Tevin Hunte Is 'So Happy' After His Voice Elimination






The Voice










12/12/2012 at 07:45 PM EST



Team Cee Lo's Trevin Hunte was eliminated on Tuesday's episode of The Voice, but the soulful singer isn't letting the end of this journey hold him back.

"I feel like the best person on the planet Earth. I am so happy and excited to be honest," Hunte told PEOPLE after the show. I feel like a weight has been lifted. Being away from family and friends and what you're used to was definitely a hard thing for me."

Hunte is looking forward to his mom's cooking and seeing his friends back home, and he won't waste a second wondering what if he'd made it further.

"I have no regrets. I am glad that I took a leap of faith and auditioned," he said. "I auditioned for American Idol and told my family I didn't have the strength to do it again. But I am definitely happy and excited that I made it this far."

And he still has a long way to go. "I'm only 18," he said. "I'm just really excited."

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Congress examines science behind HGH test for NFL


WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.


Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.


The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.


Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."


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Jenni Rivera jet linked to troubled company and executive









So far, only this awful truth is clear: Jenni Rivera, one of the most celebrated artists in the Latin world, died when her private jet effectively stopped in midair. The plane plummeted nose-first, 28,000 feet in 30 seconds, leaving its wreckage — and the remains of Rivera and six others — splayed across the side of the mountain like a wash of pebbles.


The investigation at the remote Mexican crash site is now in full swing, and authorities have not said whether they suspect maintenance problems or pilot error. But scrutiny has fallen over the plane and its pilots, one of whom was 78 years old. Interviews and documents have linked the jet to a troubled company — and an executive who was once imprisoned for faking the safety records of planes he bought from the Mexican government and sold to private pilots in the United States.


According to federal aviation records, the Learjet 25 carrying Rivera from a performance in Monterrey, Mexico, was built in 1969 and was owned by a Las Vegas company called Starwood Management LLC.





A Starwood executive, Christian E. Esquino Nunez, was accused of conspiring with associates in the 1990s and 2000s to falsify records documenting the history of planes they bought and sold — tail numbers, inspection stamps and logbooks. Esquino's "fraudulent business practices ... put the flying public at risk," federal authorities argued in documents obtained by The Times.


"We had a forewarning that this is what he is," Timothy D. Coughlin, an assistant U.S. attorney in San Diego, said. "Essentially they would manufacture the records ... that would indicate that maintenance was up to date. They would create them out of whole cloth." Once Esquino brought the planes across the border for sale, "it was open season," Coughlin said.


Coughlin prosecuted the case against Esquino in 2005, resulting in a guilty plea that sent Esquino to a federal prison in Lompoc, Calif., for two years. After his release from prison, Esquino was deported from Southern California to his native Mexico, where he lives today.


For 20 years, Esquino has been embroiled in a briar of legal allegations, many involving airplanes — a bankruptcy and a restraining order, criminal indictments and civil judgments, cocaine-distribution charges, even a role in an alleged conspiracy to airlift relatives of the late Moammar Kadafi out of Libya.


On Wednesday, in his first public comments since the crash, Esquino told The Times by telephone from Mexico City that the flight was not a charter as authorities have said. Rather, Rivera was in the final stages of buying the plane from Starwood for $250,000; the flight was offered as a free "demo."


Esquino, 50, described himself as Starwood's operations manager, and said he understands why his past would place him under scrutiny in the wake of the accident.


"Obviously my past — there is a story to it," he said. "It's unavoidable that they are going to look at my past.... I think it's fair to bring it up right now and question it."


However, he said, the jet was perfectly maintained. He said the only conceivable explanation for the crash was that pilot Miguel Perez Soto suffered a heart attack or was incapacitated in some way, and that a younger co-pilot, Alejandro Torres, was unable to save the plane. (Authorities stressed they have not determined a cause of the crash or whether the plane had any problems.)


"We're all grieving," Esquino said. "I'm definitely very sorry that this happened."


