Factory Fire Kills 7 Workers in Bangladesh


A.M. Ahad/Associated Press


Firefighters and volunteers worked to extinguish the fire at a small garment factory in Bangladesh’s capital on Saturday.







DHAKA, Bangladesh — In the latest blow to Bangladesh’s garment industry, seven workers died on Saturday after a fire swept through a factory here not long after seamstresses had returned from a lunch break. Workers said supervisors had locked one of the factory exits, forcing some people to jump out of windows to save their lives.




The fatal fire comes roughly two months after the horrific blaze at the Tazreen Fashions factory, which left 112 workers dead and focused global attention on unsafe conditions in Bangladesh’s garment industry. Tazreen Fashions, located just outside Dhaka, the capital, had been making clothing for some of the world’s biggest brands and retailers, including Walmart.


In the aftermath of the Tazreen Fashions fire, Bangladeshi political and industrial leaders pledged to quickly improve fire safety and even conducted high-profile, nationwide inspections of many of the country’s 5,000 apparel factories. Global brands, meanwhile, promised consumers that they would not buy clothes from unsafe factories.


But Saturday’s fire in a densely populated section of Dhaka, is a grim reminder that the problems remain. The blaze erupted at about 2 p.m. at Smart Garment Export, a small factory that employed about 300 people, most of them young women who were making sweaters and jackets. All seven of the dead workers were women.


Masudur Rahman Akand, a supervisor in the Bangladesh Fire Department, said workers were returning from lunch when the blaze erupted in a storage area. The factory was located on the second-floor of a building, above a bakery, and it lacked proper exits and fire prevention equipment, Mr. Akand said.


“We did not find fire extinguishers,” he said. “We did not find any safety measures.”


With smoke filling the factory floor, workers apparently panicked. Mr. Akand said the seven workers who died either suffocated or were trampled by others trying to escape. Eight other workers were hospitalized with injuries. Workers told rescuers that many people could not quickly escape because one of the exits was blocked by a locked steel gate. Witnesses said people began jumping out of windows before the gate was finally unlocked.


Azizul Hoque, a police supervisor, said investigators initially suspected that the fire was caused by an electrical short circuit in a room where fabrics and materials were being stored. But Mr. Hoque said the investigation was continuing.


“We do not know the reason or the source or the origin of the fire,” he said.


It was unclear whether the Smart Garment factory was making clothing for international brands or retailers. Dhaka’s industrial areas are filled with factories, large and small, that produce clothing for much of the Western world. Bangladesh is now the world’s second-biggest exporter of apparel, trailing only China.


An American delegation with four members of Congress arrived in Dhaka on Saturday to meet with political leaders and garment industry executives for a discussion of trade issues, including efforts by Bangladesh to win tariff-free access to the American market for the country’s clothing exports.


Julfikar Ali Manik reported from Dhaka, and Jim Yardley from New Delhi.



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Yandex says new mobile app is blocked by Facebook






MOSCOW (Reuters) – Russian internet company Yandex said on Friday its new experimental application to search on social networking sites from mobile devices was blocked by Facebook.


The Wonder app is a recommendation tool for devices using Apple’s iOS software that allows U.S. users of social networks to retrieve information from these sites by voice or by typing questions.






The application was released late on Thursday for users of Facebook, Instagram, Foursquare and Twitter but was blocked by Facebook three hours after the launch, a Yandex spokesman said.


He added that talks between Yandex and Facebook, aimed to establish the reason of the issue and resolve it, were to begin within hours. He gave no reason for the problem.


Facebook was not available for comment.


With the new app, Yandex wants to test the opportunities offered by social networks. If successful, the company will consider offering it to users in Russia and Turkey, he said.


Shares in Yandex, Russia’s most popular search engine, gained 0.8 percent in early trade on Friday.


(Reporting by Maria Kiselyova; Editing by Mike Nesbit)


Internet News Headlines – Yahoo! News





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Screen Actors Guild Menu Focuses on Fresh, Local Food









01/25/2013 at 04:35 PM EST



How do you satisfy Hollywood's biggest stars – people with discerning palates, often strict diets and tight dresses?

