzfc">new TV and online advertisement</a>, posed by a man who just wants something cold.A woman behind the counter responds with a smile: “Prices? No, we don’t have those anymore. We have estimates.”The satirical ad pretends to be a news report highlighting a “trend” in which more retail outlets take up “the hospital pricing method”: substituting estimates for actual prices for the cost of meals, merchandise on store shelves, and clothing. The scene ends with a partially deleted expletive from the ice cream-seeking man.While the use of estimates in retail settings is imaginary and preposterous, the advertisement is part of an ongoing campaign by the advocacy group Patient Rights Advocate, which contends that some hospitals are still falling short of a law that went into effect in 2021 requiring them to publicly post their prices. Even then, said Cynthia Fisher, the group’s founder and chairperson, too many post estimates rather than exact dollar-and-cent figures.“People need price certainty,” said Fisher. “Estimates are a way of gaming the people who pay for health care.”Although government data shows that hospitals’ compliance with price transparency rules has improved, updating the requirements of that law is the focus of a&nbsp;<a target="_blank" href="https://www.federalregister.gov/documents/2023/07/31/2023-14768/medicare-program-hospital-outpatient-prospective-payment-and-ambulatory-surgical-center-payment">new proposal by the Biden administration</a>, which aims to further standardize the required data, increase its usefulness for consumers, and boost enforcement. Even with all that, however, the goal of exact price tags in every situation is likely to remain elusive.“We’re closer to that, but we’re not there,” said Gerard Anderson, a professor at the Johns Hopkins Bloomberg School of Public Health, who studies hospital pricing using the data that hospitals have already posted.The proposed rule is designed to make it easier for consumers to learn in advance exactly what they might owe for nonemergency hospital care — though that was what the original price transparency rules were supposed to do.Requiring hospitals to post their prices is part of a larger effort to make medical costs less opaque, which could help individual consumers predict their expenses and possibly slow health cost inflation, if it leads employers and insurers to contract with less expensive providers.But the data files themselves are massive, often hard to find, and complex to decipher.“Even for us, it’s really hard to use,” said Anderson.Under current regulations, hospitals must publicly post prices for every service they offer, from drugs to stitches to time a patient spends in an operating room, as well as show all the bundled costs associated with 300 “shoppable” services, which are things people can plan for, such as a hip replacement or having a baby. Several different prices are required, including those they’ve negotiated with insurers and what they charge cash-paying customers.Similar regulations, but with more prescriptive details and tougher penalties for noncompliance,&nbsp;<a target="_blank" href="https://www.npr.org/2022/07/02/1109557961/health-insurers-are-now-required-to-post-prices-they-pay-to-hospitals">went into effect for insurance companies</a>&nbsp;in 2022, requiring them to post prices not only for hospital care, but also for outpatient centers and physician services.The new hospital requirements proposed by the Centers for Medicare &amp; Medicaid Services help “catch up to what they did with health plans,” said Hal Andrews,&nbsp;<a target="_blank" href="https://www.trillianthealth.com/company">CEO and president of Trilliant Health</a>, a market research and analysis company.“It’s a step down the path to making the data more accessible” to data analysis firms that create online price comparison tools, said Jeff Leibach, a partner at the&nbsp;<a target="_blank" href="https://guidehouse.com/">consulting firm Guidehouse</a>. “And, ultimately, consumers who want to shop will then find this data more easily.” Many hospitals, insurers, and third-party data firms have made such cost comparison tools available.Even the new requirements may not resolve the demand that is central to the dystopian ad’s ice cream-seeking man: getting exact prices, in dollars and cents. Such specificity may remain elusive for some consumers, if only because of the nature of medical care.