Taliban popular where US fought biggest battle


MARJAH, Afghanistan (AP) — Nearly three years after U.S.-led forces launched the biggest operation of the war to clear insurgents, foster economic growth and set a model for the rest of Afghanistan, angry residents of Helmand province say they are too afraid to go out after dark because of marauding bands of thieves.


And during the day, they say corrupt police and government officials bully them into paying bribes. After 11 years of war, many here long for a return of the Taliban. They say that under the Taliban, who routinely punished thieves by cutting off a hand, they were at least safe from crime and corruption.


"If you had a box of cash on your head, you could go to the farthest part of Marjah and no one would take it from you, even at night," said Maulvi Daoud, who runs a cubbyhole sized-shop in the town of Marjah. "Today you bring your motorcycle in front of your shop and it will be gone. Now the situation is that you go on the road and they are standing in police and army uniform with weapons and they can take your money."


It was in the town of Marjah in early 2010 that some 15,000 NATO and Afghan forces waged the war's biggest battle. They not only fought the Taliban with weapons, they promised to bring good governance to Marjah and the rest of the southern province of Helmand — and demonstrate to the residents the advantages of shunning the militants.


But it appears the flaw in the plan was with the quality of Afghans chosen by President Hamid Karzai to govern and police the area after most of the fighting ended. And that adds to growing doubts about the entire country's future after foreign troops withdraw by the end of 2014.


Despite military claims of gains across the province and an overall drop in violence, Marjah residents told The Associated Press that NATO's counterinsurgency experiment has failed. A bleak picture also emerges from anecdotal evidence collected from dozens of interviews with residents elsewhere in the province, some from the most violent districts.


Many claim the U.S.-funded local police, a type of locally sanctioned militia, routinely demand bribes and threaten to accuse those who do not comply of being members of the Taliban. Good governance never came to Marjah, they say.


In villages of sun-baked mud homes, at crowded bus stops and in local tea houses where residents sit cross-legged on plastic-covered tables drinking tea and eating off communal plates, people scoffed at claims of security and development. They heaped criticism on the Afghan government and officials, accusing them of stealing billions of dollars in aid money meant for the people and on an international community that they said ignored their needs and pandered to a corrupt administration.


Daoud, the Marjah shop owner, said there was more security under the country's Taliban regime that was ousted by the U.S.-led invasion in late 2001.


"They were never cruel to us and the one difference was security. It was better during the Taliban," he said.


His partner in the rickety shop along Marjah's chaotic one-street bazaar, Mohammed Haider, said poppy farmers who planted substitute crops such as cotton are losing money because they cannot sell their harvests. He predicted poppy production would double when foreign soldiers leave in 2014.


At a bus stop in Helmand's provincial capital of Lashkar Gah, residents scrambled for dilapidated old buses and cars to go to parts of Helmand. Hamidullah, who like many Afghans uses only one name, was waiting for a bus to Sangin district — the scene of some of the most violent fighting between the Taliban and British and U.S. forces.


Like the majority of those at the stop, he wanted foreign forces to leave Afghanistan.


"All these foreign soldiers are here and it is totally insecure everywhere in Helmand," Hamidullah said. "For the time that they are in Afghanistan we will always have war."


Several of the men scrambling on top the packed buses and jamming themselves into the back of cars seemed to growl at the presence of foreigners in their midst. A single question: "What is the situation like in Helmand today?" brought a cacophony of answers. Many of the voices sounded angry, some sounded weary and a few angry-looking men walked away.


"We are completely destroyed today," said Hamidullah.


"The situation is getting worse and worse," shouted a voice in the crowd. Another yelled: "There is no security because of the foreigners." And from a deeply wrinkled elderly man whose voice seemed both angry and sad: "If the foreigners are out of Afghanistan, all the problems will be solved. Are our lives any better?"


Analysts who know Helmand say a corrupt government poses one of the biggest hurdles to stability, alienating the local population and driving them into the hands of the Taliban.


The province is strategically important because of a massive poppy production that is financing the insurgency and fueling criminal activity. While some success has been achieved at getting farmers to plant substitute crops, Helmand is still one of Afghanistan's largest opium-producing provinces, often blamed on anti-government sentiment and collusion between corrupt government officials and the Taliban.


The NATO-led coalition, known as the International Security Assistance Force, claims there are tangible gains against the Taliban in Helmand and neighboring Kandahar province.


