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Stocks rise Thursday after days of losses

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Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – U.S. markets rose right out of the gate Thursday after several days of heavy losses.

Just after the opening bell on Wall Street, the Dow Jones Industrial Average was up 40 points, the Standard & Poor’s 500 Index gained 8 points and the NASDAQ added 5.

Investors have a slew of economic data to sift through Thursday. Market participants seemed to shrug off reports on the widening U.S. trade deficit and jobless claims data that came in pretty close to expectations.

And then there was the ongoing uncertainty in Europe that has been plaguing markets for months, a weaker-than-expected report from China and a disappointing outlook on business spending from network giant Cisco.

Despite the plethora of U.S. economic reports, the main focus remains on Europe as Greek politicians continue to struggle to form a coalition government and Spanish bond yield continue to rise.

On Thursday, socialist leader Evangelos Venizelos was given the mandate to form a coalition government after meeting with the Greek president. This came after the Greek leftist party failed.

The Bank of Spain, meanwhile, moved to take over Bankia, one of the country’s most troubled and biggest banks on Monday, and worries in the ailing nation have pushed bond yields up

China reported import and export growth that was slower than expected.

In corporate news, Cisco slid after providing a disappointing forecast.

Asian markets ended the day mixed. European stocks gained after early losses and were up in midday trading.

The dollar fell against the euro and the British pound, but gained against the Japanese yen.

Oil for June delivery tacked on 71 cents to $97.52 a barrel.

Gold futures for June delivery lost $1 to $1,593.20 a troy ounce.

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10

May
2012
Time: 16:09

Crude oil prices fall to $96.32 in continuing slide

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Linda Young – AHN News Writer

London, United Kingdom (AHN) – Oil prices continued to fall on Wednesday, dropping an additional 0.7 percent as concerns about the U.S., European and global economies mounted.

Another factor in pushing crude oil prices down was news that Saudi Arabia might boost its production.

Oil prices have fallen more than 9 percent over the past six trading days. That represented a decrease in U.S. crude oil prices of nearly $10 per barrel, dropping the price to $96.32 per barrel.

Moreover, oil prices have dropped about 2.5 percent over the past four months.

That may be bad news for oil traders and speculators and for investors who have stock in oil companies, but it is good news for struggling cash-strapped consumers.

In addition, the same concerns that helped push crude oil prices lower also helped to push prices lower for other commodities, such as gold and copper.

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10

May
2012
Time: 5:07

Bullied teen faces expulsion after bringing stun gun to school

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Diane Alter – AHN News Reporter

Indiana, IN, United States (AHN) – A bullied gay teenager who bought a stun gun to school, and fired it in the air when felt threatened, faces expulsion.

Seventeen year old Darnell “Dynasty” Young reported he was subjected to daily harassment at Arsenal Technical High School in Indianapolis. According to the Indianapolis Star, the teen was taunted from kids who allegedly and repeatedly threw rocks and bottles at him. Darnell says he was routinely followed home by bullies who had also spread a rumor that he had performed sex acts in the bathroom.

Things got so bad, the harassed teen says he even contemplate suicide at one point.

After Darnell reported being bullied nearly a dozen times, his mother Chelsea Grimes, admits she gave her son a stun gun for protection because school officials were not doing enough.

School authorities maintain they looked into the bullying reports, but Darnell was not always able to identity all of his harassers.

The school says they have been trying to help Darnell since he transferred in last year by recommending he “tone down” his accessories. But, they are by no means attempting to place the blame on Darnell.

Stun guns are prohibited at school in Indiana, and it is a misdemeanor to give a stun gun top a minor.

Last Wednesday, an expulsion meeting was held before an independent arbitrator who will decide Darnell’s fate.

A decision is expected in a few days.

