Reported by MarketWatch 14 hours ago.
Next Avenue: Health insurance through the ACA: get ready for a wild ride
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U.S. judge to review Trump healthcare payments cut
SAN FRANCISCO (Reuters) - A U.S. judge is set to hear arguments on Monday about whether to block President Donald Trump's decision to terminate controversial payments to health insurance companies under Obamacare.
Reported by Reuters India 11 hours ago.
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HealthSherpa Supports Bipartisan Efforts to Stabilize the Individual Health Insurance Market
HealthSherpa issues a statement supporting the bipartisan legislation to stabilize the individual insurance market
Sacramento, Calif. (PRWEB) October 23, 2017
HealthSherpa, the health insurance platform with more than 900,000 enrolled, issued the following statement regarding the introduction of bipartisan legislation to stabilize the individual insurance market spearheaded by Senators Alexander and Murray:
“We are very encouraged to see bipartisan action being taken in Washington to support the millions of Americans who have individual health insurance. The individuals and families that access healthcare through individual health insurance need a stable market and a clear path to coverage. Common sense, consensus market stabilization efforts will provide that stability and clarity, helping people get the coverage they need to go to the doctor, get their prescriptions, and take better care of themselves and their families. It will also save Americans and the federal government billions of dollars. HealthSherpa is grateful to Senators Alexander and Murray and the bill’s 24 cosponsors for their leadership on addressing this national priority and we hope to see it advance in Congress.”
About HealthSherpa
HealthSherpa is the best way to get individual health coverage, with experience in enrolling over 900,000 people. HealthSherpa partners with large employers, insurers, as well as insurance agencies and agents to support consumers searching for, enrolling in, and utilizing high quality, affordable health insurance coverage. HealthSherpa’s mission is to help every American feel the comfort and security of having health coverage. The company delivers innovation, technology, and customer service by real people to make coverage easier to understand, faster to sign up for, and simpler to use. Learn more at http://www.HealthSherpa.com. Reported by PRWeb 11 hours ago.
Sacramento, Calif. (PRWEB) October 23, 2017
HealthSherpa, the health insurance platform with more than 900,000 enrolled, issued the following statement regarding the introduction of bipartisan legislation to stabilize the individual insurance market spearheaded by Senators Alexander and Murray:
“We are very encouraged to see bipartisan action being taken in Washington to support the millions of Americans who have individual health insurance. The individuals and families that access healthcare through individual health insurance need a stable market and a clear path to coverage. Common sense, consensus market stabilization efforts will provide that stability and clarity, helping people get the coverage they need to go to the doctor, get their prescriptions, and take better care of themselves and their families. It will also save Americans and the federal government billions of dollars. HealthSherpa is grateful to Senators Alexander and Murray and the bill’s 24 cosponsors for their leadership on addressing this national priority and we hope to see it advance in Congress.”
About HealthSherpa
HealthSherpa is the best way to get individual health coverage, with experience in enrolling over 900,000 people. HealthSherpa partners with large employers, insurers, as well as insurance agencies and agents to support consumers searching for, enrolling in, and utilizing high quality, affordable health insurance coverage. HealthSherpa’s mission is to help every American feel the comfort and security of having health coverage. The company delivers innovation, technology, and customer service by real people to make coverage easier to understand, faster to sign up for, and simpler to use. Learn more at http://www.HealthSherpa.com. Reported by PRWeb 11 hours ago.
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Frontrunning: October 23
· Trump Backs GOP Incumbents, Hinting at Bannon Conflict (WSJ)
· Japan's Abe to push pacifist constitution reform after strong election win (Reuters)
· Yellen Says Fed May Need to Use Unconventional Policy Again Some Day (WSJ)
· Big money shies from booming bitcoin (Reuters)
· This Big Tax Cut for ‘High Fliers’ Shows Why an Overhaul Is So Hard (BBG)
· Ill-Timed Uber Investment Roils a Giant Saudi Fund (WSJ)
· Industry continues driving German growth: Bundesbank (Reuters)
· China’s Pursuit of Fugitive Businessman Guo Wengui Kicks Off Caper Worthy of Spy Thriller (WSJ)
· Trump's tougher stance could backfire by boosting Iran's Guards (Reuters)
· Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments (BBG)
· London introduces charge on most polluting vehicles (Reuters)
· Noble Group Warns of Loss Topping $1 Billion (BBG)
· A Xi Jinping Protégé Rises to Stardom (WSJ)
· U.S. Midwest oil refiners boost output, cut region's dependence on Gulf Coast (Reuters)
· TD Has Quickly Become a Top 10 U.S. Bank and It’s Not Done Yet (BBG)
· The Crude Market May Be Underestimating China (BBG)
· Americans Are Retiring Later, Dying Sooner and Sicker In-Between (BBG)
· May’s Brussels Gains Eclipsed by Domestic Challenge on Brexit (BBG)
· Merrill Lynch Fined $45 Million by U.K. for Failing to Report Transactions (BBG)
*Overnight Media Digest*
WSJ
- Electric-car maker Tesla Inc reached an agreement to set up its own manufacturing facility in Shanghai, a move that could help the company gain traction in China's fast-growing EV market. on.wsj.com/2yISsZt
- A Trump administration proposal aimed at shoring up coal-fired and nuclear power plants across the nation has generated opposition from an array of energy and consumer interests, including some who are often at odds on energy policy. on.wsj.com/2yGRk8R
- U.S. President Donald Trump's campaign digital director, Brad Parscale, will be interviewed Tuesday by the House Intelligence Committee, his first appearance before any of the panels examining the issue of Russian interference in the 2016 election. on.wsj.com/2yHl0CB
- AFL-CIO members selected Richard Trumka as its president on Sunday evening, retaining a position he has held since 2009. Trumka said his goal was for labor unions to emerge with a unified political agenda at a time when the labor movement is split over what approach to take to U.S. President Donald Trump. on.wsj.com/2yGD67R
- U.S. President Donald Trump said he was optimistic Congress would pass a tax plan he could sign by year-end that reduces the corporate rate while providing tax relief for the middle class. on.wsj.com/2yITaG7
FT
Labour will support a dozen amendments backed by rebel Conservative MPs to the government’s flagship Brexit bill if the opposition party’s own demands for changes to the legislation are rejected, shadow Brexit secretary Keir Starmer has said.
Telecom infrastructure company Arqiva is set to announce plans to go public with a projected market value of more than 4.5 billion pounds ($5.93 billion) after its shareholders opted to list rather than sell the company.
The Single Source Regulations Office, the body charged with monitoring defence contracts awarded without competition, has called for clarification on the profits being made by certain contractors after more than 100 queries on pricing went unanswered by the Ministry of Defence.
Commodities trader Noble Group Ltd agreed on Monday to sell its Americas-focused oil business to rival Vitol for about $580 million.