Esquino said it was not a mistake to put a 78-year-old pilot at the helm of the flight. Perez had a valid license to fly in Mexico, authorities said Wednesday, but U.S. aviation sources said that in the United States, Perez was licensed to fly only under conditions that don't require the use of instruments and was not allowed to carry passengers for hire.


Esquino said he had known and trusted Perez for 30 years. "I couldn't think of anyone more qualified," he said.


Rivera, 43, a famed Mexican American performer, mother of five and master of a growing international business empire, was killed Sunday when the private jet carrying her and four members of her entourage crashed near Iturbide, Mexico. Rivera had sold 20 million albums, lived in a massive estate in Encino, was preparing to make her American network television debut and was at the height of her career.


The same plane, according to U.S. aviation records, sustained "substantial" damage in 2005 when a fuel imbalance left one wing tip weighing as much as 300 pounds more than the other. The unnamed pilot, despite having logged more than 7,000 hours in the air, lost control while landing in Amarillo, Texas, and struck a runway distance marker. No one was injured.


Esquino called that accident "minor" and said the plane had flown without issue for 1,000 hours since then.


Starwood formed in March 2007, two months after Esquino was released from prison. He probably knew, federal officials said Wednesday, that he would be unable to receive a license to buy and sell U.S.-registered aircraft following the federal charges and his deportation.


Nevada employment records list Esquino's sister-in-law, Norma Gonzalez, as the sole corporate officer of Starwood. But according to allegations contained in court documents, it was Esquino — who has operated at times under the name Eduardo "Ed" Nunez — who was actually running the show.


According to a lawsuit filed in October in Nevada by an aviation insurance firm, Esquino is the "alter ego" of Starwood and had signed numerous documents on behalf of Starwood, including applications for insurance.





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North Korea Launches Rocket, Defying Likely Sanctions





SEOUL, South Korea — North Korea defied the likelihood of more sanctions by the United Nations Security Council to launch a rocket on Wednesday, demonstrating that the government of its new leader, Kim Jong-un, was pressing ahead to master the technology needed to deliver a nuclear warhead on intercontinental ballistic missiles.




The Unha-3, or Galaxy-3, rocket blasted off from the Sohae Satellite Launching Station in Tongchang-ri on North Korea’s western coast near China on Wednesday morning, a spokesman for South Korea’s Defense Ministry said.


“That’s all we can confirm right now,” the spokesman said, speaking on condition of anonymity until his government made an official announcement.


It was not immediately known whether the rocket has succeeded in fulfilling North Korea’s stated goal of putting a satellite into orbit.


North Korea has said its three-stage rocket would carry an earth-observation satellite named Kwangmyongsong-3, or Shining Star-3, and that it was exercising its right to peaceful activity in space.


But Washington and its allies have said they think that North Korea’s rocket program has less to do with putting a satellite into orbit than with developing a delivery vehicle for a nuclear warhead and trying to turn the country into a more urgent threat that Washington must deal with by offering diplomatic and economic concessions.


While North Korea may still have other technological thresholds to cross, like the miniaturizing of its nuclear weapons, a successful launching of a satellite into orbit would suggest that the country had overcome a major hurdle in its efforts to demonstrate its potential of mating its growing nuclear weapons program with intercontinental ballistic missile capability.


A failure would be an embarrassment for the young Mr. Kim, who has been struggling to establish himself a new North Korean leader hailed at home and feared abroad. Whether the launching was successful or not, Mr. Kim, by attempting a second rocket launching in the first year of his rule despite international condemnations, was dashing hopes among some analysts that he might soften North Korea’s confrontational stance. Instead, he was seen as intent on bolstering his father’s main legacy of nuclear weapons and long-range missile programs to justify his own hereditary rule.


Only Monday, it told the rest of the world that it had found a technical glitch with its rocket and needed until Dec. 29 to fix the problem and carry out the launch. . Outside analysts have been speculating what might be going on behind the dark cover North Korean engineers had put up around the launching pad to prevent United States spy satellites from watching.


