Regulation and Deregulation of Industry

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      Congress Presses Health Insurance Regulators on ‘Troubling’ Billing Tactics

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      Lawmakers are zeroing in on MultiPlan, a firm that has helped insurers cut payments while sometimes leaving patients with large bills.Lawmakers on Tuesday called on health insurance regulators to detail their efforts against “troubling practices” that have raised costs for patients and employers.In a letter to a top Labor Department official, two congressmen cited a New York Times investigation of MultiPlan, a data firm that works with insurance companies to recommend payments for medical care.The firm and the insurers can collect higher fees when payments to medical providers are lower, but patients can be stuck with large bills, the investigation found. At the same time, employers can be charged high fees — in some cases paying insurers and MultiPlan more for processing a claim than the doctor gets for treating the patient.The lawmakers, Representatives Bobby Scott of Virginia and Mark DeSaulnier of California, both Democrats in leadership positions on a House committee overseeing employer-based insurance, highlighted MultiPlan as an example of “opaque fee structures and alleged self-dealing” that drive up health care costs. In their letter, they pressed the department for details on its efforts to enforce rules meant to promote transparency and expose conflicts of interest.MultiPlan’s business model focuses on the most common way Americans get health coverage: through an employer that “self-funds,” meaning it pays medical claims with its own money and uses an insurance company to process claims. Insurers such as Aetna, Cigna and UnitedHealthcare have pitched MultiPlan’s services as a way to save money when an employee sees a provider out of network.In many cases, MultiPlan uses an algorithm-based tool to generate a recommended payment. Employers typically pay insurers and MultiPlan a percentage of what they call the “savings” — the difference between the recommendation and the original bill.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Americans Growing Worried About Losing Their Jobs, Labor Survey Shows

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      The New York Fed’s labor market survey showed cracks just as Jerome H. Powell, the Fed chair, prepares for a closely watched Friday speech.Americans are increasingly worried about losing their jobs, a new survey from the Federal Reserve Bank of New York released on Monday showed, a worrying sign at a moment when economists and central bankers are warily monitoring for cracks in the job market.The New York Fed’s July survey of labor market expectations showed that the expected likelihood of becoming unemployed rose to 4.4 percent on average, up from 3.9 percent a year earlier and the highest in data going back to 2014.In fact, the new data showed signs of the labor market cracking across a range of metrics. People reported leaving or losing jobs, marked down their salary expectations and increasingly thought that they would need to work past traditional retirement ages. The share of workers who reported searching for a job in the past four weeks jumped to 28.4 percent — the highest level since the data started — up from 19.4 percent in July 2023.The survey, which quizzes a nationally representative sample of people on their recent economic experience, suggested that meaningful fissures may be forming in the labor market. While it is just one report, it comes at a tense moment, as economists and central bankers watch nervously for signs that the job market is taking a turn for the worse.The unemployment rate has moved up notably over the past year, climbing to 4.3 percent in July. That has put many economy watchers on edge. The jobless rate rarely moves up as sharply as is has recently outside of an economic recession.But the slowdown in the labor market has not been widely backed up by other data. Jobless claims have moved up but remain relatively low. Consumer spending remains robust, with both overall retail sales data and company earnings reports suggesting that shoppers continue to open their wallets.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      FDA Declines to Approve MDMA Therapy, and Seeks Further Study

