Nebraska Lieutenant Governor Sheehy resigns over phone scandal

(Reuters) – Nebraska Lieutenant Governor Rick Sheehy, the leading candidate to replace the current governor in the next election, resigned on Saturday after a newspaper investigation raised questions about improper cell phone calls made to women.

The Omaha World-Herald investigation found that the 53-year-old Republican made about 2,000 late-night calls to four women, other than his wife, on his state-issued cell phone over four years. The newspaper plans to publish results of the investigation on Sunday.

Colleen Sheehy, his wife of 28 years, filed for divorce in July 2012, according to the newspaper.

Governor Dave Heineman announced the resignation of Sheehy, a rising star in state politics, at a news conference. The governor said he was “deeply disappointed” and that Sheehy had done good work, but “trust was broken.”

“Public officials are rightly held to a higher standard,” Heineman said at the news conference, provided on the Omaha World-Herald website.

Heineman will leave office in 2015 and Sheehy had announced that he would run for governor. He was considered a leading candidate. Heineman selected Sheehy as lieutenant governor in 2005 after moving into the governor’s office to replace Mike Johanns, who was tapped as U.S. agriculture secretary.

Heineman and Sheehy were elected to their first full term in 2006 and re-elected to a second term in 2010.

(Reporting by Mary Wisniewski; editing by Gunna Dickson)

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Peterson double winner of AP NFL awards

NEW ORLEANS (AP) — Adrian Peterson called it a blessing in disguise.

Strange way to describe career-threatening major knee surgery.

The Minnesota Vikings' star came back better than ever, just missing Eric Dickerson's longstanding rushing record and closing out the season with two of the top NFL awards from The Associated Press: Most Valuable Player and Offensive Player of the Year.

As sort of an added bonus, he beat Peyton Manning for both of them Saturday night.

"My career could have easily been over, just like that," the sensational running back said. "Oh man. The things I've been through throughout my lifetime has made me mentally tough.

" I'm kind of speechless. This is amazing, " he said in accepting his awards, along with five others at the "2nd Annual NFL Honors" show on CBS saluting the NFL's best players, performances and plays from the 2012 season. The awards are based on balloting from a nationwide panel of 50 media members who regularly cover the NFL.

Manning's own sensational recovery, from four neck surgeries, earned him Comeback Player honors.

"This injury was unlike any other," said the only four-time league MVP. "There really was no bar or standard, there were no notes to copy. We were coming up with a rehab plan as we went."

Before sitting out 2011, Manning had never missed a start in his first 13 seasons with Indianapolis. But he was released by the Colts last winter because of his neck issues, signed with Denver and guided the Broncos to the AFC's best record, 13-3.

"Certainly you have double variables of coming off injury, not playing for over year and joining a new team. That certainly added a lot to my plate, so it was hard to really know what to expect," Manning said. "I can't tell you how grateful and thankful I am. I can't tell you how happy I am to be playing the game of football we all love so much."

Also honored were:

—Washington's Robert Griffin III, who beat out a strong crop of quarterbacks for the top offensive rookie award.

— Houston end J.J. Watt, who took Defensive Player of the Year, getting 49 of 50 votes.

— Bruce Arians, the first interim coach to win Coach of the Year after leading Indianapolis to a 9-3 record while head man Chuck Pagano was being treated for leukemia. Arians became Arizona's head coach last month.

—Carolina linebacker Luke Kuechly, the league's leader in tackles with 164, who won the top defensive rookie award.

Peterson returned better than ever from the left knee surgery, rushing for 2,097 yards, 9 short of breaking Dickerson's record. He also sparked the Vikings' turnaround from 3-13 to 10-6 and a wild-card playoff berth.

He received 30 1-2 votes to 19 1-2 for Manning.

"I played my heart out, every opportunity I had," Peterson said. "The result of that is not what I wanted, which is being in the Super Bowl game. But I have a couple of good pieces of hardware to bring back and (put) in my statue area. So it feels good."

Was the knee injury the toughest thing he'd ever overcome?

"Losing my brother at 7, seeing him get hit by a car right in front of me, that was the toughest," he said. "But as far as injuries, yes."

New England QB Tom Brady was the last winner of MVP and Offensive Player in 2010.