“A successful test would raise as a top-line national security issue for the Obama administration the specter of a direct North Korean threat to the U.S. homeland,” Victor D. Cha and Ellen Kim wrote in a recent analysis posted on the Web site of the Center For Strategic and International Studies.


Mr. Kim hardly needed another failure. The North’s first rocket launched since he took over following the death of his father a year ago broke apart shortly after blast-off in April, forcing his regime to admit to the failure in front of the foreign journalists it had invited to watch the test. This time, North Korea did not invite foreign journalists. Nor did the government announce the launching plan to its domestic audience. South Korean officials said this suggested that the regime intended to cover it up if the satellite launching failed or declare the launching a success regardless of the outcome, as it had before.


The missile capabilities of a country as opaque as North Korea are notoriously hard to assess. United States and South Korean officials have said that all of the North’s four multiple-stage rockets previously launched have exploded in mid-air or failed in their stated goal of thrusting a satellite into orbit. Still, then-Defense Secretary Robert M. Gates said in early 2011 that North Korea was within five years of being able to strike the continental United States with an intercontinental ballistic missile.


Wednesday’s unusual winter-time rocket launching came five days before the one-year anniversary of the death of the Mr. Kim’s father, Kim, Jong-il, on Dec. 17, which his son tried to mark with a fanfare aimed at showcasing his dynasty’s achievement in empowering the small and impoverished nation.


It also came a week before its rival, South Korea, was scheduled to elect its new president on Dec. 19.


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Hugh Hefner's Engagement Ring to Crystal Harris Revealed















12/11/2012 at 07:00 PM EST



The wedding's back on – though it may be a good idea to save that gift receipt.

Hugh Hefner, 86, officially confirms that he is once again engaged to Crystal Harris, 26, telling his Twitter followers, "I've given Crystal Harris a ring. I love the girl."

And to prove it, Harris posted photos of the big diamond sparkler, calling it "my beautiful ring."

Neither announced a wedding date, though sources tell PEOPLE they're planning to tie the knot at the Playboy Mansion in Los Angeles on New Year's Eve.

Whether that still happens remains to be seen.

This is the plan they had in 2011 – a wedding at the mansion – except that Harris called it off just days before the nuptials were scheduled to happen in front of 300 invited guests.

Hugh Hefner's Engagement Ring to Crystal Harris Revealed| Engagements, Crystal Harris, Hugh Hefner

Hugh Hefner and Crystal Harris

David Livingston / Getty

The onetime Playmate of the Month then ripped Hef's bedroom skills, calling him a two-second man, to which Hefner replied, "I missed a bullet" by not marrying her.

A year later, Hefner's "runaway bunny" bounded back to him.

Reporting by JENNIFER GARCIA

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DA investigating Texas' troubled $3B cancer agency


AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.


No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.


That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.


"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.


Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."


Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.


Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.


Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.


"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.


Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.


Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.


Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.


The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.


"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.


Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.


Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.


Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.


Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.


"There appears to be a cover-up going on," Bonner said.


Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.


___


Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber


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Orange County toll roads under review by California









When it opened during the 1990s, Orange County's $2.4-billion tollway system was touted as an innovative way to build public highways without taxpayer money.


Today, the roads offer smooth sailing for gridlock-weary commuters willing to pay the price. But far fewer people are using the turnpikes than officials predicted, which means the highways generate far less revenue than expected to retire their debts.


There have long been questions about the long-term financial viability of the San Joaquin Hills and Foothill-Eastern corridors. But those concerns have now heightened, and a government oversight panel chaired by state Treasurer Bill Lockyer has launched a formal inquiry into whether the roads can cover mounting interest payments to private investors who purchased tollway bonds.





The review was prompted by former Orange County Assemblywoman Marilyn Brewer, who questions whether the debt-laden toll road agency is “viable as a going concern.”


“I think they are in trouble,” Brewer said. “I don’t believe there is malfeasance, but it’s no way to run a railroad or a toll road.”


The roads, which rely on motorist tolls and fees from new developments in the area, have been battered by economic recessions, lower-than-expected population growth and competing public highways, such as Interstates 5 and 405, both of which have been widened and improved by Caltrans.


