Citing a new survey from McKinsey & Co., the Wall St. Journal reports that only 11 percent of the 2.2 million Americans who have purchased health insurance on state or federal exchanges were previously uninsured. The U.S. Department of Health and Human Services hasn’t released any data on this yet.
The insurance companies aren’t thrilled. The industry expects the Affordable Care Act will ultimately lead to millions of new customers.
In a certain way, this could be seen as a positive for the companies. There’s a general concern that the uninsured will get coverage and need lots of procedures and tests, costing lots of money. If the number of uninsured patients remains modest that means that most of the customers have had insurance before. That means a potentially less expensive customer – which is what the insurance companies want.
In the report, 30 percent of consumers sited technical trouble purchasing plans. 52 percent said plans were cost prohibitive. Many healthcare observers expect previously uninsured people to sign up for plans prior to the March 31st enrollment deadline.
Even if they don’t, PricewaterhouseCoopers Ceci Connolly says insurers are well aware the new healthcare law is just beginning.
"They are really viewing 2014 as the learning year. It’s almost as if we’ve got our bicycle and our training wheels because so much of this is brand new territory,” Connolly says.
New Jersey Gov. Chris Christie is facing new allegations about whether he used the powers of his office to punish a local politician. This time, the charge is that he withheld a city's federal recovery money for Superstorm Sandy because the mayor wouldn't support an ally's redevelopment project. Matt Katz of member station WNYC reports on the unfolding accusations.
T-Mobile CEO John Legere enjoys making waves — or perhaps he feels as if there's no choice, because he helms the smallest of the four major telecom companies. Legere is engaged in a feisty battle for market share. In Las Vegas recently, he crashed AT&T's party at a trade show and was summarily kicked out, and T-Mobile is going hard after its competitors in new commercials. But where this all ends is an open question. Many analysts believe T-Mobile will eventually be gobbled up in a merger.
On Friday, President Obama delivered a speech outlining his proposed reforms of the National Security Agency's surveillance practices. In All Tech Considered, our weekly look at technology, we explore how the speech was received by many of the big tech companies in Silicon Valley.
Anti-government protests have shaken Ukraine for two months. With the passage of a new law intended to limit public protests, the crisis is once again intensifying. Protesters in the Ukrainian capital, Kiev, clashed with police for a second day on Monday, one day after a massive protest in the city turned violent.
The long-anticipated Syrian peace conference is again in turmoil. The U.N. secretary-general's surprise decision to invite Iran to attend the conference prompted a boycott threat from Syria's exiled opposition. At issue is the fact that Iran has not publicly committed to the framework for the conference or pledged to withdraw its troops and allied militias from Syria. Under pressure from the opposition groups and the U.S., the U.N. has since withdrawn its invitation to Iran.
Car theft is less a crime than a security threat in Kabul: It's feared that militants could use stolen vehicles as car bombs. So the police have started puncturing the tires of cars parked on the street after dark, a policy that's raising ire among those whose cars that have been "protected" this way.
New numbers show that China's coal production will likely grow about 3 percent this year, despite a government campaign to cut air pollution.
Coal's history has been intertwined with growth, the industrial age, and lately, pollution and climate change. Barbara Freese is the author of Coal: A Human History, and discusses the history of coal as a brand.
The relief organization says the wealthiest 85 people own the same proportion as the planet's poorest 3.5 billion people. And Oxfam says it fears that growing income inequality will lead to social unrest.
Malaysia's southern state of Johor is moving weekends to Friday and Saturday, so the state's Muslim population can attend Friday prayer. Private companies can choose whether to move their weekends to Friday as well, but Malaysians are divided on the issue - and it could impact investment from foreign companies.
It happens all the time, U.S. stock markets close for uniquely American holidays like Martin Luther King, Jr. Day and President's Day, Hong Kong’s stock exchange closes for the Buddha’s Birthday and the Lunar New Year.
It’s mostly not a big deal, but there are subtle (and sometimes not so subtle) changes during these events that show just how connected our global financial system is.
LESS VIBRANT, LESS VOLATILE
“Often, holiday markets are less vibrant than days when major market centers are not closed,” says Andy Brooks, a Vice President at T. Rowe Price. Institutional investors will try to avoid global transactions, because “it’s kind of hard to effect a transaction when most people aren’t there.”
In fact, markets are measurably less volatile, according to University of Houston finance professor Craig Pirrong. That’s because people trade on information, and they get information from trading. Less of one means less of the other, and in a global economy, information has no boundaries.