That is the task before Los Angeles-based celebrity chef Suzanne Goin, who will cook up a seasonal, tasty meal for the A-listers attending Sunday's Screen Actors Guild Awards in Los Angeles.

"The challenge in this case is having that one plate that has three different dishes on it that need to all really work together," says Goin, who previewed the SAG Awards menu last week at her West Hollywood restaurant Lucques. "How do I do that? I use the produce and vegetables that are the most beautiful."

And Goin also keeps the occasion firmly in mind. "I want the plate to be festive and have a party feeling to it the way the awards actually do," adds the chef, who uses all seasonal and local ingredients from farmers she works with all year round. "These awards really feel like a party."

The calorie-conscious menu gives guests two choices. The vegetarian option includes a plate with a salad of beets, blood oranges, feta cheese and black olives; a serving of curried cauliflower, couscous and pomegranate salsa; and a hearty salad of farro with kale, young broccoli, currants and pine nuts.

The non-veggie plate includes melt-in-your-mouth slow roasted salmon with green rice and edible flowers; sliced beef tenderloin with horseradish cream; and the same tangy salad of beets and blood oranges.

Goin, who describes herself as nervous by nature when it comes to cooking for such a high-profile event, says the toughest part is the last 48 hours before the event. Because everything is made fresh, she and her staff "can't really cook until the last minute," she says. "The end is a real push and a crunch. ... But when you're done, it's the happiest moment."

Screen Actors Guild Menu Focuses on Fresh, Local Food| Screen Actors Guild Awards 2013, News Franchises

Salad of beets, blood oranges, feta cheese and black olives; a serving of curried cauliflower, couscous and pomegranate salsa; and a salad of farro with kale, young broccoli, currants and pine nuts.

John Sciulli / Getty

Roasted Beets & Blood Oranges with Feta and Black Olives

Ingredients
• 3 bunches of small to medium beets
• ¾ cup extra virgin olive oil
• 5 large blood oranges
• 2 tbsp. finely diced shallots
• 1 tsp. red wine vinegar
• 1 tbsp. lemon juice
• ½ cup Nyons olives of other strong-tasting oil-cured black olives, pitted
• 2 oz. arugula
• ¼ pound feta cheese
• Kosher salt and freshly ground pepper to taste

Directions
1. Preheat oven to 450
2. Cut the greens off beets, leaving about ½-inch of the stem still attached. Clean the beets well and toss them with 2 tablespoons of olive oil and 1 teaspoon of salt. Place the beets in a roasting pan with a splash of water in the bottom. Cover the pan tightly with foil and roast the beats about 40 minutes or until they're tender when pierced. When they're done, carefully remove the foil. Let cool and peel the beets by slipping off the skins with your fingers. Slice the beets into wedges and place in a large bowl.
3. Slice the stem and ends off four of the blood oranges. Stand them on one end and, following the contour of the fruit with your knife, remove the peel and white cottony pith. Work from the top and bottom, rotating the fruit as you go. Slice each orange thinly into 8 to 10 pinwheels.
4. Squeeze juice from remaining blood orange and reserve a ¼ cup for the vinaigrette.
5. Combine the diced shallot, vinegar, lemon juice, ¼ cup blood orange juice and ½ teaspoon salt in a small bowl, and let it sit 5 minutes. Whisk in remaining ½ cup olive oil and taste for seasoning.
6. Toss the beats with ¾ of the vinaigrette and a sprinkling of salt and pepper. Taste for seasoning. Gently toss in the olives and arugula.
7. Arrange half the salad on a platter. Tuck half the blood oranges in and around the beets and scatter half of the feta on top. Place the rest of the salad on top and nestle the remaining blood oranges into the salad and sprinkle the remaining feta on top.

