The financial damage the largest IT outage in history caused by CrowdStrike software glitch

Airport-CrowdStrike-outage

Important Takeaways:

  • What’s been described as the largest IT outage in history will cost Fortune 500 companies alone more than $5 billion in direct losses, according to one insurer’s analysis of the incident published Wednesday.
  • The new figures put into stark relief how a single automated software update brought much of the global economy to a sudden halt — revealing the world’s overwhelming dependence on a key cybersecurity company — and what it will take to recover.
  • The health care and banking sectors were the hardest hit by CrowdStrike’s mishap, with estimated losses of $1.94 billion and $1.15 billion, respectively, said Parametrix, the cloud monitoring and insurance firm behind Wednesday’s analysis.
  • Fortune 500 airlines such as American and United were the next most affected, losing a collective $860 million
  • All told, the outage may have cost Fortune 500 companies as much as $5.4 billion in revenues and gross profit, Parametrix said, not counting any secondary losses that may be attributed to lost productivity or reputational damage.

Read the original article by clicking here.

Bill Gates supports decision to give WHO authority over our Health Care in case of future pandemic

Bill Gates

William Penn – “If we are not governed by God, then we will be Governed by a tyrant”

Important Takeaways:

  • Bill Gates Calls for Sovereign Nations to Surrender Health Authority to WHO
  • Gates argues that the WHO should be viewed as a “fire department for pandemics” that seizes control of nations on a global level during health emergencies.
  • Speaking in a New York Times op-ed published Sunday, Gates voiced his support for the WHO’s Global Pandemic Treaty.
  • The WHO’s treaty will essentially establish an unelected global regime that will override local laws with global protocols if the United Nations agency declares a health emergency.
  • The organization argues that a single governing body is essential for handling future pandemics.
  • All 194 of the WHO member nations are set to vote on the amendments and finalize the new treaty by May 2024.
  • Democrat President Joe Biden has already confirmed that he plans to approve and sign the amendments and is pushing to do so without congressional approval.

Read the original article by clicking here.

Missouri lawmakers push bill to save children from gender transition procedures

Ephesians 6:13 “Therefore take up the whole armor of God, that you may be able to withstand in the evil day, and having done all, to stand firm.”

Important Takeaways:

  • Missouri lawmakers move forward with bills targeting transgender youth health care, sports
  • The Republican-led House voted to push forward in a committee this week with HB 2649 or the “Missouri Save Adolescents from Experimentation (SAFE) Act,” which bars physicians and health care professionals employed by state and local governments from providing “gender transition procedures” to anyone under the age of 18. It also prohibits state or locally-run facilities from performing the procedure on minors.
  • The legislature also voted for an amendment to HB 1973, which would require transgender students in high school to play on the sports teams of the same biological sex listed on their birth certificate.
  • The SAFE Act also states that any health carrier or health benefit plan on or after Jan. 1, 2023, will not include reimbursement for gender transition procedures for an individual under 18 years of age, nor will it be required to provide coverage for gender transition procedures.
  • Both bills will move forward and await to be heard on the floor in front of the full chambers.

Read the original article by clicking here.

Another Warning about Cyberattack from White House Official

Revelations 6:3-4 “ when he opened the second seal, I heard the second living creature say, “Come!” 4 And out came another horse, bright red. Its rider was permitted to take peace from the earth, so that people should slay one another, and he was given a great sword.

Important Takeaways:

  • White House warns Russia prepping possible cyberattacks against US
  • The White House on Monday urged private companies to bolster their cyber defenses, citing evolving intelligence suggesting the Russian government is exploring “options for potential cyberattacks” targeting U.S. critical infrastructure.
  • The administration has warned in recent weeks that Russia could look to target infrastructure in the U.S. or elsewhere with cyberattacks, but officials previously said there were no specific or credible threats against the U.S.
  • Neuberger would not say Monday which specific critical infrastructure sectors could be targeted. Critical infrastructure encompasses a range of sectors, including water, energy, health care, and financial services.

Read the original article by clicking here.

Factbox: Latest on the spread of the coronavirus around the world

(Reuters) – Reported cases of the coronavirus have crossed 2.18 million globally and 147,265 people have died, according to a Reuters tally as of 1400 GMT on Friday.