Wall Street ratings agencies have reduced the San Joaquin Hills toll road's bonds to junk status and the notes for the Foothill-Eastern corridor to the lowest investment grade.


To meet expenses and debt payments, the corridor agency has refinanced the San Joaquin Hills bonds, raised tolls more than originally planned, slashed administrative costs and obtained repayment concessions from bondholders. Early next year, officials plan to refinance about $2.4 billion in notes issued to build the Foothill-Eastern tollway.


In 2011, ridership on the San Joaquin Hills, which has never performed as predicted, was only 43% of original forecasts, and its revenue was 61% of projections. The road parallels the Orange County coast, slicing south from Irvine through Newport Beach, Laguna Beach and Aliso Viejo to the San Diego Freeway.


Motorists on the Foothill-Eastern last year numbered 33% less than projected, and revenue was 75% of forecasts. Previously, the part of the corridor between Yorba Linda and Rancho Santa Margarita had a revenue surplus and ridership that was often 8% to 10% ahead of projections. The extra money was used to help shore up the finances of the San Joaquin Hills road.


Last year, the San Joaquin Hills restructured about $2.1 billion in debt and pushed back the retirement of its bonds to 2042, meaning motorists will have to pay tolls for an additional six years before the road becomes a free highway. It is the second time the original deadline of 2033 has been reset.


"Extending the payment time to make sure we can make our debt payments is a necessary step," said Amy Potter, the Transportation Corridor Agencies' chief financial officer. "We have to be flexible."


Overall, the agency has borrowed about $4.4 billion for the two roads and faces at least $10.5 billion in debt payments by the time its bonds mature, according to financial statements.


Despite the roads' sagging ridership, the agency has increased tolls repeatedly to keep pace with expenses and debt payments—at least 12 times since 1996 on the San Joaquin Hills alone.


The tolls on both corridors are now among the highest in the nation per mile. A round trip at peak travel times on the San Joaquin Hills costs $11, almost three times what it was in 1996. The maximum toll for a round trip on the Foothill-Eastern has roughly doubled to between $3.40 and $4.90 during peak times, depending on the section.


Tollway officials acknowledge the financial duress but say that they have never missed a debt payment and that the latest traffic figures show revenue has been increasing this year, though less than had been hoped.


"We have a responsibility to make sure this works," said Lisa Telles, acting chief executive of the Irvine-based toll agency, which operates 51 miles of highways. "Tolling is being talked about more and more throughout the country as a way to build infrastructure. People still look at us today as a model, but we have had to adjust with the times and the recession, which has hit everybody."


In addition to being reviewed by the California Debt and Investment Advisory Commission, the toll roads also are receiving scrutiny from a major Los Angeles law firm that helped to defeat plans to extend the Foothill-Eastern corridor through San Onofre State Park.


Among other things, SNR Denton found that the tollway agency renegotiated an agreement with San Joaquin Hills bondholders in 2011 that lowered by almost 23% the amount of revenue the agency had promised to take in for every dollar of debt.


In exchange, the agency agreed to increase debt payments to bondholders by more than $850 million based on the deferral of $430 million in principal payments for up to 19 years.





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Morsi Spokesman Tries to Clarify Military Order


Petr David Josek/Associated Press


Demonstrators camping out in Cairo's Tahrir Square on Monday.







CAIRO — A day after President Mohamed Morsi formally directed the military to help keep public order and authorized soldiers to arrest civilians, a spokesman on Monday sought to draw distinctions between the order and the forms of martial law that the Egyptian Army had previously imposed.




The spokesman, Khaled al-Qazzaz, said the president empowered the military for the limited purpose of protecting polling stations during Saturday’s constitutional referendum. He also said the president had instructed the army to refer any civilians arrested by soldiers to a civilian court for trial, instead of military tribunals, reversing the blanket authorizations that the Egyptian military has long demanded when it takes on a policing role in the streets.