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09

May
2012
Time: 4:26

Patients Share Of Expensive Specialty Drugs Is Rising

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Washington, DC, United States (KaiserHealth) – When Kathi Ryness’s multiple sclerosis worsened in 2000, she began taking Avonex, a drug that helps slow the progression of the disease and reduces the number of relapses. At the time, her health plan covered the drug in full.

But in 2009, she and her husband, Gary, were forced to switch plans. Under their new coverage, the Alamo, Calif., couple owed $660 every four weeks for the weekly Avonex injections, 30 percent of the $2,200 cost. Within a year, the cost went up again, leaving Kathi, who is now 62, and Gary, 66, on the hook for $800 every four weeks.

The coinsurance was killing them. “It was a choice between that and eating,” says Gary Ryness.

Working with an insurance consultant, they switched from a preferred provider organization to a health maintenance organization that didn’t have coinsurance charges for self-injectable drugs such as Avonex. Now, they pay nothing for the drug.

“Everybody has different ways of classifying these drugs,” Gary says.

In coming years, experts say, more people will have to navigate the confusing and expensive terrain of such “specialty” medications.

While most drugs are made from chemicals and can have generic as well as brand-name versions, a typical specialty drug is biologic — that is, derived from living organisms — and has no substitute. In addition to treating MS, these drugs are used for such complex, serious conditions as cancer, rheumatoid arthritis and Crohn’s disease. Growth in spending on specialty drugs is far outpacing spending on traditional drugs, and many new ones are in the pipeline.

“In the next five to 10 years, the consensus of all the experts we spoke to was that a much larger proportion of consumers will be eligible for some kind of specialty drug,” says Ha Tu, a senior researcher at the Center for Studying Health System Change. She was the lead author on a recent report about managing spending on specialty drugs.

Health plans’ spending for each patient using these drugs often exceeds $1,200 per month, according to the center’s report. Although they account for just 1 percent of prescriptions, specialty drugs make up 17 percent of drug spending, according to IMS Health, a health-care information and services company.

Employers that provide their workers with health insurance are struggling with how to manage these costs.

Many plans have placed specialty drugs in a tier where, instead of a flat co-payment — $20, $50 or some other amount — patients must pay a percentage of the medications’ cost. For people who need specialty drugs, that can amount to tens of thousands of dollars annually.

Some plans cap the amount a patient must pay out-of-pocket for specialty drugs at $1,000 or $2,000 annually, says Allan Zimmerman, national pharmacy practice leader in the human resources group at PwC, a business-services company formerly known as PricewaterhouseCoopers.

Employers also seek to reduce costs through intensive case management, providing their workers with education and coaching about specialty-drug dosages, side effects and adverse reactions, says Julie Stone, a senior consultant with benefits consultant Towers Watson.

One potentially useful strategy is called value-based insurance design (V-BID). This approach ties employees’ out-of-pocket costs to the value of a medical service: Treatments that are deemed to provide important clinical benefits cost employees less than ones that are less effective; some may even be free.

According to a survey by human resources consultant Mercer, 17 percent of all employers with at least 500 workers used value-based design provisions in 2011, often with medications to treat chronic conditions such as diabetes, high blood pressure and high cholesterol.

Now businesses are considering whether the same strategy might work with specialty drugs, says A. Mark Fendrick, director of the University of Michigan’s Center for Value-Based Insurance Design.

“V-BID would make high-value interventions more accessible, and in some instances would make it more difficult for people to get unproven specialty drugs,” he says.

The approach doesn’t determine what’s covered and what’s not, he says. “It tries to nudge people to get services that produce value.”

Still, specialty drugs present challenges, say experts.

Take multiple sclerosis. “Because the drugs affect people differently, the question of value would be open to interpretation,” says Bari Talente, vice president of state and local government relations for the National Multiple Sclerosis Society.

No employer has yet decided to apply V-BID to specialty drugs, says Fendrick. But as they grapple with managing drug costs for some of their sickest employees, some may implement it soon, he says, possibly even for next fall’s open enrollment season.

