Business
Under Senate health care plan, either way you pay
WASHINGTON (AP) — First you paid to insure your car. Soon you may have to add health insurance premiums to that stack of monthly bills as well.
In a revamped health care system envisioned by senators, people would be required to carry health insurance just like motorists must get auto coverage now. The government would provide subsidies for the poor and many middle-class families, but those who still refuse to sign up would face fines of more than $1,000.
The details were unveiled Thursday in a health care overhaul bill supported by key Senate Democrats looking to fulfill President Barack Obama’s top domestic priority.
The Congressional Budget Office estimated the fines would raise around $36 billion over 10 years. Senate aides said the penalties would be modeled on the approach taken by Massachusetts, which now imposes a fine of about $1,000 a year on individuals who refuse to get coverage. Under the federal legislation, families would pay higher penalties than individuals.
Called “shared responsibility payments,” the fines would offset at least half the cost of basic medical coverage, according to the legislation. The goal is to nudge people to sign up for coverage when they are healthy, not wait until they get sick.
In 2008, employer-provided coverage averaged $12,680 a year for a family plan, and $4,704 for individual coverage, according to the Kaiser Family Foundation’s annual survey. Senate aides, who spoke on condition of anonymity because they were not authorized to speak publicly, said the cost of the federal plan would be lower but declined to provide specifics.
The legislation would exempt certain hardship cases from fines, which would be collected through the income tax system.
The new proposals were released as Congress neared the end of a weeklong July 4 break, with lawmakers expected to quickly take up health care legislation when they return to Washington. With deepening divisions along partisan and ideological lines, the complex legislation faces an uncertain future.
Obama wants a bill this year that would provide coverage to the nearly 50 million Americans who lack it and reduce medical costs.
In a statement, Obama welcomed the legislation, saying it “reflects many of the principles I’ve laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick.”
The Senate Health Education, Labor and Pensions bill also calls for a government-run insurance option to compete with private plans as well as a $750-per-worker annual fee on larger companies that do not offer coverage to employees.
Sens. Edward M. Kennedy, D-Mass., and Christopher Dodd, D-Conn., said in a letter to colleagues that their revised plan would cost dramatically less than an earlier, incomplete proposal, and help show the way toward coverage for 97 percent of all Americans.
The Congressional Budget Office, in an analysis released Thursday evening, put the net cost of the proposal at $597 billion over 10 years, down from $1 trillion two weeks ago. Coverage expansions worth $645 billion would be partly offset by savings of $48 billion, the estimate said.
However, the total cost of legislation will rise considerably once provisions are added to subsidize health insurance for the poor through Medicaid. Those additions, needed to ensure coverage for nearly all U.S. residents, are being handled by a separate panel, the Senate Finance Committee. Bipartisan talks on the Finance panel aim to hold the overall price tag to $1 trillion.
The Health Committee could complete its portion of the bill as soon as next week, and the government health insurance option virtually assures a party-line vote.
In the Senate, the Finance Committee version of the bill is unlikely to include a government-run insurance option. Bipartisan negotiations are centered on a proposal for a nonprofit insurance cooperative as a competitor to private companies.
Three committees are collaborating in the House on legislation expected to come to a vote by the end of July. That measure is certain to include a government-run insurance option.
At their heart, all the bills would require insurance companies to sell coverage to any applicant, without charging higher premiums for pre-existing medical conditions. The poor and some middle-class families would qualify for government subsidies to help with the cost of coverage. The government’s costs would be covered by a combination of higher taxes and cuts in projected Medicare and Medicaid spending.
- Business
-
-
City, county tax allocations down
Tax allocations for Palestine and Anderson County continue to fall with no end in the decline in the near future, according to Texas Comptroller Susan Combs.
-
Business Expo set for Thursday at Civic Center
More than two dozen Palestine area businesses will be participating in the Palestine Area Chamber of Commerce’s 2010 Business Expo on Thursday.
-
Seminar to focus on employee management practices
The Palestine Area Chamber of Commerce will present “The 3 Squares: Hiring, Firing and Retention” Seminar from 11:30 a.m. to 1 p.m. Monday at the Ben E. Keith Community Room, 2019 W. Oak St.
-
Exxon Mobil posts lowest annual profit since ’02
EW YORK (AP) — Exxon Mobil’s earnings were cut by more than half to $19.3 billion in 2009, the lowest total in seven years, as company refineries struggled with a plunge in fuel consumption around the world.
But the world’s largest publicly traded oil company remains the profit champ among U.S. public companies. Wal-Mart is expected to earn $14 billion for the year ended Jan. 31, and Microsoft earned $14.6 billion in the fiscal year ended in June 2009.