“Each patient is unique and uses a slightly different bundle of services,” said Anderson of Johns Hopkins. “You might be in the operating room for 30 minutes, or it might be 45. You might need this lab test and not that one.”The proposed rule&nbsp;would, for one thing, further standardize the data required so that reporting is more comparable between facilities. It also mandates hospitals make their data sets easier to find on their websites, which could help data aggregators and consumers alike, and puts administrators in the hot seat to attest that their hospitals have posted all the required information accurately.Individual hospitals that fail to post properly would face additional publicity by federal regulators: “Consider it a public naughty list,” said Marcus Dorstel, vice president of operations at data analysis firm Turquoise Health, which provides an online tool consumers can use to check prices across hospitals.In addition, the proposal adds a data category awkwardly called “consumer-friendly expected allowed charges,” aimed at giving more information tied to the varied ways hospitals set prices. In plainer language, those allowed amounts are what hospitals expect to be reimbursed by insurance companies.Some experts say that will be helpful.For example, Dorstel said, currently a service might not be listed as a particular dollar amount, but the hospital will show the price is based on “70% of charges.”“Without the expected allowed amount, that doesn’t tell you anything,” Dorstel said.Still, critics — such as Patient Rights Advocate, the group behind the new ad campaign — say that nodding to such allowed amounts will lead to even more estimates, rather than what they prefer: dollar-and-cent assessments.“You and I would not buy a blouse at an average estimated amount,” said Fisher.Health care isn’t like blouses or ice cream, responded executives from the American Hospital Association when asked about the advertisement and Fisher’s concerns about exact, upfront amounts. In many situations, for example, it may be hard to know ahead of time exactly what kind of care a patient will need.“Very few health services are so straightforward where you can expect no variation in the course of care,” which could then result in a different cost than the original assessment,” said Molly Smith,&nbsp;<a target="_blank" href="https://www.ahip.org/people/molly-smith">AHA’s group vice president for public policy</a>. “Organizations are doing the best they can to provide the closest estimate. If something changes in the course of your care, that estimate might adjust.”While hospitals’ compliance with posting price information has improved, it still falls short, said Fisher, whose group&nbsp;<a target="_blank" href="https://www.patientrightsadvocate.org/july-semi-annual-compliance-report-2023">in a July report</a>&nbsp;said only 36% of 2,000 hospitals it reviewed complied with all aspects of the current law, marking as deficient those that had incomplete data fields or used formulas instead of dollar prices.But the American Hospital Association says Fisher’s group “<a target="_blank" href="https://www.aha.org/press-releases/2023-07-25-aha-statement-patient-rights-advocate-price-transparency-report">misconstrues” hospital compliance</a>, in part because hospitals are allowed to leave spaces blank, if, for example, they don’t have a cash-only price. And formulas are allowed if that is how the prices are set.The hospital group points instead to a&nbsp;<a target="_blank" href="https://www.aha.org/news/headline/2023-02-16-cms-70-hospitals-compliance-price-transparency-rules">CMS report from earlier this year</a>&nbsp;that showed compliance was increasing year over year. It said 70% of hospitals were compliant with the current requirements of the law.It took some doing to get that far. Since 2021, the federal government has sent more than 900 warning letters to hospitals about their posted data, with most resolving those concerns, according to the proposed rule. Four hospitals have been fined for failing to comply with the transparency law.<a target="_blank" href="https://kffhealthnews.org/about-us">KFF Health News</a>&nbsp;is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about&nbsp;<a target="_blank" href="https://www.kff.org/about-us">KFF</a>.

