House drops assault weapon ban plan, may tackle pension reform

The clock is ticking for Illinois lawmakers to come to an agreement on the pension crisis. CBS 2's Courtney Gousman reports.









SPRINGFIELD — With time running short in the lame-duck session, state lawmakers on Sunday dropped hot-button issues dealing with guns and marijuana but kept alive hopes of reforming pensions and giving driver's licenses to illegal immigrants.

The slimmed-down agenda unfolded rapidly as the House, returning to the Capitol for the first time in a month, pulled an assault weapons ban from consideration and the sponsor of legislation to allow Illinoisans to use marijuana for medical purposes said the chances of quick passage is unlikely.


The spotlight on whether Democratic Gov. Pat Quinn and legislators can come together on financial changes to the state's $96.8 billion government worker pension debt intensified Sunday. House Republican leader Tom Cross of Oswego signed onto a plan offered by two House Democrats and urged GOP members to support it.








Still, Cross acknowledged that Senate President John Cullerton believes a different measure is the only one that meets a state constitutional prohibition against impairing or diminishing public pensions. Cullerton's version, previously passed by the Senate, offers state employees a trade of access to state health care in return for a reduction in retirement benefits.


"Nobody has any idea what the court's going to do," Cross said. "We all have lawyers. There are a lot of lawyers in Chicago. People have opined on what works and doesn't work. The reality is, nobody knows."


Quinn spokeswoman Brooke Anderson said the administration, which wants the package passed before a new Legislature is seated Wednesday, is "encouraged with the momentum."


The pension proposal's fate is uncertain should it pass the House. The Senate went home Thursday but Cullerton left open the possibility of coming back. Cullerton spokeswoman Rikeesha Phelon said senators would return to Springfield Tuesday "to review and hear" a significant pension reform bill if one is passed by the House.


"I can't make any predictions beyond that," she said.


When the governor and legislative leaders met Saturday, Cullerton said at various points he would lobby against the House plan, Cross said. But Cross also said Cullerton indicated that he would allow for a Senate vote if the pension measure passed the House.


Still, if Cullerton balks at the House pension plan, Springfield could devolve into an all-too-familiar political game: The House passes one version of legislation, the Senate passes another, lawmakers pat themselves on the back and then blame the other chamber for failing to achieve needed reform.


Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years, although the length of time was still under discussion Sunday night. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure among public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.


Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.


The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems, which are considered the worst-funded in the nation.


Meanwhile, a proposal to allow undocumented immigrants to qualify for Illinois driver's licenses could get its first House test today. Sponsoring Rep. Eddie Acevedo, D-Chicago, said he would call the Senate-passed bill on the House floor if it advances from committee.


Also Sunday, a House panel defeated a bill to require companies to file public disclosure forms when they pay no state income taxes.


rlong@tribune.com


rap30@aol.com







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Alcatel One Touch readies U.S. invasion with world’s thinnest smartphone and a colorful 5-inch phablet






TCL Communication’s (2618) Alcatel One Touch brand is ostensibly unknown in the United States, but the company is looking to make a name for itself at this year’s Consumer Electronics Show. Alcatel One Touch has a number of new devices debuting at CES 2013 and to start things off, the China-based firm has unveiled a trio of intriguing new Android phones.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]






While the show doesn’t officially begin until Tuesday, Alcatel One Touch got an early start on Monday — likely in order to ensure that it can lay claim to “the world’s thinnest smartphone” for at least a few hours.


[More from BGR: Next-generation LTE chips to reduce power consumption by 50%]


The first of three smartphones debuting at CES 2013 is the One Touch Idol Ultra, a sleek Android-powered handset that is just 6.45 millimeters thick. To put that dimension in perspective, the phone is 15% thinner than Apple’s (AAPL) iPhone 5.


Other notable specs include a 4.7-inch HD AMOLED display, a 1.2GHz dual-core processor, an 8-megapixel camera, 1GB of RAM and Android 4.1 Jelly Bean.