Like Kathi Ryness, many patients who rely on specialty drugs are coping with very serious, long-term medical conditions. “Consumerism” – encouraging patients to shop wisely for health care – doesn’t really apply when such patients need drugs for which there are few or no alternatives, says Stone.

“With people as sick as the patients we’re talking about, I don’t think they’re going to say, ‘Is there a less expensive injectable drug I can take?’ ” she says. “It’s a whole different dynamic.”

Next week: Some states seek to require parity on oral cancer drug coverage.

Please send comments or ideas for future topics for the Insuring Your Health column to questions@kaiserhealthnews.org.

– Provided by Kaiser Health News.

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09

May
2012
Time: 2:37

U.S. vows to keep up pressure on Pakistan to arrest of most-wanted militants

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AHN News Staff

Kolkata, India (AHN) – United States Secretary of State Hillary Clinton, who is on a two-day trip to India, assured New Delhi on Monday of Washington’s continued pressure on militant groups in neighboring Pakistan, adding that the U.S. strongly believes the new chief of al-Qaeda is also in Pakistan.

“There are several significant leaders like Ayman al-Zawahiri still on the run. Zawahiri, who inherited the leadership from Osama bin-Laden is somewhere, we believe, in Pakistan,” she added.

The U.S. believes that three of the top five most-wanted militants–Jamaat-ud-Dawa chief Hafiz Saeed, Afghan Taliban leader Mullah Omar and Zawahiri–live in Pakistan.

Clinton said that the U.S. is seeking the arrest of the founder of the Pakistan-based militant group Lashkar-e-Taiba (LeT) for the 2008 Mumbai attacks, which killed nearly 200 people, mostly foreigners. She said that Washington would keep up its pressure on Islamabad to arrest the Egyptian cleric, whom it regards as the chief ideologue for the militant group.

Her comments came a week after the first death anniversary of Osama, who was killed by U.S. Navy SEALs at his hideout in the garrison city of Abottabad.

Clinton said that Washington had also offered a $10 million bounty for any information on Hafiz Saeed, who is believed to have masterminded the assault in India. The U.S. believes that Saeed openly lives in Pakistan and that the government of Pakistan has not taken any steps for his arrest.

“We’re going to be pushing that. So it’s a way of raising the visibility and pointing out to those who are associated with him that there is a cost for that,” Clinton said referring to the reward.

During her visit, Clinton also expressed appreciation for India’s efforts in decreasing oil purchases from Iran. However, she urged India to do more to reduce its oil imports before Washington slaps sanctions on nations that still continue to trade with the Islamic Republic.

“We hope they will do even more and we think there is an adequate supply (from other exporters) in the market place,” Clinton told a forum in Kolkata before meeting Prime Minister Manmohan Singh in the capital. “We think this is part of India’s role in the international community.”

In a related development, militants on Monday beheaded two Pakistani soldiers and killed nine others in North Waziristan – a province strongly dominated by terror groups such as al-Qaeda and Taliban. The incident happened when armed Islamic militants attacked a military convoy.

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08

May
2012
Time: 13:12

Insurers embrace “virtual” doctor visits as possible solution to physician shortages

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Washington, DC, United States (KaiserHealth) – Tired of feeling “like the walking dead” but worried about the cost of a doctor’s visit, Amber Young sat on her bed near tears one recent Friday night in Woodbury, Minn.

That’s when she logged onto an Internet site, run by NowClinic online care, a subsidiary of UnitedHealth Group (which also owns UnitedHealthcare), and “met” with a doctor in Texas.

After talking with the physician via instant messaging and then by telephone, Young was diagnosed with an upper respiratory illness and prescribed an antibiotic that her husband picked up at a local pharmacy. The doctor’s “visit” cost $45.

“I was as suspicious as anyone about getting treated over the computer,” said Young, 34, who was uninsured then. “But I could not have been happier with the service.”