DEATHS AND INFECTIONS

– For an interactive graphic tracking the global spread, open https://tmsnrt.rs/3aIRuz7 in an external browser.

– For a U.S.-focused tracker with state-by-state and county map, open https://tmsnrt.rs/2w7hX9T in an external browser.

AMERICAS

– The U.S. Secretary of State said nations should rethink adopting Huawei’s 5G networks in their telecommunications infrastructure, due to China’s role in the pandemic.

– Some Venezuelan public health workers told Reuters the nation’s rickety health care system is ill-prepared to confront the pandemic, with a nationwide testing program dependent on a single, overstretched Caracas lab.

– Honduras’ health minister said that a Cuban medical brigade would join local medics to fight the coronavirus.

– Mexico’s deputy health minister, Hugo Lopez-Gatell, said the country might have as many as 55,951 people infected, twice the estimated number reported last week.

– Brazilian President Bolsonaro fired his health minister and again called for states to end stay-at-home orders. He also accused a house speaker of turning state governors against him and seeking to remove him from office.

EUROPE

– Britain was too slow to react on a number of fronts to the outbreak and 40,000 people could die, a leading public health professor told lawmakers on Friday, a day after the UK’s hospital death toll rose to 14,576.

– Switzerland urged residents against complacency as the country’s infection rate slows and lawmakers start relaxing restrictions.

– Germany’s health minister said the outbreak has become manageable again as the number of recovered patients has exceeded new infections every day this week.

– Moscow has more cases than state testing shows, private testing results among people without symptoms suggest.

ASIA-PACIFIC

– Nearly 1,300 people who died in the Chinese city of Wuhan, or half the total, were not counted in death tolls because of lapses, state media said on Friday, but Beijing dismissed claims that there had been any kind of cover-up.

– Singapore is assessing whether to place recovered migrant workers on cruise ships rather than back in dormitories that have become infection hotbeds, despite problems controlling onboard outbreaks encountered elsewhere.

– Japan said it hoped to start distributing relief payments next month, after extending a state of emergency nationwide.

– The number of infections in South Asia crossed 22,000 on Friday, driven by a rise in cases in India as the Maldives locked down its capital.

– Indonesia surpassed the Philippines on Friday as the country reporting the most infections in Southeast Asia.

MIDDLE EAST AND AFRICA

– The pandemic will likely kill at least 300,000 Africans and risks pushing 29 million into extreme poverty, the U.N. Economic Commission for Africa said, calling for a $100 billion safety net for the continent.

– Iran paraded medical gear to mark its national Army Day as the country’s death toll rose to 4,958. A parliamentary report released earlier this week said the death toll might be almost double the figures announced by the health ministry, and the number of infections eight to 10 times more.

– Saudi Arabia’s grand mufti said that Muslim prayers during Ramadan and the Eid al-Fitr feast should be performed at home if the outbreak continues.

– Israel is heading off shortages of disposable surgical masks by mass-producing washable versions sized to fit everyone from children to bearded men.

ECONOMIC FALLOUT

– World stock markets made a super-charged sprint towards a second straight week of gains on Friday after President Donald Trump laid out plans to gradually reopen the coronavirus-hit U.S. economy following similar moves elsewhere. [MKTS/GLOB]

– Oil prices were mixed on Friday as news of Trump’s plans was quickly overshadowed by China’s worst quarterly economic contraction on record.

– The International Monetary Fund said the economic fallout of the pandemic, combined with other problems, meant Latin America and the Caribbean would likely see “no growth” in the decade from 2015 to 2025.

– Chile´s export-driven economy will see a painfully slow recovery after being battered by mass protests and the coronavirus crisis, market watchers said.

– It is unclear whether measures designed to support the euro zone economy will be sufficient, Germany’s Bundesbank head told Bloomberg, adding that expansionary monetary and fiscal policies would remain necessary for some time.

– The outbreak will not affect China’s current account in the medium-to-long term, the foreign exchange regulator said on Friday.

– Saudi Arabia is facing the crisis with strong financial reserves and relatively low government debt, its finance minister said.

– Fourteen Japanese companies have scrapped plans for initial public offerings this month, more than in the aftermath of the Sept 2001 attacks on the United States.