"While insurgent activity remains problematic in several districts, primarily in northern Helmand and western Kandahar, data from the battle space shows a marked decrease in overall enemy activity," ISAF spokesman Jamie Graybeal said recently.


Despite a drop of 8 percent in militant attacks from January to October compared to the same period last year, Helmand and neighboring Nimroz province accounted for 32 percent of all such attacks reported across the country from October 2011 to October this year, according to ISAF.


Ryan Evans, a research fellow at the U.S.-based Center for National Policy, called Helmand the "most dangerous and violent" of Afghanistan's 34 provinces.


"From 2010 to early 2012, one of five ISAF soldiers was killed in this one province — Helmand. And the province has since taken more lives and limbs than any other province," said Evans, who worked with U.S. and British troops in Helmand during 2010 and 2011.


The larger question, of course, is whether what's happening in Helmand is a harbinger of what the rest of Afghanistan will look like after the departure of the international troops.


A report released last month by the British Parliament's International Development Committee offered grim statistics.


Afghanistan continues to be one of the poorest countries in the world, with the average person earning less than one dollar a day despite $32 billion in foreign investment.


The country has also tumbled in corruption ratings assembled by Transparency International. Afghanistan was ranked 117 out of 158 countries in 2005, then slid to 180 out of 183 nations last year. The scandal-ridden Kabul Bank milked millions of dollars from Afghans' savings.


Some Afghans believe their countrymen are responsible for the current state of affairs.


Haji Khalil who moved his family from Marjah to Lashkar Gah during the 2010 offensive, blamed Afghans for the spike in thefts and lawlessness since the defeat of the Taliban.


"During the Taliban no one would steal because we knew the punishment, but when they left everyone began to steal," Khalil said.


"We became worse after the Taliban," he said. "The problem is with us."


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Kathy Gannon is AP's Special Regional Correspondent for Afghanistan and Pakistan. She can be followed on www.twitter.com/kathygannon


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Obama election tweet most repeated but Olympics tops on Twitter






(Reuters) – An election victory tweet from President Barack Obama — “Four more years” with a picture of him hugging his wife — was the most retweeted ever, but the U.S. election was topped by the Olympics as the most tweeted event this year.


Obama’s tweet was retweeted (repeated) more than 810,000 times, Twitter said as it published a list of the most tweeted events in 2012. (http://2012.twitter.com/)






“Within hours, that Tweet simultaneously became the most retweeted of 2012, and the most retweeted ever. In fact, retweets of that simple message came from people in more than 200 countries around the world,” Twitter spokeswoman Rachael Horwitz said.


Twitter users were busiest during the final vote count for the presidential elections, sending 327,452 tweets per minute on election night on their way to a tally of 31 million election tweets for the day.


The 2012 Olympic Games in London had the most overall tweets of any event, with 150 million sent over the 16 days.


Usain Bolt’s golden win in the 200 meters topped 80,000 tweets per minute but he did not achieve the highest Olympic peak on Twitter. That was seen during the closing ceremony when 115,000 tweets per minute were sent as 1990s British pop band the Spice Girls performed.


Syria, where a bloody civil war still plays out, was the most talked about country in 2012 but sports and pop culture dominated the tally of tweets.


Behind Obama was pop star Justin Bieber. His tweet, “RIP Avalanna. i love you” sent when a six-year-old fan died from a rare form of brain cancer, was retweeted more than 220,000 times.


Third most repeated in 2012 was a profanity-laced tweet from Green Bay Packers NFL player TJ Lang, when he blasted a controversial call by a substitute referee officiating during a referee dispute. That was retweeted 98,000 times.


This was the third year running that the microblogging site published its top Twitter trends, offering a barometer to assess the biggest events in social media.


Superstorm Sandy, which slammed the densely populated U.S. East Coast in late October, killing more than 100 people, flooding wide areas and knocking out power for millions, attracted more than 20 million tweets between October 27 and November 1.


European football made the list of top tweets when Spain’s Juan Mata scored as his side downed Italy 4-0 in the Euro 2012 final — sparking 267,200 tweets a minute.


News of pop star Whitney Houston‘s death in February generated more than 10 million tweets, peaking at 73,662 per minute.


Romantic comedy “Think Like a Man” was the most tweeted movie this year, topping “The Hunger Games”, “The Avengers” and “The Dark Knight Rises.”


Rapper Rick Ross who notched his fourth No. 1 album on the Billboard 200 chart this year, was the most talked about music artist.


