Deficit Talks Stumble Over Down Payment

Alex Wong/Getty Images

Senator Kent Conrad in Washington last month. He sees “confusion between the initial down payment and the framework.”

WASHINGTON — For all the growing angst over the state of negotiations to head off a fiscal crisis in January, the parties are farthest apart on a relatively small part of the overall deficit reduction program — the down payment.

President Obama and the House speaker, John A. Boehner, are in general agreement that the relevant Congressional committees must sit down next year and work out changes to the tax code and entitlement programs to save well more than $1 trillion over the next decade.

But before that work begins, both men want Congress to approve a first installment on deficit reduction in the coming weeks. The installment would replace the automatic spending cuts and tax increases that make up the “fiscal cliff,” while signaling Washington’s seriousness about getting its fiscal house in order. That is where the chasm lies in size and scope.

Mr. Obama says the down payment should be large and made up almost completely of tax increases on top incomes, partly because he and Congressional leaders last year agreed on some spending cuts over the next decade but have yet to agree on any tax increases.

Republicans have countered by arguing for a smaller down payment that must include immediate savings from Medicare and other social programs. Republicans, using almost mirror-image language, have said that they do not want to agree to specific tax increases and vague promises of future spending cuts.

Senator Kent Conrad of North Dakota, chairman of the Budget Committee and part of a bipartisan “Gang of Six” senators who devised the two-stage process, said: “I think there’s a lot of confusion between the initial down payment and the framework. That’s for sure.”

The two biggest areas of dispute are tax increases and the big government health insurance programs, Medicare and Medicaid. On the health programs, neither side believes Congress could meaningfully overhaul them in the four weeks that remain before the fiscal deadline.

“Entitlement reform is a big step, and it affects tens of millions of people,” said Senator Richard J. Durbin, Democrat of Illinois, another architect of the two-stage framework. “It’s not just a matter of cutting spending in an appropriation. It’s changing policy. And that’s why I was reluctant to include it in the down-payment conversation. I want this to be a thoughtful effort on both sides that doesn’t jeopardize this program.”

But Republicans say that it is possible to make some initial changes to the programs in coming weeks. “There are simpler things that can be done,” said Senator Michael D. Crapo, Republican of Idaho and another Gang of Six member. “The real structural changes would come later.”

Mr. Crapo said Congress could agree on some additional cuts to health care providers and change the way inflation is calculated to slow not only automatic increases in Medicare and Social Security benefits, but also the annual rise in tax brackets.

Democrats instead argue that the down payment should consist of a combination of tax increases and cuts to programs outside Medicare, Medicaid and Social Security, like farm programs. Mr. Obama has pushed for a return to the top tax rates under President Bill Clinton.

Republican leaders have said that they are willing to raise new tax revenues — albeit not as much as Democrats want — but Republicans want taxes to rise by closing loopholes and curbing tax deductions and credits.

If the two sides are able to come to an agreement on the down payment, it would also likely fix targets for larger savings in the tax code and entitlement programs. The White House and Congress would then spend much of the next year trying to hash out the specific policy changes needed to hit those targets.

Read More..

Coast Guard officer is killed after suspected smugglers ram his boat

A veteran U.S. Coast Guard officer was killed Sunday after suspected smugglers rammed his vessel near Santa Cruz Island, casting him into the ocean with a fatal head wound.

Chief Petty Officer Terrell Horne III, 34, of Redondo Beach was second in command of the Halibut, an 87-foot patrol cutter based in Marina del Rey. Authorities said they could not recall a Coast Guard officer being killed in such a manner off the coast of California.

Early Sunday morning, the Halibut was dispatched to investigate a boat operating near Santa Cruz Island, the largest of California's eight Channel Islands. The island is roughly 25 miles southwest of Oxnard.

The boat, first detected by a patrol plane, had fallen under suspicion because it was operating in the middle of the night without lights and was a "panga"-style vessel, an open-hulled boat that has become "the choice of smugglers operating off the coast of California," said Coast Guard spokesman Adam Eggers.

