Big industrial companies

Oscar Health was going to be a new kind of insurance company. Started in 2012, just in time to offer plans to people buying insurance under the new federal health care law, the business promised to use technology to push less costly care and more consumer-friendly coverage. “We’re trying to build something that’s going to turn the industry on its head,” Joshua Kushner, one of the company’s founders, said in 2014, as Oscar began to enroll its first customers. These days, though, Oscar is more of a case study in how brutally tough it is to keep a business above water in the state marketplaces created under the Affordable Care Act. And its struggles highlight a critical question about the act: Can insurance companies run a viable business in the individual market? Oscar has attracted 135,000 customers, about half of them in New York State. And some of its efforts with technology have been successful. But for every dollar of premium Oscar collects in New York, the company is losing … [Read more...] about Health Insurer Hoped to Disrupt the Industry, but Struggles in State Marketplaces

Nearly half a decade has elapsed since I last worked in the fashion industry, but one thing from my previous career remains a compulsion to this day: I look at people’s purses. In the brain space that might otherwise be occupied by dear childhood memories or the dates and times of future doctor appointments, I tend to an apparently undeletable mental spreadsheet of who is carrying what. Bottega Veneta Cassette, green padded leather, Soho, 20-something woman. Louis Vuitton Pochette Métis, logo canvas, Hoyt-Schermerhorn subway stop, 40-ish woman. For 10 years, these data points informed my obsessive, detailed coverage of the luxury-handbag market. Now they just accumulate. Rarely do I see something I can’t place. Over the past year or two, though, something largely unprecedented has been happening on people’s shoulders. Old bags are back. A significant—and growing—number of fashion-conscious people appear to be mining the depths of their closets or scouring secondhand marketplaces … [Read more...] about Something Odd Is Happening With Handbags

When Eric Adams ran for mayor, one of his key policy proposals was to create a better website for New Yorkers to access government services. Concluding his 15th month in office, Mr. Adams has introduced the first phase of the website , which is called MyCity, calling the project “my baby” and “my dream.” Initially, it will allow people to apply for child-care assistance. Eventually, it will connect New Yorkers to additional programs. “It’s user-friendly, and you can do it all, even while you are holding your child on your lap — you can register for child care,” Mr. Adams said Wednesday at a news conference at City Hall. Mr. Adams, a Democrat, proposed the website as part of a “People’s Plan” that he volunteered as his one big idea during the mayor’s race. It included three components: MyCity, improved tax credits for poor New Yorkers, and free and low-cost child care for children under 3. The mayor has pursued all three policies as part of his efforts to help … [Read more...] about New York City Unveils ‘User-Friendly’ Way to Find Child Care Help

It already looks clear that many Obamacare insurance plans are going to raise their prices significantly. Over the last few years, average premium increases in the Obamacare markets have been lower than the increases for people who bought their own insurance in premiums before the Affordable Care Act . But several trends are coming together that suggest that pattern will break when plan premiums are announced in early November. Many plans may increase prices by 10 percent, or more. Over the last two years, I’ve written articles warning against scary headlines that exaggerate premium increases. Next year, those scary headlines are more likely to be accurate. Peter Lee runs the country’s largest and most stable state marketplace, Covered California. The typical rate increase has been only 4 percent over the last two years. Next year will be different. “We expect our rates to go up more than that this year,” he said at a recent meeting with health reporters. He predicted “big … [Read more...] about Get Ready for Higher Obamacare Rates Next Year

Get ready for big increases in premiums under the Affordable Care Act. A new analysis from the Kaiser Family Foundation examined the most popular individual plans under the new health care law in 14 major cities around the country and found that insurers were asking for increases in 2017 that are twice as big as this year’s. There is wide variation, including some places where rates will go down, but the average requested increase is 10 percent. While it will be months before insurers and regulators agree to final rates for the coming year, the Kaiser analysis confirms the signals we have seen from industry and government experts — that consumers and the federal government are likely to see much higher prices in many markets. Clearly, insurers are struggling to figure out how much to charge so they can cover their costs but still attract customers. As health care reporters, we’ve been debating exactly how worried one should be about the fate of the Affordable Care Act, known … [Read more...] about Yes, Obamacare Premiums Are Going Up