NYT
- Tesla Inc is moving closer to becoming the first foreign car company to have a wholly owned manufacturing operation in China, a deal that will test the relationship norms between a foreign automaker and the Chinese government. nyti.ms/2zIpnO4
- The CIA is expanding its covert operations in Afghanistan, sending small teams of experienced officers and contractors alongside Afghan forces to hunt and kill Taliban militants across the country, according to two senior American officials. nyti.ms/2xfR2E7
- The U.S. Environmental Protection Agency has canceled the speaking appearance of three agency scientists who were scheduled to discuss climate change at a conference on Monday in Rhode Island, according to the agency and several people involved. nyti.ms/2yHOKiW
- Senate Majority Leader Mitch McConnell said he will be willing to bring a bipartisan proposal to stabilize health insurance markets up for debate if U.S. President Donald Trump signaled his support. nyti.ms/2zukzeg
- All three committees looking into an alleged Russian interference in the 2016 U.S. elections — one in the House, two in the Senate — have run into problems, from insufficient staffing to fights over when the committees should wrap up their investigations. nyti.ms/2yHX2cd
Canada
THE GLOBE AND MAIL
** India's competition regulator agreed to the merger of Potash Corp of Saskatchewan Inc and Agrium Inc , provided Potash sells its stakes in Arab Potash Co Plc , Israel Chemicals Ltd and Sociedad Quimica y Minera de Chile SA within 18 months. The companies can close their deal before divesting the assets, which are estimated to be worth more than $5 billion. tgam.ca/2iu7Pkz
** British Columbia's NDP government is facing controversy over liquefied natural gas as environmental groups warn that a project led by Royal Dutch Shell Plc will derail the province's efforts to transition to a low-carbon economy. tgam.ca/2iujgZi
** As Ottawa overhauls its cultural policies, Canadian record labels are pleading for the federal government to revise copyright laws in favour of artists, hoping to offset internet-driven losses to both musicians and the businesses that support them. tgam.ca/2iumpZ6
NATIONAL POST
** Canada is selling its last inshore coastal surveyor ship, the Canadian Coast Guard Ship Matthew, in an auction that closes on Friday with a minimum bid of C$1 million ($791,891). bit.ly/2iqTXHz
Britain
The Times
Britain is facing an investment crisis as factories cut back spending plans amid mounting political uncertainty over Brexit, the country's leading manufacturing trade body has warned. bit.ly/2yJwEPk
Cash-strapped Britons are taking the inflation-driven squeeze on incomes in their stride as they grow more confident about their job prospects, according to a survey by Deloitte. bit.ly/2yKJvkA
The Guardian
Labour's deputy leader Tom Watson is to write to the competition watchdog urging it to refuse the Murdoch family's takeover of Sky Plc after it emerged that Fox News gave presenter Bill O'Reilly a new contract after paying $32m to settle a sexual harassment suit against him. bit.ly/2yJN36p
UK business leaders have united to urge David Davis to quickly establish a Brexit transition deal that mirrors existing arrangements or risk losing British jobs and investment. bit.ly/2yJKCRo
The Telegraph
U.S. President Donald Trump has an "absolute duty" to prepare for military intervention against North Korea in the face of the mounting nuclear threat posed by the regime, Boris Johnson will say at the annual Chatham House conference in London. bit.ly/2yIBiNK
The UK government has intervened in a row over wholesale charges for broadband, backing BT Group Plc's network subsidiary Openreach in its battle against cheaper prices. bit.ly/2yJt5Zz
Sky News
InterContinental Exchange Inc, owner of the New York Stock Exchange, is in advanced talks to buy Royal Bank of Scotland Group Plc's 4 percent shareholding in Euroclear, giving it a say in the future of one of the world's most valuable financial markets settlement platforms. bit.ly/2yJbhhf
The Independent
A boom in new fintech innovations saw UK financial services firms register a record number of trade marks in 2016, according to research. Companies in the sector registered 4,228 trade marks last year, up from 3,141 in 2011, professional services firm, RPC, found. ind.pn/2yIZlvW
Reported by Zero Hedge 11 hours ago.
· Japan's Abe to push pacifist constitution reform after strong election win (Reuters)
· Yellen Says Fed May Need to Use Unconventional Policy Again Some Day (WSJ)
· Big money shies from booming bitcoin (Reuters)
· This Big Tax Cut for ‘High Fliers’ Shows Why an Overhaul Is So Hard (BBG)
· Ill-Timed Uber Investment Roils a Giant Saudi Fund (WSJ)
· Industry continues driving German growth: Bundesbank (Reuters)
· China’s Pursuit of Fugitive Businessman Guo Wengui Kicks Off Caper Worthy of Spy Thriller (WSJ)
· Trump's tougher stance could backfire by boosting Iran's Guards (Reuters)
· Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments (BBG)
· London introduces charge on most polluting vehicles (Reuters)
· Noble Group Warns of Loss Topping $1 Billion (BBG)
· A Xi Jinping Protégé Rises to Stardom (WSJ)
· U.S. Midwest oil refiners boost output, cut region's dependence on Gulf Coast (Reuters)
· TD Has Quickly Become a Top 10 U.S. Bank and It’s Not Done Yet (BBG)
· The Crude Market May Be Underestimating China (BBG)
· Americans Are Retiring Later, Dying Sooner and Sicker In-Between (BBG)
· May’s Brussels Gains Eclipsed by Domestic Challenge on Brexit (BBG)
· Merrill Lynch Fined $45 Million by U.K. for Failing to Report Transactions (BBG)
*Overnight Media Digest*
WSJ
- Electric-car maker Tesla Inc reached an agreement to set up its own manufacturing facility in Shanghai, a move that could help the company gain traction in China's fast-growing EV market. on.wsj.com/2yISsZt
- A Trump administration proposal aimed at shoring up coal-fired and nuclear power plants across the nation has generated opposition from an array of energy and consumer interests, including some who are often at odds on energy policy. on.wsj.com/2yGRk8R
- U.S. President Donald Trump's campaign digital director, Brad Parscale, will be interviewed Tuesday by the House Intelligence Committee, his first appearance before any of the panels examining the issue of Russian interference in the 2016 election. on.wsj.com/2yHl0CB
- AFL-CIO members selected Richard Trumka as its president on Sunday evening, retaining a position he has held since 2009. Trumka said his goal was for labor unions to emerge with a unified political agenda at a time when the labor movement is split over what approach to take to U.S. President Donald Trump. on.wsj.com/2yGD67R
- U.S. President Donald Trump said he was optimistic Congress would pass a tax plan he could sign by year-end that reduces the corporate rate while providing tax relief for the middle class. on.wsj.com/2yITaG7
FT
Labour will support a dozen amendments backed by rebel Conservative MPs to the government’s flagship Brexit bill if the opposition party’s own demands for changes to the legislation are rejected, shadow Brexit secretary Keir Starmer has said.
Telecom infrastructure company Arqiva is set to announce plans to go public with a projected market value of more than 4.5 billion pounds ($5.93 billion) after its shareholders opted to list rather than sell the company.
The Single Source Regulations Office, the body charged with monitoring defence contracts awarded without competition, has called for clarification on the profits being made by certain contractors after more than 100 queries on pricing went unanswered by the Ministry of Defence.
Commodities trader Noble Group Ltd agreed on Monday to sell its Americas-focused oil business to rival Vitol for about $580 million.
NYT
- Tesla Inc is moving closer to becoming the first foreign car company to have a wholly owned manufacturing operation in China, a deal that will test the relationship norms between a foreign automaker and the Chinese government. nyti.ms/2zIpnO4
- The CIA is expanding its covert operations in Afghanistan, sending small teams of experienced officers and contractors alongside Afghan forces to hunt and kill Taliban militants across the country, according to two senior American officials. nyti.ms/2xfR2E7
- The U.S. Environmental Protection Agency has canceled the speaking appearance of three agency scientists who were scheduled to discuss climate change at a conference on Monday in Rhode Island, according to the agency and several people involved. nyti.ms/2yHOKiW
- Senate Majority Leader Mitch McConnell said he will be willing to bring a bipartisan proposal to stabilize health insurance markets up for debate if U.S. President Donald Trump signaled his support. nyti.ms/2zukzeg
- All three committees looking into an alleged Russian interference in the 2016 U.S. elections — one in the House, two in the Senate — have run into problems, from insufficient staffing to fights over when the committees should wrap up their investigations. nyti.ms/2yHX2cd
Canada
THE GLOBE AND MAIL
** India's competition regulator agreed to the merger of Potash Corp of Saskatchewan Inc and Agrium Inc , provided Potash sells its stakes in Arab Potash Co Plc , Israel Chemicals Ltd and Sociedad Quimica y Minera de Chile SA within 18 months. The companies can close their deal before divesting the assets, which are estimated to be worth more than $5 billion. tgam.ca/2iu7Pkz
** British Columbia's NDP government is facing controversy over liquefied natural gas as environmental groups warn that a project led by Royal Dutch Shell Plc will derail the province's efforts to transition to a low-carbon economy. tgam.ca/2iujgZi
** As Ottawa overhauls its cultural policies, Canadian record labels are pleading for the federal government to revise copyright laws in favour of artists, hoping to offset internet-driven losses to both musicians and the businesses that support them. tgam.ca/2iumpZ6
NATIONAL POST
** Canada is selling its last inshore coastal surveyor ship, the Canadian Coast Guard Ship Matthew, in an auction that closes on Friday with a minimum bid of C$1 million ($791,891). bit.ly/2iqTXHz
Britain
The Times
Britain is facing an investment crisis as factories cut back spending plans amid mounting political uncertainty over Brexit, the country's leading manufacturing trade body has warned. bit.ly/2yJwEPk
Cash-strapped Britons are taking the inflation-driven squeeze on incomes in their stride as they grow more confident about their job prospects, according to a survey by Deloitte. bit.ly/2yKJvkA
The Guardian
Labour's deputy leader Tom Watson is to write to the competition watchdog urging it to refuse the Murdoch family's takeover of Sky Plc after it emerged that Fox News gave presenter Bill O'Reilly a new contract after paying $32m to settle a sexual harassment suit against him. bit.ly/2yJN36p
UK business leaders have united to urge David Davis to quickly establish a Brexit transition deal that mirrors existing arrangements or risk losing British jobs and investment. bit.ly/2yJKCRo
The Telegraph
U.S. President Donald Trump has an "absolute duty" to prepare for military intervention against North Korea in the face of the mounting nuclear threat posed by the regime, Boris Johnson will say at the annual Chatham House conference in London. bit.ly/2yIBiNK
The UK government has intervened in a row over wholesale charges for broadband, backing BT Group Plc's network subsidiary Openreach in its battle against cheaper prices. bit.ly/2yJt5Zz
Sky News
InterContinental Exchange Inc, owner of the New York Stock Exchange, is in advanced talks to buy Royal Bank of Scotland Group Plc's 4 percent shareholding in Euroclear, giving it a say in the future of one of the world's most valuable financial markets settlement platforms. bit.ly/2yJbhhf
The Independent
A boom in new fintech innovations saw UK financial services firms register a record number of trade marks in 2016, according to research. Companies in the sector registered 4,228 trade marks last year, up from 3,141 in 2011, professional services firm, RPC, found. ind.pn/2yIZlvW
Reported by Zero Hedge 11 hours ago.