The Coast Guard cutter contains a smaller boat — a rigid-hull inflatable used routinely for search-and-rescue operations and missions that require a nimble approach. When Horne and his team approached in the inflatable, the suspect boat gunned its engine, maneuvered directly toward the Coast Guard inflatable, rammed it and fled.

The impact knocked Horne and another Coast Guard crew member into the water. Both were quickly plucked from the sea. Horne had suffered a traumatic head injury. While receiving medical care, he was raced to shore aboard the Halibut. Paramedics met the Halibut at the pier in Port Hueneme and declared Horne dead at 2:21 a.m.

"We are deeply saddened by the loss of our shipmate," said Adm. Robert J. Papp, the Coast Guard commandant. "Our fallen shipmate stood the watch on the front lines protecting our nation, and we are all indebted to him for his service and sacrifice."

The second crew member knocked into the water suffered minor injuries and was treated and released from a hospital later Sunday. He was not identified.

Using a helicopter and a 45-foot boat stationed in Los Angeles, the Coast Guard later found the panga and stopped it.

Two men were detained. The Coast Guard declined to identify them or say whether drugs were found aboard the boat. A second suspicious vessel was believed to have been traveling alongside the panga before the incident.

"We are actively working to ensure that all of the individuals involved in this illegal activity are brought to justice," said Coast Guard Capt. James Jenkins.

The Coast Guard was unable to provide a detailed account of Horne's service.

He had been heralded by the agency on several occasions.

He appears to have arrived in Southern California last summer after serving for two years as an executive petty officer in Emerald Isle, N.C. There, he received a Coast Guard Commendation Medal for his leadership in 63 search-and-rescue cases, in which 38 lives were saved.

According to an account of the medal ceremony, the most notable of those operations involved a boat that capsized in a North Carolina inlet in 2010. The account said he coached his team through "treacherous" sea conditions to rescue five people.

The Coast Guard also noted Horne's involvements in a January operation in which the Halibut found and stopped two boats operating at midnight with no lights. The boats contained 2,000 pounds of marijuana.

In the last five years, as U.S. authorities have become increasingly successful at blocking traditional land routes, smugglers have taken increasingly to the sea — ferrying both drugs and immigrants. Authorities believe a smuggling vessel is launched toward California every three days; the number of immigrants and smugglers arrested at sea or along the coast more than doubled to 867 in 2010 from the previous year.

Drug runners and human smugglers have run ashore at a dog beach in Del Mar, at Crystal Cove in Orange County and next to the San Onofre nuclear power plant. Border Patrol agents have been diverted from land to sea, and an agency supervisor recently called the ocean "the front line."

The eruption in sea-based smuggling has created the same cat-and-mouse game in the ocean that has long existed along the U.S.-Mexico border. Smuggling boats often travel without lights and at a slow speed to limit their wakes. When U.S. agents began disrupting routes into San Diego beaches, smugglers began conducting counter-surveillance, using radios to direct boat pilots to unguarded beaches.

scott.gold@latimes.com

Read More..

A Google-a-Day Puzzle for Dec. 2

Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.

SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!

Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.

And now, without further ado, we give you…

TODAY’S PUZZLE:

Note: Ad-blocking software may prevent display of the puzzle widget.

Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.

Read More..

Senators urge Obama to release more water into Mississippi River

WASHINGTON (Reuters) – Sixteen U.S. senators have appealed to President Barack Obama to divert more water to the Mississippi River to prevent barge traffic from shutting down due to low water on the country’s inland waterway, a crucial route for goods bound for export.

Low water is a looming disaster, said the senators in a letter to Obama that was released on Friday.

The senators, from states along the Mississippi and Missouri rivers, asked for emergency action to release more water from Missouri River reservoirs to feed the drought-sapped Mississippi River.

Water levels are forecast to reach near-historic lows by mid-December, and shippers say low water will make it impossible to move cargo. Grain exporters have already slashed by up to 50 percent the weight of cargo shipped by barges on the Mississippi River to the Gulf of Mexico.