Next up is the One Touch Idol, an entry-level version of the Idol Ultra. Measuring a slightly thicker 8.15 millimeters, the One Touch Idol includes a 4.7-inch qHD IPS display, a 1.2GHz dual-core processor, an 8-megapixel camera, 512MB of RAM and the same Jelly Bean OS as the Ultra model.


Finally, Alcatel One Touch has unveiled its first entry into the “phablet” market with the One Touch Scribe HD. This stylus-ready device features a 5-inch HD IPS display, the 1.2GHz quad-core MediaTek MT6589 chipset, an 8-megapixel camera, 1GB of RAM, a microSD slot and Android 4.1. The One Touch Scribe HD also comes in a variety of colors including black, white, red and yellow.


Each of the three smartphones Alcatel One Touch debuted on Monday will launch in China later this month. The One Touch Scribe HD will then be released in the U.S. some time in the second quarter for a surprisingly affordable $ 397 before taxes and subsidies, and both the One Touch Idol and One Touch Idol Ultra will launch at a later point in time. The latter will cost $ 444 before taxes and subsidies, while pricing for the One Touch Idol has not yet been announced.


No carrier partners have been revealed at this point in the U.S. or in China.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News




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”Texas Chainsaw” movie kills rivals at North America box office






(Reuters) – The return of the bloody “Texas Chainsawfranchise sliced up movie box office rivals with a surprise win over the weekend, grabbing an estimated $ 23 million in U.S. and Canadian ticket sales.


The new “Texas Chainsaw 3D” pulled past Quentin Tarantino Western “Django Unchained,” the second place film from Friday through Sunday with $ 20 million. No. 3 movie “The Hobbit: An Unexpected Journey” grabbed $ 17.5 million.






Going into the weekend, box office forecasters did not think the revival of the 40-year-old “Texas Chainsaw” franchise had enough buzz to top the holiday releases that are adding to their tallies during the month of January, a typically slow time for moviegoing.


Marketing efforts for “Texas Chainsaw” paid off for distributor Lions Gate Entertainment, the studio behind the horror franchise.


Lions Gate ran a social media campaign aimed at its core horror fan base – mostly young men and women – and ran promotions during AMC Networks’ TV zombie hit “The Walking Dead.” The studio aimed for a broader audience with promotions during college football bowl games and other sports programs after Christmas.


“The numbers were a little bit more than expected,” said Richie Fay, the president of domestic distribution for Lions Gate Entertainment.


“It is great to be No. 1. I think we held our own,” he added.


Lions Gate spent about $ 20 million to promote the movie, which was produced by Millennium Films.


The movie revives a franchise that started four decades ago with the 1974 film about a serial killer named Leatherface. Since then, the seven “Texas Chainsaw” movies have pulled in $ 175 million at North American (U.S. and Canadian) theaters, according to website Box Office Mojo. The films have generated $ 416 million domestically.


The new movie follows a woman who inherits a family home in the town of Newt, Texas, showing all of the blood and gore in 3D. The story picked up where the original left off and included cameos from original cast members.


Texas Chainsaw” was the only new nationwide release in North America (United States and Canada) over the weekend. “The Hobbit,” the first of three movies based on the fantasy novel by J.R.R. Tolkien, brought its total domestic sales to $ 263.8 million since its December 14 debut. “Django Unchained,” released on Christmas Day, reached $ 106.3 million.


In fourth place for the weekend, musical “Les Miserables” earned $ 16.1 million, bringing its domestic sales to $ 103.6 million since its Christmas Day release. The No. 5 slot belonged to family comedy “Parental Guidance,” which grossed $ 10.1 million.


The Hobbit” was distributed by Time Warner Inc’s Warner Bros. studio. The Weinstein Co. released “Django Unchained.” Universal Studios, a unit of Comcast Corp distributed “Les Miserables.” “Parental Guidance” was released by 20th Century Fox, a unit of News Corp.


(Reporting By Lisa Richwine; Editing by Cynthia Osterman)


Movies News Headlines – Yahoo! News





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Tehran Is Choked by Annual Buildup of Air Pollution





TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.




For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.


On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.


Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.


“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.


The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.


Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.


But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.


Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.


A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.


Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.


The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.


The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.


On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.


In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.


Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.


Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.


For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.


“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”


Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.