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Insurer Aetna unloads group life, disability for $1.45B
Aetna, the nation's third-largest health insurer, is selling its domestic group life and disability businesses for $1.45 billion to Hartford Life and Accident Insurance Co. Aetna says the cash deal also includes its absence management business and should close next month. Health insurance is Hartford, Connecticut-based Aetna's main business. The insurer covers more than 22 million people, and its health care segment brought in $1.8 billion in pretax adjusted earnings in the second quarter. In contrast, the insurer's group insurance business, which includes life and disability coverage, reported pretax, adjusted earnings of $42 million. Aetna Inc. will report third-quarter results on Oct. 31.
Reported by SeattlePI.com 11 hours ago.
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Ray Dalio Explains What Is "The Most Important Economic, Political And Social Issue Of Our Time"
Every quarter, the Fed's Flow of Funds report discloses - among many other things - the total U.S. household net worth, and every quarter for the past two years this number has steadily gone up, hitting fresh all time highs with every new release, most recently $96.2 trillion, to widespread cheers from both the financial press and the public, as well as the administration. However, as we show every quarter, this aggregate number is largely meaningless in providing a status update on the financial state of the broader US population, as it masks a gaping chasm between the haves, or the top 10% of US society - those who benefit the most from this mostly financial-asset based increase in net worth, and the have nots, or bottom 90%, who remain largely locked out from such gains.
In fact, it was the Fed's own Triennial Survey of Consumer Finances which disclosed just how skewed this net worth distribution had become:
Today, none other than Bridgewater's Ray Dalio focuses on this topic, which he calls *"the most important economic, political and social issue of our time"*, and defines it as "*the two US economies"*...
I wrote about what I see as the most important economic, political & social issue of our time: The Two US Economies. https://t.co/ZfQR4GgGev
— Ray Dalio (@RayDalio) October 23, 2017
... *that of **the top 40% and the bottom 60%.*
In an article published on LinkedIn this morning, Dalio writes that the Federal Reserve *should more closely monitor the economic struggles of the bottom 60% of the economy when making policy since “average statistics” are camouflaging what’s really occurring in the U.S., precisely what this site has claimed quarter after quarter.*
Dalio's argument focuses on the wide disparities in factors including labor, retirement savings, health care, death rates and education between the top 40% and bottom 60% of the country, and how average statistics fail to capture this increasingly bimodal distribution. And, echoing what we said most recently a month ago, the Bridgewater founder said it would be a “serious mistake” for the Fed to just focus on a national average as it could lead the policy makers to see a brighter economic picture than the reality.
Or, as we phrased it, "*And there is your "recovery": the wealthy have never been wealthier, while half of America, some 50% of households, own just 1% of the country's wealth, down from 3% in 1989, while America's poor have never been more in debt.*"
Back to Dalio, who writes in his Daily Observations report that “*because the economic, social, and political consequences of an economic downturn would likely be severe, if I were running Fed policy, I would want to take this into consideration and keep an eye on the economy of the bottom 60%." *He adds that “similarly, having this perspective will be very important for those who determine fiscal policies and for investors concerned with their wealth management."
Dalio hardly breaks new ground when he then writes that the difference in the financial conditions for the two groups - largely due in part whether they can take advantage of the market rally or not, and for most of the US population, it is the latter - is a major cause of slowing growth. Furthermore, *the gap between the two economies will only intensify over the next five to 10 years, as changes in demographics will challenge the government’s ability to meet pension and healthcare demands, while changes in technology will continue to impact employment.*
The disparities he listed include:
· The top 40 percent now has on average 10 times as much wealth as those in the bottom 60, up from six times as much in 1980
· Just a third of the bottom 60 percent saves any of its income, compared to about 70 percent of the top 40
· Premature deaths among those in the bottom 60 percent are up 20 percent since 2000, and the odds of a premature death within that group are twice as high as the top 40
His conclusion: "*We expect the stress between the two economies to intensify over the next 5 to 10 years because of changes in demographics that make it likely that pension, healthcare, and debt promises will become increasingly difficult to meet and because the effects of technological changes on employment and the wealth gap are likely to intensify. *For this reason, we will continue to report on the conditions of “the top 40%” and “the bottom 60%” separately (as well as on the averages), and we encourage you to monitor them too. "
* * *
His full note is below (link):
*Our Biggest Economic, Social, and Political Issue The Two Economies: The Top 40% and the Bottom 60%*
To understand what’s going on in “the economy,” it is a serious mistake to look at average statistics. This is because the wealth and income skews are so great that average statistics no longer reflect the conditions of the average man. For example, as shown in the chart below, the wealth of the top one-tenth of 1% of the population is about equal to that of the bottom 90% of the population, which is the same sort of wealth gap that existed during the 1935-40 period.
To give you a sense of what the picture below the averages looks like, we broke the economy into two economies—that of the top 40% and that of the bottom 60%.* We then observed how conditions of the majority of Americans (the bottom 60%) are different from the conditions of those of the top 40%, as well as different from the picture conveyed by the average statistics. We focused especially on the bottom 60% because that’s where the majority of Americans are and because the picture of this economy is not apparent to most people in the top 40%.
The Bottom 60% Compared with the Top 40% and the “Average”
We will start off looking at income and the economic picture and then turn to some related lifestyle and political differences.
· There has been no growth in earned income, and income and wealth gaps have grown and are enormous. Since 1980, median household real incomes have been about flat, and the average household in the top 40% earns four times more than the average household in the bottom 60%. While they’ve experienced some growth recently, real incomes have been flat to down slightly for the average household in the bottom 60% since 1980 (while they have been up for the top 40%). Those in the top 40% now have on average 10 times as much wealth as those in the bottom 60%. That is up from six times as much in 1980.
· Only about a third of the bottom 60% saves any of its income (in cash or financial assets). As a result, according to a recent Federal Reserve study, most people in this group would struggle to raise $400 in an emergency.
· The rates of income and wealth changes of the middle class have been worse than those changes in any of the other groups, once you account for the social safety net and taxes. The charts below show income, adding in the impact of taxes, tax credits, benefits, and transfers (including non-monetary government transfers like Medicaid and employer health insurance). Unlike the picture of real earned incomes shown earlier, all the quintiles had seen some growth until 2008. This was primarily driven by increases in transfers, benefits, and social programs (especially medical benefits). It also lights up some differences within the bottom 60%. Note that while the conditions of those in the bottom quintile of society are terrible, and worse than those of the middle class by most measures (e.g., income, health, death rates, incarceration rates, etc.), the rate of change in these conditions has been worse for the middle class. More specifically, the middle class has experienced less post-tax and transfer income growth than the bottom quintile since 1980 (see chart on the right), partially because government support to the bottom has provided more of a cushion—though in both cases, income growth has been very low.
· The middle class has been especially hard-hit by manufacturing jobs declining about 30% since 1997, which is shown in the below chart.
· Those in the top 40% have benefited disproportionately from changes in asset values relative to those in the bottom 60%, because of their asset and liability mix. The balance sheets of these two groups, shown below, are sharply different. Though the bottom 60% has a small amount of savings, only a quarter of it is in cash or financial assets; the majority is in much less liquid forms of wealth, like cars, real estate, and business equity. For the bottom, debt is skewed toward more expensive student, auto, and credit card debt.
· The increasing disparity in financial conditions is a major cause of the slowing of growth, because those in lower income/wealth groups have higher propensities to spend than those in higher income/wealth groups. Said differently, if you give rich people more money, they probably won’t spend much of it, whereas if you give poorer people more money, they will probably spend more of it, each motivated by the extent of their unmet needs and desires.**
· Retirement savings for the bottom 60% are not even close to adequate and aren’t much improved as the economy and markets have recovered. Only about a third of families in the bottom 60% have retirement savings accounts—e.g., pensions, 401(k)s—which average less than $20,000. Further, as we do projections of pension finance, it appears unlikely that pension retirement benefits will be fully met.