Proposed rule would make hospital prices even more transparent

Bitcoin, RockItCoin and other crypto ATM companies are plentiful in low-income Kansas City neighborhoods. Experts say the machines are targeting residents with extraordinary fees

BY:&nbsp;<a href="https://missouriindependent.com/author/danmika/">DAN MIKA</a>

Finance professor Jocelyn Evans first encountered a cryptocurrency ATM on the way to talk about financial education with students last fall.

Evans stopped at a gas station on her way to Sumner Academy in Kansas City, Kansas. She came across the machine with the word “BITCOIN” on the screen. Store staffers weren’t familiar with the machine, which didn’t provide much explanation about how cryptocurrencies work.

“It’s a low-income area with primarily Hispanic, African-American, people who are immigrants,”&nbsp;<a target="_blank" href="https://bloch.umkc.edu/profiles/faculty-directory/jocelyn-evans.html">said Evans</a>, the Henry W. Bloch endowed chair of finance and an associate dean at the University of Missouri-Kansas City. “I just wondered how much people know about cryptocurrency and, with a standalone machine, how much people knew when they made transactions with these machines.”

The ATM that caught Evans’ attention is one of more than 100 cryptocurrency kiosks installed in gas stations, liquor stores, smoke shops and elsewhere across the Kansas City area in the last few years.

The companies running the machines argue they’re providing communities an alternative to traditional financial institutions that have historically given worse deals to poorer neighborhoods and communities of color.

But critics call the machines a targeted attempt to exploit financially vulnerable people with steep fees for a volatile product that’s difficult to cash out from.

“This is no different than people who target the Black community for payday loans or subprime loans,” Evans said. “They’re targeting people with the least financial knowledge and understanding of how you invest in cryptocurrencies.”

Cryptocurrency machines tend to be placed in and around neighborhoods with larger numbers of Black and Latino residents, and in areas with lower median household incomes, according to a Beacon analysis comparing ATM locations provided by&nbsp;<a target="_blank" href="http://coinatmradar.com/">CoinATMRadar</a>&nbsp;against recent estimates from the U.S. Census.

<a target="_blank" href="https://www.fdic.gov/analysis/household-survey/2021report.pdf">Research</a>&nbsp;from the Federal Deposit Insurance Corp. shows those populations are more likely to lack bank accounts — or to use nontraditional financial services like payday loans or title loan services that often carry steep fees.

Crypto ATMs promise access to the world of cryptocurrency to financially disadvantaged groups. However, they often charge fees far above industry standards and sometimes offer little explanation of the risks inherent in crypto. All of these ATMs will accept cash to buy crypto, but most aren’t equipped to sell crypto and dispense cash.

Also, cryptocurrency accounts are not insured by the federal government, while the vast majority of bank accounts with less than $250,000 are. The machines also come with pricey surcharges. They often charge more than 10% per transaction and, in one case found by The Beacon, up to 40%.

Cryptocurrencies are meant to be a digital form of money. No specific entity like a bank or government controls how much of the currency is available or manages and tracks currency transfers between people.

Instead, cryptocurrency ledger updates are pushed to a decentralized network of computers that acts as an ever-updating history of every transaction within that currency.

Such an arrangement can appeal to people who don’t trust the financial system, since cryptocurrency wallets in theory don’t require users to identify themselves. Some machines visited by The Beacon required a government ID to put in cash or transact, while others only required a phone number and name without any additional verification.

At least one crypto ATM provider has acknowledged placing machines near unbanked communities. In an&nbsp;<a target="_blank" href="https://www.youtube.com/watch?v=LUnt2AgClDk">interview</a>&nbsp;with a crypto trade publication earlier this year, Bitcoin Depot CEO Brandon Mintz said his company views the unbanked as a primary customer segment. A&nbsp;<a target="_blank" href="https://www.federalreserve.gov/publications/files/2021-report-economic-well-being-us-households-202205.pdf">2021 survey</a>&nbsp;from the Federal Reserve showed people who used cryptocurrencies for paying others were twice as likely to be unbanked than those who don’t use crypto.

Bitcoin Depot did not respond to multiple requests from The Beacon for comment.

Bitcoin Depot’s projections show how lucrative the crypto ATM business can be. The company, which recently went public,&nbsp;<a target="_blank" href="https://ir.bitcoindepot.com/news-events/press-releases/detail/46/bitcoin-depot-reports-preliminary-second-quarter-revenue">estimates</a>&nbsp;revenues of between $700 million and $730 million this year, with nearly all of that coming from transaction fees.

The first crypto ATM in Kansas City launched in November 2016 at a currency exchange on Broadway Boulevard in midtown. Bitcoin and Ethereum, the two largest cryptocurrencies, had a combined market capitalization of $12 billion at the time. A bitcoin cost around $700, while one ethereum costs $10.