Screen Actors Guild Menu Focuses on Fresh, Local Food| Screen Actors Guild Awards 2013, News Franchises

Sliced beef tenderloin with horseradish cream; slow roasted salmon with green rice and edible flowers; a salad of beets and blood oranges

John Sciulli / Getty

Beef Tenderloin with Fingerlings, Arugula and Horseradish Cream

Ingredients
• 4 lb. center-cut beef tenderloin, trimmed
• 2 tsp. cracked black pepper
• 1 Tbsp. rosemary leaves, plus 3 springs
• 1 Tbsp. thyme leaves, plus 6 springs
• 2 Tbsp. extra virgin olive oil
• 3 Tbsp. unsalted butter, sliced
• 2 oz. arugula
• Roasted fingerling potatoes (recipe follows)
• Horseradish cream (recipe follows)

Directions
1. Marinate the beef overnight with the black pepper, thyme leaves and rosemary.
2. Remove the meat from the refrigerator 1 hour before cooking. After 30 minutes, season the beef generously with kosher salt.
3. Preheat the oven to 300 degrees.
4. Heat a large cast iron or other heavy pan over high heat for 4 minutes. Drizzle 2 tablespoons of olive oil in the pan and place the beef in the pan. Sear until well browned and caramelized on all sides. Transfer to a rack set in a roasting pan and top with the sliced butter and the springs of thyme and rosemary. Place in the oven and cook about 50 minutes until the center reads 125 degrees on a meet thermometer.
5. Baste with the buttery-herby juices and let rest at least 12 minutes.
6. Slice into ½-inch thick pieces and serve with the fingerling potatoes, a few arugula leaves and a dollop of the horseradish cream on top.

For the roasted fingerling potatoes
• 1 lb. fingerling potatoes
• 3 Tbsp. extra virgin olive oil
• 3 cloves garlic, unpeeled and smashed
• 4 springs thyme
• 1 Tbsp. rosemary leaves

Directions
1. Preheat over to 450 degrees.
2. Toss the potatoes with the olive oil, garlic, thyme, rosemary and 1 teaspoon of kosher salt. Place in a roasting pan, cover with aluminum foil and roast for about 40 minutes until tender

For the horseradish sauce
• ¾ cup créme fraiche
• 1 Tbsp. prepared horseradish
• Kosher salt and black pepper

Directions
Combine the créme fraiche and horseradish in a small bowl. Season with ¼ teaspoon of salt and pepper. Taste for balance and seasoning.

The 19th Annual Screen Actors Guild Awards will air live on TNT and TBS on Sunday, Jan. 27, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles.

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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


___


Online:


Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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S&P 500 vaults 1,500 as earnings cheer Wall Street

NEW YORK (Reuters) - The S&P 500 index on Friday closed above 1,500 for the first time in more than five years as strong earnings reports, including Procter & Gamble's, helped the benchmark extend its rally to eight days.


The winning streak is the longest in eight years and left the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.


Procter & Gamble shares led the Dow and S&P higher with a 4 percent gain to $73.25 after the world's top household products maker's quarterly profit soared past expectations. The company also raised its sales and earnings outlook for the fiscal year.


Sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.


"Economic data in the U.S. has been trending higher, albeit modestly. Things are incrementally better," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"The market was able to move forward despite deterioration in Apple and that's also a positive."


The Dow Jones industrial average <.dji> rose 70.65 points or 0.51 percent, to 13,895.98, the S&P 500 <.spx> gained 8.14 points or 0.54 percent, to 1,502.96 and the Nasdaq Composite <.ixic> added 19.33 points or 0.62 percent, to 3,149.71.


The S&P 500 closed at its highest since December 10, 2007 and the Dow ended at its highest since October 31, 2007.


Apple shares dropped 2.4 percent to $439.88, and the iPhone maker lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp .


Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


Adding to the bullish tone, German business morale improved for a third consecutive month in January to its highest in more than six months. In addition, European banks said they will repay the European Central Bank much more than expected of the loans the bank gave them during the crisis.


"Good news in credit markets helps set the stage for (more investment in) riskier assets," Krosby said.


For the week, the Dow rose 1.8 percent, the S&P climbed 1.1 percent and the Nasdaq rose 0.5 percent. It was the fourth straight week of gains for all three indexes.


Helping to lift the Nasdaq on Friday, Starbucks , rose 4.1 percent to $56.81 after the coffee retailer reported stronger-than-expected sales in the United States and Asia. {ID:nL1N0ATH04]


Netflix added 15.5 percent to $169.56, following its massive 42.2 percent jump Thursday after it announced a surprise jump in subscribers to its video streaming service.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


Halliburton Co shares jumped 5.1 percent to $39.72 after the world's second-largest oilfield services company reported higher-than-expected earnings and sales for the fourth quarter.