NowClinic, which started in 2010 and has expanded into 22 states, is part of the explosion of Web- and telephone-based medical services that experts say are transforming the delivery of primary health care, giving consumers access to inexpensive, round-the-clock care for routine problems — often without having to leave home or work.

Insurers such as UnitedHealthcare, Aetna and Cigna, and large employers such as General Electric and Delta Air Lines are getting on board, pushing telemedicine as a way to make doctor “visits” cheaper and more easily available. Proponents also see it as an answer to a worsening doctor shortage.

But some physician and consumer groups worry about the trend.

“Getting medical advice over a computer or telephone is appropriate only when patients already know their doctors,” said Glen Stream, president of the American Academy of Family Physicians. “Even for a minor illness, I think people are going to be shortchanged,” he said.

Carmen Balber, a spokeswoman for Consumer Watchdog in Santa Monica, Calif., is concerned that lower co-payments, and other incentives, will spur consumers to see doctors or nurses online just to save money. “People will choose the more economical option, even if it is not the option they want,” she said.

Employers, however, say they’re getting mostly positive reviews.

“Our employees just love the convenience, the low cost and the efficiency,” said Lynn Zonakis, managing director of health strategy and resources at Delta Air Lines, which offers NowClinic to some employees for $10 a consultation.

The global telemedicine business is projected to almost triple to $27.3 billion in 2016, according to a recent report by BBC Research, a Wellesley, Mass., research firm.

“Virtual care is a form of communication whose time has come and can be instrumental in fixing our current state of affairs within the health care system,” said Robert L. Smith, a family doctor in Canandaigua, N.Y., and co-founder of NowDox, a telemedicine consulting firm.

Although the field developed more than 40 years ago as a way to deliver care to geographically isolated patients, its growth was slow. That’s changed in the past decade thanks to the development of high-speed communications networks and the push to lower health costs.

“It’s the wave of the future,” said Joe Kvedar, director of the Center for Connected Health, founded by Harvard Medical School.

Major obstacle

One major obstacle has remained, however: Many state medical boards make it difficult for doctors to practice telemedicine, especially interstate care, by requiring a prior doctor-patient relationship, sometimes involving a prior medical exam, said Gary Capistrant, senior director of public policy at the American Telemedicine Association, a trade group. “The situation seems to be getting worse, not better,” he said.

He cited a 2010 ruling by the Texas Medical Board that effectively blocks a physician from treating new patients via telemedicine. The only exception is if the patient has been referred by another physician who evaluated him or her in person.

“It’s about accountability,” said Dr. Humayun Chaudhry, CEO of the Federation of State Medical Boards. State boards insist on licensing doctors treating patients in their states so that if patients are injured, they have a state agency they can go to for help.

“We want to enable telemedicine to flourish, but at the end of the day we want patients protected,” Chaudhry said.

Some medical boards are loosening restrictions, he noted, citing nine, mostly rural, states, including Tennessee, Nevada and New Mexico, which in recent years passed rules to ease the licensing process.

Companies marketing telemedicine services say they are seeing strong demand. Bloomington, Minn.-based HealthPartners, a health system with four hospitals and 1.4 million health plan members, began an online service in fall 2010 that allows anyone in Minnesota or Wisconsin to consult a nurse practitioner for $40 or less.

Using an online interactive tool called Virtuwell, 23,000 patients have received a treatment plan often including a prescription, after answering questions about their condition and medical history.

Laurie Fedje, of Coon Rapids, Minn., tried Virtuwell last fall when her son, Noah, had a high fever and other flu symptoms and she did not want to go out in bad weather. She said it took her about 15 minutes to answer about 50 questions about her son’s health, such as whether he had ear pain, how long he had been sick and whether he had any allergies. Within a few minutes, she received an e-mail and a call from a nurse practitioner who diagnosed him with flu and sent a prescription.

“It was wonderful,” Fedje said.