"Trying to get two or three like Peyton, trying to get to your level," Peterson said of his first MVP award. "But I won't be there to accept it because I'll be winning with my coach, the most important award, the team award, the Super Bowl."

Dickerson predicted Peterson could get back to 2,000 yards.

"I hope he does have a chance to do it again," Dickerson said, adding with a laugh, "but do I want him to break it? No, I do not."

Wearing a burgundy and gold tie in honor of his Redskins, Griffin said his goal is to be ready for the season opener.

"It's truly a blessing to be up there — to be able to stand, first and foremost," said Griffin, who underwent knee surgery last month. He added that next season "you'll see a better Robert Griffin."

Arians moved up from offensive coordinator and helped Indianapolis make the playoffs at 10-6, making him an easy winner in the balloting.

"It's hard to put into words the feelings of this past year," he said. "This was kind of the cherry on the top, whipped cream and everything else you put on top."

Watt swatted the competition as Denver's Von Miller got the only other vote in the most lopsided balloting of all the awards.

"It sets the bar for me," Watt said. He led the NFL with 20 1-2 sacks and also blocked an astounding 16 passes. "I want to go out and do even better. I want to do even bigger things."

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Iceland, Prosecutor of Bankers, Sees Meager Returns

Ilvy Njiokiktjien for The New York Times

"Greed is not a crime. But the question is: where does greed lead?" said Olafur Hauksson, a special prosecutor in Reykjavik.

REYKJAVIK, Iceland — As chief of police in a tiny fishing town for 11 years, Olafur Hauksson developed what he thought was a basic understanding of the criminal mind. The typical lawbreaker, he said, recalling his many encounters with small-time criminals, “clearly knows that he crossed the line” and generally sees “the difference between right and wrong.”

Today, the burly, 48-year-old former policeman is struggling with a very different sort of suspect. Reassigned to Reykjavik, the Icelandic capital, to lead what has become one of the world’s most sweeping investigation into the bankers whose actions contributed to the global financial crisis in 2008, Mr. Hauksson now faces suspects who “are not aware of when they crossed the line” and “defend their actions every step of the way.”

With the global economy still struggling to recover from the financial maelstrom five years ago, governments around the world have been criticized for largely failing to punish the bankers who were responsible for the calamity. But even here in Iceland, a country of just 320,000 that has gone after financiers with far more vigor than the United States and other countries hit by the crisis, obtaining criminal convictions has proved devilishly difficult.

Public hostility toward bankers is so strong in Iceland that “it is easier to say you are dealing drugs than to say you’re a banker,” said Thorvaldur Sigurjonsson, the former head of trading for Kaupthing, a once high-flying bank that crumbled. He has been called in for questioning by Mr. Hauksson’s office but has not been charged with any wrongdoing.

Yet, in the four years since the Icelandic Parliament passed a law ordering the appointment of an unnamed special prosecutor to investigate those blamed for the country’s spectacular meltdown in 2008, only a handful of bankers have been convicted.

Ministers in a left-leaning coalition government elected after the crash agree that the wheels of justice have ground slowly, but they call for patience, explaining that the process must follow the law, not vengeful passions.

“We are not going after people just to satisfy public anger,” said Steingrimur J. Sigfusson, Iceland’s minister of industry, a former finance minister and leader of the Left-Green Movement that is part of the governing coalition.

Hordur Torfa, a popular singer-songwriter who helped organize protests that forced the previous conservative government to resign, acknowledged that “people are getting impatient” but said they needed to accept that “this is not the French Revolution. I don’t believe in taking bankers out and hanging them or shooting them.”

Others are less patient. “The whole process is far too slow,” said Thorarinn Einarsson, a left-wing activist. “It only shows that ‘banksters’ can get away with doing whatever they want.”

Mr. Hauksson, the special prosecutor, said he was frustrated by the slow pace but thought it vital that his office scrupulously follow legal procedure. “Revenge is not something we want as our main driver in this process. Our work must be proper today and be seen as proper in the future,” he said.

Part of the difficulty in prosecuting bankers, he said, is that the law is often unclear on what constitutes a criminal offense in high finance. “Greed is not a crime,” he noted. “But the question is: where does greed lead?”