At their peak, around the fall of 2021, Bitcoin and Ethereum combined were valued at the equivalent of nearly $1.8 trillion. Crypto ATMs followed the rise of the coins they sold. The number of ATMs operating in the U.S. rocketed from nearly 4,200 from the start of 2020 to more than 30,000 at the end of 2022.

Only 16 ATMs opened in the Kansas City region during 2018 and 2019. But as cryptocurrencies began to rise in the summer of 2020 amid broader financial speculation, ATM companies added 31 more in the region by the end of the year. Another 50 ATMs were installed in 2021 as pandemic anxieties began to wane.

But economic conditions soured in 2022, as decades-high inflation and fears of global recession created a drag on speculative assets that were flying high during the pandemic.

If the crypto market was an airliner, the end of low interest rates set by the Federal Reserve was like stalling out at 40,000 feet. Just more than a year off its highs, the combined value of Bitcoin and Ethereum sat at about $453 billion in late November 2022 — a decline of nearly 75%.

Yet 40 more ATMs started operating in Kansas City in 2022, while the crypto crash sapped hundreds of billions of dollars out of the ecosystem.

Globally, the crypto research firm Chainalysis estimates that the entirety of the crypto ATM ecosystem accepted deposits worth nearly $3.8 billion in 2021; that amount fell sharply in 2022 alongside the larger slump in crypto prices.

The cost to buy crypto at stand-alone machines is often hidden or poorly advertised. The average buy rate among ATMs providing information to CoinATMRadar is&nbsp;<a target="_blank" href="https://coinatmradar.com/city/78/bitcoin-atm-kansas-city/">16%</a>, and often a flat fee ranging from $1 to $5 is added to the transaction.

A customer who purchased $20 of bitcoin would pay $3.20 in percentage fees, bringing the total fee to between $4.20 and $8.20 when buying crypto. The dollar equivalent of what remains after those fees is rarely the same day to day due to volatile price swings in crypto compared to government-backed currencies.

Cashing out is also expensive. Selling fees could take another&nbsp;<a target="_blank" href="https://coinatmradar.com/charts/sell-fees/united-states/">7% to 15%</a>&nbsp;out of the withdrawal.

And those transaction fees can run much higher, and be hidden in plain sight.

A Beacon reporter visited a store in northeast Kansas City on July 19 to buy $20 worth of bitcoin, which was trading around&nbsp;<a target="_blank" href="https://finance.yahoo.com/quote/BTC-USD/history?period1=1658188800&amp;period2=1689724800&amp;interval=1d&amp;filter=history&amp;frequency=1d&amp;includeAdjustedClose=true">$30,000 per coin</a>&nbsp;throughout the day. While there was no flat fee, the machine issued the equivalent of $20 of bitcoin at the equivalent of bitcoin priced at approximately $45,000 — a difference of more than 40% over the market price. The price discrepancy was not disclosed.

Transaction fees are far lower on fully online exchanges. The popular crypto exchange&nbsp;<a target="_blank" href="https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees">Coinbase</a>&nbsp;doesn’t charge fees for deposits and withdrawals of funds in a bank account to and from crypto. SoFi, another online financial brokerage, charges 1.25% per transaction.

The spread of crypto ATMs in the region coincides with a recent increase in unbanked Kansas Citians. An estimated 6.4% of Kansas City area residents were unbanked in 2021, according to FDIC estimates, an increase from 5.8% two years earlier.

FDIC surveys show the most commonly cited reason Americans forgo bank accounts is because they cannot maintain the minimum balance required to avoid monthly fees, which are more likely to be charged to&nbsp;<a target="_blank" href="https://www.cnbc.com/2021/01/13/black-and-hispanics-paying-twice-amount-banking-fees-than-whites-survey.html">Black and Latino customers</a>.

Discriminatory practices like “redlining,” or denying bank loans and services to residents in communities with significant numbers of racial or ethnic minorities, were banned at the federal level in 1974.

The long-lasting effects of redlining and more modern disadvantages continue to pose a hurdle for low-income people and communities of color to build wealth.

Geoff Jolley, executive director of the community nonprofit Local Initiatives Support Corp. of Greater Kansas City, said access to traditional financial services still lags in communities of color.