· Death rates are rising and mental and physical health is deteriorating for those in the bottom 60%. For those in the bottom 60%, premature deaths are up by about 20% since 2000. The biggest contributors to that change are an increase in deaths by drugs/poisoning (up two times since 2000) and an increase in suicides (up over 50% since 2000). The odds of premature death for those in the bottom 60% between the ages of 35 and 64 are more than two times higher, compared to those in the top 40%.
· The US is just about the only major industrialized country with flat/slightly rising death rates.
· The top 40% spend four times more on education than the bottom 60%. This creates a self-perpetuating problem, because those at the bottom get a much worse education than those at the top.
· The bottom 60% increasingly believe others will take advantage of them: the percentage is 49% today versus 40% in 1990.
While conditions for the lowest income groups have long been bad, conditions of non-college-educated whites (especially males) have deteriorated significantly over the past 30 years or so. This is the group that swung most strongly to help elect President Trump. More specifically:
· Now, the average household income for main income earners without a college degree is half that of the average college graduate.
· The share of whites without college degrees who describe themselves as “not too happy” has doubled since 1990, from 9% to 18%, while for those with college degrees it has remained flat, at around 7%.
· Since 1980, divorce rates have more than doubled among middle-age whites without college degrees, from 11% to 23%.
· Prime working-age white males have given up looking for work in record numbers; the number of prime-age white men without college degrees not in the labor force has increased from 7% to 15% since 1980.
· More broadly, men ages 21 to 30 spend an average of three fewer hours a week working than they did a decade ago; most of that time is spent playing video games.
· The probability of premature death for whites without college degrees between the ages of 35 and 64 is nearly three times higher than it is for whites with college degrees, and the rate of premature deaths is up by about 25% since 2000 (while it is down for virtually every other demographic group). The US white population is unique among large groups in the developed world for seeing increases in their death rates. Below, we show premature deaths among working-age whites between the ages of 35 and 64. Again, the average obscures the picture. America’s non-white population isn’t seeing such a rise in premature deaths.
The polarity in economics and living standards is contributing to greater political polarity, as reflected in the below charts.
It is also leading to reduced trust and confidence in government, financial institutions, and the media, which is at or near 35-year lows.
-In Summary-
Average statistics camouflage what is happening in the economy, which could lead to dangerous miscalculations, most importantly by policy makers. For example, looking at average statistics could lead the Federal Reserve to judge the economy for the average man to be healthier than it really is and to misgauge the most important things that are going on with the economy, labor markets, inflation, capital formation, and productivity, rather than if the Fed were to use more granular statistics.
That could lead the Fed to run an inappropriate monetary policy. Because the economic, social, and political consequences of an economic downturn would likely be severe, if I were running Fed policy, I would want to take this into consideration and keep an eye on the economy of the bottom 60%. By monitoring what is happening in the economies of both the bottom 60% and the top 40% (or, even better, more granular groups), policy makers and the rest of us can give consideration to the implications of this issue. Similarly, having this perspective will be very important for those who determine fiscal policies and for investors concerned with their wealth management.
We expect the stress between the two economies to intensify over the next 5 to 10 years because of changes in demographics that make it likely that pension, healthcare, and debt promises will become increasingly difficult to meet (see “The Coming Big Squeeze”) and because the effects of technological changes on employment and the wealth gap are likely to intensify. For this reason, we will continue to report on the conditions of “the top 40%” and “the bottom 60%” separately (as well as on the averages), and we encourage you to monitor them too. Reported by Zero Hedge 10 hours ago.
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John Hancock Offers Apple Watch Series 3 to Vitality Life Insurance Customers for Just $25
Life insurance provider John Hancock has announced that new and existing members of its Vitality program can receive an Apple Watch Series 3 with GPS only for an initial payment of just $25 plus tax. Additional fees apply for customers who choose a cellular model or other more expensive models.
The cost of the Apple Watch is actually split up into 24 monthly payments, which can be paid off by walking, running, biking, swimming, or completing various other exercises. Vitality members must earn at least 500 fitness-related Vitality Points per month over two years to avoid owing any of the instalments.
Vitality rewards are available with select John Hancock life insurance policies in the United States. The free Apple Watch Series 3 offer will be available starting November 6 everywhere except New York.
John Hancock, owned by Manulife Financial, first started offering Apple Watches to a limited number of members last year. About half of the people who received the device achieved their monthly goals and did not pay for the device, John Hancock senior vice president Brooks Tingle told CNBC.
John Hancock is the first life insurance provider to offer the Apple Watch at a discounted rate to its members. Health insurance provider Aetna offers a similar program to its employees, and may expand it to 23 million customers soon.
Related Roundups: Apple Watch, watchOS 4
Buyer's Guide: Apple Watch (Buy Now)
Discuss this article in our forums Reported by MacRumours.com 9 hours ago.
The cost of the Apple Watch is actually split up into 24 monthly payments, which can be paid off by walking, running, biking, swimming, or completing various other exercises. Vitality members must earn at least 500 fitness-related Vitality Points per month over two years to avoid owing any of the instalments.
Vitality rewards are available with select John Hancock life insurance policies in the United States. The free Apple Watch Series 3 offer will be available starting November 6 everywhere except New York.
John Hancock, owned by Manulife Financial, first started offering Apple Watches to a limited number of members last year. About half of the people who received the device achieved their monthly goals and did not pay for the device, John Hancock senior vice president Brooks Tingle told CNBC.
John Hancock is the first life insurance provider to offer the Apple Watch at a discounted rate to its members. Health insurance provider Aetna offers a similar program to its employees, and may expand it to 23 million customers soon.
Related Roundups: Apple Watch, watchOS 4
Buyer's Guide: Apple Watch (Buy Now)
Discuss this article in our forums Reported by MacRumours.com 9 hours ago.
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How to choose your health insurance plan and other workplace benefits
Read full story for latest details.
Reported by CNNMoney 8 hours ago.
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El Dorado says it has addressed trouble with finances
EL DORADO, Ark. (AP) — El Dorado officials say a long-running problem within a city office resulted in the city misapplying health insurance premiums and missing out on some state funding. Mayor Frank Hash told the El Dorado News-Times that a recent audit uncovered continuing errors. He said a 38-year city employee was relieved of […]
Reported by Seattle Times 7 hours ago.
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Survey: Nearly Half of Parents Have Had a Child Experience a Major Injury and 7 in 10 Paid up to $2,000 out of Pocket for Medical Expenses
ST. PAUL, Minn.--(BUSINESS WIRE)--As uncertainty over the future of health care continues, 63 percent of Americans with employer-sponsored health insurance surveyed by Securian Financial Group say they are very or somewhat concerned this open enrollment season about their plans’ out-of-pocket medical costs increasing in the next year. Among Millennials—many who are parents—32 percent with health insurance deductibles report paying an out-of-pocket expense for an injury over the past year, and m
Reported by Business Wire 6 hours ago.
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A Communist Utopia (Funded By Capitalism)
Via The Daily BellWhen is a commune not a commune? When it only exists because of capitalism.
But that doesn’t stop it from having just enough communist ideals to make it a very restrictive place to live.
Twin Oaks is an “intentional community” in Virginia. It is one of the oldest successful communes in America because it's not really a commune. They manufacture hammocks that sell for up to $100 each, and make tofu for Whole Foods.
They have a sales and marketing manager who oversees each business. And they provide extra incentives to do the work no one else wants to do.
One member actually expressed concern that Amazon plans to drop Whole Foods’ prices.
“Well, then we can’t sell our tofu for as much,” he said.
Maybe the Whole Foods workers should seize their means of production to stop the exploitation.
I was all set to tear apart Vice’s piece on this little commune. But I ended up just giggling. Vice correctly pointed out that it isn’t really a commune if it is funded by capitalism. The people who live there have stepped out of a typical “capitalist structure” for their lives. But they were only able to live their alternative lifestyle because they do so in a capitalist world.
And the same member admits that capitalist ideas have won. He acknowledges that capitalism is required for their commune to exist. So it seems a little funny that they know a market system is required for their livelihood, yet they employ a communist style of internal governance.
That means 100% taxation and no individual control over how the products of your labor are spent.
But as much as they don’t want to admit it, there is still a hierarchy of sorts. They give extra to those who work extra. They have managers to oversee the businesses. And they have two types of members: provisional, and full.
In the philosophy of a commune, it might make sense for the workers to take home little to no pay, and forfeit control of their property. But consider that the “commune” brings in $600,000 per year in profits.