“Substantial curtailment of navigation will effectively sever the country’s inland waterway superhighway, imperil the shipment of critical cargo for domestic consumption and for export, threaten manufacturing industries and power generation, and risk thousands of related jobs in the Midwest,” wrote the senators.

Signing the letter were senators Chuck Grassley and Tom Harkin of Iowa; Roy Blunt and Claire McCaskill of Missouri; Mark Pryor and John Boozman of Arkansas; Al Franken and Amy Klobuchar of Minnesota; Mary Landrieu and David Vitter of Louisiana; Thad Cochran and Roger Wicker of Mississippi; Mark Kirk of Illinois; Lamar Alexander of Tennessee; Joe Manchin of West Virginia; and Sherrod Brown of Ohio.

The U.S. Army Corps of Engineers has been battling extreme low-water conditions on the Mississippi for months following the country’s worst drought in half a century.

(Reporting By Charles Abbott; editing by Jim Marshall)

Celebrity News Headlines – Yahoo! News

Read More..

Call That Kept Nursing Home Patients in Sandy’s Path

Chang W. Lee/The New York Times

Workers were shocked that nursing and adult homes in areas like Rockaway Park, Queens, weren’t evacuated.

Hurricane Sandy was swirling northward, four days before landfall, and at the Sea Crest Health Care Center, a nursing home overlooking the Coney Island Boardwalk in Brooklyn, workers were gathering medicines and other supplies as they prepared to evacuate.

Then the call came from health officials: Mayor Michael R. Bloomberg, acting on the advice of his aides and those of Gov. Andrew M. Cuomo, recommended that nursing homes and adult homes stay put. The 305 residents would ride out the storm.

The same advisory also took administrators by surprise at the Ocean Promenade nursing home, which faces the Atlantic Ocean in Queens. They canceled plans to move 105 residents to safety.

“No one gets why we weren’t evacuated,” said a worker there, Yisroel Tabi. “We wouldn’t have exposed ourselves to dealing with that situation.”

The recommendation that thousands of elderly, disabled and mentally ill residents remain in more than 40 nursing homes and adult homes in flood-prone areas of New York City had calamitous consequences.

At least 29 facilities in Queens and Brooklyn were severely flooded. Generators failed or were absent. Buildings were plunged into a cold, wet darkness, with no access to power, water, heat and food.

While no immediate deaths were reported, it took at least three days for the Fire Department, the National Guard and ambulance crews from around the country to rescue over 4,000 nursing home and 1,500 adult home residents. Without working elevators, many had to be carried down slippery stairwells.

“I was shocked,” said Greg Levow, who works for an ambulance service and helped rescue residents at Queens. “I couldn’t understand why they were there in the first place.”

Many sat for hours in ambulances and buses before being transported to safety through sand drifts and debris-filled floodwaters. They went to crowded shelters and nursing homes as far away as Albany, where for days, they often lacked medical charts and medications. Families struggled to locate relatives.

The decision not to empty the nursing homes and adult homes in the mandatory evacuation area was one of the most questionable by the authorities during Hurricane Sandy. And an investigation by The New York Times found that the impact was worsened by missteps that officials made in not ensuring that these facilities could protect residents.

They did not require that nursing homes maintain backup generators that could withstand flooding. They did not ensure that health care administrators could adequately communicate with government agencies during and after a storm. And they discounted the more severe of the early predictions about Hurricane Sandy’s surge.

The Times’s investigation was based on interviews with officials, health care administrators, doctors, nurses, ambulance medics, residents, family members and disaster experts. It included a review of internal State Health Department status reports. The findings revealed the striking vulnerability of the city’s nursing and adult homes.

On Sunday, Oct. 28, the day before Hurricane Sandy arrived, Mr. Bloomberg ordered a mandatory evacuation in Zone A, the low-lying neighborhoods of the city. But by that point, Mr. Bloomberg, relying on the advice of the city and state health commissioners, had already determined that people in nursing homes and adult homes should not leave, officials said.

The mayor’s recommendations that health care facilities not evacuate startled residents of Surf Manor adult home in Coney Island, said one of them, Norman Bloomfield. He recalled that another resident exclaimed, “What about us! Why’s he telling us to stay?”