– Britain’s financial watchdog has proposed a repayment freeze for millions of consumers with auto finance contracts, goods bought on high-cost credit, and pawned belongings.

(Compiled by Sarah Morland; Editing by Tomasz Janowski, Arun Koyyur and Nick Macfie)

Special Report: Death and politics roil a Georgia jail

FILE PHOTO: The Chatham County Jail sits at sunset in Savannah, Georgia, U.S., May 2, 2019. REUTERS/Shannon Stapleton

By Ned Parker, Jason Szep and Linda So

SAVANNAH, Ga. (Reuters) – In the summer of 2016, Georgia’s Chatham County hired jail monitor Steven Rosenberg with a mission: scrutinize the county jail’s healthcare services after a string of deaths.

In the previous 30 months, seven inmates had died at the Chatham County Detention Center, shaking public confidence. The last healthcare provider lost its contract in June 2016 after some of its own staff accused it of improper practices.

Chatham County sought a fresh start, signing a multiyear contract worth $7 million annually with a small Atlanta company, CorrectHealth LLC. The county wanted to know whether the new provider was taking the steps needed to prevent deaths.

But after several trips to the jail that summer through winter, Rosenberg’s team delivered four scathing reports. They described staff shortages, unclear health guidelines and failures to give inmates prescribed medications. Such failings, they warned, could trigger “potential loss of life.” Indeed, that September, six weeks before the second report was issued, an inmate strangled himself with a telephone cord. The death came after the monitors warned that the facility lacked written policies for suicidal inmates.

In late December, Rosenberg pressed CorrectHealth and Quick Rx, the jail’s pharmacy operator, to open their books for inspection; his firm was hired to assess the company’s compliance with the contract and tally penalties for shortcomings. Before the day was out, the county sheriff barred Rosenberg from the detention center.

Both companies were politically connected in Savannah. CorrectHealth, and its president’s wife had donated $5,000 to the election campaign of Chatham County Sheriff John Wilcher. CorrectHealth also had hired a state senator to run the jail’s dental clinic. And pharmacy operator Quick Rx was owned by a powerful member of the Georgia House of Representatives.

Rosenberg’s team was allowed back three weeks later, but the skirmish was the start of a standoff between the monitor on one side, and county and company on the other. Within a year, the county terminated the monitor’s contract, at the sheriff’s request, and waived $5 million in fines the monitor had recommended imposing on CorrectHealth. Wilcher rebuffed a plan to hire a new provider.

Instead, commissioners in June 2018 handed CorrectHealth a new three-year deal worth $22 million. During the bidding process, Reuters found, CorrectHealth shared inflated budget costs with its competitors, allowing it to make a cheaper offer.

FILE PHOTO: An inmate on suicide watch sits while prison officers talk to him at the Chatham County jail in Savannah, Georgia, February 21, 2019. REUTERS/Shannon Stapleton

FILE PHOTO: An inmate on suicide watch sits while prison officers talk to him at the Chatham County jail in Savannah, Georgia, February 21, 2019. REUTERS/Shannon Stapleton

The Chatham County Detention Center’s troubles offer a look into the challenges American communities face in holding accountable the private companies that have been entrusted with managing healthcare services at a growing number of jails and prisons. The failed reform effort in Savannah also speaks to the power of local politics, in a county where two state officials had a piece of the jail medical contract.

After the county terminated Rosenberg’s contract in October 2017, medical and guard staff shortages persisted and medicines continued to go missing. Six inmates have died – five by their own hands – since CorrectHeath took over three years ago.

Wilcher said in a February interview he was “happy” with CorrectHealth. He declined to answer all follow up questions and referred Reuters to the county attorney, who did not reply.

CorrectHealth did not respond to interview requests or questions sent in writing. Quick Rx told Reuters it won the work on merit, not politics.

The United States incarcerates more prisoners than any other wealthy democracy, and an increasing number of local jails, housing over 700,000 inmates, contract with for-profit healthcare companies. The companies offer local governments ways to control jail spending and manage a notoriously unhealthy population.

Yet the for-profit industry operates with little local or national oversight, monitored only if localities volunteer to seek review by non-government accrediting groups. Despite the Georgia jail’s continued problems with suicides, it received coveted accreditations from a national industry body for inmate medical and mental health care.

