Nation
8A / Saturday, June 12, 2010 / The Sanford Herald Health Care
Economy
BRIEFS
Less spending by Americans Overhaul to force changes in expected to slow recovery employer plans By MARTIN CRUTSINGER AP Economics Writer
WASHINGTON (AP) — Over and over in the health care debate, President Barack Obama said people who like their current coverage would be able to keep it. But an early draft of an administration regulation estimates that many employers will be forced to make changes to their health plans under the new law. In just three years, a majority of workers — 51 percent — will be in plans subject to new federal requirements, according to midrange projections in the draft. Republicans said Obama broke his promise. Employer groups were divided. It’s more evidence that the law will raise costs, said the U.S. Chamber of Commerce. But the Business Roundtable — representing CEOs of major firms — saw encouraging signs of flexibility, though it’s withholding final judgment. Some experts believe increased regulation will lead to improved benefits for consumers. “On the face of it, having consumer protections apply to all insurance plans could be a good thing for employees,” said Alex Vachon, an independent health policy consultant. “Technically, it’s actually improved coverage.” The types of changes
that employers could have to make include offering preventive care without copayments and instituting an appeals process for disputed claims that follows new federal guidelines. The law already requires all health plans to extend coverage to young adult children until they turn 26. Such incremental changes can nudge costs up. The Obama administration said the draft regulation is an early version undergoing revision. Nonetheless, the leaked document was getting widespread interest Friday in lobbying firms that represent employers and insurance companies and on Capitol Hill. “What we are getting here is a clear indication that most plans will have to change,” said James Gelfand, health policy director for the U.S. Chamber of Commerce. “From an employer’s point of view that’s a bad thing. These changes, whether or not they’re good for consumers, are most certainly accompanied by a cost.” Senate Republican Leader Mitch McConnell of Kentucky said it showed that Obama’s assurance that Americans would be able to keep the plans they currently have was “a myth” all along.
WASHINGTON — Americans are pulling back on their spending, a trend that could slow the economic recovery if it continues. A sharp drop in retail sales revenue for May shows that shoppers remain cautious, and it could lead economists to curtail their expectations for growth. Analysts cautioned against overreacting to Friday’s Commerce Department report. It could signal a return to modest growth after two unusually strong months fueled by tax refunds, rebates for energy-efficient appliances and higher gas prices. The 1.2 percent plunge in sales revenue was the largest drop in eight months. But excluding three of the most volatile sectors — autos, building materials and gasoline station sales — the figures actually rose one-tenth of a percentage point in May. And figures for some industries can vary depending on how they are calculated. For example, Commerce said auto sales fell 1.7 percent in May, but the industry itself has reported gains of 3.7 percent for the same period. They differ because the auto industry measures strictly sales volume of new cars; the government looks at revenue for cars, auto parts, tires and other products across the industry.
Well it finally happened!! (kind of) Last month we started the grading and drain work for our new construction! We will be adding new patient rooms, new offices, great new rehab space, a new dining room, and fantastic outdoor spaces for our residents, employees, and families. Much effort has gone into this project by our landlords and general contractor, and we look forward to starting construction soon! All we need now are final permits and good weather!
AP photo
People walk by a sale sign at the entrance of the Levi’s store on Union Square in San Francisco. Retail sales plunged in May by the largest amount in eight months as consumers slashed spending on everything from cars to clothing. The big drop raises new worries about the durability of the economic recovery. “Both reports are right. They are just tracking different things,” said David Wyss, chief economist at Standard & Poor’s in New York. Economists remain concerned that spending won’t pick up in months ahead. Households are still facing near-double-digit unemployment. Private employers are not hiring fast enough to bring that number down. Anxiety has gripped the stock market, partly because of the European debt crisis. Any sustained pullback by shoppers could threaten the recovery because consumer spending accounts for 70 percent of economic activity. The overall economy, as measured by the gross domestic product, grew at an annual rate of 3 percent in the first three months of this year. Much of that resulted from a 3.5 percent expansion in consumer spending — the best
showing for this category in three years. Some economists cautioned that estimates of growth for the current quarter might have to be scaled back. The sharp decline in retail sales “is a reminder that households are not going to be the engine of growth for some time,” said Paul Dales, U.S. economist for Capital Economics. Contributing to the weakness is a shortage of hiring. Most economists don’t expect the unemployment rate of 9.7 percent to fall much in the coming months. The decline in May retail sales revenue was the largest since the figures fell 2.2 percent in September. The government did revise up slightly the April performance to show a gain of 0.6 percent for the month instead of the originally reported 0.4 percent increase.
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Arkansas flash floods kill at least 20 people CADDO GAP, Ark. (AP) — Floodwaters that rose as swiftly as 8 feet an hour rushed into a remote Arkansas valley early Friday, killing at least 20 people, many of them campers who became trapped by a devastating wall of water. Dozens more were missing and feared dead. Heavy rains caused the normally quiet Caddo and Little Missouri rivers to climb out of their banks during the night. Around dawn, floodwaters barreled through the Albert Pike Recreation Area, a 54-unit campground in the Ouachita National Forest that was packed with vacationing families who were probably still asleep when their tents began to fill with water. The water poured through the valley with such force that it overturned RVs, peeled asphalt off roads, and swept away tents and their occupants. Two dozen people were hospitalized. Authorities rescued 60 others.
Dow set for first weekly gain in nearly a month NEW YORK (AP) — The Dow Jones industrial average is headed for its first winning week in a month. Stocks were mixed Friday following an early slump on poor retail sales figures but didn’t fall enough to offset Thursday’s big rally. The Dow pared sharp morning losses after a report showed consumers are gaining confidence in the economy, even if they aren’t returning to stores. Treasury prices climbed and pushed down interest rates after spiking Thursday.
Google tells lawmakers it never used Wi-Fi data
WASHINGTON (AP) — Google Inc. is telling lawmakers that it never dissected or used any of the information that it accidentally sucked up while collecting data about public Wi-Fi networks in more than 30 countries. In a letter to three key members of the House Commerce Committee, the company apologized for collecting fragments of e-mails, search requests and other online activities over unencrypted Wi-Fi networks. The company got the information while photographing neighborhoods for its “Street View” mapping feature. Google said it was trying to gather information about the location, strength and configuration of Wi-Fi networks so it could improve the accuracy of location-based services such as Google Maps and driving directions. Going further and collecting snippets of information traveling over those networks “was a mistake,” Pablo Chavez, Google’s director of public policy, wrote in the letter.
As Clinton counsel, Kagan defended religion rights
WASHINGTON (AP) — As a counsel to former President Bill Clinton, Supreme Court nominee Elena Kagan blasted a California court for rejecting a landlady’s claim that a state anti-discrimination law violated her religious freedom. In a 1996 memo, Kagan suggested that the case should be taken by the Supreme Court and that the justices should side with the landlady, who refused to rent to unmarried couples. The memo is part of a roughly 40,000-page trove of documents released Friday that shed more light on what kind of justice Kagan might be. The papers also reveal that Kagan helped draft an executive order detailing federal employees’ rights to express their religion in the workplace.