Members don’t pay to get into the community, and they don’t get anything when they leave. This means it is hard to see a member’s time there as an investment in the future unless their future is at Twin Oaks.
Like a typical factory job of the proletariat, they are unable to amass capital and stuck in their position.
They are required to work 40 hours per week. They have quotas to hit for work, with some extra incentives thrown in for extra hard workers. Producing more than your quota means you get to keep some of the product of your labor. Not exactly to each according to his need, from each according to his ability. But that is what is required to make their for-profit “commune” work.
So doesn’t that make it a business? It seems like members are basically typical proletariat workers, except that they don’t make any money. They forfeit total control over their lives and get to be taken care of by mother corporation.
And from a capitalist perspective, it makes perfect sense. If the company profits were broken down by person, it would $60,000 each. But you know their food, housing, health insurance, and other provisions aren’t costing the business anywhere close to that.
For a member, it seems like quite the hefty price to pay for the simple luxury of not having to worry about paying the bills on your own terms. Twin Oaks gets full-time workers for a fraction of what it costs most companies.
The Twin Oaks bylaws state:
You don’t pay to join. You don’t get anything when you leave. The Community supports you while you’re here. Twin Oaks Provides for its members on the basis of need or equality. Equality is a fundamental community value which informs the property code. We try to avoid displays of wealth which may give rise to envy. With the exceptions described below, we expect members not to use outside income or pre-existing assets during their membership in Twin Oaks.
So all you can take with you when you leave are the skills you gain. They do seem to teach some–relatively menial–skills. Also, if full members decide to move on, they get $50 from the leaving fund (which actually seems more insulting than getting nothing).
They don’t expect you to give them all your property upon arrival. But they do encourage lending your cars, large equipment, and even money to the community for the time of your stay. These will be returned when you leave, without interest.
They do require all “unearned income” be donated to the community.
Unearned income includes interest on bank accounts, dividends on stocks and bonds, income on investments, social security, disability payments, pensions, and child support for a child living at Twin Oaks. Unearned income is the property of the Community.
As such, they discourage anyone with much wealth from moving into the community.
And any spending you do while you live at the commune must be approved by other members.
Oh, and they also expel any “undesirables.” Failing to give your unearned income to the community would be a reason for expulsion to be considered.
Ironically, their website states there are “classes of membership.” As much as they claim to want to avoid hierarchy, they still have provisional members and full members. Basically, the community can vote anyone out. There are a few steps and procedures, and some suggested reasons for the oustings, but the process comes down to mob action.
They also aren’t exactly accepting of “pensioners” because they can’t work as hard, and therefore might sap more from the community than they give. The community does offer health insurance, so maybe that’s why they are a tad on the discriminatory side towards old folks.
So basically, it is not a commune, and it is not a free market. It is the worst of both worlds. An extremely restrictive community that makes money off their laborers. You give your labor, and “unearned income” to the community, and you get a place to live, food, and health insurance.
The central “government”–which in this case is a corporation–owns all the means of production, controls all the wealth of the citizens, and provides for all their needs.
In that sense it is technically a success, but only because they have a source of income from a non-communist outside world.
The big takeaway: communist “utopia” exists (if your idea of utopia is surrendering your freedom in exchange for a safety net). But only inside a capitalist world.
But hey, these people are doing it all voluntarily. If that’s the life they want, so be it. I can accept their commune because it doesn’t place any obligations on me.
A free market does not rule out the possibility of little separatist communities that behave much like communes. It’s just that they can only exist because of the larger capitalist structure of society.
The opposite is not true; you can’t have little capitalist break-outs in a communist world. In fact, you can’t even have communist communities in a communist world. You can just have starvation, oppression, and the entire collapse of productive society. Reported by Zero Hedge 2 hours ago.
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The Latest: Judge questions request to save health subsidies
SAN FRANCISCO (AP) — The Latest on a lawsuit by California and other states over health care subsidies cut off by the Trump administration (all times local): 2 p.m. A federal judge says he doesn't see how the Trump administration's decision to cut off health insurance subsidies would immediately harm consumers. U.S. District Judge Vince Chhabria said during a hearing Monday that California and other states had anticipated the subsidies would end and found a way to make sure consumers wouldn't pay more for insurance. The hearing was ongoing and Chhabria has not yet reached a decision.
Reported by SeattlePI.com 2 hours ago.
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It Is Seven Times More Difficult To Get A Flight Attendant Job At Delta Than Enter Harvard
One of our preferred "off beat" economic indicators is how many workers apply at any one given moment in time for jobs that are hardly considered career-track. An example of this is the number of applicants for minimum wage line cook jobs at McDonalds, or flight attendant positions at Delta Airlines; conveniently, this is a series which we have tracked on and off for the past 7 years.As regular readers may recall, back in October 2010, the Atlanta-based carrier received 100,000 applications for 1,000 jobs, an "acceptance ratio" of 1.0%. Things appeared to improve modestly in 2012 when Bloomberg reported that Delta had received 22,000 applicants for 300 flight attendant jobs: this pushed the acceptance ratio slightly higher to 1.3%, as by this point the job market had improved somewhat, and there were far better job career options available.
Fast forward to today when things have turned decidedly more grim for the US job market once again, at least based on this one particular indicator. According to CNN, Delta is once again on the hunt for new flight attendants, and has roughly 1,000 open positions for 2018, although this year the competition is virtually unprecedented: *so far, Delta has received more than 125,000 applications for this hiring round, which all else equal would result in an acceptance ratio of 0.8%. *Note, we said "virtually unprecedented" because this year ratio of applicants to open positions is identical to last year, when 150,000 people applied for 1,200 flight attendant jobs, resulting in an identical, 0.8% acceptance ratio.
So what makes it such a tough gig to land?
"You need to not only be a customer service professional, but also a safety expert," said Ashton Morrow, a Delta spokeswoman.
Political correctness aside, you have to be young, relatively good looking, preferably a female (sorry, sexism does exist)... oh and willing to accept next to minimum wage.
Even so, one would think one is trying to get into Harvard: applicants first submit an application, then chosen candidates submit a video of themselves answering a set of questions. Selected candidates are then asked to come in for an in-person interview. Last year, 35,000 people made it to the video interview part. The candidate pool was then whittled down to 6,000 people for in-person interviews.
The Delta "admissions committee" was happy to chime in:
"After making it through the highly competitive and exhaustive selection process, they put all their previous experience and skills to the test during our flight attendant initial training," said Allison Ausband, Delta's senior vice president of in-flight service, in a release Monday.
Having made it so far through the process, *in which the lucky candidate literally has to be better than 99 of their peers*, the new hires go through an eight-week training program in Atlanta where they learn how to handle mid-flight emergencies like a fire or a sick passenger. The company describes the training program as "grueling" and that it will "stretch each trainee to the limit" in a video.
Finally, having reached the promised land, what untold wealth and riches await the lucky guy or gal? Well... nothing more than minimum wage: *average entry-level flight attendants earn roughly $25,000 a year, according to the company*. Wait, that's it? Well, there are perks, such as the increasingly more unaffordable - for most - employee benefits which include health insurance coverage, 401(k) with a company match and a profit-sharing program. Workers also get travel privileges for themselves and family member.
Oh, and once hired, forget about having a personal life: "work-life balance can be tricky for flight attendants early in their careers since they don't have a lot of control over their flight schedules."
For any reader contemplating applying, here are the minimum qualifications:
applicants must be at least 21 years old, have a high school degree or GED and be able to work in the U.S. Flight attendants cannot have any tattoos that are visible while in the company's uniform. Visible body piercings and earlobe plugs are also not allowed.
Putting this entire farcical process, which among other things demonstrates the true state of the US job market, Harvard's acceptance rate for the class of 2021 was 5.2%. In other words, it is 6.5x times (round it up) easier to enter Harvard than to get a job at Delta. *As an attendant*. And there is your jobs supply-demand reality in one snapshot.
P.S. it is somewhat easier to get the desired job if one fits the following physical parameters. Reported by Zero Hedge 1 day ago.
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Limited Outreach, Shorter Sign-Up Time May Cause Insurance Headaches In 2018
The silver (or gold) lining may be that changes in premium pricing may mean some people could sign up for a better health insurance plan that costs them less money.
Reported by NPR 9 hours ago.
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MEWA Association Supports Trump’s Executive Order Allowing Association Health Plans (AHPs) to Offer Coverage Across State Lines
President Trump’s executive order can free up Multiple Employer Welfare Arrangements (Association Health Plans) to be solely regulated by the DOL, thereby allowing them to offer coverage in all states. In states where there are only one or two insurance companies, there could be dozens of AHPs creating competition, thereby prompting lower medical insurance rates.