“Healthcare providers do what they want to do. There’s often nobody monitoring the contract,” said U.S. Justice Department consultant Steve Martin, a former Texas Corrections Department general counsel who has inspected some 500 prisons and jails.

FRIENDS IN HIGH PLACES

Carlo Musso, an emergency room doctor who founded CorrectHealth in 2000, has built an operation that now holds 41 contracts at jails across Georgia and Louisiana, with 2017 operating revenue of nearly $45 million. He is also a generous donor to politicians and sheriffs and a fundraising stalwart for the Georgia Sheriffs Association. Musso, his wife and companies donated $363,000 over a dozen years to Georgia politicians seeking state office, records show.

In Chatham County, Musso’s chance came in August 2015 when the jail’s healthcare contract opened for bidding. The relationship between the county and the jail’s previous medical provider, Corizon Health Inc, had deteriorated after a string of deaths, straining their ability to work together and ultimately leading to its loss of the contract. In a letter to the county, Corizon said it had been made a “scapegoat” for problems.

Musso promised sweeping change at the Chatham County Detention Center.

That November, the county sheriff at the time died of cancer, triggering a special election. Wilcher, a 40-year veteran of local law enforcement, won in March 2016. Pitching himself as a reformer, he vowed to “make the sheriff’s office great again.”

In June 2016, CorrectHealth won the deal, taking over the jail’s healthcare that August. The county viewed the new tender as a way to improve jail medical care. “The old contract really had no teeth in it,” said Roy Harris, the acting sheriff before Wilcher was elected.

The new contract set requirements for medical staffing and fines for failing to meet them. Intake screenings had to be completed within four hours or the company faced a $500 penalty per violation. Inmates had to receive medications within two hours of their prescription schedule; violations brought $100 fines per case.

As CorrectHealth won the job, Musso promised to retain the jail’s pharmacy firm, Quick Rx, owned by Ron Stephens, a titan of the state Republican Party and two-decade veteran of the Georgia House of Representatives.

Quick Rx had held the jail contract since the 1990s, but faced recent criticism. In 2014, jail medical staff said a pharmacy technician, not a licensed pharmacist, was taking prescription orders in violation of Georgia law, leading to medication errors. Quick Rx denied the allegation, saying it adheres to state laws.

Musso initially wanted to hire another drug supplier, not Stephens’ company, said Karen Cotton, a retired major in charge of jail operations in 2016 with first-hand knowledge of the negotiations. “It was a political thing. Musso had to back off,” she said.

Stephens said his company was hired because it provides “exceptional pharmacy services” at good rates. CorrectHealth did not respond to queries about the hiring.

Musso had also forged a partnership with another politician, State Senator Lester Jackson, a Democrat popular with Chatham’s black community, who had served on the Democratic National Committee from 2009 to 2012.

Jackson owned a dentistry practice, Atlantic Dental Associates, that worked with Musso across the state since 2014. Today, Atlantic runs dental services at 18 jails with CorrectHealth.

Atlantic landed the Chatham County jail’s $197,500 annual dental contract from CorrectHealth a few months before Jackson appeared in pamphlets for Sheriff Wilcher during the white Republican’s campaign for a full four-year term that November. The image of a smiling Jackson shaking the sheriff’s hand cut across racial and partisan lines in the largely Democratic county, which is 41% African-American. It was a blow to Wilcher’s rival, McArthur Holmes, a black Democrat.

“See how politics comes into this thing?” Holmes said in an interview.

Jackson said he did not formally endorse Wilcher, but considers him a friend and did not object to the use of his picture. Holmes never sought his endorsement, he added.

Wilcher won by 10 percentage points, emerging as a steadfast CorrectHealth defender.

THE MONITORS

In July 2016, the county hired Rosenberg’s firm, Community Oriented Correctional Health Services. Founded in 2006, the Oakland nonprofit has served as a consultant to local governments in New York, Florida, California, New Jersey and Washington, D.C., at times called to testify before Congress.

In Savannah, it would assess the jail’s medical operations. If CorrectHealth performed poorly, it would suggest fines. Rosenberg’s account is taken from his team’s confidential reports, which Reuters obtained through an open records request.

Almost immediately, he and CorrectHealth began clashing.

