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Showing posts with label shutdown. Show all posts
Showing posts with label shutdown. Show all posts

Tuesday, October 1, 2013

'Obamacare' launches amid shutdown

A woman looks at the HealthCare.gov website on 1 October 2013 The Obamacare website - HealthCare.gov - launched on 1 October

A central provision of President Barack Obama's healthcare reform law has taken effect, having survived Republicans' years-long effort to undermine it.

Markets run by federal and state governments opened for the millions of Americans seeking insurance plans.

As many as seven million Americans who do not already have health insurance are eligible to purchase coverage in the coming months.

Republican opposition to the law led to the government shutdown on Tuesday.

While Mr Obama and his supporters in the Democratic Party portray the law as a historic effort to extend healthcare coverage to the millions of Americans who lack it, the law's opponents say it amounts to an unprecedented intrusion into Americans' private lives.

The opening of the private health insurance marketplaces, or exchanges, was the culmination of more than three years of political combat in Washington over the Patient Protection and Affordable Care Act, signed into law by President Barack Obama in 2010 and known to both sides as Obamacare.

'Shutdown triggered'

Republicans in Washington and in state capitals across the country have vehemently fought the law since its passage, with the US House of Representatives taking dozens of symbolic votes to repeal it or eliminate its funding.

A legal challenge led by Republican opponents of the law ended when the Supreme Court in June 2012 validated the law's keystone provision - a requirement that Americans not receiving health coverage from their employers or the government purchase individual plans or pay a fine.

That requirement, known as the individual mandate, takes effect in January.

The healthcare law was also a central issue in the 2012 presidential election. Republican candidate Mitt Romney vowed to press for its repeal. Mr Obama handily won re-election.

On Tuesday, the US government shut non-essential services, keeping more than 700,000 workers at home, when the Democrats who control the Senate refused to agree to Republican demands to repeal the health law or delay the individual mandate.

Both Mr Obama and congressional Democrats have said they will not negotiate on Obamacare, with Mr Obama on Monday evening accusing the Republicans of attempting to refight the last election.

In spite of the political turmoil in Washington, on Tuesday Americans were able to enrol in insurance plans offered by private companies and ranging in price and level of coverage through exchanges in every state.

Even supporters of the law anticipated that technical glitches and consumer confusion would slow adoption.

Sixteen states and Washington DC have opted to operate their own exchanges, while the exchanges in 34 states will be fully or partially run by the federal government.

'Major concession'

Exchanges will also inform customers of tax subsidies available to ease the cost of the insurance. An estimated six million US citizens are expected to qualify.

Customers enrolling under Obamacare will not be covered by the insurance until 1 January however.

That corresponds with the start of the individual mandate, as well as consumer protections including a rule barring insurers from denying coverage to people with pre-existing health conditions.

Several Obamacare provisions had taken effect prior to Tuesday, including prescription drug discounts for pensioners, a rule allowing children to remain on their parents' insurance plans up to age 26, a rule barring insurers from denying coverage to children with pre-existing health conditions, and a ban on lifetime limits on health coverage.

Another major provision known as the employer mandate - which requires employers with at least 50 full-time workers to provide insurance or incur a $2,000 (£1,320) per employee penalty - has been delayed until 2015.

That delay, announced by the Obama administration in July, has been seen as a concession to retailers and other businesses - and an acknowledgement that the health law was not fully ready for implementation.


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TSX gains as investors shrug off U.S. shutdown

TORONTO (Reuters) - Canada's main stock index was marginally higher on Tuesday as the market largely shrugged off a partial shutdown of the U.S. government, though many of the index's biggest mining stocks fell.

Investors are getting wise to Washington politics and do not expect the shutdown, which could put up to 1 million workers on unpaid leave, to last too long, said Keith Richards, portfolio manager and technical analyst at ValueTrend Wealth Management in Barrie, Ontario.

If the shutdown were prolonged, it might encourage the U.S. Federal Reserve to maintain its stimulus program for a longer period, which would also boost stocks, he said.

"If there is a longer shutdown it would slow the economy and therefore reduce the (Fed) taper talk that's been the prevalent fear out there," Richards said, adding that a looming fight over raising Washington's borrowing authority was much more dangerous. "We still have the debt ceiling nonsense coming up. That's a bigger issue than a government shutdown."

The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was up 36.20 points, or 0.28 percent, at 12,824.59 at midmorning. It had opened in the red after hitting a two-week low on Monday.

"I'm personally not getting too excited over any little rally we get today. It's too early to get too bullish on this market," Richards said.

Valeant Pharmaceuticals International Inc had the single biggest positive impact on the index, up 3.1 percent at

C$110.70.

