Archive for January 21st, 2011

Oklahoma becomes the 27th state to sue ObamaCare as unconstitutional.

January 21, 2011

Previously, we posted that a 26-state majority was suing over the constitutionality of ObamaCare mandates.

Make that 27 …

Governor Mary Fallin announced last night that Oklahoma will file a lawsuit against the new healthcare law.

Instead of joining the 25 states in the Florida suit or Virginia in its free-standing lawsuit, Oklahoma will sue on the grounds that the federal healthcare law violates the new constitutional amendment just approved by Oklahoma voters.

Oklahoma State Question 756 changed Oklahoma’s constitution to say Oklahomans can’t be required to participate in any healthcare system – be it Federal or State dictated.

For those keeping score …

  • The Congress voted for repeal.
  • 27 states are suing to have the law ruled unconstitutional
  • 55% of Likely Voters favor repeal of the health care law (according to Rasmussen)

But, Reid says “no up or down vote” and Obama says “veto”.

So much for “government by the people, for the people” …

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Posted in Health Care / Medical Insurance | 1 Comment »

Blame it on those profiteering health insurance companies … oops, wait a minute.

January 21, 2011

There’s still a lot of chatter about how evil health insurance companies are causing health care costs to continue to soar.  The implication is that the increases are largely attributable to their expanding profit margins and astronomical exec bonuses.

Then, a WSJ op-ed got me thinking.

The punch line: Blue Shield of California announced that it was upping premiums by as much as 39% to cover increases in the underlying cost of health care and the added costs of ObamaCare – e.g. coverage for adult children and pre-existing conditions.

Here’s the rub: Blue Shield of CA is a not-for-profit insurer. All they do is collect premiums and pay health providers – and try to breakeven at the end of the year. So, their premium increases can’t be demonized as profiteering. If they have to pay more out, they simply adjust premiums to cover the difference.

Got me wondering:  how much of the health insurance business is handled by not-for-profits?

About 275 million Americans have health insurance … roughly 1/3 of them are covered by Medicare or Medicaid.

Since the gov’t doesn’t engage in profiteering, we can dismiss 1/3 of insureds and half of health care expenditures as irrelevant to the profiteering argument.

OK, we’re down to 200 million insureds.

There are plenty of NFP insurance companies, but the biggie is Blue Cross / Blue Shield.

From their web site: Health plan providers affiliated with the Blue Cross and Blue Shield Association (BCBSA) — known as “the Blues” — serve more than 100 million members nationwide.

So, at most, for profit health insurance companies cover about 1/3 of all insureds – and handle less than 1/4 of all health care expenditures.

Looks to me, like premiums are going up because healthcare costs are going up … not because of profiteering.

Maybe I’m missing something …

Posted in Health Care / Medical Insurance | 2 Comments »

Starbucks Wants “In” in India

January 21, 2011

TakeAway: Starbucks unveiled an alliance Thursday with India’s flagship conglomerate, Tata Group, a wide-ranging company that owns everything from Jaguar cars to steel mills and tea plantations.  This move is designed to pave the way for retail locations and to sell more Indian coffee world-wide.  The alliance is with India’s Tata Coffee Ltd. unit, which owns the Eight O’Clock Coffee Co. in the U.S. and is a big coffee producer in India. 

Starbucks’s success will depend on its adaptability to local tastes, but plans to stick to its strategy of being a “third place” for young Indians. 

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Excerpted from WSJ, “Starbucks Brews Plan to Enter India” By Paul Beckett and Vibhuti Agarwal and Julie Jargon, January 14, 2011

India remains one of the big untapped markets for Starbucks.  Chairman Howard Schultz said India could one day rival China, where the company recently announced plans to more than triple the number of outlets to about 1,500 in five years.

Although known as a land of tea, India is also a major coffee exporter—the fifth-largest in the world, according to the USDA.  Indians have been flocking to coffee themselves as well. Overall domestic consumption rose to an estimated 94,400 metric tons in 2008, up almost 90% since 1998, according to Indian government figures. Much of that has been driven by quick-service, comfortable cafes that are Starbucks’s specialty.

Mr. Schultz said one of the reasons for the alliance is to raise the profile and use of Indian premium Arabica beans in Starbucks stores elsewhere. The first phase of the alliance involves sourcing and roasting beans.

The companies also are considering the opening of Starbucks outlets in Tata retail locations and hotels, Mr. Schultz said. Tata’s Taj hotels are among the most upscale in India and include the landmark Taj Mahal Palace & Tower besieged in the 2008 Mumbai terror attacks.

In recent years, many brands have been expanding as greater exposure to western culture has boosted their appeal among young people and a growing middle class. Starbucks had been looking for a partner in India since about 2007.

Some Indian consumers in New Delhi welcomed the prospect of Starbucks’s arrival, while others see it as a status symbol for the elite.

Edit by AMW

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Full Article:
http://online.wsj.com/article/SB10001424052748703583404576079593558838756.html?mod=dist_smartbrief
 


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Posted in Mktg - Market Development | 1 Comment »