(Editing by Rodney Joyce)


Internet News Headlines – Yahoo! News


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Lawsuit claims A&E's 'Storage Wars' show is rigged


LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E's "Storage Wars" have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.


David Hester's suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley's death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.


Hester is seeking more than $750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.


"Storage Wars" follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.


"A&E regularly plants valuable items or memorabilia," the lawsuit states. Hester's suit claims he was fired from participating in the series' fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.


He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.


"Storage Wars" depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.


Hester, known as "The Mogul" on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.


Nielsen Co. has ranked "Storage Wars" among cable television's top-ranked shows several times since its 2010 debut.


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APNewsBreak: DA investigating Texas cancer agency


AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.


Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.


Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.


His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.


CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.


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


The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.


Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.


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


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W.Va. natural gas line explosion melts road, burns homes


SISSONVILLE, W.Va. (AP) — At least five homes went up in flames Tuesday afternoon and a badly burned section of Interstate 77 in West Virginia was closed after a natural gas line exploded in an hour-long inferno.


No injuries were immediately reported, but firefighters had just begun to reach damaged structures late in the afternoon after the intense flames kept them at bay for several hours.


Several people were treated for smoke inhalation, and a shelter was set up at Sissonville High School, where Gov. Earl Ray Tomblin planned a late-afternoon press conference


State Police spokesman Sgt. Michael Baylous said a slight risk of a secondary explosion remained, but people were told to stay inside their homes rather than evacuate. The explosion occurred near Sissonville just before 1 p.m. in a 20-inch transmission line owned by NiSource Inc., parent of Columbia Gas.


The gas flow was shut off, but 1st Sgt. James Lee said there was still pressure on the transmission line.


"The gas company is doing a check on it now," he said.


Kent Carper, president of the Kanawha County Commission, said flames had been shooting 50 to 75 feet into the air before the fire was extinguished.


"It sounded like a Boeing 757. Just a roar," he said. "It was huge. You just couldn't hear anything. It was like a space flight."


Trevor Goins lives about a half-mile from the explosion and was watching television in his apartment when he saw a ripple in his coffee cup and the floor shook.


"I thought possibly (it was) a plane crash," said Goins, who immediately went outside with several neighbors. "It was so loud it sounded like a turbine engine. You almost had to put your hands over your ears."


He got in his car and drove closer, seeing fire that stretched as high as the hilltops.


"The flames were so high, they were so massive," he said. "I could only imagine what had happened"


Carper said the flames spanned about a quarter of a mile and ran through a culvert under the interstate.


"It actually cooked the interstate," he said. "It looks like a tar pit."


The interstate will be shut down for two days while engineers and inspectors repair the damage and assess whether a bridge was compromised, said State Police Sgt. Chris Zerkle. Route 21 will also be closed until further notice, he said.


Zerkle said a State Police helicopter team was going up to ascertain the extent of the damage while a command center was being set up nearby.


Mike Banas, communications manager for NiSource, said the company was still gathering facts.


"Our first priority is the safety of our employees and the community," he said, adding that no impacts on customers are anticipated.


Sissonville Fire Chief Tim Gooch said a nursing home is less than a mile from the site of the blast, but the patients are safe. Paramedics were sent to check on them as a precaution.


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Smith reported from Morgantown.


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Australian DJs apologize for royal hoax call


SYDNEY (AP) — They say they expected a hang-up and a few laughs. Instead, the Australian DJs behind a hoax phone call to the London hospital where the pregnant Duchess of Cambridge was being treated were deeply apologetic Monday as they described how their joke ended up going too far.


The phone call — in which they impersonated Queen Elizabeth II and Prince Charles — went through, and their station broadcast and even trumpeted the confidential information received. Whatever pride there had been over the hoax was obliterated by worldwide public outrage after Friday's death of Jacintha Saldanha, the first nurse they talked to.


"There's not a minute that goes by that we don't think about her family and what they must be going through," 2DayFM radio host Mel Greig told Australia's "A Current Affair," her voice shaking. "And the thought that we may have played a part in that is gut-wrenching."


Police have not disclosed the cause of Saldanha's death, but many have assumed it was related to the stress from the call. An autopsy is being held Tuesday.


Prime Minister David Cameron said at a luncheon Monday that "the suicide of this nurse, who worked incredibly hard and obviously was incredibly dedicated ... is an absolute tragedy."


His office later said Cameron's comment was not an official acknowledgment that the death was a suicide.