The commissioners made the recommendation to Mr. Bloomberg and Mr. Cuomo because they said they believed that the inherent risks of transporting the residents outweighed the potential dangers from the storm.

In interviews, senior Bloomberg and Cuomo aides did not express regret for keeping the residents in place.

“I would defend all the decisions and the actions” by the health authorities involving the storm, said Linda I. Gibbs, a deputy mayor. “I feel like I’m describing something that was a remarkable, lifesaving event.”

Dr. Nirav R. Shah, the state health commissioner, who regulates nursing homes, said: “I’m not even thinking of second-guessing the decisions.”

Still, officials in New Jersey and in Nassau County adopted a different policy, evacuating nursing homes in coastal areas well before the storm.

Contradictory Forecasts

Read More..

Disruptions: Silencing the Voices of Militants on Twitter

Twitter, perhaps more than any other social media outlet, has become one of the most powerful tools to promote democracy in the Middle East.

The service, which helped Arab Spring protesters in their drive for a new order in the region, is now under attack over aiding and abetting terrorist organizations.

Along with six other Republican lawmakers, Representative Ted Poe, a judge turned Texas Congressman, sent a letter to the F.B.I., demanding that Twitter ban two militant groups, Hamas and Hezbollah, that are on the State Department’s list of terrorist organizations. “Failure to block access arms them with the ability to freely spread their violent propaganda and mobilize in their war on Israel,” he said in a statement to news outlets, adding: “The F.B.I. and Twitter must recognize sooner rather than later that social media is a tool for the terrorists.”

The demand is based on laws saying that any person or group offering material support — contributing cash, weapons and other tangible aid, including “service” and “expert advice or assistance” — to terrorist organizations is essentially working with them.

But some might argue that running AK-47s and rocket launchers to terrorists, and using Twitter, which allows groups to post 140-character missives online, are two very different things.

In a phone interview, Mr. Poe was adamant that Twitter had a responsibility to take down the accounts. By having a voice on the site, he said, they “are amassing more followers and threatening the security of the United States.”

“We freeze terrorist organizations’ bank accounts, and we ought to freeze their Twitter accounts, too,” he said.

But civil liberties lawyers are wary of such actions. “The problem here is the process by which the government decides to classify a terrorist organization,” said Michael C. Dorf, a constitutional law professor at Cornell.

The material-support provision has been used to convict about 75 people in the United States, but it remains a contentious issue right up to the Supreme Court.

“The more immediate set of concerns is that not everything these groups do is terrorism, and there are people whose speech could be restricted by some of these laws,” Professor Dorf said, adding that people associated with Hamas who offer aid and education to Palestinians would be silenced, too. “So it’s hardly a slam dunk to say that the statute covers Twitter or Facebook.”

Although the letter to the F.B.I. was sent in September, the request gained more attention in recent weeks as fighting escalated in Gaza. After Israel killed Hamas’s top military commander, Hamas unleashed an increased barrage of missiles. Both Hamas and a press officer for the Israel Defense Forces posted to Twitter to describe the strike as it unfolded.

Israel has also used other social networks: it has shared videos on YouTube, updated its Facebook status to say which members of Hamas it had killed, and in the most bizarre move, created mood boards on Pinterest to show off its troops and weapons. Banning Hamas or Hezbollah on Twitter could set a broad precedent.

For civil libertarians, any move to remove Hamas and Hezbollah from Twitter raises concerns.

“I think it’s as contrary to the First Amendment as openness is the enemy to extremism and fundamentalism,” said Jonathan Zittrain, a professor at Harvard Law School and a founder of the Berkman Center for Internet and Society. “The F.B.I. is going to learn more about Hamas and any organizations, by having them operate in an open environment, than if its voice is driven to proxies and underground backchannels, which would inevitably happen immediately.”

Hamas and other groups don’t fall under the Constitution of the United States. for many of the countries in the Middle East, Twitter is the closest thing to a democracy that gives people a voice, even if it’s one that we don’t always agree with.

E-mail: bilton@nytimes.com

Read More..