The lack of traditional lenders in those areas leaves alternative financial services providers to fill the gap, often with exorbitant fees and interest rates.

“I’m not surprised to see things like cryptocurrency ATMs, payday loans, title companies, that tend to be more exploitative, located in Hispanic or Black communities,” Jolley said.

Crypto ATMs also may not allow customers to convert their crypto into cash. Nearly one in five crypto ATMs in the Kansas City area do not offer cash withdrawals, according to CoinATMRadar data. These factors combined make it fairly easy to put cash into the world of cryptocurrencies, but far more difficult to withdraw if a user relies heavily on ATMs.

<figure>
 <img src="https://media.eaglewebservices.com/public/2023/8/1692308597824.png" alt=" Cryptocurrency ATMs are plentiful in lower-income neighborhoods around Kansas City (Barbara Shelly/The Beacon)." />
 <figcaption> Cryptocurrency ATMs are plentiful in lower-income neighborhoods around Kansas City (Barbara Shelly/The Beacon).</figcaption>
 </figure><h2>Bitcoin, RockItCoin and other crypto ATM companies are plentiful in low-income Kansas City neighborhoods. Experts say the machines are targeting residents with extraordinary fees</h2>BY:&nbsp;<a href="https://missouriindependent.com/author/danmika/">DAN MIKA</a>Finance professor Jocelyn Evans first encountered a cryptocurrency ATM on the way to talk about financial education with students last fall.Evans stopped at a gas station on her way to Sumner Academy in Kansas City, Kansas. She came across the machine with the word “BITCOIN” on the screen. Store staffers weren’t familiar with the machine, which didn’t provide much explanation about how cryptocurrencies work.“It’s a low-income area with primarily Hispanic, African-American, people who are immigrants,”&nbsp;<a target="_blank" href="https://bloch.umkc.edu/profiles/faculty-directory/jocelyn-evans.html">said Evans</a>, the Henry W. Bloch endowed chair of finance and an associate dean at the University of Missouri-Kansas City. “I just wondered how much people know about cryptocurrency and, with a standalone machine, how much people knew when they made transactions with these machines.”The ATM that caught Evans’ attention is one of more than 100 cryptocurrency kiosks installed in gas stations, liquor stores, smoke shops and elsewhere across the Kansas City area in the last few years.The companies running the machines argue they’re providing communities an alternative to traditional financial institutions that have historically given worse deals to poorer neighborhoods and communities of color.But critics call the machines a targeted attempt to exploit financially vulnerable people with steep fees for a volatile product that’s difficult to cash out from.“This is no different than people who target the Black community for payday loans or subprime loans,” Evans said. “They’re targeting people with the least financial knowledge and understanding of how you invest in cryptocurrencies.”Cryptocurrency machines tend to be placed in and around neighborhoods with larger numbers of Black and Latino residents, and in areas with lower median household incomes, according to a Beacon analysis comparing ATM locations provided by&nbsp;<a target="_blank" href="http://coinatmradar.com/">CoinATMRadar</a>&nbsp;against recent estimates from the U.S. Census.<a target="_blank" href="https://www.fdic.gov/analysis/household-survey/2021report.pdf">Research</a>&nbsp;from the Federal Deposit Insurance Corp. shows those populations are more likely to lack bank accounts — or to use nontraditional financial services like payday loans or title loan services that often carry steep fees.Crypto ATMs promise access to the world of cryptocurrency to financially disadvantaged groups. However, they often charge fees far above industry standards and sometimes offer little explanation of the risks inherent in crypto. All of these ATMs will accept cash to buy crypto, but most aren’t equipped to sell crypto and dispense cash.Also, cryptocurrency accounts are not insured by the federal government, while the vast majority of bank accounts with less than $250,000 are. The machines also come with pricey surcharges. They often charge more than 10% per transaction and, in one case found by The Beacon, up to 40%.