At the end of CorrectHealth’s first month at the jail – August 2016 – the monitors urged the company to craft policies for dealing with mentally ill inmates, and told the county the provider was struggling to hire registered nurses for inmate intake screenings.

Long-running challenges over staffing “have not been rectified by CorrectHealth,” the monitors reported.

Soon, CorrectHealth grappled with its first inmate suicide.

At 5:19 a.m. on September 30, Guy Leonard hanged himself with a telephone cord barely three hours after he was booked. On an intake form, the nurse wrote that Leonard said he had no plans to hurt himself and did not appear intoxicated, though he had been arrested on a charge of public drunkenness.

After the suicide, the nurse changed the original intake form to say Leonard looked intoxicated at booking. The sheriff’s department scolded the medical team in a letter, saying altered forms “will give the appearance of impropriety by CorrectHealth.” The sheriff also fired two guards over their failure to check Leonard’s cell in the hour before he died, while a third officer resigned.

The monitors returned in November and reported that “not all inmates” were getting a full physical and mental health assessment in their first 14 days – a standard recommended by the correctional industry’s medical accreditation body. The reason, the monitors reported, was “staffing shortages.”

They also reported a breakdown in the delivery of prescriptions. Medications ordered for inmates were sometimes missing; at times, an inmate would be listed for the same prescription twice. CorrectHealth told the monitor the Quick Rx records system did not synchronize with its own electronic records, leading to prescription mistakes.

Nearly three months later, the monitors reported that a guard told them nursing staff had falsely claimed inmates were refusing medications, “when they actually just did not have the medication to administer to the patient because it had not been received from the pharmacy.”

The questions over Quick Rx were a potential embarrassment for the sheriff. Quick Rx owner Stephens, the ranking Savannah Republican in Georgia’s state house, had supported Wilcher with a $1,000 campaign donation. Stephens said the two have been friends “for many years” and that he contributes to many local officials.

In February 2017, Rosenberg’s firm recommended $3 million in fines for CorrectHealth over its staffing failures and the late delivery of medicines. By June 2017, the monitors had raised their fine recommendation to $5.2 million.

SUICIDES, QUESTIONS

On March 11, 2017, Demilo Glover, jailed a week earlier after an arrest on a drunk driving charge, told a nurse his medications had been changed and he hallucinated that a little boy had appeared in his room holding a can of green beans, a department report said. The CorrectHealth team moved him to a rear infirmary cell. Throughout the night, he screamed. Earlier, Glover, who described himself as bipolar, told medical staff he had not taken his antipsychotic and antidepressant prescriptions for one to two days before his arrest and made bad decisions when not medicated.

The next morning, March 12, two guards collected his breakfast tray and asked Glover if he was OK. After they left, Glover knotted his bed sheet around his neck and slung it from a pipe. Minutes later, the guards returned to the cell, finding his corpse.

Twice in the months before the suicide, monitors warned that the infirmary’s cells were dangerous for suicidal inmates. When the monitors told Wilcher the infirmary did not have enough nurses, he bristled. The sheriff, they wrote, “does not want to hear about anything having to do with CorrectHealth.”

FILE PHOTO: Jerome Hill climbs the stairs at the Chatham County Detention Center shortly before his suicide in Savannah, Georgia, U.S. in this September 30, 2016 handout photo. Chatham County Detention Center/Handout via REUTERS

On April 3 of that year, Jerome Hill, 36, was arrested for allegedly threatening his girlfriend with a handgun.

Barely 90 minutes after being jailed, Hill said he wanted to kill himself, a department internal affairs report said. At 6:20 p.m. on April 7, guard Sharon Pinckney opened Hill’s cell in the mental health wing to take him for a shower. Hill raced up the stairs to the wing’s second floor and, ignoring her pleas, jumped from the walkway’s railing, landing head first. He died 18 days later, while in a coma at a hospital.

Pinckney told investigators “she did not understand why she was alone dealing with inmates on suicide watch and who had other mental issues.”

The internal affairs report into Hill’s death makes no mention of his meeting CorrectHealth’s psychiatrist in his four days at the jail.

SHERIFF PUSHES BACK

As the deaths mounted, the sheriff began pushing back against the monitor’s scrutiny. In a June 2017 email, an aide to the sheriff told Rosenberg’s team they didn’t need to visit the jail so often.