After a billion, what next for Facebook?

MENLO PARK — In just eight years, Facebook signed up more than half the world's Internet population.

Now it's going after the rest.

Facebook wants to reach every single person on the Internet whether they are logging on from a laptop in Santa Monica, an iPhone in Tokyo or a low-tech phone with a tiny screen in Nairobi.

It's parachuting into market after market to take on homegrown social networks by currying favor with the locals and venturing where many people have spotty — if any — access to the Internet.

In Japan, it lets users list their blood types, which the Japanese believe — like astrological signs in the Western world — give insight into personality and temperament. In Africa, Facebook markets a stripped-down, text-only version of its service that works on low-tech mobile phones.

International growth is crucial to maintain its dominance as the world's largest social network. The company's scorching pace of growth has cooled especially in the United States. Facebook must coax users to sign up — and make sure it remains popular with the users it already has — or risk being knocked from its lofty perch.

"We're not a company that is just trying to add more people," said Chris Cox, Facebook's vice president of product. "What we are trying to do is build a service that everyone in the world can use."

But overseas growth that once seemed to come so easily is slower now. Facebook has already saturated most major markets around the globe. Eight out of 10 Facebook users are outside of the U.S.

"I don't think that Facebook has a chance of attracting another billion users," Wedbush Securities analyst Michael Pachter said.

Inside Facebook's Menlo Park, Calif., headquarters is a small army out to prove naysayers wrong. Above their desks they have hung flags from around the world that represent their nationalities. They obsessively scan screens that track user growth around the world.

They cheered and popped open champagne in September when the number of active Facebook users crossed 1 billion. But the moment of jubilation quickly passed as they redoubled their efforts to spread Facebook around the globe.

Naomi Gleit is the soft-spoken, headstrong 29-year-old product manager in charge of growth at Facebook. She says Facebook's future is on mobile devices, the medium by which most people will experience the Web in coming years. Facebook now works on more than 2,500 different phones, helping it gain a foothold in emerging markets. And it is forging relationships with mobile phone operators around the world.

Gleit's 150-member team has boots on the ground in far-flung places armed with low-tech phones and cheap data plans. Even team members here carry Nokia phones alongside their iPhones to update their status or check their News Feed.

"We originally built a product for ourselves," Gleit said. "This is different. Now we need to understand the experience of users who are not like us."

Analysts say Facebook already has established an impressive track record of uprooting entrenched competitors. In Britain, it displaced the dominant social network Bebo, forcing AOL to sell it at a huge loss. In Germany, Facebook overtook the homegrown StudiVZ. Facebook even broke Google social network Orkut's stranglehold on Brazil and India.

In 2009, it launched a clever tool to help Facebook users find their Orkut friends on Facebook and instantly send them friend requests. Two years later it swiped Google's top executive in Latin America, Alexandre Hohagen. Facebook sprinted ahead of Orkut one year ago, and now has 61 million active users in Latin America's largest country.

Facebook is treating India as a test lab for how it can spread in other emerging markets such as Indonesia. Facebook, which has offices in Hyderabad, India, has grown from 8 million users in 2010 to 65 million users today. It is aggressively targeting India's youth. A few hundred young Indian programmers recently jammed a Facebook hackathon at a Bangalore convention center to chug chai and brainstorm new apps that would appeal to their friends.

But Facebook has its eyes on a much bigger prize beyond the country's 100 million Internet users: the 900 million-plus Indians on mobile phones. Some analysts predict India will have more Facebook users than any other country including the United States by 2015.

The company also faces significant challenges in India. It must make the service captivating on low-tech mobile phones with unreliable Internet connections and it must gingerly navigate demands from the Indian government to remove objectionable content without alienating users.

Facebook is making some of its biggest moves in Russia, South Korea and Japan, the only major markets where it operates but has penetration of less than 50%, according to research firm ComScore.

Read More..

Geek Culture's 26 Most Awesome Female Ass-Kickers

Angelina Jolie extends her reputation as filmdom’s most compelling ass-kicker, Female Division, when Salt opens Friday. Midway through a summer freighted with testosterone, Jolie’s lithe Agent Salt is a potent reminder of the power of feminine fighters.