Mr. Hauksson said it was often easy to show that bankers violated their own internal rules for lending and other activities, but “as in all cases involving theft or fraud, the most difficult thing is proving intent.”

And there are the bankers themselves. Those who have been brought in for questioning often bristle at being asked to account for their actions. “They are not used to being questioned. These people are not used to finding themselves in this situation,” Mr. Hauksson said. They also hire expensive lawyers.

The special prosecutor’s office initially had only five staff members but now has more than 100 investigators, lawyers and financial experts, and it has relocated to a big new office. It has opened about 100 cases, with more than 120 people now under investigation for possible crimes relating to an Icelandic financial sector that grew so big it dwarfed the rest of the economy.

To help ease Mr. Hauksson’s task, legislators amended the law to allow investigators easy access to confidential bank information, something that previously required a court order.

Parliament also voted to put the country’s prime minister at the time of the banking debacle on trial for negligence before a special tribunal. (A proposal to try his cabinet failed.) Mr. Hauksson was not involved in the case against the former leader, Geir H. Haarde, who last year was found guilty of failing to keep ministers properly informed about the 2008 crisis but was acquitted on more serious charges that could have resulted in a prison sentence.

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Ferrol Sams, Doctor Turned Novelist, Dies at 90

Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.

The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”

“He lived a full life,” his son said. “He didn’t leave anything in the tank.”

Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.

When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.

“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”

In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”

He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”

Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.

Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.

Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.

Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.

“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”

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BlackBerry chooses more traditional route to drum up buzz over Super Bowl ad

TORONTO – After a week of massive hype for its new smartphones, BlackBerry has decided to remain secretive about its Super Bowl commercial in an effort to squeeze every bit of juice out of the pricey advertising campaign.

The Waterloo, Ont.-based company, formerly known as Research In Motion (TSX:RIM), released a single frame of the 30-second TV spot on Friday, without any explanation of what it was, or what it meant.

The move goes against the trend of unleashing Super Bowl ads on the Internet ahead of the big game in an effort to generate extra hype.

This year, smartphone competitor Samsung chose to release its commercial starring comedians Seth Rogan and Paul Rudd on Thursday. Other major companies like Mercedes and Coke have also put their ads online.

Recent statistics have shown that advertisers gain more traction from their Super Bowl TV spots if they’re released online before the event, which takes place on Sunday.

Last year, the Super Bowl ads uploaded to YouTube before the game were viewed 600 per cent more times, an average of 9.1 million views, compared to the ones that were put online after the game, according to the streaming video service owned by Google.

Going against the trend, the BlackBerry maker will keep smartphone users guessing about what their advertisement is about and who it might feature. Certainly the company’s publicity team carefully chose which frame to release as its sneak preview.

The frame shows an early 1980s Honda Accord is parked alongside a meter. Behind it, there’s a colourful explosion of powder in front of stairs leading up to apartment No. 437.

The clues would suggest harkening back to the birth of the IBM personal computer, introduced to the market in 1981 using the coding 437 as its original character set, or more simply, the appearance of its font on screen.

It may be a clue because BlackBerry chief executive Thorsten Heins has touted the launch of the new smartphones this week as a new era in mobile computing because the devices have nearly the same amount of processing power as a personal computer.

All of that won’t be proven true or false until the game on Sunday evening where the BlackBerry ad will air sometime after the third quarter, the company said.

The Super Bowl is the most-watched television event of the year, drawing 111.3 million U.S. viewers in 2012.

In Canada, last year’s broadcast drew a record 8.1 million viewers.

The event is also the most expensive event for advertisers, costing an average of $ 3.4 million for a 30-second spot on NBC last year, according to ratings firm Nielsen.

This year, estimates for how much CBS is charging for a 30-second spot vary wildly from between $ 3.6 million to $ 4 million. CTV declined to say how much it charges for Canadian airtime.

Also slated in the Super Bowl commercial lineup are advertisements from the Bank of Montreal (TSX:BMO), with different versions airing on both sides of the border.

In the U.S., the company has purchased airtime in the midwest where its banks have a strong presence under the BMO Harris Bank brand. In the commercial, dubbed “Dream Home,” a young couple ponders the possibilities of buying a home, before they’re surprised when a real estate agent throws up a “For Sale” sign right in front of them.