“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”


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BofA to pay $3.6B to Fannie Mae













Bank of America


Tourists walk past a Bank of America banking center in Times Square in New York.
(Brendan McDermid/Reuters / September 20, 2012)



























































Bank of America Corp. said it will pay $3.6 billion to Fannie Mae to settle claims related to residential mortgage loans for the nine years to the end of 2008.

The bank also entered into agreements with Nationstar Mortgage Holdings LLC and Walter Investment Management Corp. to sell about $306 billion of residential mortgage servicing rights.

The rights allow banks to earn fees from mortgage investors in exchange for collecting home loan payments from borrowers.

As part of the settlement with Fannie Mae, the bank will repurchase $6.75 billion of residential mortgage loans sold to the government agency.

BofA said the settlement will reduce its fourth-quarter pretax income by about $2.7 billion.

Reuters reported on Friday that the bank was in talks to sell collection rights on $300 billion of mortgages to lessen its exposure to huge losses from its acquisition of Countrywide Financial Corp in 2008.

"Together, these agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time," Chief Executive Brian Moynihan said in a statement.
 


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Deal reached to end NHL lockout, season could begin Jan. 19




















The NHL and the players association have reached a tentative agreement to end the lockout.




















































The NHL and players association reached an agreement on the framework of a new collective bargaining agreement early Sunday morning, ending the lockout that began Sept. 15.


"I'm really happy this is over," Chicago Blackhawks captain Jonathan Toews said via text. "A lot of credit goes to the players who were in the bargaining sessions and worked very hard to get a deal done."


After a marathon session in New York, league commissioner Gary Bettman and NHLPA Executive Director Donald Fehr announced the deal around 4 a.m. Central.








"We have to dot a lof of the I's and cross a lot of T's," Bettman told reporters in New York. "There is still a lot of work to be done, but the basic framework has been agreed upon."


There will be a ratification process and the league Board of Governors and player will have to officially approve the new CBA, which reportedly will run 10 years.


"Any process like this in the system we have is difficult," Fehr told reporters. "We have the framework of a deal. We have to do the legal work ... and we'll get back to what we used to call business as usual just as fast as we can."


The final push during talks which lasted 16 hours was led by a federal mediator that helped the sides bridge the final gap on several key issues, including contract terms, salary cap and pensions. The union will hold a conference call with players Sunday afternoon to update them on the terms of the deal.


Details on when the season will begin and how many games each team will play haven't been announced, but it is possible a 48-50-game schedule could begin Jan. 19 or even a few days sooner.


ckuc@tribune.com


Twitter @ChrisKuc






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Barnes & Noble sells fewer Nooks, retail revenue falls






(Reuters) – Barnes & Noble Inc’s Nook unit reported weak holiday season numbers on Thursday as it sold fewer e-readers and tablets at its own stores, and its e-books sales growth slowed, raising questions about the future of its digital business.


The Nook, launched in 2009 to compete with Amazon.com Inc‘s market-leading Kindle, has been the cornerstone of Barnes & Noble‘s strategy to counter the shift by many book readers to digital books. Early growth attracted a big investment last year from Microsoft Corp.






And last week, British education and media publisher Pearson Plc said it would take a 5 percent stake in Barnes & Noble‘s Nook Media unit, which also includes its college bookstore chain, giving it a $ 1.8 billion value, about double the company’s value as a whole.


But questions swirled about whether it is worth that much, after the retailer said that the Nook segment’s revenue fell 12.6 percent from a year earlier during the nine weeks ended December 29, hurt by lower unit sales and prices.


Sales of digital content like e-books and magazines rose 13.1 percent during the holidays, a much slower pace than the 38 percent gain last quarter and 113 percent in the 2011 holiday season, suggesting Barnes & Noble is having trouble holding on to its 25-30 percent share of the U.S. e-books market.


“We are way beyond the point where you should see content sales accelerate,” Morningstar analyst Peter Wahlstrom told Reuters. “That hasn’t materialized and that’s concerning.”


The numbers were all the more disappointing given that in late November, Barnes & Noble had told investors Nook device sales doubled over the Black Friday weekend, which follows Thanksgiving and kicks off the holiday season in earnest.