A minority presence in sci-fi and action realms even in 2010, women warriors remain the exception to the guy-centric rule in film, TV, videogames and comic books. But that’s changing, according to Action Flick Chick blogger Katrina Hill, who moderates the "Where Are the Action Chicks?" panel Friday at San Diego’s Comic-Con International.

"Compare the original Predator to this summer’s Predators," she said in an e-mail interview with Wired.com. "The original film was a complete boy’s club, with the only woman in the movie being a hostage. Today, Predators has a kick-ass chick mixed in as an equal amongst these other badass men. So there are steps being taken in the right direction. It just takes time."

The rise of the female fighter will be addressed at no fewer than three other female-dominated panels at this year’s Comic-Con (Thursday’s “Divas and Golden Lassoes: The LGBT Obsession with Super Heroines” and Friday’s “Girls Gone Genre: Movies, TV, Comics, Web” and “Women Who Kick Ass: A New Generation of Heroines,” which features Fringe’s Anna Torv and V’s Elizabeth Mitchell.)

Here’s a look at 26 sexy-fierce female ass-kickers who’ve relied on biceps and brains to periodically kick-start geek culture.

Read More..

Seth MacFarlane on “Family Guy” movie: “it’s just a matter of when”

NEW YORK (TheWrap.com) – “Family Guy” creator Seth MacFarlane wants to bring his beloved and controversial Fox show to the big screen, telling students at UCLA on Wednesday that a theatrical version of the show will definitely happen.

“It’s just a matter of when,” MacFarlane said, according to Entertainment Weekly. “It’s hard to do that while you have the series going on at the same time; I think that’s why it took ‘The Simpsons’ 20 seasons to figure out how to do it.”

“Family Guy,” which is in its 11th season, has made MacFarlane one of the most successful writers in television. A writer, director, voice actor and animator – not to mention singer-of-standards and this year’s Oscar host – MacFarlane created that show, as well Fox shows “American Dad” and “The Cleveland Show.”

He also had been working on a reboot of “The Flintstones,” but that appears to be shelved for now.

MacFarlane then transformed into one of the film industry’s hottest commodities this summer thanks to the breakout success of “Ted,” the Universal comedy that has set a new box-office record for an original, R-rated comedy.

While Universal has every intent of making another “Ted,” MacFarlane said he also has developed the ideas for a “Family Guy” film.

“We do know what the ‘Family Guy’ movie will be,” he told the students. Drawing another comparison to “The Simpsons Movie,” he said his one criticism of the cinematic version of that iconic show was that the plot would have worked on TV.

He claimed his “Family Guy” idea “would be impossible to do on TV.”

The Hollywood Reporter wrote last year that there is a deal in place for a ‘Family Guy” movie, but MacFarlane’s representatives did not respond to a request for more information about the rights to the movie or MacFarlane’s plans.

While MacFarlane still spends a good deal of his time working on television projects, the prospect of a “Family Guy” movie raises two questions: Does he have to make “Ted” first? Does Fox have the rights to the movie?

Neither Universal nor Fox have returned requests for comment.

TV News Headlines – Yahoo! News

Read More..

Opinion: A Health Insurance Detective Story

I’VE had a long career as a business journalist, beginning at Forbes and including eight years as the editor of Money, a personal finance magazine. But I’ve never faced a more confounding reporting challenge than the one I’m engaged in now: What will I pay next year for the pill that controls my blood cancer?

After making more than 70 phone calls to 16 organizations over the past few weeks, I’m still not totally sure what I will owe for my Revlimid, a derivative of thalidomide that is keeping my multiple myeloma in check. The drug is extremely expensive — about $11,000 retail for a four-week supply, $132,000 a year, $524 a pill. Time Warner, my former employer, has covered me for years under its Supplementary Medicare Program, a plan for retirees that included a special Writers Guild benefit capping my out-of-pocket prescription costs at $1,000 a year. That out-of-pocket limit is scheduled to expire on Jan. 1. So what will my Revlimid cost me next year?