ALISO VIEJO, Calif. (PRWEB) October 24, 2017
“We applaud President Trump and his recent executive order to allow Association Health Plans (also known as Multiple Employer Welfare Arrangements, or MEWAs) to offer coverage across state lines,” says William Dyer, board member of the MEWA Association of America (MAA).
“It is surprising to hear reports in the media about how AHPs won't work,” Dyer states. “On the contrary, AHPs/MEWAs have existed for over 30 years and have been very successful in reducing health insurance costs for small businesses and their employees. We look forward to the immediate implementation of the President’s order, allowing Association Health Plans to offer coverage across state lines.” Dyer has been an advocate for multi-state MEWAs/AHPs for so long that he is known as Mr. MEWA.
Background:
Current law via ERISA allows for Association Health Plans (AHPs), which are called Multiple Employer Welfare Arrangements (MEWAs). ERISA was modified in 1983 to allow for the creation of MEWAs/AHPs.
MEWAs/AHPs allow thousands (in some cases) of small businesses to form one large group. The group self-insures the health insurance risk, backed by reserves and stop loss/reinsurance, and can save the small business and its employees 20 to 50% (compared to purchasing insurance in the small group market).
However, most MEWAs/AHPs have been limited to offering coverage in one state, as they have dual regulation by the Department of Labor (DOL) and each state’s Department of Insurance (DOI). Each state’s DOI has its own requirements, which makes having multiple-state MEWAs/AHPs a huge burden.
President Trump’s executive order can free up MEWAs/AHPs to be solely regulated by the DOL, thereby allowing them to offer coverage in all states. In states where there are only one or two insurance companies, there could be dozens of AHPs creating competition, thereby prompting lower medical insurance rates.
The section of ERISA that provides for AHPs/MEWAs to be solely regulated by the DOL, and thereby allowing for multiple state AHPs, is 29 U.S.C 1144 (b)(6)(B). Legislation will not be required; the DOL and Secretary Acosta already have the authority to make this regulatory adjustment.
About MEWA Association of America (MAA):
MAA consists of self-insured MEWAs that have gathered to protect the existing infrastructures in which they operate and to lower health care costs for small businesses and their employees. MAA promotes market regulatory changes, which will open new markets to existing and future MEWAs, through the introduction of consistent standards for regulation and solvency across the USA. See MAA's website here.
About William Dyer:
William Dyer is the Vice President and Trustee of MEWA Association of America. He is also the Vice President and Co-Founder of HCP National, the healthcare industry’s insurance broker since 1994. Based on premium volume, HCP National is the largest MEWA stop loss broker in the country. Mr. Dyer is known for solving seemingly impossible insurance problems. He specializes in stop loss insurance, reinsurance, professional liability insurance, and business insurance. From self-insured medical employer plans or Multiple Employer Welfare Arrangements, to ACOs and HMOs who need stop loss reinsurance, Mr. Dyer finds clients the greatest coverage, for the lowest price. Mr. Dyer is one of few brokers in the country who has placed over 500 million dollars in stop loss insurance in their careers. Reported by PRWeb 12 hours ago.
ALISO VIEJO, Calif. (PRWEB) October 24, 2017
“We applaud President Trump and his recent executive order to allow Association Health Plans (also known as Multiple Employer Welfare Arrangements, or MEWAs) to offer coverage across state lines,” says William Dyer, board member of the MEWA Association of America (MAA).
“It is surprising to hear reports in the media about how AHPs won't work,” Dyer states. “On the contrary, AHPs/MEWAs have existed for over 30 years and have been very successful in reducing health insurance costs for small businesses and their employees. We look forward to the immediate implementation of the President’s order, allowing Association Health Plans to offer coverage across state lines.” Dyer has been an advocate for multi-state MEWAs/AHPs for so long that he is known as Mr. MEWA.
Background:
Current law via ERISA allows for Association Health Plans (AHPs), which are called Multiple Employer Welfare Arrangements (MEWAs). ERISA was modified in 1983 to allow for the creation of MEWAs/AHPs.
MEWAs/AHPs allow thousands (in some cases) of small businesses to form one large group. The group self-insures the health insurance risk, backed by reserves and stop loss/reinsurance, and can save the small business and its employees 20 to 50% (compared to purchasing insurance in the small group market).
However, most MEWAs/AHPs have been limited to offering coverage in one state, as they have dual regulation by the Department of Labor (DOL) and each state’s Department of Insurance (DOI). Each state’s DOI has its own requirements, which makes having multiple-state MEWAs/AHPs a huge burden.
President Trump’s executive order can free up MEWAs/AHPs to be solely regulated by the DOL, thereby allowing them to offer coverage in all states. In states where there are only one or two insurance companies, there could be dozens of AHPs creating competition, thereby prompting lower medical insurance rates.
The section of ERISA that provides for AHPs/MEWAs to be solely regulated by the DOL, and thereby allowing for multiple state AHPs, is 29 U.S.C 1144 (b)(6)(B). Legislation will not be required; the DOL and Secretary Acosta already have the authority to make this regulatory adjustment.
About MEWA Association of America (MAA):
MAA consists of self-insured MEWAs that have gathered to protect the existing infrastructures in which they operate and to lower health care costs for small businesses and their employees. MAA promotes market regulatory changes, which will open new markets to existing and future MEWAs, through the introduction of consistent standards for regulation and solvency across the USA. See MAA's website here.
About William Dyer:
William Dyer is the Vice President and Trustee of MEWA Association of America. He is also the Vice President and Co-Founder of HCP National, the healthcare industry’s insurance broker since 1994. Based on premium volume, HCP National is the largest MEWA stop loss broker in the country. Mr. Dyer is known for solving seemingly impossible insurance problems. He specializes in stop loss insurance, reinsurance, professional liability insurance, and business insurance. From self-insured medical employer plans or Multiple Employer Welfare Arrangements, to ACOs and HMOs who need stop loss reinsurance, Mr. Dyer finds clients the greatest coverage, for the lowest price. Mr. Dyer is one of few brokers in the country who has placed over 500 million dollars in stop loss insurance in their careers. Reported by PRWeb 12 hours ago.
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Report: CHIP Bill Could be Pushed to December
A bill to reauthorize funding for the Children’s Health Insurance Program might not reach President Donald Trump until December, Axios reports.
Reported by Newsmax 6 hours ago.
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DEADLINE APPROACHING: Lundin Law PC Announces Securities Class Action Lawsuit against Health Insurance Innovations, Inc. and Encourages Investors with Losses to Contact the Firm
LOS ANGELES, CA / ACCESSWIRE / October 24, 2017 / Lundin Law PC, a shareholder rights firm, announces a class action lawsuit against Health Insurance Innovations, Inc. ("Health Insurance Innovation...
Reported by FinanzNachrichten.de 8 hours ago.
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APRIL: Sales of €690.4m up 7.0% at end September 2017
Lyon, 24 October 2017
*APRIL: Sales of €690.4m*
*up 7.0% at end September 2017*
· Sales growth of 6.3% like-for-like ^[1]
· Positive trends in brokerage confirmed as proforma commissions grew by 5% over the first nine months
· Continuation of the targeted external growth policy
· Current EBIT now forecast to grow between 1% and 4% compared to 2016
Following publication of the Group's sales at the end of September 2017, APRIL CEO Emmanuel Morandini made the following comments:
"Business performances during these first nine months confirm the trends observed since the beginning of the year. We have seen continued growth, driven by the good performance of brokerage activities in Health & Personal Protection and Property & Casualty, as well as by the strong momentum of our insurance business.
In order to strengthen these upward trends, we continue to implement actions in line with our key growth drivers. As such, in order to export our renowned expertise in two-wheeled vehicle insurance, APRIL acquired Pont Grup in Spain, a specialist broker in this market.
The combination of those elements means that current EBIT should be back to growth as soon as 2017."
IFRS - €m *9M 2017* *9M 2016* *Change* *Change LFL*
*Consolidated sales* *690.4* *645.3* *+7.0%* *+6.3%*
Brokerage commissions and fees 383.5 361.1 +6.2% +5.0%
Insurance premiums 306.8 284.2 +7.9% +7.9%
The APRIL Group reported consolidated sales of €690.4m for the first nine months of 2017, up 7.0% compared with reported figures for the same period in 2016.
Sales rose 6.3% like-for-like compared to the first nine months of 2016. In line with expectations, brokerage commissions were up 5.0% to €383.5m, while insurance premiums increased 7.9% to €306.8m.