That suggests the rest of season was a debacle, analysts said, and Chief Executive William Lynch said in a statement that Barnes & Noble is “examining the root cause” of the shortfall and will adjust its strategy.


“The investment question for Barnes & Noble in 2013 is the Nook‘s staying power as a legitimate tablet device,” Credit Suisse analyst Gary Balter wrote in the note, predicting the retailer will face stiffer competition this year from the likes of Apple Inc and Google Inc, since tablets now have improved functions that make them more appealing to book readers.


The drop in Nook sales came despite the launch of two well-reviewed high-definition Nook tablets in October and promotions at large chains like Wal-Mart Stores Inc and Target Corp, both of which stopped selling Kindles last year.


Despite the holiday results, Barnes & Noble still expects Nook Media sales of $ 3 billion this fiscal year, keeping a forecast it gave in October.


That steady forecast helped lift shares 2.6 percent to $ 14.88 in morning trading.


The company will report full quarterly results in late February.


The results follow a warning from Barnes & Noble in a filing last week that holiday sales would come in below its expectations. The warning erased most of the gains in its share price that followed the news of Pearson’s investment.


FEWER VISITORS IN STORES


Compounding Barnes & Noble‘s troubles, fewer shoppers came into its bookstores during the Christmas period.


Barnes & Noble, which had enjoyed a sales bump after onetime rival Borders Group liquidated in 2011, reported a 10.9 percent decrease in sales at its bookstores and on its website over the holiday period.


Sales at stores open at least 15 months fell 3.1 percent, excluding Nook products, despite the benefit of some store closings — Barnes & Noble operates 689 bookstores, 14 fewer than a year ago.


“The Borders tailwind is over,” Morningstar’s Wahlstrom said.


(Reporting by Phil Wahba in New York; editing by John Wallace and Nick Zieminski)


Gadgets News Headlines – Yahoo! News





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”Zero Dark Thirty” screenplay among Writers Guild nominees






LOS ANGELES (Reuters) – The writers of controversial Osama bin Laden thriller “Zero Dark Thirty” and of the presidential drama “Lincoln” won nominations on Friday for the Writers Guild Awards, as momentum built in Hollywood ahead of the Oscars in February.


The screenplays for Iran hostage drama “Argo,” cult movie “The Master,” quirky comedy “Silver Linings Playbook,” and shipwreck tale “Life of Pi” also won nods from the Writers Guild of America for honors either as adapted or original movie screenplays.






The field of 10 feature film screenplays was rounded out by “Flight,” “Looper,” Wes Anderson‘s “Moonrise Kingdom,” and coming of age movie “The Perks of Being a Wallflower.”


“Zero Dark Thirty” screenplay writer Mark Boal has come under fire from some U.S. politicians over the film’s depiction of the role torture may have played in the hunt for the al Qaeda leader, and for the origins of his source material in reconstructing the 10-year effort to track down and kill bin Laden in May 2011 by U.S. special forces.


The film makers have denied being leaked classified material and say the film shows that no single method was responsible for leading to the capture of bin Laden.


The Writers Guild Awards, a key indication of Hollywood sentiment ahead of the Oscars, will be handed out at simultaneous ceremonies in Los Angeles and New York on February 17, one week before the February 24 Academy Awards ceremony.


(Reporting By Jill Serjeant; Editing by Vicki Allen)


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Despite New Health Law, Some See Sharp Rise in Premiums





Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.







Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.







Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.


In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.


 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.


The proposed increases compare with about 4 percent for families with employer-based policies.


Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.


The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.


New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.


The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.


Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.


“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.


While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.


The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.


Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.


“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.


Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.


“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.


As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.


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Chicago restaurateurs shrug off economic worries









Chicago may have lost a few of its Michelin-starred restaurants in 2012 and waved goodbye to the inimitable Charlie Trotter's, but the higher-end restaurant scene is powering up in ways not seen since prerecession days, according to industry players and observers.