<h2>The promise, rise and crash of crypto</h2>Cryptocurrencies are meant to be a digital form of money. No specific entity like a bank or government controls how much of the currency is available or manages and tracks currency transfers between people.Instead, cryptocurrency ledger updates are pushed to a decentralized network of computers that acts as an ever-updating history of every transaction within that currency.Such an arrangement can appeal to people who don’t trust the financial system, since cryptocurrency wallets in theory don’t require users to identify themselves. Some machines visited by The Beacon required a government ID to put in cash or transact, while others only required a phone number and name without any additional verification.At least one crypto ATM provider has acknowledged placing machines near unbanked communities. In an&nbsp;<a target="_blank" href="https://www.youtube.com/watch?v=LUnt2AgClDk">interview</a>&nbsp;with a crypto trade publication earlier this year, Bitcoin Depot CEO Brandon Mintz said his company views the unbanked as a primary customer segment. A&nbsp;<a target="_blank" href="https://www.federalreserve.gov/publications/files/2021-report-economic-well-being-us-households-202205.pdf">2021 survey</a>&nbsp;from the Federal Reserve showed people who used cryptocurrencies for paying others were twice as likely to be unbanked than those who don’t use crypto.Bitcoin Depot did not respond to multiple requests from The Beacon for comment.Bitcoin Depot’s projections show how lucrative the crypto ATM business can be. The company, which recently went public,&nbsp;<a target="_blank" href="https://ir.bitcoindepot.com/news-events/press-releases/detail/46/bitcoin-depot-reports-preliminary-second-quarter-revenue">estimates</a>&nbsp;revenues of between $700 million and $730 million this year, with nearly all of that coming from transaction fees.The first crypto ATM in Kansas City launched in November 2016 at a currency exchange on Broadway Boulevard in midtown. Bitcoin and Ethereum, the two largest cryptocurrencies, had a combined market capitalization of $12 billion at the time. A bitcoin cost around $700, while one ethereum costs $10.At their peak, around the fall of 2021, Bitcoin and Ethereum combined were valued at the equivalent of nearly $1.8 trillion. Crypto ATMs followed the rise of the coins they sold. The number of ATMs operating in the U.S. rocketed from nearly 4,200 from the start of 2020 to more than 30,000 at the end of 2022.Only 16 ATMs opened in the Kansas City region during 2018 and 2019. But as cryptocurrencies began to rise in the summer of 2020 amid broader financial speculation, ATM companies added 31 more in the region by the end of the year. Another 50 ATMs were installed in 2021 as pandemic anxieties began to wane.But economic conditions soured in 2022, as decades-high inflation and fears of global recession created a drag on speculative assets that were flying high during the pandemic.If the crypto market was an airliner, the end of low interest rates set by the Federal Reserve was like stalling out at 40,000 feet. Just more than a year off its highs, the combined value of Bitcoin and Ethereum sat at about $453 billion in late November 2022 — a decline of nearly 75%.Yet 40 more ATMs started operating in Kansas City in 2022, while the crypto crash sapped hundreds of billions of dollars out of the ecosystem.Globally, the crypto research firm Chainalysis estimates that the entirety of the crypto ATM ecosystem accepted deposits worth nearly $3.8 billion in 2021; that amount fell sharply in 2022 alongside the larger slump in crypto prices.<h2>Steep fees, little disclosure</h2>The cost to buy crypto at stand-alone machines is often hidden or poorly advertised. The average buy rate among ATMs providing information to CoinATMRadar is&nbsp;<a target="_blank" href="https://coinatmradar.com/city/78/bitcoin-atm-kansas-city/">16%</a>, and often a flat fee ranging from $1 to $5 is added to the transaction.A customer who purchased $20 of bitcoin would pay $3.20 in percentage fees, bringing the total fee to between $4.20 and $8.20 when buying crypto. The dollar equivalent of what remains after those fees is rarely the same day to day due to volatile price swings in crypto compared to government-backed currencies.Cashing out is also expensive. Selling fees could take another&nbsp;<a target="_blank" href="https://coinatmradar.com/charts/sell-fees/united-states/">7% to 15%</a>&nbsp;out of the withdrawal.And those transaction fees can run much higher, and be hidden in plain sight.A Beacon reporter