Greig and co-host Michael Christian spoke publicly about the prank for the first time in the televised interview. Another interview on rival show "Today Tonight" also aired Monday.


The hoax has sparked broad outrage, with the hosts receiving death threats and demands they be fired.


The radio station's owner said Greig and Christian were receiving psychological counseling to deal with the tragedy. A British lawmaker said he wished that much was being done for Saldanha's grieving family.


"They are devastated by what has happened," said Labour legislator Keith Vaz, who has visited Saldanha's husband and two children at their home in Bristol, southwest England.


"They want the facts to be established so that they can effectively grieve," Vaz said. "What is needed, clearly, is an inquiry by the hospital into how this tragic case happened."


Both DJs apologized for the hoax and cried when asked about the moment they learned that the Saldanha was dead. But neither described having reservations before the hoax tape was broadcast; they said higher-ups at the station had made the decision to air it.


"We didn't have that discussion," Greig said.


Southern Cross Austereo, the parent company of 2DayFM, released a statement Monday saying that Greig and Christian's show had been terminated and there would be a company-wide suspension of prank calls. The DJs themselves remain suspended.


Saldanha, 46, had transferred their call last week to a fellow nurse caring for the duchess, who was being treated for acute morning sickness at King Edward VII Hospital in London. That nurse said the former Kate Middleton "hasn't had any retching with me and she's been sleeping on and off."


Three days later, Saldanha was found dead at the hospital's nurses' accommodation.


The DJs said when the idea for the call came up in a team meeting, no one expected that they would actually be put through to the duchess' ward.


"We just assumed we'd get cut off at every single point and that'd be it," Christian said.


"The joke 100 percent was on us," he said. "The idea was never, 'Let's call up and get through to Kate,' or 'Let's speak to a nurse.' The joke was our accents are horrible, they don't sound anything like who they're intended to be."


Southern Cross Austereo CEO Rhys Holleran has called Saldanha's death a tragedy but defended the prank as a standard part of radio culture. He has also insisted the station had not broken any laws. He told Fairfax Radio on Monday that his station had tried at least five times to contact the London hospital to discuss the prank before it aired, but never succeeded.


When asked why the company made the attempts, Holleran replied "because we did want to speak with them about it." When pressed as to whether this meant the station had reservations about the pre-recorded prank, Holleran said only, "I think that that's a process that we follow and we have checks and balances on all those things."


The King Edward VII Hospital denied that its management had been contacted by the radio station.


"Following the hoax call, the radio station did not speak to anyone in the hospital's senior management or anyone at the company that handles our media inquiries," the hospital said in a statement.


It also announced a memorial fund to help support the nurse's family, with the hospital making the first donation.


Saldanha's children and husband, Ben Barboza, on Monday visited the hospital, which said it was offering assistance to the family.


Barboza expressed his sadness on his Facebook page with a short note "Obituary Jacintha."


"I am devastated with the tragic loss of my beloved wife Jacintha in tragic circumstances," he wrote. He said she will be laid to rest in Shirva, India.


Meanwhile, there were indications that the Duchess of Cambridge still struggled with acute morning sickness over the weekend when her husband, Prince William, cancelled a Sunday night engagement.


Palace officials said no final decision had been made on whether Kate would attend Wednesday's British premiere of "The Hobbit," where she and William are to be the guests of honor.


___


Associated Press writers Jill Lawless, Gregory Katz and Danica Kirka in London contributed to this report.


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New leaks suggest Microsoft Office for iOS could launch soon






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'Skyfall' launches back to top spot with $10.8M


LOS ANGELES (AP) — The James Bond blockbuster "Skyfall" has risen back to the No. 1 spot at the weekend box office, taking in $10.8 million.


That brought its domestic total to $261.4 million and its worldwide haul to a franchise record of $918 million.


The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:


1. "Skyfall," Sony, $10,780,201, 3,401 locations, $3,170 average, $261,400,281, five weeks.


2. "Rise of the Guardians," Paramount, $10,400,618, 3,639 locations, $2,858 average, $61,774,192, three weeks.


3. "The Twilight Saga: Breaking Dawn — Part 2," Summit, $9,156,265, 3,646 locations, $2,511 average, $268,691,029, four weeks.


4. "Lincoln," $8,916,813, 2,014 locations, $4,427 average, $97,137,447, five weeks.


5. "Life of Pi," Fox, $8,330,764, 2,946 locations, $2,828 average, $60,948,293, three weeks.