Exxon’s results have swung with the price of oil and the impact of the global recession. When oil spiked above $147 a barrel in mid-2008, Exxon set ever-higher marks for earnings by a U.S. company. Then oil prices plummeted, and Exxon suffered a yearlong hangover that included its smallest quarterly earnings in several years.
-
Toyota tells dealers parts on way to fix pedals
WASHINGTON (AP) — Toyota Motor Corp. said Monday its dealers should get parts to fix a sticky gas pedal problem by the end of this week as the automaker apologized to customers and tried to bring an end to a recall that has affected 4.2 million vehicles worldwide.
The company said in a statement that it has begun shipping parts and is training dealers on the repairs. Some dealers will stay open around the clock to fix the 2.3 million cars and trucks affected by the recall in the U.S.
Technical bulletins on how to install the new parts should arrive at dealers by midweek, the company told dealers in an e-mail. It was not clear exactly when repairs would start, although dealers have said they’ll begin as soon as possible.
The automaker also said Monday it would suspend production of eight U.S. models affected by the recall this week, with factories restarting on Feb. 8.
-
Apple introduces new $499 iPad tablet computer
SAN FRANCISCO (AP) — Apple CEO Steve Jobs unveiled the company’s much-anticipated iPad tablet computer Wednesday, calling it a new third category of mobile device that is neither smart phone nor laptop, but something in between.
The iPad will start at $499, a price tag far below the $1,000 that some analysts were expecting. But Apple must still persuade recession-weary consumers who already have other devices to open their wallets yet again. Apple plans to begin selling the iPad in two months.
Jobs said the device would be useful for reading books, playing games or watching video, describing it as “so much more intimate than a laptop and so much more capable than a smart phone.”
-
Dealers swamped by worried Toyota drivers
NEW YORK (AP) — Toyota dealers across the country were swamped with calls Wednesday from concerned drivers but had few answers a day after the company announced it would stop selling and building eight models because of faulty gas pedals.
Toyota insisted the problem — sudden, uncontrolled acceleration — was “rare and infrequent” and said dealers should deal with customers “on a case-by-case basis.” But drivers of Toyotas and those who share the road with them were left with uncertainty.
In an unprecedented move, the company said late Tuesday it would halt sales for the eight models — which make up more than half of Toyota’s U.S. sales volume — to fix the gas pedals. Last week, Toyota issued a recall for the same eight models, affecting 2.3 million vehicles.
A private firm said it had identified 275 crashes and 18 deaths because of sudden, uncontrollable acceleration in Toyotas since 1999.
In North Palm Beach, Fla., Clare Roden showed up at a Toyota dealership worried about the 2010 Camry she purchased recently. She was relieved when she was told her accelerator was not a problem part.
-
Apple unveils $499 tablet, $629 with AT&T data
SAN FRANCISCO (AP) — Apple Inc. will sell the newly unveiled tablet-style iPad starting at $499, a price tag far below the $1,000 that some analysts were expecting.
The iPad, which is larger in size but similar in design to Apple’s popular iPhone, was billed by CEO Steve Jobs on Wednesday as “so much more intimate than a laptop and so much more capable than a smart phone.”
-
Toyota U.S. sales halt deals blow to image, earnings
NEW YORK (AP) — Toyota’s suspension of U.S. sales on an unprecedented scale to fix faulty gas pedals deals a blow to the automaker’s reputation for quality and endangers its fledgling earnings recovery.
The suspect parts are made by a U.S. supplier, but they are also found in its European-made vehicles, an official with the automaker said Wednesday. Toyota said it hasn’t decided what to do there.
Japan’s Toyota Motor Corp. announced late Tuesday it would halt sales of some of its top-selling models to fix gas pedals that could stick and cause unintended acceleration. Last week, Toyota issued a recall for the same eight models affecting 2.3 million vehicles.
Toyota is also suspending production at six North American car-assembly plants beginning the week of Feb. 1. It gave no date on when production could restart.
-
Halliburton asks high court to block trial
WASHINGTON (AP) — Halliburton Co. is asking the Supreme Court to block a Texas woman’s lawsuit alleging she was raped by military contractor co-workers in Iraq.
The company wants the justices to reverse a lower court ruling that Jamie Leigh Jones’ case can go to trial. Jones sued Halliburton and its former subsidiary KBR, saying she was raped while working for KBR at Camp Hope, Baghdad, in 2005.
The trial is set to begin in February 2011.
- More Business Headlines
-
City, county tax allocations down