visited a store in northeast Kansas City on July 19 to buy $20 worth of bitcoin, which was trading around&nbsp;<a target="_blank" href="https://finance.yahoo.com/quote/BTC-USD/history?period1=1658188800&amp;period2=1689724800&amp;interval=1d&amp;filter=history&amp;frequency=1d&amp;includeAdjustedClose=true">$30,000 per coin</a>&nbsp;throughout the day. While there was no flat fee, the machine issued the equivalent of $20 of bitcoin at the equivalent of bitcoin priced at approximately $45,000 — a difference of more than 40% over the market price. The price discrepancy was not disclosed.Transaction fees are far lower on fully online exchanges. The popular crypto exchange&nbsp;<a target="_blank" href="https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees">Coinbase</a>&nbsp;doesn’t charge fees for deposits and withdrawals of funds in a bank account to and from crypto. SoFi, another online financial brokerage, charges 1.25% per transaction.The spread of crypto ATMs in the region coincides with a recent increase in unbanked Kansas Citians. An estimated 6.4% of Kansas City area residents were unbanked in 2021, according to FDIC estimates, an increase from 5.8% two years earlier.FDIC surveys show the most commonly cited reason Americans forgo bank accounts is because they cannot maintain the minimum balance required to avoid monthly fees, which are more likely to be charged to&nbsp;<a target="_blank" href="https://www.cnbc.com/2021/01/13/black-and-hispanics-paying-twice-amount-banking-fees-than-whites-survey.html">Black and Latino customers</a>.Discriminatory practices like “redlining,” or denying bank loans and services to residents in communities with significant numbers of racial or ethnic minorities, were banned at the federal level in 1974.The long-lasting effects of redlining and more modern disadvantages continue to pose a hurdle for low-income people and communities of color to build wealth.Geoff Jolley, executive director of the community nonprofit Local Initiatives Support Corp. of Greater Kansas City, said access to traditional financial services still lags in communities of color.The lack of traditional lenders in those areas leaves alternative financial services providers to fill the gap, often with exorbitant fees and interest rates.“I’m not surprised to see things like cryptocurrency ATMs, payday loans, title companies, that tend to be more exploitative, located in Hispanic or Black communities,” Jolley said.Crypto ATMs also may not allow customers to convert their crypto into cash. Nearly one in five crypto ATMs in the Kansas City area do not offer cash withdrawals, according to CoinATMRadar data. These factors combined make it fairly easy to put cash into the world of cryptocurrencies, but far more difficult to withdraw if a user relies heavily on ATMs.<h2>Equitable crypto access?</h2>Several crypto ATM companies with locations in Kansas City did not respond to requests for comment for this story.One company that did respond was RockItCoin. In an emailed statement, CEO Michael Dalesandro said five of the company’s 18 ATMs in Kansas City take and dispense cash. He said machines that do both are more expensive to maintain, so they’re deployed less often.Dalesandro said RockItCoin’s kiosks are placed in high-traffic areas. He said they do not target specific communities because ATMs aren’t limited to only serving residents that live nearby. Customers search for ATMs and travel to conduct their transactions, he said.He said RockItCoin’s ATMs do not target specific communities and argued that crypto ATMs are the opposite of exploitative because they offer people without bank accounts or internet access to cryptocurrencies.“We are leveling the playing field, not creating barriers to entry or methods of exploitation,” he said.Dalesandro said RockItCoin’s fees reflect the “premium service” it provides along with the risks involved in buying cryptocurrencies and the costs of maintaining the machines and employing customer support and regulatory compliance staff.Dalesandro said it would be “unfair” to compare RockItCoin’s higher fees with centralized exchanges like CoinBase and SoFi. Those companies are much larger and have other revenue streams that may allow lower transaction fees to entice new customers, he argued.“One cannot criticize the mom-and-pop convenience store for charging $4 for a gallon of milk when Wal-Mart charges only $1.69 — they have different costs of production,” Dalesandro said.