About 6.2 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


On the NYSE, more than three issues rose for every two that fell and on Nasdaq five rose for every four decliners.


(Reporting by Rodrigo Campos; Editing by Kenneth Barry)



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Riots Mark Anniversary of Egyptian Revolt





CAIRO — Violence erupted across the country on Friday as Egyptians marked the second anniversary of their revolution with an outpouring of rage against the power of the Muslim Brotherhood.




At least five people were killed in the canal city of Suez, state news media reported. More than 250 people were injured as protesters clashed with security forces around government facilities across the country, including the Interior Ministry headquarters, the state television building and the presidential palace in Cairo. And unidentified assailants attacked Muslim Brotherhood offices in several cities, including Cairo, the Delta town of Demanhour, and the canal town of Ismailia, where the group was founded 85 years ago.


The chaos was the clearest demonstration yet of the chasm of animosity and distrust dividing the Brotherhood and its opponents.


Although the Islamists of the Brotherhood have dominated elections since the ouster of the longtime president, Hosni Mubarak, two years ago, another broad segment of the population harbors deep suspicions of the group’s conservative ideology, hierarchical structure and insular ethos. Those doubts were redoubled last month when President Mohamed Morsi, with the Brotherhood’s political party, temporarily overruled the authority of the judiciary in order to ensure that his allies could push through an Islamist-backed constitution to a referendum despite the objection of other parties and the Coptic Christian Church.


It was also the latest confirmation that the Brotherhood had inherited not only Mr. Mubarak’s presidential palace, but also the blame for Egypt’s myriad problems.


On Friday, five months after Mr. Morsi took power from Egypt’s interim military rulers, the demonstrators’ main complaint was that the Islamists had failed to fulfill the social welfare and social justice demands of the original uprising. A banner in the center of the square called for the repeal of the Islamist-backed constitution, passed in a referendum last month, which opponents say failed to enshrine ironclad guarantees of individual freedoms.


“The Egyptian people had so many dreams and the reality on the ground is, everything is still the same,” said Mohamed Adl, 41, a teacher who carried a sign with a handwritten poem accusing the Brotherhood of making “injustice the guard of our lives.”


Protesters at times seemed to be re-enacting scenes from the 18-day revolt in 2011 that toppled Mr. Mubarak. The loudest chants were recycled from the revolution — “Leave, leave” and “The people want the fall of the regime.” Others were adapted slightly to focus on the Islamist Brotherhood, calling for an end to “the rule by the supreme guide,” Mohamed Badie, the Brotherhood’s spiritual leader.


By early afternoon in Cairo, a few dozen protesters at one corner of the square — many of them apparently teenagers — had begun to throw rocks over a cement barrier at security forces massed around the Interior Ministry building, resuming an intermittent battle that had begun the day before in anticipation of the anniversary. The security officers, as they typically do, threw back some of the rocks, and plumes of tear gas sailed overhead past a church steeple up the street.


State news media reported at around 3 p.m. that four people had been injured in the clashes with security forces near the square, in addition to 25 injured since the battle began the day before.


Osama Amir, 22, a student walking from the fight, said he did not know how it started or why. “People have lost confidence in the central security forces, so when there is a chance to beat them up, we will beat them up,” he said.


A little while later, another fight broke out when demonstrators passed the office of the Muslim Brotherhood Web site on their way to the square and threw rocks at it. Other civilians — it was unclear whether they were annoyed neighbors or Brotherhood supporters — rushed out to strike back at the protesters, and a street vendor’s kiosk was burned in the melee.


Simultaneously, a group of masked men broke into the building and ransacked the Brotherhood office, overturning furniture, destroying computers and breaking glass. Neighbors of the building said the attack appeared to have been planned because the men had brought acid to break through a padlock.


The Brotherhood, hoping to avoid the kind of factional clashes that killed 10 people in December, had urged its supporters to stay away from the square and observe the anniversary with community service projects around the country.


Both the Brotherhood and its opponents are looking ahead to parliamentary elections expected to be held in April, and critics of the Brotherhood contended that its community service drive was in part an effort to curry favor with needy voters. The opposition had poured most of its energy into Friday’s demonstrations, and its critics said it was once again wasting its time on street protests while the Islamists had already turned their attention to the more important electoral battle.