6. "Playing For Keeps," FilmDistrict, $5,750,288, 2,837 locations, $2,027 average, $5,750,288, one week.


7. "Wreck-It Ralph," Disney, $4,859,368, 2,746 locations, $1,770 average, $164,402,934, six weeks.


8. "Red Dawn," FilmDistrict, $4,236,105, 2,754 locations, $1,538 average, $37,240,920, three weeks.


9. "Flight," Paramount, $3,130,305, 2,431 locations, $1,288 average, $86,202,541, six weeks.


10. "Killing Them Softly," Weinstein Co., $2,806,901, 2,424 locations, $1,158 average, $11,830,638, two weeks.


11. "Silver Linings Playbook," Weinstein Co., $2,171,665, 371 locations, $5,854 average, $13,964,405, four weeks.


12. "Anna Karenina," Focus, $1,544,859, 422 locations, $3,661 average, $6,603,042, four weeks.


13. "The Collection," LD Entertainment, $1,487,655, 1,403 locations, $1,060 average, $5,455,328, two weeks.


14. "Argo," Warner Bros., $1,482,346, 944 locations, $1,570 average, $103,160,015, nine weeks.


15. "End of Watch," Open Road Films, $751,623, 1,259 locations, $597 average, $39,989,766, 12 weeks.


16. "Hitchcock," Fox Searchlight, $712,544, 181 locations, $3,937 average, $1,661,670, three weeks.


17. "Talaash," Reliance Big Pictures, $449,195, 161 locations, $2,790 average, $2,397,909, two weeks.


18. "Taken 2," Fox, $387,227, 430 locations, $901 average, $137,700,304, 10 weeks.


19. "Pitch Perfect," Universal, $305,765, 387 locations, $790 average, $63,517,408, 11 weeks.


20. "The Sessions," Fox, $218,973, 197 locations, $1,112 average, $4,948,342, eight weeks.


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Online:


http://www.hollywood.com


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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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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Obama blasts Michigan right-to-work bills


President Barack Obama at the Daimler Detroit Diesel plant in Redford, Mich., on Monday. (Jason Reed/Reuters)


President Barack Obama traveled to the Daimler Detroit Diesel plant in Redford, Mich., Monday to issue a speech on the economy, pressure Republicans in Congress to raise taxes on the nation's top earners, and highlight Daimler's new $120 million investment in the plant.


But it was the president's criticism of Michigan's right-to work legislation that stole the show for the audience of Daimler union employees.


"What we shouldn't be doing is trying to take away your rights to bargain for better wages," the president told the audience, which immediately roared with cheers, applause and whistles. "These so-called right-to-work laws, they don't have to do with economics, they have everything to do with politics." They're about "giving you the right to work for less money," he added, noting that Michigan's history shows how unions have helped "build a better America."


New state right-to-work legislation, which forbids requiring all employees who benefit from a labor contract to pay union dues, is scheduled to move through the Michigan Legislature for final action this week. Republican Gov. Rick Snyder has pledged to sign the final version.


Activists have mobilized against the legislation, which they view to be an anti-union effort, resulting in a state Capitol lockdown last Thursday.


The president's comments Monday were his first public statements on the situation in Michigan.
His appearance was pegged to Daimler's announcement of its investment in the Detroit Diesel plant, which created 115 good, new "union" jobs, the president said. "That's great for this plant, good for this community, but it's also good for American manufacturing."


The president highlighted the plant as a symbol of how American manufacturing and auto industries are rebounding and growing in the new global economy.


"The competitive balance is tipping a little," the president said.


Obama appealed to the audience, which he characterized as middle-class, on the issue of the "fiscal cliff" by warning that the average middle-class family stands to pay $2,200 more in taxes next year if the automatic spending cuts and tax increases go into effect Jan. 1.


The president said America will head into a "downward spiral" if this happens, and placed the onus once again on Republicans to resolve the crisis by agreeing to raise taxes on households making more than $250,000.


"We've got to get past this whole situation where we've manufactured crises because of politics," Obama said.


Obama met Sunday with House Republican Speaker John Boehner, the GOP's lead voice on "fiscal cliff" negotiations, but no details of that conversation have been offered.


White House spokesman Jay Carney, during Monday's briefing on Air Force One en route to Michigan, also would not reveal any information. "I won't characterize yesterday's meeting or other conversations, but the president does believe we can reach an agreement," Carney said.



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