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U.S. NEWS A7
US Financial Front:
Lew: US retreat from global economic stage would be mistake
MARTIN CRUTSINGER
AP Economics Writer
WASHINGTON (AP) — Trea-
sury Secretary Jacob Lew
said Monday that Ameri-
cans have reaped sig-
nificant benefits from the
international architecture
put in place after World
War II and the United States
would be making a serious
mistake to retreat from its
global leadership role.
In a speech before the
Council on Foreign Rela-
tions, Lew sought to coun-
ter arguments being ad-
vanced by Donald Trump
and other Republican pres-
idential candidates that
Americans are losing badly
in competition with China
and other countries in the
global economy.
Lew said that the United
States needs to embrace
new players on the global
economic stage and make
sure they meet the stan-
dards of the trading system
that the country helped
create.
“The worst possible out-
come would be to step
Insurer UnitedHealth starts pruning ACA exchange business
TOM MURPHY
AP Business Writer
The nation’s biggest health
insurer has decided to stop
selling coverage on pub-
lic insurance exchanges in
two states for next year, but
consumers shouldn’t take
this as an early warning
that a mass exodus is brew-
ing from a key element of
the Affordable Care Act’s
coverage expansion.
Analysts say these ex-
changes may be improving
for insurers after a difficult shook up health insurance
start. However, they also
expect insurers to continue
leaving some unprofitable
markets as the coverage
away from our leadership
role and let others fill in be- cil on Foreign Relations on Monday, April 11, 2016, Lew says Americans have reaped significant
hind us,” he said.
Lew’s comments came in
advance of global finance
meetings later this week.
Lew and Federal Reserve
Secretary Janet Yellen will
hold discussions with the
Group of 20 major econo-
mies on Friday in advance
of the spring meetings of
the International Monetary
Fund and the World Bank.
Yellen was scheduled to
meet later Monday at the
White House with President
Barack Obama to give the
president an update on the
U.S. and global economy.
The administration said that
Yellen and Obama would
also discuss progress made
in implementing Wall Street
reform measures passed
after the 2008 financial cri-
sis.
Lew never referred to
Trump or other GOP critics
by name. But he asserted
that America’s participa-
tion in the global trading
system and its support for
organizations such as the
expansion heads toward its
fourth year.
UnitedHealth Group Inc.
said it will not sell coverage
on exchanges in Arkansas
and Georgia for 2017, and
it is continuing to evaluate
its presence in other mar-
kets after reporting steep
losses from the still-develop-
ingbusiness.
The Minnetonka, Minneso-
ta, company is selling cov-
erage on ACA exchanges
in 34 states this year, but it
stocks last fall when com-
pany leaders said they
would decide by the first
half of this year whether
Tuesday 12 April 2016
Treasury Secretary Jacob Lew testifies on Capitol Hill in Washington. In a speech before the Coun-
benefits from the international architecture put in place after World War II and the United States
would be making a serious mistake to retreat from its global leadership role.
(AP Photo/Jacquelyn Martin)
IMF had reaped significant nations were able to coor- Going forward, Lew said
benefits for U.S. workers. dinate efforts through the the administration would
“The rules-based system G-20 and the IMF to avoid be working with U.S. allies
was a major reason that the the downward spiral of pro- to further modernize the
global financial crisis never tectionism and predatory IMF to improve its oversight
turned into a second Great macroeconomic policies of the way nations manage
Depression,” Lew said. “The that characterized previ- their exchange rate poli-
United States and other ous eras.” cies and trade balances.q
to even sell coverage for age. They’ve also strug- exodus, but I think you’re
2017. UnitedHealth has es- gled with customers who going to see some selec-
timated that it could lose have signed up for cover- tive drops,” she said.
as much as $475 million on age outside regular enroll- Stifel analyst Thomas Car-
its exchange business this ment windows and then roll said he “absolutely”
year and has stressed that dumped expensive claims expects UnitedHealth to
this is a small slice of an on their books, a problem remain in some exchanges
overall portfolio that is oth- the government has said it next year. He noted that
erwise performing well. would address. health insurers now have
Insurers have been hit by UnitedHealth was not alone several years of experience
a host of challenges since in sustaining heavy losses in serving their exchange
they started enrolling cus- from its exchange business, customers, which should
tomers in the fall of 2013 Mizuho Securities Manag- help with pricing.
for coverage that started ing Director Sheryl Skolnick Plus fines or penalties will
the following January. said. She expects other in- grow for those who remain
They have had to learn on surers to also announce uninsured. That may moti-
the fly the relative health that they are leaving mar- vate more healthy people
of their customer popula- kets in which they cannot who don’t have an imme-
tions so they could set the make money. diate care need to sign up
right price for their cover- “You might not see a mass for coverage. q