On August 24, 2017, Wilcher emailed the county manager he “WOULD LIKE TO GET THE COACH [monitors] GONE THANKS SHERIFF.” He contended they hadn’t offered “one piece of advice” on how to correct problems.

Within two months, Rosenberg’s contract was terminated. At the same time, Wilcher was advocating that CorrectHealth’s contract be extended.

As the sides negotiated new contract terms, CorrectHealth balked at the millions in pending fines. At this impasse, county administrators began negotiating with Virginia healthcare provider MHM Centurion. CorrectHealth quoted a contract price of $8.6 million, saying the county had pressed it to hire more staff. But then Centurion quoted the county budget price of $7.1 million, and won the job.

At a county commission meeting October 20, 2017, Wilcher chastised the county. “I am happy with the provider I got,” he said.

Commissioners rebuffed him, voting 6-3 for Centurion. The company was supposed to take over one week later. But suddenly, the sheriff announced he could not finish the background checks for Centurion’s medical staff in time.

Faced with uncertainty, Centurion walked away. In turn, commissioners approved CorrectHealth staying on through June 2018 – ahead of the awarding of a new three-year contract. Centurion declined to comment.

The county waived CorrectHealth’s fines. Just one county commissioner, Chester Ellis, objected. “I think that was a conflict of interest because of the campaign donation,” he told Reuters, citing Musso’s donations to Wilcher.

INFLATED NUMBERS

In April 2018, CorrectHealth bid on a new healthcare tender. Among three bidders, its proposal received the poorest score from a county screening committee, but offered the lowest bid. One reviewer wrote: “1/10 on suicide prevention. Very little detail; Not thorough.”

Wilcher continued to back the company.

Without debate, County Commission Chairman Al Scott called an up or down vote on keeping CorrectHealth in June 2018. The vote was 6-1 in favor, with Ellis dissenting. Scott told Reuters the jail was the sheriff’s jurisdiction, so he followed Wilcher’s suggestion.

During the bidding, Reuters found, the company had inflated the costs of providing medical care when the county requested numbers to provide rival bidders.

Musso told the county he spent just over $1 million on drug costs. However, a Reuters review of CorrectHealth’s invoices from Quick Rx shows the actual spending on drugs in 2017 was $280,000 less. The inflated number allowed Musso to offer a lower bid than competitors. Musso did not answer questions about the conflicting numbers.

As CorrectHealth won the contract renewal, Wilcher hired his own monitor to offer guidance on securing a coveted accreditation from the National Commission on Correctional Health Care, an industry body that provides voluntary health standards for jails and state prisons and offers its seal of approval.

“We are not interested in, nor have or will we engage in, ANY activities or work that can be perceived to discredit you, the County, or its contractors,” monitor Ken Ray wrote the sheriff in his proposal. Ray did not respond to interview requests.

That June, NCCHC accreditation teams toured the jail and, two months later, the group sent notice it was granting a preliminary accreditation for the detention center’s healthcare services. The NCCHC also said it was awarding the jail the group’s first-ever certification for mental health services. At the time of its visit, the group said, the jail had not had a suicide in 12 months.

That was true, but the letter omitted the subsequent death of inmate Mosheh Underwood, 24, who hung himself in his cell August 4, 2018.

Upset after a call with his lawyer, Underwood had asked for paper to cover his cell window so he could have privacy to use the bathroom. A guard provided it – despite previous warnings from Rosenberg’s team about letting inmates cover their windows.

An hour later, Underwood, who hanged himself, was found dead.

Jaime Shikmus, the NCCHC’s vice president, said the sheriff’s office was not required to disclose the suicide because it occurred after the surveyors visited.

In the 48 hours before the jail’s certifications were formally unveiled, the sheriff and county worried in internal documents that its standing would be in peril if the organization got a complete picture of its problems.

In one email, jail administrator Todd Freesemann, then the sheriff’s policy and accreditation supervisor, advised Wilcher that the jail “does not have adequate mental health professionals to deal with the volume of mental health requirements.” In another, the county’s attorney warned the sheriff that the lack of registered nurses “jeopardizes your accreditations.”

On February 14, 2019, the news was officially announced. The Chatham County jail had won full accreditation for its mental health and healthcare services, becoming the first local jail to win this honor.