“This is very different from what happened under the SCAF,” said Mr. Qazzaz, referring to the Supreme Council of the Armed Forces, which ruled Egypt after President Hosni Mubarak was ousted and until Mr. Morsi took office. “There will be no military trials.”


But Heba Morayef, a researcher with Human Rights Watch, noted that the text of the order allowed the military to keep taking civilians to military courts. “Had he wanted to,” Ms. Morayef said, “President Morsi could have stipulated that the military’s jurisdiction would have been limited in this case and that every civilian will be referred to a civilian court, but he chose not to.”


Mr. Morsi’s latest assurances were unlikely to comfort his growing cast of opponents, who have taken to the streets in large numbers repeatedly since late November, when he issued a decree putting his decisions above the law. The president was forced to rescind most of his decree, but he has not budged on a central opposition demand: that he cancel the Saturday referendum on the constitutional draft.


Faced with the possibility of the vote, Egypt’s opposition parties on Monday were weighing their approach to the referendum and said they would continue to hold large protests. The biggest opposition coalition, the National Salvation Front, said it would announce Tuesday whether it would call for a boycott of the referendum, or instead urge the public to vote down the draft charter, which opposition groups have criticized as deeply flawed and written by a panel representing narrow, Islamist interests.


There appeared to be divisions and flux within the opposition. On Sunday, the opposition used language that seemed to favor a boycott, saying in a statement that it rejected “lending legitimacy to a referendum that will definitely lead to more sedition and division.” But in an interview broadcast Monday, the coalition’s coordinator, Mohamed ElBaradei, said, “We might go to the vote.”


During the interview with Christiane Amanpour of CNN, Mr. ElBaradei, the former chief of the International Atomic Energy Agency, urged Mr. Morsi to delay the referendum for a few months, saying that the draft constitution — a “sham,” he called it — did not adequately protect women, freedom of expression or religion.


Mr. ElBaradei asserted that at least half of the country harbored similar reservations about the charter, and insisted that the opposition’s tactics — holding large protests and raising the possibility of a boycott — were not just obstructionism by groups who have struggled to mount a credible challenge to the better-organized Islamist groups.


“We are at a cross in the road,” he said. “It’s not that we’re fighting for the sake of fighting. It’s not that we’re sore losers.”


Mr. ElBaradei left open several possible courses of action, including a boycott. “If need be, we probably will go to the polls and make sure the document will not pass. Even if it will pass, we will continue to fight.”


There were other signs of momentum toward a highly contested vote on Saturday. The April 6th Revolutionary Youth Group, which is not a member of the coalition but coordinates activities with the National Salvation Front, began a campaign urging a no vote, called “Your Constitution does not represent us.”


A group representing administrative court judges said its members would supervise the referendum, under certain conditions, demanding a secure environment and even life insurance policies for judges, possibly smoothing the way for a credible contest. Other judges’ groups have said they would boycott the vote. A spokesman for the Muslim Brotherhood, the Islamist party that forms the primary base of Mr. Morsi’s support, said on Monday that they believed a sufficient numbers of judges had agreed to supervise the polls, ensuring that the vote could go forward.


Mayy El Sheikh contributed reporting from Cairo.



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Hayden Panettiere Splits with Scotty McKnight















12/10/2012 at 07:50 PM EST







Hayden Panettiere and Scotty McKnight


Splash News Online


Is there a tear in her beer?

Nashville star Hayden Panettiere has broken up with her boyfriend of more than a year, New York Jets wide receiver Scotty McKnight, a source confirms to PEOPLE.

But the split doesn't appear to be the stuff of a sad country song. The actress, 23, is still friends with McKnight, 24, and one source tells TMZ that their pals wouldn't be surprised if they got back together.

This is Panettiere's second go at a relationship with an athlete. Before dating McKnight she was with Ukrainian boxer Wladimir Klitschko for about two years.
Julie Jordan

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Surprise: New insurance fee in health overhaul law


WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.


The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.


Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.


"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.


Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.


The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.


Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.


The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.


Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.


The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.


But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.


"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.


Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.


America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.


But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.


"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.


The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.


The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.


It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.


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