The index's heavyweight energy sector was up despite a drop in oil prices. In the group, Suncor Energy added 1.2 percent to C$37.28. The financial sector was also higher, with Royal Bank of Canada up 0.6 percent at C$66.41.

Mining companies were the main drag, with Barrick Gold down 3 percent at C$18.60, and Goldcorp Inc off 2.4 percent at C$26.17. The price of gold fell below $1,300 per ounce to its lowest since early August on Tuesday as some investors saw the U.S. standoff as likely temporary and drove safe-haven bullion lower.

($1=$1.03 Canadian)

(Reporting by Alastair Sharp; Editing by James Dalgleish and Peter Galloway)


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Saturday, September 28, 2013

Government shutdown looms as lawmakers feud

By Richard Cowan and Rachelle Younglai

WASHINGTON (Reuters) - The U.S. government braced on Friday for the possibility of a partial shutdown of operations on October 1 as Congress struggled to pass an emergency spending bill that Republicans want to use to achieve Tea Party-backed goals, such as defunding the new healthcare reform law.

While there was still a chance of averting a shutdown, time was running out.

The Senate on Friday was on track to pass legislation keeping the federal government operating beyond midnight Monday.

But doubt remained about how and when it would be received in the Republican-controlled House of Representatives, where Republicans feuded over a plan that would both please Tea Party conservatives and avert widespread agency shutdowns.

A shutdown would likely to result in up to 800,000 federal employees being furloughed. Most visible to the public, if past shutdowns are a guide, are museum closings in Washington that outrage tourists and attract television cameras, and possible delays in processing tax filings, for example.

But the government does not grind to a halt.

Large swaths of "essential" activity continue, including sending out benefit checks and national security-related operations. Agencies were in the process of determining which employees would be considered essential and which not.

REPUBLICANS FIGHTING OBAMACARE

"Obamacare," the healthcare reform law set for launch on October 1, would continue to be implemented, beginning a period of open enrollment for individuals to purchase insurance.

Concern over fiscal negotiations in Washington sent the dollar close to a seven-month low and pressured world equities on Friday.

The impasse has sent the cost of insuring against a U.S. sovereign default to its highest level in four months. U.S. stocks fell in early trading on Friday as worries grew over Washington's gridlock. Concern over fiscal negotiations sent the dollar close to a seven-month low.

As lawmakers stared down the midnight Monday deadline when the current fiscal year ends - and government funding along with it - the Democratic-led Senate was set to deliver on President Barack Obama's call for an emergency funding bill with no add-ons, such as defunding the healthcare law.

The House could vote on that measure in an unusual Saturday session. But all indications were it would tack on a new measure to that bill, which likely would be rejected by the Senate and make a shutdown all the more likely.

One House Republican aide, who asked not to be identified, said leaders were weighing attaching a one-year delay of the healthcare law to the spending bill, "but that's not set in stone."

A feel of desperation seeped through the Capitol, even though many held out hope that a last-minute deal can be struck to avoid shutting down activities ranging from school lunch programs for poor children, paying U.S. troops, foreign embassy operations and some airport security screenings.

"Holy God, you created us for freedom, so keep us from shackling ourselves with the chains of dysfunction," intoned Senate Chaplain Barry Black at the opening of Friday's Senate session.

DEBT CEILING FIGHT LOOMS

Earlier, Republican Senator John McCain blamed members of his own party for the difficulties in passing legislation to fund the government beyond Monday. Congress also faces the hard task of raising the limit on federal borrowing authority, which Republicans are targeting for controversial add-ons.

Without a debt limit increase by October 17, Treasury Secretary Jack Lew has warned, the United States would have a difficult time paying creditors and operating the government.

"We are dividing the Republican Party rather than attacking Democrats. We are now launching attacks against Republicans ... so it's very dysfunctional," McCain said on the CBS program "This Morning."

McCain and a band of other more moderate Republicans are expected to join in with Democrats later on Friday to pass a stripped-down bill to fund the government until November 15, giving Congress more time to come up with a budget measure running through September 30, 2014, the end of the fiscal year that starts on Tuesday.

Tea Party conservatives' insistence on using these two important fiscal bills to advance their small-government agenda comes as a new Gallup Poll shows the country's patience with them could be wearing thin, even though there still are a significant number of supporters.

According to the survey, 22 percent of U.S. adults think of themselves as supporters of the movement.

That is down 10 points from the apex of Tea Party popularity in 2010, when they influenced enough elections to return House control to Republicans.

House Republican leaders early on Friday were either still undecided on how to handle the unfolding crisis in Washington or were not giving any clues.

"We're still waiting for the Senate to act," said one House Republican leadership aide.