BMO has also bought airtime in Canada, though it will be showing a commercial that has already aired during prime time.

Last year, a Harris-Decima Canadian Press poll found that more Canadians planned to watch the Super Bowl ads than the football game itself.

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NFL's Goodell aims to share blame on player safety

NEW ORLEANS (AP) — NFL Commissioner Roger Goodell wants to share the blame.

"Safety," he said at his annual Super Bowl news conference, "is all of our responsibilities."

Not surprisingly, given that thousands of former players are suing the league about its handling of concussions, the topics of player health and improved safety dominated Goodell's 45-minute session Friday. And he often sounded like someone seeking to point out that players or others are at fault for some of the sport's problems — and need to help fix them.

"I'll stand up. I'll be accountable. It's part of my responsibility. I'll do everything," Goodell said. "But the players have to do it. The coaches have to do it. Our officials have to do it. Our medical professionals have to do it."

Injuries from hits to the head or to the knees, Goodell noted, can result from improper tackling techniques used by players and taught by coaches. The NFL Players Association needs to allow testing for human growth hormone to go forward so it can finally start next season, which Goodell hopes will happen. He said prices for Super Bowl tickets have soared in part because fans re-sell them above face value.

And asked what he most rues about the New Orleans Saints bounty investigation — a particularly sensitive issue around these parts, of course — Goodell replied: "My biggest regret is that we aren't all recognizing that this is a collective responsibility to get (bounties) out of the game, to make the game safer. Clearly the team, the NFL, the coaching staffs, executives and players, we all share that responsibility. That's what I regret, that I wasn't able to make that point clearly enough with the union."

He addressed other subjects, such as a "new generation of the Rooney Rule" after none of 15 recently open coach or general manager jobs went to a minority candidate, meaning "we didn't have the outcomes we wanted"; using next year's Super Bowl in New Jersey as a test for future cold-weather, outdoor championship games; and saying he welcomed President Barack Obama's recent comments expressing concern about football's violence because "we want to make sure that people understand what we're doing to make our game safer."

Also:

— New Orleans will not get back the second-round draft pick Goodell stripped in his bounty ruling;

— Goodell would not give a time frame for when the NFL could hold a game in Mexico;

— next season's games in London — 49ers-Jaguars and Steelers-Vikings — are sellouts.

Goodell mentioned some upcoming changes, including the plan to add independent neurologists to sidelines to help with concussion care during games — something players have asked for and the league opposed until now.

"The No. 1 issue is: Take the head out of the game," Goodell said. "I think we've seen in the last several decades that players are using their head more than they had when you go back several decades."

He said one tool the league can use to cut down on helmet-to-helmet hits is suspending players who keep doing it.

"We're going to have to continue to see discipline escalate, particularly on repeat offenders," Goodell said. "We're going to have to take them off the field. Suspension gets through to them."

The league will add "expanded physicals at the end of each season ... to review players from a physical, mental and life skills standpoint so that we can support them in a more comprehensive fashion," Goodell said.

With question after question about less-than-light matters, one reporter drew a chuckle from Goodell by asking how he's been treated this week in a city filled with supporters of the Saints who are angry about the way the club was punished for the bounty system the NFL said existed from 2009-11.

"My picture, as you point out, is in every restaurant. I had a float in the Mardi Gras parade. We got a voodoo doll," Goodell said.

But he added that he can "appreciate the passion" of the fans and, actually, "couldn't feel more welcome here."

___

Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich

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Media Decoder Blog: In Wake of Restructuring, NBC News President Quits

8:30 p.m. | Updated

The longest-serving president of any of the three network news divisions, Steve Capus of NBC News, stepped down from his position on Friday, six months after Comcast restructured its news units in a way that diminished his authority.

Pat Fili-Krushel, chairwoman of the NBCUniversal News Group, said in a brief telephone interview on Friday that she would “cast a wide net” while searching for a successor to Mr. Capus. In the interim, the leaders of the news division will report directly to her.

Ms. Fili-Krushel became Mr. Capus’s boss last July when Steve Burke, the chief executive of NBCUniversal, consolidated all of NBC’s news units — NBC News, the cable news channels MSNBC and CNBC, and its stake in the Weather Channel — under a new umbrella, the NBCUniversal News Group. Mr. Burke asked Ms. Fili-Krushel, one of his most trusted lieutenants, to run it, while keeping Mr. Capus and the heads of the other units in place.