Local operators with a hit or two are embarking on ambitious ventures, though keeping an eye on startup costs and menu prices. A handful of chefs with established followings, among them Curtis Duffy and Iliana Regan, are sticking out their necks with riskier fine-dining ventures. And some prominent out-of-towners are investing on a grand scale, with a Del Frisco's Double Eagle Steakhouse just opened in the former Esquire Theater on Oak Street, and an Italian food and wine marketplace, Eataly, planned for the former ESPN Zone site in River North.


The flurry of activity is seen by some as a signal the economy has stabilized, at least for now.





"People are out spending money again, and corporations are hosting expensive dinners again, and there was a period when that was not happening," said Neil Stern, senior partner at McMillanDoolittle, a retail consultancy. "It affects the high end significantly."


Still, the bubbling of enthusiasm for the upper end of the market is something of an anomaly. The rebound in Chicago restaurant startups across all price ranges is tenuous. The city issued 1,458 new retail food licenses in 2012, only 11 more than in 2010 and below the 1,589 issued in 2007, the year leading into the recession.


Just as there are new arrivals, there were some big losses last year in this notoriously volatile business. Notable exits include Charlie Trotter's, Crofton on Wells, Il Mulino, One Sixtyblue, Pane Caldo and Ria at the Waldorf Astoria, one of several luxury hotels to step away from fine dining.


Weak economic conditions played a role for some, and the forecast for 2013 remains uncertain.


"It's a precarious market, and one economic blip really can take demand out of the market very, very quickly," Stern said.


Still, upscale-restaurant operators are moving ahead, betting on Chicagoans' seemingly endless fascination with food trends, dining out and the city's robust roster of accomplished chefs.


"When I was a child, people would go to each other's homes for a dinner party every week and would rarely go to restaurants — now it is almost the opposite," said David Flom, who with his business partner Matthew Moore hit a grand slam with Chicago Cut Steakhouse in River North, which opened in 2010. Steaks range from $34 to $114; soup, salad, sauces, vegetables and potatoes all are extra.


In December, they opened The Local at the Hilton Suites in Streeterville, a more modestly priced venue where executive chef Travis Strickland, formerly of the Inn at Blackberry Farm, is serving locally sourced comfort food. Meatloaf made with prime dry-aged beef goes for $24, rotisserie chicken pot pie for $22.


"People can use The Local as an everyday restaurant," Flom said. "People can say, 'Let's just grab a burger at The Local.' It doesn't have to be $100 a person, it can be $25."


At Chicago Cut, the average check, per person, is $82, including drinks, versus $44 at The Local, he said.


Industry observer Ron Paul, president and CEO of Technomic Inc., said he is particularly intrigued by the growing strength of such emerging independents, who are nipping at the heels of Lettuce Entertain You Enterprises Inc., even as that homegrown powerhouse continues to churn out winning concepts.


As restaurant real estate broker Randee Becker, president of Restaurants!, put it: "People who are doing north of $8 million to $10 million of sales are expanding in a big way."


After establishing a high-style, large-scale foothold in River North with the opening of Epic in 2009, proprietors Steve Tavoso and Jeff Krogh last fall embarked on a second act in the neighborhood. They engaged prominent chefs — Thomas Elliott Bowman and Ben Roche, who worked together at Moto — but kept their initial investment more modest this time.


Their latest entry, the eclectic Baume & Brix, opened last fall in the former Rumba space, which had most of the necessary mechanical, electrical, plumbing and kitchen elements in place. Startup costs were about $1.5 million, compared with more than $5 million spent to open Epic. "I took raw space (for Epic) — I would never do that again," Tavoso recalled.


Mercadito Hospitality, whose Chicago offerings include high-energy Latin American tapas spots Mercadito and Tavernita, also is watching its pennies on startups, its most recent being Little Market Brasserie in the Talbott Hotel. Led by chef/partner Ryan Poli, the restaurant has quietly opened with a Parisian decor and American small plates. Its grand opening is expected Jan. 18.


"We are aware of the fact the economy is not fully recovered, so we try to keep our expenses down without sacrificing quality," said managing partner Alfredo Sandoval.


The Chicago-based group intends to keep expanding. It just signed a lease at a River North spot with a 4 a.m. liquor license, with plans to open a drinks-focused venue there in 2013.





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