Her employer, St. Paul-based Bethel University, covers the first three visits for free as an employee benefit.

About 80% of patients using Virtuwell have insurance, and many use the service as a covered benefit, said Kevin Palattao, a vice president at HealthPartners.

He notes that Virtuwell has turned away 45,000 prospective patients because they had problems that required in-person consultations, such as chest pain or multiple chronic conditions.

The most common problems treated online are routine sinus and bladder infections, pinkeye, upper respiratory illness and minor skin rashes, Palattao said.

OptumHealth, which operates the NowClinic, said it leaves it to physicians to determine if they can diagnose a patient via computer.

“This is not intended to replace the intimacy of the doctor-patient relationship,” said Chris Stidman, senior vice president.

The company would not disclose how many people have used the service or how many physicians it employs.

Testing at drugstores

Camp Hill, Pa.-based Rite Aid recently began testing NowClinic in several of its drugstores in Michigan and Pennsylvania. It’s a cheaper alternative to hiring doctors or nurse practitioners to work in store clinics.

At the stores, patients can pay $45 for a 10-minute teleconsultation with a doctor, or less if their employer has negotiated a reduced rate.

In a tiny office next to the pharmacy counter in one Harrisburg, Pa., Rite Aid, patients use a Web camera and microphone to talk to a doctor on a desktop computer, where they type in their symptoms, a brief medical history and their credit card information. A thermometer, blood pressure machine and scale are available nearby.

The physician sends an electronic prescription to the store that can be picked up minutes later.

On a recent afternoon when a reporter tested the service, there was a choice of only one doctor — Dr. Pardeep Shori, an internist in Irving, Texas, who is board-certified in family medicine.

Shori said he typically treats about a dozen NowClinic patients a day. While he is unable to look into a patient’s ears or throat, he noted, “The key thing you learn in medical school is that a lot of information comes from just listening.”

Young, the woman who talked to a NowClinic physician from her home in Woodbury, Minn., said she would use the service again even though she now has health insurance. She was impressed when the online doctor called her three days later to see how she was feeling.

“I’ve never had my own primary care doctor do that,” she said.

– Provided by Kaiser Health News.

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07

May
2012
Time: 16:10

S&P finishes the worst week of 2012

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Diane Alter – AHN News Reporter

New York City, NY, United States (AHN) – U.S. stocks tumbled Friday following a report from the Labor Department that revealed employers added fewer than expected jobs in April.

The closely watched April jobs reports showed that 115,000 jobs were added in April, substantially less than the forecast of 160,000.

The news fueled a sell-off, taking the Dow down some 168 points, or 1.3 percent to end the week at 13,038. The Standard & Poor’s 500 Index slumped 22 points, or 1.6 percent to 1,369. And the NASDAQ gave back 68 points, or 2.2 percent to end at 2,956.

All the major indexes ended the week lower following two consecutive weeks of gains.

The S&P fell 2.3 percent over the last five trading sessions marking its largest weekly decline of 2012.

Energy stocks Friday felt the pressure from falling oil which slid 4.4 percent to below $100 a barrel.

The big news for the week came from Facebook which set a price range of $28 to $35 per share for its highly anticipated IPO, expected sometime later this month. It also increased the maximum size of the offering to $13.6 billion, up from its initial estimates of $5 billion.

After the close Friday, investment guru Warren Buffet’s Berkshire Hathaway posted first-quarter net income of $3.2 billion, an increase from the $1.5 billion it recorded in the same period a year earlier.

In world markets, European shares all ended the week lower and Asian markets were mixed.

Oil for June delivery lost $4.05 to settle at $98.56 a barrel. Gold rose $10.40 to end at $1,645.20 a troy ounce.

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06

May
2012
Time: 21:09

S&P finishes the worst week of 2012

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Diane Alter – AHN News Reporter

New York City, NY, United States (AHN) – U.S. stocks tumbled Friday following a report from the Labor Department that revealed employers added fewer than expected jobs in April.