Ms. Fili-Krushel worked early in her career at HBO and Lifetime. A veteran of the Walt Disney Company, where she helped program ABC, and  Time Warner, where she was an administrator, she is by her own admission not a journalist.  But now she is, by default, the highest-ranking woman in the American television news industry — not just at the moment, but in the history of the medium. The heads of the news divisions at ABC and CBS are men, as are the heads of the Fox News Channel, CNN, and Bloomberg.

Ms. Fili-Krushel has kept a low public profile, but has been a forceful presence behind the scenes, recently moving from her office on the 51st floor of 30 Rockefeller Center, near Mr. Burke’s, to a new one on the third floor, where NBC News is based. On Friday, she said she had spent her first six months “learning, listening and getting to know the players here.” She called the News Group an “unbelievably strong organization.”

Though Mr. Capus’s exit saddened many at NBC News on Friday, it came as little surprise. He had previously reported directly to Mr. Burke, but after the restructuring he reported to Ms. Fili-Krushel, and he made no secret of his unhappiness with the change. His contract had a clause that allowed him to leave in the event that he no longer reported to Mr. Burke, according to two people with direct knowledge of the arrangement at NBC, and he decided to exercise that right after months of contemplation. The people insisted on anonymity because they were not authorized by the network to speak publicly.

Mr. Capus told Ms. Fili-Krushel of his intent to leave last Friday. It is likely that he would have left sooner, but a series of major news stories kept him busy late last year — including Hurricane Sandy, the presidential election and the school shooting in Newtown, Conn. Mr. Capus also oversaw the network’s response to the kidnapping of Richard Engel and an NBC News crew in Syria last month.

“It has been a privilege to have spent two decades here, but it is now time to head in a new direction,” he wrote in an e-mail to staff members on Friday afternoon.

Mr. Capus guided NBC through a revolutionary time in news-gathering and distribution. He maintained the news division’s profitability, managed tensions between NBC News and its increasingly liberal cable channel MSNBC, and fostered new business ventures like an in-house production company and an annual education summit. Last year, he unwound an old deal with Microsoft to give the news division complete control over its Web site, now named NBCNews.com, for the first time.

Ms. Fili-Krushel wrote in a separate e-mail to staff members that “NBC News is America’s leading source of television news and Steve has been a big part of that success.”

NBC News is the producer of the most popular evening newscast in the country. But its single biggest source of profits, the morning show “Today,” fell to second place last year, behind ABC’s “Good Morning America,” for the first time since the 1990s. The decline caused widespread anxiety inside the news division and speculation that Mr. Capus would be relieved of his duties.

Inside NBC, both Mr. Capus and the executive producer of “Today,” Jim Bell, received much of the blame for the botched removal of Ann Curry from “Today” last June, which worsened the show’s already tenuous position in the ratings. Ms. Fili-Krushel was put in charge just a few weeks later.

Mr. Bell was replaced at “Today” last fall and is now the executive producer for NBC Olympics. Savannah Guthrie is now the co-host of “Today,” and Ms. Curry is a national and international correspondent for the network, but is rarely seen. Mr. Capus’s exit was seen by some at the network as the last shoe that had to drop.

In his e-mail to staff members, Mr. Capus called it an “extremely difficult decision to walk away,” noting that he started at NBC as a producer 20 years ago this month. He did not make any mention of what he would do next. “Journalism is, indeed, a noble calling, and I have much I hope to accomplish in the next phase of my career,” he wrote.

“Today” continues to lose to ABC’s “Good Morning America” among total viewers, but lately it has won a few weeks in the 25- to 54-year-old demographic that advertisers covet.

“NBC Nightly News” has more successfully fended off ABC’s “World News,” despite an aggressive push by ABC. Mr. Capus said, “NBC News has grown in all key metrics — from ratings and reputation to profitability.”

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Insurance Industry Report Faults High Fees for Out-of-Network Care

Michael Nagle for The New York Times

Angel Gonzalez, 36, faced huge bills after emergency gallbladder surgery, despite having good insurance coverage. “I was on the hook for more than I made in a year.”