The answers I got ranged from $20 a month to $17,000 a year. One of the first people I phoned said that no matter what I heard, I wouldn’t know the cost until I filed a claim in January. Seventy phone calls later, that may still be the most reliable thing anyone has told me.

Like around 47 million other Medicare beneficiaries, I have until this Friday, Dec. 7, when open enrollment ends, to choose my 2013 Medicare coverage, either through traditional Medicare or a private insurer, as well as my drug coverage — or I will risk all sorts of complications and potential late penalties.

But if a seasoned personal-finance journalist can’t get a straight answer to a simple question, what chance do most people have of picking the right health insurance option?

A study published in the journal Health Affairs in October estimated that a mere 5.2 percent of Medicare Part D beneficiaries chose the cheapest coverage that met their needs. All in all, consumers appear to be wasting roughly $11 billion a year on their Part D coverage, partly, I think, because they don’t get reliable answers to straightforward questions.

Here’s a snapshot of my surreal experience:

NOV. 7 A packet from Time Warner informs me that the company’s new 2013 Retiree Health Care Plan has “no out-of-pocket limit on your expenses.” But Erin, the person who answers at the company’s Benefits Service Center, tells me that the new plan will have “no practical effect” on me. What about the $1,000-a-year cap on drug costs? Is that really being eliminated? “Yes,” she says, “there’s no limit on out-of-pocket expenses in 2013.” I tell her I think that could have a major effect on me.

Next I talk to David at CVS/Caremark, Time Warner’s new drug insurance provider. He thinks my out-of-pocket cost for Revlimid next year will be $6,900. He says, “I know I’m scaring you.”

I call back Erin at Time Warner. She mentions something about $10,000 and says she’ll get an estimate for me in two business days.

NOV. 8 I phone Medicare. Jay says that if I switch to Medicare’s Part D prescription coverage, with a new provider, Revlimid’s cost will drive me into Medicare’s “catastrophic coverage.” I’d pay $2,819 the first month, and 5 percent of the cost of the drug thereafter — $563 a month or maybe $561. Anyway, roughly $9,000 for the year. Jay says AARP’s Part D plan may be a good option.

NOV. 9 Erin at Time Warner tells me that the company’s policy bundles United Healthcare medical coverage with CVS/Caremark’s drug coverage. I can’t accept the medical plan and cherry-pick prescription coverage elsewhere. It’s take it or leave it. Then she puts CVS’s Michele on the line to get me a Revlimid quote. Michele says Time Warner hasn’t transferred my insurance information. She can’t give me a quote without it. Erin says she will not call me with an update. I’ll have to call her.

My oncologist’s assistant steers me to Celgene, Revlimid’s manufacturer. Jennifer in “patient support” says premium assistance grants can cut the cost of Revlimid to $20 or $30 a month. She says, “You’re going to be O.K.” If my income is low enough to qualify for assistance.

NOV. 12 I try CVS again. Christine says my insurance records still have not been transferred, but she thinks my Revlimid might cost $17,000 a year.

Adriana at Medicare warns me that AARP and other Part D providers will require “prior authorization” to cover my Revlimid, so it’s probably best to stick with Time Warner no matter what the cost.

But Brooke at AARP insists that I don’t need prior authorization for my Revlimid, and so does her supervisor Brian — until he spots a footnote. Then he assures me that it will be easy to get prior authorization. All I need is a doctor’s note. My out-of-pocket cost for 2013: roughly $7,000.

NOV. 13 Linda at CVS says her company still doesn’t have my file, but from what she can see about Time Warner’s insurance plans my cost will be $60 a month — $720 for the year.

CVS assigns my case to Rebecca. She says she’s “sure all will be fine.” Well, “pretty sure.” She’s excited. She’s been with the company only a few months. This will be her first quote.

NOV. 14 Giddens at Time Warner puts in an “emergency update request” to get my files transferred to CVS.

Frank Lalli is an editorial consultant on retirement issues and a former senior executive editor at Time Warner’s Time Inc.

Read More..