Four months later, a fifth inmate killed himself on CorrectHealth’s watch. Guards and medical staff rushed to resuscitate the inmate, but when they tried to revive his heart with a defibrillator, the first device was broken and the second’s battery was uncharged, a jail report said.

Today, CorrectHealth continues to hold its $22 million contract.

(Additional reporting by Peter Eisler and Grant Smith. Editing by Ronnie Greene)

Trump doubles down on Obamacare fight, asks court to overturn law

FILE PHOTO - A sign on an insurance store advertises Obamacare in San Ysidro, San Diego, California, U.S., October 26, 2017. REUTERS/Mike Blake

(Reuters) – U.S. President Donald Trump’s administration has stepped up its attack on the Obamacare health care law, telling a federal appeals court it agrees with a Texas judge’s ruling that the law is unconstitutional and should be struck down.

The Justice Department in a two-sentence letter to the Court of Appeals for the Fifth Circuit filed on Monday said it backed the December ruling by U.S. District Judge Reed O’Connor in Fort Worth that found the Affordable Care Act violated the U.S. Constitution because it required people to buy health insurance.

O’Connor ruled on a lawsuit brought by a coalition of 20 Republican-led states including Texas, Alabama and Florida, that said a Trump-backed change to the U.S. tax code made the law unconstitutional.

The 2010 law, seen as the signature domestic achievement of Trump’s Democratic predecessor, Barack Obama, has been a flash point of American politics since it passed, with Republicans including Trump repeatedly attempting to overturn it.

Democrats made defending the law a powerful messaging tool in the run-up to the November elections when polls showed that eight in 10 Americans wanted to defend the law’s most popular benefits including protections for insurance coverage for people with preexisting conditions. The strategy paid off and Democrats won a broad 38-seat majority in the U.S. House of Representatives.

“The Department of Justice has determined that the district court’s judgment should be affirmed,” Assistant U.S. Attorney General Joseph Hunt and other federal officials wrote in the Monday letter. They said they would file a more extensive legal briefing later.

Obamacare survived a 2012 legal challenge at the Supreme Court when a majority of justices ruled the individual mandate aspect of the program was a tax that Congress had the authority to impose.

In December, O’Connor ruled that after Trump signed a $1.5 trillion tax bill passed by Congress last year that eliminated the penalties, the individual mandate could no longer be considered constitutional.

A group of 17 mostly Democratic-led states including California and New York on Monday argued that the law was constitutional.

“The individual plaintiffs do not have standing to challenge the resulting law because they suffer no legal harm from the existence of a provision that offers them a lawful choice between buying insurance or doing nothing,” they wrote in court papers.

About 11.8 million consumers nationwide enrolled in 2018 Obamacare exchange plans, according to the U.S. government’s Centers for Medicare and Medicaid Services.

About 11.8 million consumers nationwide enrolled in 2018 Obamacare exchange plans, according to the U.S. government’s Centers for Medicare and Medicaid Services.

(Reporting by Scott Malone in Boston; Editing by Bill Trott)

Health insurers, hospital operators fall as Obamacare ruled unconstitutional

FILE PHOTO: A sign on an insurance store advertises Obamacare in San Ysidro, San Diego, California, U.S., October 26, 2017. REUTERS/Mike Blake

(Reuters) – Shares of health insurers, hospitals, and healthcare companies fell in early trading on Monday, after a federal judge ruled the Affordable Care Act (ACA), also known as Obamacare, unconstitutional late last week.

The ACA, introduced by former U.S. President Barack Obama in 2010 to provide affordable healthcare to all Americans, mandates that all individuals have health insurance or pay a tax.

But on Friday, Texas District Judge Reed O’Connor agreed with a coalition of 20 states that a change in tax law last year eliminating a penalty for not having health insurance invalidated the entire Obamacare law.

Centene Corp fell 7.8 percent to $117.5, while Molina Healthcare slumped 10.1 percent to $118.4. The companies are among health insurers with exposure to ACA.

WellCare Health Plans and Anthem Inc declined 4.7 percent and 2.1 percent, respectively.

“While we are disappointed in the recent Northern District of Texas court’s ACA ruling, we recognize that this is a first step in what will be a lengthy appeals process,” Molina Healthcare said.