Just over a year ago, Angel Gonzalez, 36, awoke with searing chest pain at 2 a.m. A friend drove him to the closest emergency room.

Though he was living on $18,000 a year as a graduate student, Mr. Gonzalez had good insurance and the hospital, St. Charles in Port Jefferson, N.Y., was in his network. But the surgeon who came in to remove Mr. Gonzalez’s gallbladder that Sunday night was not.

He billed Mr. Gonzalez $30,000, and an assistant billed an additional $30,000. Mr. Gonzalez’s policy covered out-of-network providers, but at a rate it considered appropriate: $2,000. “I was on the hook for more than I made in a year,” Mr. Gonzalez said.

A health insurance industry report to be released on Friday highlights the exorbitant fees charged by some doctors to out-of-network patients like Mr. Gonzalez. The report, by America’s Health Insurance Plans, or AHIP, contrasts some of the highest bills charged by non-network providers in 30 states with Medicare rates for the same services. Some of the charges, the insurers assert, are 30, 40 or nearly 100 times greater than Medicare rates.

Insurers hope to spotlight a vexing problem that they say the Affordable Care Act does little to address. “When you’re out of network, it’s a blank check,” said Karen Ignagni, president and chief executive of AHIP. “The consumer is vulnerable to ‘anything goes.’ ”

“Unless we deal with cost, we won’t have affordability,” she added. “And unless we have affordability, we won’t have people participating” under the Affordable Care Act.

Among the fees on the report’s list are a $6,205 outpatient office visit to a doctor in Massachusetts for which Medicare would have paid $152; a $12,000 bill for examining a tissue specimen in New York for which Medicare would have paid $128; and a $48,983 surgeon’s fee for a total hip replacement in New Jersey that Medicare would have reimbursed at $1,543. Many of the highest billers were in New York, Texas, Florida and New Jersey.

Elisabeth R. Benjamin, co-founder of the Health Care for All New York coalition, who is often at odds with the insurance industry, said that “is one area we totally agree on.” She continued, “Out-of-network billing is just out of control.”

Even when out-of-network fees are compared with average commercial insurance reimbursements, which are usually greater than Medicare, she said, “It’s pretty outrageous.”

Doctors say the report is skewed because it focuses on a few dozen cases of overcharging that are not representative of their billing. In response to the insurers’ report, the American Medical Association noted on Thursday that a recent analysis found that doctors’ services account for just 16 percent of health care costs.

“There are outliers in every profession, in every business,” said Dr. Andrew Y. Kleinman, a plastic surgeon who is vice president of the Medical Society of the State of New York.

Dr. Kleinman also noted that insurers had effectively shifted the costs of out-of-network care onto patients by changing reimbursement formulas. Instead of the rates commercial insurers usually pay doctors, insurers increasingly are basing their out-of-network payments on Medicare rates, usually far lower.

A growing number of high-end, flexible health plans offer policies that cover outside providers at, for example, 140 percent of Medicare. “They’re selling you an insurance product you can’t use,” Dr. Kleinman said. “You’re buying an insurance policy where the out-of-network benefit is worthless.”

The industry’s own report suggests that using Medicare rates as a benchmark will lead to patients’ picking up much more of the cost for out-of-network care, whether they carefully select a specialist or, as in the case of Mr. Gonzalez and many others, have no choice in the matter.

Had Mr. Gonzalez been 65 or older, Medicare would have paid only $958 for the surgery. The average commercial price is $12,292, according to FAIR Health, an independent nonprofit group that tracks information on health care costs.

But Mr. Gonzalez’s health plan, United Healthcare, determined the fee should be $1,273, of which the company paid $838. Mr. Gonzalez filed appeals, which were rejected. He then contacted Community Health Advocates at the Community Service Society of New York for help, and the group’s caseworkers negotiated with the surgeon on his behalf.

After months of wrangling, the surgeon agreed to accept a significantly reduced payment: $340.

Consumer advocates and health insurance executives are calling for greater transparency in health care pricing, including upfront disclosure of prices of medical procedures and services.

