One thing leads to another: Despite the promise of coverage through the U.S. Affordable Care Act, the number of people applying for non-compliant, short-term health insurance policies was up more than 100% in 2014, according to new data available from companies that broker these policies. As Reuters reports, this type of health insurance is exactly the kind that the ACA was supposed to upgrade. Short-term plans provide low-cost coverage for major medical events such as hospital stays, with high deductibles and out-of-pocket costs, and are subject to denial if applicants have pre-existing conditions. They do not offer the protections of ACA for preventive care or maternity coverage, for example. The government does not count these gap plans as qualifying health insurance, so people who have them are subject to penalties for being uninsured. Read the full story.
Beige is the color: The U.S. economy was growing at a moderate pace in most regions of the country in April and May, as consumers ramped up spending at retailers and auto dealers, the Federal Reserve announced today. In its latest Beige Book survey of business conditions around the country, the Fed says that manufacturing activity held steady or increased, except in the energy industry. Some companies laid off workers and cut back on drilling activities in response to the big fall in oil prices over the past year. The Fed report will be reviewed by officials at the Fed’s next meeting June 16-17 meeting. Economists expect the central bank to delay any rate hike until they see more signs of an economic rebound. The Associated Press has the full story.
The silver lining: A handful of oil companies have expressed a renewed sense of optimism as U.S. crude has hovered around $60 a barrel, with some saying they even have raised their annual production forecasts, according to Barclays. In a report on mid-cap oil producers released today, Barclays says the oil companies—especially those in the Permian Basin and the Appalachian region—say they’re more upbeat about their cash levels and their ability to spend more on drilling. The bank says it has reason to believe more productive wells, lower costs and easy access to capital could keep U.S. production elevated even amid cheap oil. “We believe capital spending plans have not fully incorporated cost savings that may be realized from lower service costs and efficiency gains,” Barclays’ analysts write. That “may result in lower spending and/or improved capital efficiency later this year.” FuelFix.com has the full story.