“I feel like Butch Cassidy and the Sundance Kid. Who are these guys that just keep coming?” — Treasury Secretary Henry Paulson Jr. It was the weekend of Sept. 13, and the moment Treasury Secretary Henry M. Paulson Jr. had feared for months was finally upon him: Lehman Brothers was hurtling toward bankruptcy — fast. Knowing that Lehman had billions of dollars in bad investments on its books, Mr. Paulson had long urged Lehman’s chief executive, Richard S. Fuld Jr., to find a solution for his firm’s problems. “He was asked to aggressively look for a buyer,” Mr. Paulson recalled in an interview. But Lehman could not — despite what Mr. Paulson described as personal pleas to other firms to buy some of Lehman’s toxic assets and efforts to persuade another bank to acquire Lehman. With all options closed, he said, the government’s hands were tied. Although the Federal Reserve had helped bail out Bear Stearns — and was within days of bailing out the giant insurer American … [Read more...] about Struggling to Keep Up as the Crisis Raced On

I. A Broken Economy As Barack Obama prepares to accept the Democratic nomination this week, it is clear that the economic policies of the next president are going to be hugely important. Ever since Wall Street bankers were called back from their vacations last summer to deal with the convulsions in the mortgage market, the economy has been lurching from one crisis to the next. The International Monetary Fund has described the situation as “the largest financial shock since the Great Depression.” The details are too technical for most of us to understand. (They’re too technical for many bankers to understand, which is part of the problem.) But the root cause is simple enough. In some fundamental ways, the American economy has stopped working. The fact that the economy grows — that it produces more goods and services one year than it did in the previous one — no longer ensures that most families will benefit from its growth. For the first time on record, an economic expansion seems … [Read more...] about Obamanomics

In 1980 an ecologist and an economist chose a refreshingly unacademic way to resolve their differences. They bet $1,000. Specifically, the bet was over the future price of five metals, but at stake was much more -- a view of the planet's ultimate limits, a vision of humanity's destiny. It was a bet between the Cassandra and the Dr. Pangloss of our era. They lead two intellectual schools -- sometimes called the Malthusians and the Cornucopians, sometimes simply the doomsters and the boomsters -- that use the latest in computer-generated graphs and foundation-generated funds to debate whether the world is getting better or going to the dogs. The argument has generally been as fruitless as it is old, since the two sides never seem to be looking at the same part of the world at the same time. Dr. Pangloss sees farm silos brimming with record harvests; Cassandra sees topsoil eroding and pesticide seeping into ground water. Dr. Pangloss sees people living longer; Cassandra sees rain … [Read more...] about Betting on the Planet

Following is the transcript of Barack Obama's economic speech at Cooper Union in New York, as provided by CQ Transcriptions Inc. Thank you so much for being here. Let me begin by thanking Dr. Drucker and Cooper Union for hosting us here today. I have to say that the last time an Illinois politician made a speech here it was pretty good. So... (LAUGHTER) ... the bar is high. And I -- I want everybody to know right at the outset here that this may not be living for generations to come, the way Lincoln's speech did. I want to thank all our elected supporters who are here. I want to -- there are a couple of special guests that I'm very appreciative for being in attendance: Paul Volcker, the former chairman of the Federal Reserve Board... (APPLAUSE) We appreciate his presence. William Donaldson, the former chairman of the U.S. Securities and Exchange Commission. We thank you. And finally I want to thank the mayor of this great city, mayor Bloomberg, for his extraordinary … [Read more...] about Obama on ‘Renewing the American Economy’

Back in the 1980s , two young Harvard professors trying to reinvigorate the Democratic Party would meet at the Wursthaus restaurant in Cambridge, Mass., to have lunch and argue with each other. They must have made for an entertaining sight, one of them bearish and the other less than five feet tall, debating each other in a dark Harvard Square dive. The argument, in a nutshell, came to this. The smaller man — Robert Reich, a future secretary of labor — argued for something that he called “industrial policy.” Since the government couldn’t avoid having a big influence on the economy, he said, it should at least do so in a way that promoted fast-growing industries and invested in worthy public projects. The bearish professor was Lawrence H. Summers, who was then the youngest person to have received tenure in the modern history of Harvard University. He loved to tackle big, broad questions, and, by his lights, industrial policy amounted to another version of the governmental meddling … [Read more...] about Larry Summers’s Evolution