“Regardless, the ACA will remain in effect for 2019, and we are optimistic that it will remain in effect thereafter.”

Brokerage Evercore ISI said it expected no immediate impact from the ruling, calling it only a declaratory judgment and not an injunction.

Even in case of an eventual injunction, the defendants would certainly seek and most likely get a stay pending appeal, Evercore said.

Hospitals and healthcare services providers Community Health Systems, Tenet Healthcare Corp and HCA Healthcare Inc fell between 4 percent and 8 percent.

(Reporting by Manogna Maddipatla in Bengaluru)

‘Clear evidence of humanitarian need’ in North Korea: U.N. aid chief

North Korea's Minister of Health Jang Jun Sang meets with the United Nations Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Mark Lowcork in Pyongyang, North Korea in this photo released July 11, 2018 by North Korea's Korean Central News Agency. KCNA via REUTERS 

By Josh Smith

SEOUL (Reuters) – There is “very clear evidence of humanitarian need” in North Korea, the top U.N. aid official has said during the first visit of its kind to the isolated country since 2011.

U.N. Humanitarian Chief Mark Lowcock arrived in the North Korean capital of Pyongyang on Monday.

He met Kim Yong Nam, the nominal head of state and president of the Presidium of the Supreme People’s Assembly, on Wednesday, the North’s state media said.

Lowcock posted a video online outlining his observations after traveling to several areas in the southwest of the country.

“One of the things we’ve seen is very clear evidence of humanitarian need here,” he said in the video, posted to his official Twitter account and the U.N. website.

“More than half the children in rural areas, including the places we’ve been, have no clean water, contaminated water sources.”

Although humanitarian supplies or operations are exempt under U.N. Security Council resolutions, U.N. officials have warned that international sanctions over North Korea’s nuclear weapons and ballistic missile programs are exacerbating humanitarian problems by slowing aid deliveries.

About 20 percent of children in North Korea suffer from malnutrition, highlighting the need for more funding for humanitarian aid, Lowcock said.

Access for humanitarian workers was improving, he said without elaborating, but he noted that funding was falling short.

The United Nations says it had to stop nutrition support for kindergartens in North Korea in November because of a lack of funds, and its “2018 Needs and Priorities Plan” for North Korea is 90 percent underfunded.

While visiting a hospital that is not supported by the United Nations, Lowcock said there were 140 tuberculosis patients but only enough drugs to treat 40 of them.

More than 10 million people, some 40 percent of the population of North Korea, need humanitarian assistance, the United Nations said in a statement.

Lowcock was also due to meet humanitarian agency representatives and people receiving assistance to get a better understanding of the humanitarian situation, the United Nations said.

(Reporting by Josh Smith; Editing by Robert Birsel)

U.S. to consider expanding Medicare drug price negotiation

By Yasmeen Abutaleb

WASHINGTON (Reuters) – The Trump administration is considering expanding Medicare’s ability to negotiate the cost of drugs by giving private payers a role in setting the price of medicines administered in hospitals and doctors’ offices, Health and Human Services Secretary Alex Azar said on Monday.

Azar’s comments provided more details on the plan announced on Friday by President Donald Trump to lower prescription drug costs for Americans.

While Trump has vowed to tackle rising prices since running for office, his plan spared the pharmaceutical industry from direct government negotiations to control costs. Drugmaker shares rose for a second day on Monday as Wall Street analysts said the new policies should not hurt industry profits.

Medicare is the national health insurance plan run by the federal government for Americans over the age of 65.

Azar said that Trump views tougher negotiation as key to the plan, and that his agency will consider an alternative system for buying Medicare Part B drugs, which are administered by a healthcare provider and covered directly by the government.

Instead, the administration would seek to allow private sector payers to negotiate the price of those medicines, as they do in Medicare Part D, which covers drugs that patients pick up at the pharmacy.

“We believe there are more private sector entities equipped to negotiate these better deals in Part B, and we want to let them do it,” Azar said in prepared remarks. “More broadly, the President has called for me to merge Medicare Part B into Part D, where negotiation has been so successful.

The S&P 500 healthcare index rose 1 percent on Monday, outpacing a 0.5 percent increase for the broader S&P 500.

(Additional reporting by Michael Erman; Editing by Michele Gershberg and Dan Grebler)