Like-for-like figures include sales of newly-consolidated companies amounting to €5.7m, mainly generated by the integration of Bamado in July 2016 and Public Broker in May 2017. The acquisition of Pont Grup in Spain on 18 October 2017 has no impact on sales at end September.
The Group posted a €0.7m negative impact of exchange rate fluctuations for the period, mainly generated by the United Kingdom, curbing growth in Health & Personal Protection commissions.
Breakdown of the change in sales between 2016 and 2017 - €m * *
*Consolidated sales as at 30/09/2016* *645.3*
Impact of exchange rate fluctuations -0.7
Acquisitions +5.7
Disposals -0.7
*Like-for-like sales as at 30/09/2016* *649.6*
Increase in brokerage commissions and fees +18.1
Increase in insurance premiums +22.6
*Consolidated sales as at 30/09/2017* *690.4*
* *
* Sales by division *
Changes by type of revenues are as follows:
· *Brokerage commissions in Health & Personal Protection* continued to grow and amounted to €246.0m, up 6.1% as reported compared to the same period in 2016 (up 3.9% like-for-like). This growth was driven by the strong performances in group health, loan, expatriate health and individual health (seniors and self-employed) insurance.
· *Property & Casualty commissions* came to €138.9m, up 6.4% compared with reported figures for 2016. Excluding the impact of changes in consolidation scope and exchange rate fluctuations, this division posted like-for-like growth of 7.0%. Wholesale brokerage activities continued to expand, specifically in substandard car insurance, two-wheeled vehicle insurance and the professional range. The travel insurance business benefited from satisfying sales momentum primarily in France and Brazil.
· The 10.2% increase in *Health & Personal Protection insurance premiums,* which amounted to €179.0m, reflects strong business driven primarily by the development of the individual (seniors and self-employed) Health & Personal Protection and group health insurance portfolios. This growth is partly reduced by the expected loss of some run-off portfolios.
· *Property & Casualty insurance premiums* continue to rise (up 5.0% to €128.4m), driven by the expansion of corporate, travel insurance and assistance operations in a highly-reinsured risk-carrying model.IFRS - €m *9M 2017* *9M 2016* *Change* *9M 2016 LFL* *Change LFL*
*Health & Personal Protection* *425.0* *394.3* *+7.8%* *399.3* *+6.4%*
Commissions and fees 246.0 231.8 +6.1% 236.8 +3.9%
Insurance premiums 179.0 162.5 +10.2% 162.5 +10.2%
*Property & Casualty* *267.4* *252.8* *+5.8%* *252.1* *+6.0%*
Commissions and fees 138.9 130.5 +6.4% 129.8 +7.0%
Insurance premiums 128.4 122.3 +5.0% 122.3 +5.0%
*Intra-group eliminations* *-2.0* *-1.7* *-13.6%* *-1.8* *-13.6%*
*Consolidated sales* *690.4* *645.3* *+7.0%* *649.6* *+6.3%*
* Outlook *
After the first nine months of the year, APRIL now targets a 1% to 4% growth in 2017 current EBIT. This growth relies on strong business trends that were built over the past years, supplemented by the outcome of the work being carried out since 2015 on streamlining our loss-making operations.
Emmanuel Maillet, Group CFO, will be holding a conference call for financial analysts, investors and the press this evening at 6.00 p.m. (French time), during which these matters will be discussed in greater detail.
Dial-in details: France - +33 (0)1 76 74 24 28 / Switzerland - +41 (0) 56 580 00 07
United Kingdom - +44 (0)145 2555 566
Please dial in a few minutes beforehand, in order to register, and give the following reference number: 9958 2423.
Appendix
· Quarterly sales
Upcoming releases
· 2017 Full-year sales: 30 January 2018 after market close
· 2017 Annual results: 7 March 2018 after market close
This release contains forward-looking statements that are based on assessments or assumptions that were reasonable at the date of the release, and which may change or be altered due to, in particular, random events or uncertainties and risks relating to the economic, financial, regulatory and competitive environment, the risks set out in the 2016 Registration Document, and any risks that are unknown or non-material to date that may subsequently occur. The Company undertakes to publish or disclose any adjustments or updates to this information as part of the periodical and permanent information obligation to which all listed companies are subject.
* Contacts *
*Analysts and investors*
Guillaume Cerezo: +33 (0)4 72 36 49 31 / +33 (0)6 20 26 06 24 - guillaume.cerezo@april.com
*Press*
Samantha Druon: +33 (0)7 64 01 74 35 - samantha.druon@insign.fr
About APRIL
Established in 1988, APRIL is an international insurance services group with operations in 31 countries in Europe, North and South America, Asia, Africa and the Middle East, and the leading wholesale broker in France. Listed on Euronext Paris (Compartment B), the group posted sales of €861.2 million in 2016. Its 3,800 staff members design, manage and distribute specialised insurance solutions (health and personal protection, property and casualty, mobility and legal protection) as well as assistance services for private individuals, professionals and businesses, while pursuing APRIL's ambition: to make insurance easier and more accessible to everyone. Driven by a strong entrepreneurial culture, the group aims to offer its customers an insurance experience which is easier, by means of tailored products and services and customised care.
Full regulated information is available on our website at www.april.com (Investors section).
*Appendix: Quarterly sales*
(IFRS - €m) *2017* *2016* *Change* *2016 LFL* *Change LFL*
*Q1* *227.7* *208.4* *+9.2%* *209.9* *+8.5%*
*Q2* *230.0* *221.8* *+3.7%* *224.4* *+2.5%*
*Q3* *232.7* *215.1* *+8.2%* *215.3* *+8.1%*
*Q4* *-* *215.9* *-* *-* *-*
*Total* *-* *861.2* *-* *-* *-* --------------------
^[1] Proforma or like-for-like (LFL): sales at constant consolidation scope and exchange rates. This figure is adjusted for acquisitions, disposals and changes in consolidation method, as well as exchange rate fluctuations, calculated on the basis of the prior year financial statements converted using the exchange rate for the current year.
PDF Version
--------------------This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: April via GlobeNewswire
HUG#2144215 Reported by GlobeNewswire 8 hours ago.
*APRIL: Sales of €690.4m*
*up 7.0% at end September 2017*
· Sales growth of 6.3% like-for-like ^[1]
· Positive trends in brokerage confirmed as proforma commissions grew by 5% over the first nine months
· Continuation of the targeted external growth policy
· Current EBIT now forecast to grow between 1% and 4% compared to 2016
Following publication of the Group's sales at the end of September 2017, APRIL CEO Emmanuel Morandini made the following comments:
"Business performances during these first nine months confirm the trends observed since the beginning of the year. We have seen continued growth, driven by the good performance of brokerage activities in Health & Personal Protection and Property & Casualty, as well as by the strong momentum of our insurance business.
In order to strengthen these upward trends, we continue to implement actions in line with our key growth drivers. As such, in order to export our renowned expertise in two-wheeled vehicle insurance, APRIL acquired Pont Grup in Spain, a specialist broker in this market.
The combination of those elements means that current EBIT should be back to growth as soon as 2017."
IFRS - €m *9M 2017* *9M 2016* *Change* *Change LFL*
*Consolidated sales* *690.4* *645.3* *+7.0%* *+6.3%*
Brokerage commissions and fees 383.5 361.1 +6.2% +5.0%
Insurance premiums 306.8 284.2 +7.9% +7.9%
The APRIL Group reported consolidated sales of €690.4m for the first nine months of 2017, up 7.0% compared with reported figures for the same period in 2016.
Sales rose 6.3% like-for-like compared to the first nine months of 2016. In line with expectations, brokerage commissions were up 5.0% to €383.5m, while insurance premiums increased 7.9% to €306.8m.
Like-for-like figures include sales of newly-consolidated companies amounting to €5.7m, mainly generated by the integration of Bamado in July 2016 and Public Broker in May 2017. The acquisition of Pont Grup in Spain on 18 October 2017 has no impact on sales at end September.
The Group posted a €0.7m negative impact of exchange rate fluctuations for the period, mainly generated by the United Kingdom, curbing growth in Health & Personal Protection commissions.
Breakdown of the change in sales between 2016 and 2017 - €m * *
*Consolidated sales as at 30/09/2016* *645.3*
Impact of exchange rate fluctuations -0.7
Acquisitions +5.7
Disposals -0.7
*Like-for-like sales as at 30/09/2016* *649.6*
Increase in brokerage commissions and fees +18.1
Increase in insurance premiums +22.6
*Consolidated sales as at 30/09/2017* *690.4*
* *
* Sales by division *
Changes by type of revenues are as follows:
· *Brokerage commissions in Health & Personal Protection* continued to grow and amounted to €246.0m, up 6.1% as reported compared to the same period in 2016 (up 3.9% like-for-like). This growth was driven by the strong performances in group health, loan, expatriate health and individual health (seniors and self-employed) insurance.