MARKETS LISTEN TO EACH OTHER. WHEN ONE IS QUIET, THERE’S LESS TO TALK ABOUT.
“The trading process itself generates information about the value of stocks,” says Pirrong. For example, people watch one another to see how they react – almost like a poker game. Who’s buying? Why did that mutual fund just dump a bunch of shares? “So, to the extent that there’s less information being generated by the trading process in the U.S., that means there’s less information in these other markets.”
BUT WHEN EVERYONE’S BACK TO THE PARTY, THERE’S ALWAYS GOSSIP TO CATCH UP ON
The next day when a market opens, everyone has to catch up on what news that did occur. “When the markets open, they have to incorporate all this news into stock prices very quickly,” says John Elder, professor of finance at Colorado State. As a result, once “we see higher average volatility.”
Elder says you can see this even after a weekend, “On Mondays for example, markets tend to be more volatile than on Wednesdays.”
BUT LET’S NOT OVERBLOW THIS
Heather Brilliant is head of equity and corporate research for Morningstar, where she takes the long view. “A planned market closure is generally not a big deal.”
Still, once in a while, weird things can happen, a stock might move dramatically in Hong Kong while its price is frozen in the U.S., or you can get very one-sided market reactions to a given piece of news. “Let’s say a company reported earnings today in Europe and investors didn’t like the earnings, and many people wanted to get out. Well, perhaps if the U.S. market had been open,” says Brilliant, “there would be enough countervailing people interested in buying that stock.” But the U.S. market isn’t open, and in Europe everyone is very pessimistic about this company and overwhelmingly dumps the stock. “Therefore, the price could go down more than it would otherwise.”
But again, this tends to get corrected once all markets are open again.
AND A WORD OF WARNING FOR INVESTORS
All in all, when one market is out of the game, the others are a little duller and sometimes a little bit weirder, and it’s usually temporary, which leaves T. Rowe Price’s Andy Brooks with a word to the wise: “Investors should be wary to take any market moves made during holiday markets as having incredible significance, because you will often see a recalibration when everyone gets back to work.”
Last fall, curators and interns at the New York State Museum were digging through their audio archives in an effort to digitize their collection. They unearthed a treasure: a reel-to-reel tape of Dr. Martin Luther King Jr.'s speech commemorating the centennial of the preliminary Emancipation Proclamation.
U.S. financial markets are closed for Martin Luther King, Jr. Day, as are federal government offices, schools and banks. The holiday was established in 1986 and was adopted by all the states thereafter, though in some cases not without controversy.
Despite the holiday, around most cities today, most retail businesses aren't actually closed. “We would of course like more businesses and more people to recognize and commemorate the birthday of Dr. Martin Luther King,” says Dedrick Muhammad, director of economic programs at the NAACP.
A survey of HR managers released by Bloomberg BNA last week found that 35 percent of U.S. employers (private, government, and nonprofit) plan to provide a paid day off for the holiday. That percentage has been creeping up very slowly in the past decade and is now on-par with President’s Day. It's higher than Columbus Day (16 percent) and Veteran’s Day (22 percent), but lower than the Friday after Thanksgiving (73 percent) and Christmas Eve (42 percent full-day, another 12 percent half-day), which are not federal holidays.
Muhammad says the significance of the day can’t be captured only by how many employers provide a day off and close their doors, “I think it is fair to ask: does it always require that people just shut down their businesses? Or are there activities at businesses that actually could help highlight the memory and the legacy of Dr. Martin Luther King?”
In fact, roughly one in 10 employers support some type of commemoration, educational program, workplace or community service project to mark the day. Sarah Willie-LeBreton, sociologist at Swarthmore College, says that’s a good start. “I do think that many people see it as a day off or a day to go shopping,” says Willie-LeBreton, “and that’s something we need to work on as a culture.”
Plus, she points out, hanging up a ‘Closed’ sign isn’t always possible.
“Small businesses are in a more challenged situation because they often have a smaller profit margin,” says Willie-LeBreton. “But there are ways in which you can designate a portion of your profits to go to organizations that are advancing social equality, or engage clients in discussions.”
William Spriggs at Howard University serves as chief economist for the ACLU and he thinks the emphasis on service may distract attention from Dr. King’s focus before he was assassinated on issues of poverty and economic justice.
“A lot of people feel compelled to do an act of service,” says Spriggs. “Dr. King was calling for something far more revolutionary than painting schools or cleaning parks. He wanted to fight for things like raising the minimum wage and a guaranteed income.”
Spriggs says Dr. King was controversial in life, and it’s good there’s a holiday now to keep his controversial ideas front and center.