The closely watched April jobs reports showed that 115,000 jobs were added in April, substantially less than the forecast of 160,000.

The news fueled a sell-off, taking the Dow down some 168 points, or 1.3 percent to end the week at 13,038. The Standard & Poor’s 500 Index slumped 22 points, or 1.6 percent to 1,369. And the NASDAQ gave back 68 points, or 2.2 percent to end at 2,956.

All the major indexes ended the week lower following two consecutive weeks of gains.

The S&P fell 2.3 percent over the last five trading sessions marking its largest weekly decline of 2012.

Energy stocks Friday felt the pressure from falling oil which slid 4.4 percent to below $100 a barrel.

The big news for the week came from Facebook which set a price range of $28 to $35 per share for its highly anticipated IPO, expected sometime later this month. It also increased the maximum size of the offering to $13.6 billion, up from its initial estimates of $5 billion.

After the close Friday, investment guru Warren Buffet’s Berkshire Hathaway posted first-quarter net income of $3.2 billion, an increase from the $1.5 billion it recorded in the same period a year earlier.

In world markets, European shares all ended the week lower and Asian markets were mixed.

Oil for June delivery lost $4.05 to settle at $98.56 a barrel. Gold rose $10.40 to end at $1,645.20 a troy ounce.

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06

May
2012
Time: 21:09

Eurozone private sector manufacturing and services shrank more in April

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Linda Young – AHN News Writer

Brussels, Belgium (AHN) – The eurozone saw it private sector contract sharply in April by one of its sharpest falls in nearly three years and its steepest decline since October, London-based Markit Economics said Friday.

A contraction is defined as any figure below 50 in the Markit eurozone composite purchasing managers’ index (PMI). The PMI fell to 46.7 in April from 49.2 in March.

Weak manufacturing exports were largely to blame for the drop, Markit said.

Moreover, Markit said the figures suggested the eurozone economy as a whole contracted at a dire quarterly rate of 0.5 percent in April.

The 17-member nation eurozone saw new business fall for the ninth consecutive month, while employment dropped for the fourth straight month.

Even Germany, known as Europe’s economic engine, slid toward stagnation. Economic growth has nearly stopped in both Germany and France and both are now seeing the sort of economic decline that has plagued Spain and Italy.

In addition, the eurozone’s services sector PMI also fell. It slid to 46.9, down from 49.2 in March.

The eurozone seems to be heading toward a third consecutive quarter of contraction in gross domestic product.

Release of Markit’s PMI reports helped to keep the euro low in currency pairs trading against the dollar.

 

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06

May
2012
Time: 2:38

U.S. markets falter Friday on jobs report

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Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – A disappointing report Friday from the Labor Department sent stocks lower on the open Friday.

Just after the opening bell on Wall Street, the Dow Jones Industrial Average lost 88 points, the Standard & Poor’s 500 Index fell 11 points and the NASDAQ sank 35 points.

The jobs report showed a net gain of 115,000 jobs in April, much less than the expected 160,000. However, upward revisions to the February and March job figures helped the unemployment rate inch down from 8.2 percent to 8.1 percent.

Investors didn’t like the news and stocks were sent sharply lower.

Friday’s market drop followed Thursday’s decline on a weaker-than-expected reading on the U.S. service sector.

In corporate news, LinkedIn’s shares jumped 8 percent Friday following a stellar earnings release Thursday after the close. But shares of insurer AIG lost nearly 6 percent despite earnings that came in ahead of expectations,

In world markets, European exchanges were lower in midday trading and Asia ended the day and the week mixed.

In currencies and commodities, the dollar advanced against the euro, the British pound and the Japanese yen.

Oil slipped $2.09 to $100.45 a barrel and gold gave back $4.40 to $1,630.40 a troy ounce.

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05

May
2012
Time: 5:07