· *Property & Casualty commissions* came to €138.9m, up 6.4% compared with reported figures for 2016. Excluding the impact of changes in consolidation scope and exchange rate fluctuations, this division posted like-for-like growth of 7.0%. Wholesale brokerage activities continued to expand, specifically in substandard car insurance, two-wheeled vehicle insurance and the professional range. The travel insurance business benefited from satisfying sales momentum primarily in France and Brazil.
· The 10.2% increase in *Health & Personal Protection insurance premiums,* which amounted to €179.0m, reflects strong business driven primarily by the development of the individual (seniors and self-employed) Health & Personal Protection and group health insurance portfolios. This growth is partly reduced by the expected loss of some run-off portfolios.
· *Property & Casualty insurance premiums* continue to rise (up 5.0% to €128.4m), driven by the expansion of corporate, travel insurance and assistance operations in a highly-reinsured risk-carrying model.IFRS - €m *9M 2017* *9M 2016* *Change* *9M 2016 LFL* *Change LFL*
*Health & Personal Protection* *425.0* *394.3* *+7.8%* *399.3* *+6.4%*
Commissions and fees 246.0 231.8 +6.1% 236.8 +3.9%
Insurance premiums 179.0 162.5 +10.2% 162.5 +10.2%
*Property & Casualty* *267.4* *252.8* *+5.8%* *252.1* *+6.0%*
Commissions and fees 138.9 130.5 +6.4% 129.8 +7.0%
Insurance premiums 128.4 122.3 +5.0% 122.3 +5.0%
*Intra-group eliminations* *-2.0* *-1.7* *-13.6%* *-1.8* *-13.6%*
*Consolidated sales* *690.4* *645.3* *+7.0%* *649.6* *+6.3%*
* Outlook *
After the first nine months of the year, APRIL now targets a 1% to 4% growth in 2017 current EBIT. This growth relies on strong business trends that were built over the past years, supplemented by the outcome of the work being carried out since 2015 on streamlining our loss-making operations.
Emmanuel Maillet, Group CFO, will be holding a conference call for financial analysts, investors and the press this evening at 6.00 p.m. (French time), during which these matters will be discussed in greater detail.
Dial-in details: France - +33 (0)1 76 74 24 28 / Switzerland - +41 (0) 56 580 00 07
United Kingdom - +44 (0)145 2555 566
Please dial in a few minutes beforehand, in order to register, and give the following reference number: 9958 2423.
Appendix
· Quarterly sales
Upcoming releases
· 2017 Full-year sales: 30 January 2018 after market close
· 2017 Annual results: 7 March 2018 after market close
This release contains forward-looking statements that are based on assessments or assumptions that were reasonable at the date of the release, and which may change or be altered due to, in particular, random events or uncertainties and risks relating to the economic, financial, regulatory and competitive environment, the risks set out in the 2016 Registration Document, and any risks that are unknown or non-material to date that may subsequently occur. The Company undertakes to publish or disclose any adjustments or updates to this information as part of the periodical and permanent information obligation to which all listed companies are subject.
* Contacts *
*Analysts and investors*
Guillaume Cerezo: +33 (0)4 72 36 49 31 / +33 (0)6 20 26 06 24 - guillaume.cerezo@april.com
*Press*
Samantha Druon: +33 (0)7 64 01 74 35 - samantha.druon@insign.fr
About APRIL
Established in 1988, APRIL is an international insurance services group with operations in 31 countries in Europe, North and South America, Asia, Africa and the Middle East, and the leading wholesale broker in France. Listed on Euronext Paris (Compartment B), the group posted sales of €861.2 million in 2016. Its 3,800 staff members design, manage and distribute specialised insurance solutions (health and personal protection, property and casualty, mobility and legal protection) as well as assistance services for private individuals, professionals and businesses, while pursuing APRIL's ambition: to make insurance easier and more accessible to everyone. Driven by a strong entrepreneurial culture, the group aims to offer its customers an insurance experience which is easier, by means of tailored products and services and customised care.
Full regulated information is available on our website at www.april.com (Investors section).
*Appendix: Quarterly sales*
(IFRS - €m) *2017* *2016* *Change* *2016 LFL* *Change LFL*
*Q1* *227.7* *208.4* *+9.2%* *209.9* *+8.5%*
*Q2* *230.0* *221.8* *+3.7%* *224.4* *+2.5%*
*Q3* *232.7* *215.1* *+8.2%* *215.3* *+8.1%*
*Q4* *-* *215.9* *-* *-* *-*
*Total* *-* *861.2* *-* *-* *-* --------------------
^[1] Proforma or like-for-like (LFL): sales at constant consolidation scope and exchange rates. This figure is adjusted for acquisitions, disposals and changes in consolidation method, as well as exchange rate fluctuations, calculated on the basis of the prior year financial statements converted using the exchange rate for the current year.
PDF Version
--------------------This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: April via GlobeNewswire
HUG#2144215 Reported by GlobeNewswire 8 hours ago.
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Two top Republicans just rolled out a competing Obamacare fix that looks a lot like repeal
· *Two GOP committee leaders, Rep. Kevin Brady and Sen. Orrin Hatch, released their own plan to stabilize Obamacare.*· *The plan would appropriate the key cost-sharing reduction payments but also do away with Obamacare's individual and employer mandates.*
· *The plan would most likely not stabilize the individual market and would face a difficult time in the Senate.*
--------------------Two Republican leaders announced their own package to temporarily shore up the Obamacare exchanges on Tuesday, but the deal appears to be as much a repeal of the law as a fix for it.
Rep. Kevin Brady, chair of the House Ways and Means Committee, and Sen. Orrin Hatch, chair of the Senate Finance Committee, rolled out a four-point plan for the Obamacare exchanges that funds the cost-sharing reduction (CSR) payments while also stripping away the cornerstone mandates of the Affordable Care Act (ACA).
The plan comes after the bipartisan Alexander-Murray deal to fix the Obamacare markets, which currently appears to have enough support in the upper chamber to pass.
The key aspects of the Brady-Hatch plan are:
1. *Fund CSR payments through 2019:* The plan also says there a "pro-life" protections on the payments, which likely means restrictions on using the payments for plans that cover abortions. The plan also hints at guardrails for the use of these payments but does not specify them.
2. *Suspend the individual mandate from 2017 to 2021: *The plan would do away the financial penalty for people who do not get healthcare coverage.
3. *Refund employer mandate penalties incurred from 2015 to 2017: *Any penalties companies paid for not offering health insurance to their employees over the past three years would apparently be refunded.
4. *Expand the use of health savings accounts*: The plan wants to increase the contribution on these tax-deductible accounts.
Hatch and Brady painted the plan as a way to help boost the markets while also addressing underlying issues with Obamacare.
"What we’re proposing not only helps treat some of Obamacare’s symptoms – rising premiums, fewer choices, and uncertainty and instability," Brady said in a statement announcing the plan. "It takes steps to cure Obamacare’s underlying illness through patient-centered reforms that deliver relief from federal mandates, protect life, and increase choices in health care."
The repeal of the mandates could seriously undermine the health of the Obamacare exchanges according to Larry Levitt, a senior vice president at The Kaiser Family Foundation, a nonpartisan health policy think tank.
"Getting rid of the individual mandate for five years without anything to replace it is kind of the opposite of market stabilization," Levitt tweeted after the release of the plan.
Thus, it is unlikely this plan gathers much steam, especially in the Senate where it would be subject to a Democratic filibuster.
The full text of the Brady-Hatch will be released at a later date, the statement said.
*SEE ALSO: 3.5 million more people are without health insurance since Trump was elected*
Join the conversation about this story »
NOW WATCH: Meet the three women who married Donald Trump Reported by Business Insider 6 hours ago.
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GOP lawmakers propose new conditions on health bill
WASHINGTON (AP) — Two top Republicans are proposing a bill for restoring federal payments to insurers that includes tough conditions sought by the White House and congressional conservatives. It has no chance of passing the Senate, where Democrats have enough votes to kill it. The plan would pay the subsidies for two years. It would also temporarily halt tax penalties President Barack Obama's health care law imposes on people who don't buy insurance and employers who don't offer coverage to workers. It also includes "pro-life protections." GOP aides would not describe them, but Republicans have often sought to prevent federal payments from being used to buy health insurance that covers abortions. The proposal was introduced by Sen.
Reported by SeattlePI.com 5 hours ago.
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