(Editing by Fred Barbash and Mohammad Zargham)


View the original article here

U.S. government shutdown looms as lawmakers feud

By Rachelle Younglai and Thomas Ferraro

WASHINGTON (Reuters) - The U.S. government braced on Friday for the possibility of a partial shutdown of operations on October 1 as Congress struggled to pass an emergency spending bill that Republicans want to use to achieve Tea Party-backed goals, such as defunding the new healthcare reform law.

While there was still a chance of averting a shutdown, time was running out.

Indicative of lawmakers' desperation, some mulled the possibility of passing a bill to keep the government running for a very short period of time, 10 days or so, to avert a shutdown and provide more time to work out a longer-term deal.

Representative Shelley Moore Capito of West Virginia, a senior House Republican, told Reuters: "People are talking about a 10-day CR," a so-called continuing resolution to fund the government through October 10.

That could put the subsequent temporary funding bill on a similar timetable to a debt limit increase Congress must pass or risk a government default on its loans.

House Democratic leader Nancy Pelosi, during a press conference, warned Republicans against lumping those two measures together. "It's two different subjects," she said.

The Senate on Friday was on track to pass legislation keeping the U.S. government operating beyond midnight on Monday.

But doubt remained about how and when it would be received in the Republican-controlled House of Representatives, where Republicans feuded over a plan that would both please supporters of the conservative Tea Party movement and avert widespread agency shutdowns.

A shutdown would likely result in up to 800,000 federal employees being furloughed. Most visible to the public, if past shutdowns are a guide, are museum closings in Washington that outrage tourists and attract television cameras, and possible delays in processing tax filings, for example.

But the government does not grind to a halt.

Large swaths of "essential" activity continue, including benefit checks and national security-related operations. Agencies were in the process of determining which employees would be considered essential and which not.

REPUBLICANS FIGHTING OBAMACARE

"Obamacare," the healthcare reform law set for launch on Tuesday, would continue to be implemented, beginning a period of open enrollment for individuals to purchase insurance.

Concern over fiscal negotiations in Washington sent the dollar close to a seven-month low and pressured world equities on Friday.

The impasse has sent the cost of insuring against a U.S. sovereign default to its highest level in four months. U.S. stocks fell in early trading on Friday as worries grew over Washington's gridlock. Concern over fiscal negotiations sent the dollar close to a seven-month low.

As lawmakers stared down the midnight Monday deadline when the current fiscal year ends - and government funding along with it - the Democratic-led Senate was set to deliver on President Barack Obama's call for an emergency funding bill with no add-ons, such as defunding the healthcare law.

The House could vote on that measure in an unusual Saturday session. But all indications were it would tack on a new measure to that bill, which likely would be rejected by the Senate and make a shutdown all the more likely.

One House Republican aide, who asked not to be identified, said leaders were weighing attaching a one-year delay of the healthcare law to the spending bill, "but that's not set in stone."

A feel of desperation seeped through the Capitol, even though many held out hope that a last-minute deal could be struck to avoid shutting down activities ranging from school lunch programs for poor children and paying U.S. troops to foreign embassy operations and some airport security screenings.

"Holy God, you created us for freedom, so keep us from shackling ourselves with the chains of dysfunction," intoned Senate Chaplain Barry Black at the opening of Friday's Senate session.

DEBT CEILING FIGHT LOOMS

Earlier, Republican Senator John McCain blamed members of his own party for the difficulties in passing legislation to fund the government beyond Monday. Congress also faces the hard task of raising the limit on federal borrowing authority, which Republicans are targeting for controversial add-ons.

Without a debt limit increase by October 17, Treasury Secretary Jack Lew has warned, the United States would have a difficult time paying creditors and operating the government.

"We are dividing the Republican Party rather than attacking Democrats. We are now launching attacks against Republicans ... so it's very dysfunctional," McCain said on the CBS program "This Morning."

McCain and a band of other more moderate Republicans are expected to join in with Democrats later on Friday to pass a stripped-down bill to fund the government until November 15, giving Congress more time to come up with a budget measure running through September 30, 2014, the end of the fiscal year that starts on Tuesday.

Tea Party conservatives' insistence on using these two important fiscal bills to advance their small-government agenda comes as a new Gallup Poll shows the country's patience with them could be wearing thin, even though there still are a significant number of supporters.

According to the survey, 22 percent of U.S. adults think of themselves as supporters of the movement.

That is down 10 points from the apex of Tea Party popularity in 2010, when they influenced enough elections to return House control to Republicans.

House Republican leaders early on Friday were either still undecided on how to handle the unfolding crisis in Washington or were not giving any clues.

"We're still waiting for the Senate to act," said one House Republican leadership aide.

(Additional reporting by Thomas Ferraro, Kim Dixon and Caren Bohan; Editing by Fred Barbash, Mohammad Zargham and Jim Loney)


View the original article here