“The health care industry can give you an estimate, just like any other industry,” said Carrie H. Colla, an assistant professor at the Dartmouth Institute for Health Policy and Clinical Practice, noting that the Dartmouth-Hitchcock Medical Center has a patient price estimator online.  

“It’s just not current practice right now,” Dr. Colla said. “Sometimes a doctor won’t even know. The patient really has to push for it.”

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Fireworks Explosion on Chinese Highway Kills 26

BEIJING (AP) — A truck carrying fireworks ahead of Chinese New Year celebrations exploded and destroyed part of an elevated highway Friday in central China, killing at least 26 people as it sent vehicles plummeting 30 meters (about 100 feet) to the ground, state media said.

The huge blast destroyed an 80-meter (80-yard) stretch of highway outside the city of Sanmenxia in Henan province, and was powerful enough to shatter windows of a nearby truck stop.

Emergency crews closed the highway at the accident site, said China National Radio, which reported the death toll of 26. The Xinhua News Agency reported four deaths but said search and rescue efforts were continuing. At least 15 people were injured and sent to nearby hospitals, the Henan Commercial Newspaper reported.

Photos posted on the popular news site Sina.com by Chinese netizens showed a stretch of elevated highway gone, with a truck perched precariously at the broken edge. Other photos showed wrecked trucks below and blackened chunks of scattered debris, including collapsed sections of highway, wrecked trucks and cargo containers.

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BSkyB to offer sports channels online for daily fee

LONDON (Reuters) – BSkyB will offer its popular sports channels online for a daily fee, seeking new customers to offset slowing growth at its core pay-TV service amid sluggish consumer spending.

Sky, Britain’s dominant pay-TV group which provides fixed-line telephony, TV and broadband to 10.7 million households, has adapted its strategy during the economic downturn after years of chasing new subscribers to its core TV offering.

The group added 25,000 subscribers to its pay-TV service in the three months to the end of December, well down on the more than 100,000 users it used to routinely add each quarter.

In response, it has focused on selling more products such as high definition TV and broadband to existing customers, and moving online to reach those not willing to sign up to a monthly contract. The approach has enabled the group to consistently post strong financial results and pay higher dividends.

“Although we expect the consumer environment in 2013 to remain challenging, we have a strong set of plans for the year ahead,” Chief Executive Jeremy Darroch said on Thursday.

Darroch said the group would offer its sports channels, which show everything from Premier League soccer to Formula One motor racing and cricket, on its new online service called Now TV in the next few months.

Viewers, who do not need to sign up to a contract, will be able to pay 9.99 pounds to watch all six Sky Sports channels for 24 hours. It has already shown movies via the online offering to 25,000 customers since its launch last year.

The new internet drive will help BSkyB compete with existing online services such as Lovefilm and with BT Vision, which has won the right to show its own sports content, but it is also having to bet that its existing customers will not downgrade to the cheaper online offering to save money.

CUSTOMER LOYALTY

The group’s performance in the first half of the year showed that, despite the pressures on consumer spending, customer loyalty had remained relatively solid, with subscribers spending on average 568 pounds a year, up 24 pounds on the year before.

“Net additions were slightly below our estimates reflecting the tough consumer environment,” analysts at Numis said. “(But) encouragingly, take up of new products continues to increase, driving customer satisfaction and loyalty.”

Those customers taking all three main services – TV, broadband and telephony – accounted for 33 percent of the user base, up 4 percentage points year on year.

The rise in customers helped the group to post first-half operating profit up 8 percent to 647 million pounds ($ 1 billion) against a forecast of 632 million pounds. Cost control helped the group pay an interim dividend up 20 percent to 11 pence.

“We believe the BSkyB investment case has evolved over the past year or so, with the challenging consumer environment making the addition of new households to the (pay-TV) service more difficult,” Numis said.

“The group has rightly prioritized the increased penetration of multiple products, notably HD and broadband, which drive average revenue per user and reduce churn over the medium/long term. We are supportive of investment in products such as Now TV which offer an attractive risk/return in our view.”

Shares in BSkyB were up 1 percent to 819 pence in mid-morning trade, following a 21 percent rise in the last 12 months, and valuing the group at 13.2 billion pounds.

(Reporting by Kate Holton; Editing by Rhys Jones and Mark Potter)

Internet News Headlines – Yahoo! News

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