<h2>Malfunctioning crypto ATMs</h2>A Beacon reporter visited several stores in Kansas City and asked employees how often they saw people using the machines. Some said they have never seen the machines used. Others said they see a small number each week.Many of the machines were not functioning, and store employees described difficulty reaching ATM providers for service. One worker in a store a few blocks east of Troost Avenue said his machine had been broken for three to four months before a repairman came. When a Beacon reporter tested that machine, the keypad was unresponsive.Jared Girma, co-owner of Ethio Mart in Shawnee, signed a contract three years ago with the crypto ATM provider Coin Cloud to place a machine in his store. One of the company’s selling points was the possibility of more foot traffic and more sales, he said.But Girma said crypto customers would walk into his store, use the machine and immediately leave.“Not many people used it (and) then shopped,” he said.Coin Cloud&nbsp;<a target="_blank" href="https://storage.courtlistener.com/recap/gov.uscourts.nvb.409411/gov.uscourts.nvb.409411.1.0.pdf">filed for Chapter 11 bankruptcy</a>&nbsp;protection in February. Girma said the machine hasn’t been working since. Girma also said he’s only been paid $150 so far this year despite agreeing to a $200 per month rental fee.Someone came to remove the machine from his store several weeks ago, but Girma refused to let Coin Cloud recover the ATM until his rent agreement is paid in full.In an emailed response, Brett Axelrod, Coin Cloud’s attorney, said several of Coin Cloud’s ATM lease contracts were not purchased in the bankruptcy process and are effectively terminated. He said the bankruptcy court has allowed Coin Cloud to recover its machines if the party providing the lease space hadn’t filed a dispute.<h2>Regulations and the future of crypto ATMs</h2>A&nbsp;<a target="_blank" href="https://www.congress.gov/bill/118th-congress/senate-bill/2355?q=%7B%22search%22%3A%5B%22jack+reed%22%5D%7D&amp;s=4&amp;r=1">recently introduced U.S. Senate bill</a>&nbsp;would among other things require cryptocurrency ATMs to collect the same level of identity information as banks would for anti-money laundering purposes. Crypto supporters such as the&nbsp;<a target="_blank" href="https://digitalchamber.org/chamber-opposes-s2355/">Chamber of Digital Commerce</a>, a crypto industry trade group, are calling that bill an excessive effort to regulate the industry.The chamber declined to comment on the record about crypto ATM business practices when reached by The Beacon. The DeFi Education Fund, another trade group for crypto-related companies, would not comment on the bill or crypto ATMs in Kansas City.Evans, the UMKC finance professor, argues crypto ATMs should be banned in lieu of cheaper, more highly regulated online exchanges for people who want to use cryptocurrencies. She also said state governments need to widen access to financial education programs.Meanwhile, cryptocurrency ATMs remain plugged into stores across Kansas City, charging steep fees and presenting themselves as an alternative to a financial system that doesn’t maintain the same presence in lower-income neighborhoods that it does elsewhere.LISC Executive Director Jolley lives in northeast Kansas City, an area that’s relatively low-income and home to a relatively high number of immigrants. It has three crypto ATMs and just two bank branches between Independence Avenue and the Missouri River, according to a Beacon analysis of crypto ATM and FDIC location data.“Financial institutions have not done their part to ensure that there is equitable access to financial opportunity,” Jolley said. “It has created a bit of a vacuum for payday loans (and) cryptocurrency, for other measures with the promise of wealth building being the attraction, but not necessarily the reality.”This story was supported by the&nbsp;<a target="_blank" href="https://watchdogwritersgroup.com/">Watchdog Writers Group</a>, a non-profit journalism institute that produces in-depth reporting. It is based at the University of Missouri School of Journalism.This&nbsp;<a target="_blank" href="https://kcbeacon.org/stories/2023/08/15/high-fee-crypto-atms-center-around-low-income-parts-of-kansas-city/">article</a>&nbsp;first appeared on&nbsp;<a target="_blank" href="https://kcbeacon.org/">The Beacon</a>&nbsp;and is republished here under a Creative Commons license.