“It is important that people go down to the square, if for no other reason than to remind Egypt, and themselves, that something really special happened during those 18 days two years ago,” said H. A. Hellyer, a researcher based here with the Brookings Institution. “That energy, however, can’t stay in the square,” he said. “It’s got to be channeled.”


But some demonstrators argued that the public protests were a first step toward building a more potent political movement that might someday counterbalance the Islamists. “Nothing tangible will come of today, and I don’t think anything tangible with happen with the elections,” said Ayman Roshdy, 57, a retired marketing consultant. “But there is hope. What is happening today is part of the process of building hope.


“The Islamists have been saying that they are the good guys,” he continued. “Now they are in control and they are being exposed by the minute. And we are building a political movement that will help us to produce a reasonable government.”


By late afternoon, other marches from around the city, some led by well-known leaders of the political opposition, were streaming toward the square and the crowd was expected to swell by nightfall, along with the potential for more violence.


Read More..

Microsoft profit dips on lower Xbox holiday sales






SEATTLE (Reuters) – Microsoft Corp reported a dip in fiscal second-quarter profit on Thursday, as weaker sales of its Xbox game system in the holiday quarter offset a solid start for its new Windows 8 operating system.


The world’s largest software company reported profit of $ 6.4 billion, or 76 cents per share, compared to $ 6.6 billion, or 78 cents per share, in the year-ago quarter.






Overall sales rose 3 percent to $ 21.5 billion.


(Reporting by Bill Rigby; Editing by Richard Chang)


Gaming News Headlines – Yahoo! News





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Jenna Fischer Cried Tears of Joy over John Krasinski's Office Casting















01/24/2013 at 04:50 PM EST







Jenna Fischer and John Krasinski


Jason LaVeris/Filmmagic


It was love at first audition for Jenna Fischer and John Krasinski.

Fischer who plays Pam to Krasinski's Jim on The Office, isn't sure their characters would have become the fan-favorites they are if he hadn't been chosen to play her husband.

"I was paired up with John often and I thought this was good because he was my favorite Jim," Fischer, 38, explains on Thursday's episode of The Jeff Probst Show, says of the final round of eight actors – four Pams and four Jims.

"On the second day, John whispered to me, 'You're my favorite Pam. I hope you get it.' "

Needless to say, when the actress heard the news about her newly-casted costar, she was overjoyed.

"When they called me and said I got the role, I said, 'Who's Jim – did you cast John Krasinski?' " Fischer says. "They said, 'Yes' and I started crying because I knew it would be good. And I mean this honestly – I can't do Pam without him. In the way you need the right partner to have a great marriage, I needed the right costar to have this relationship.”

Getting the role that skyrocketed Fischer's career may indirectly be thanks to Alyson Hannigan, who – for once – didn't try out for the same part.

"I had been knocking around Los Angeles for about eight years going to various auditions. I would do eight auditions for a new television show and then at the very end they would offer the role to Alyson Hannigan," the actress admits.

"She was my biggest competition … I would get to the final audition and I'd go, 'I know I've got this one.' And then she'd walk in the door and I'd go, 'Nope.' "

Now that it's the beginning of the end for The Office – Thursday's episode will reveal the secrets behind the documentary crew filming at Dunder Mifflin all these years – can Fischer share any behind-the-scenes scoop?

"Around the holidays we do our online Christmas shopping. Phyllis [Smith] is hilarious – she pays her bills online, in the background," the actress reveals. "She brings in these stacks of papers and you see her over there, clicking on her bank. She's just paying bills."

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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


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Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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S&P rises for seventh day but 1,500 too steep a climb

NEW YORK (Reuters) - The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.


Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.


The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil , at $416.5 billion.


The S&P 500, however, managed to hit its longest winning streak since October 2006.


"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.


"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.


Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.


At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.


"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.


The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.


The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.


Video streaming service Netflix Inc surprised Wall Street with a quarterly profit after it added nearly 4 million customers in the United States and abroad. Netflix shares surged 42.2 percent to $146.86, its biggest percentage jump ever.


Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.


About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.


(Editing by Jan Paschal)



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