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      The agency said there was insufficient data to allow the use of a treatment for PTSD that involves the drug known as Ecstasy.The Food and Drug Administration on Friday declined to approve MDMA-assisted therapy for the treatment of post-traumatic stress disorder, dealing a serious blow to the nascent field of psychedelic medicine and dashing the hopes of many Americans who are desperate for new treatments.The F.D.A. said there was insufficient data to allow its use, and it asked the company seeking approval for the treatment, Lykos Therapeutics, to conduct an additional clinical trial to assess whether the drug, commonly known as Ecstasy or molly, would be safe and effective.An additional clinical trial could add years, and millions of dollars, to the approval process.If approved, MDMA would have become the first psychedelic compound to be regulated by federal health authorities. Supporters of psychedelic medicine were deeply disappointed, and some said they were stunned, having assumed the therapy’s promising data would overcome flaws in the company’s clinical trials, which had been designed in consultation with F.D.A. scientists.“This is an earthquake for those in the field who thought F.D.A. approval would be a cinch,” said Michael Pollan, the best-selling author and co-founder of the UC Berkeley Center for the Science of Psychedelics. His book, “How to Change Your Mind,” helped catalyze public interest in the therapeutic potential of psychoactive compounds, demonized during the nation’s long war on drugs.But the agency’s decision had not been entirely unexpected, after a group of independent experts convened by the F.D.A. to evaluate Lykos’s data met in June and did not recommend the treatment. On two central questions, the experts voted overwhelmingly that the company had not proven the treatment was effective, and that the drug therapy’s benefits did not outweigh the risks.The agency generally follows the recommendations of its outside panels. Critics, however, have questioned the panel’s expertise, noting that only one of its 11 members had experience in psychedelic medicine.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Why Google, Microsoft and Amazon Shy Away From Buying A.I. Start-Ups

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      Google, Microsoft and Amazon have made deals with A.I. start-ups for their technology and top employees, but have shied from owning the firms. Here’s why.In 2022, Noam Shazeer and Daniel De Freitas left their jobs developing artificial intelligence at Google. They said the tech giant moved too slowly. So they created Character.AI, a chatbot start-up, and raised nearly $200 million.Last week, Mr. Shazeer and Mr. De Freitas announced that they were returning to Google. They had struck a deal to rejoin its A.I. research arm, along with roughly 20 percent of Character.AI’s employees, and provide their start-up’s technology, they said.But even though Google was getting all that, it was not buying Character.AI.Instead, Google agreed to pay $3 billion to license the technology, two people with knowledge of the deal said. About $2.5 billion of that sum will then be used to buy out Character.AI’s shareholders, including Mr. Shazeer, who owns 30 percent to 40 percent of the company and stands to net $750 million to $1 billion, the people said. What remains of Character.AI will continue operating without its founders and investors.The deal was one of several unusual transactions that have recently emerged in Silicon Valley. While big tech companies typically buy start-ups outright, they have turned to a more complicated deal structure for young A.I. companies. It involves licensing the technology and hiring the top employees — effectively swallowing the start-up and its main assets — without becoming the owner of the firm.These transactions are being driven by the big tech companies’ desire to sidestep regulatory scrutiny while trying to get ahead in A.I., said three people who have been involved in such agreements. Google, Amazon, Meta, Apple and Microsoft are under a magnifying glass from agencies like the Federal Trade Commission over whether they are squashing competition, including by buying start-ups.“Large tech firms may clearly be trying to avoid regulatory scrutiny by not directly acquiring the targeted firms,” said Justin Johnson, a business economist who focuses on antitrust at Cornell University. But “these deals do indeed start to look a lot like regular acquisitions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Elon Musk Says Robotaxis Are Tesla’s Future. Experts Have Doubts.

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      Tesla says self-driving taxis will power its growth, but the company hasn’t said when such a service would be ready or how much it would increase profits.As sales of its electric cars have fallen, Tesla and its chief executive, Elon Musk, have sought to convince Wall Street that the company’s future lies not in the grinding business of making and selling cars but in the far more exciting world of artificial intelligence.In Mr. Musk’s telling, one of Tesla’s main A.I.-based businesses will be driverless taxis, or robotaxis, that can operate pretty much anywhere and in any condition. Tesla is very close to perfecting such vehicles and will easily secure regulatory approval to put them on roads, Mr. Musk said last week on a conference call to discuss the company’s second quarter results.Mr. Musk’s vision of autonomous vehicles, or A.V.s, is not limited to cars that drive themselves. He has also claimed that individuals who buy Teslas would be able to make money when they are asleep or at work by letting the company use their cars as robotaxis.The robotaxi service will, Mr. Musk has said, catapult Tesla’s stock market valuation, around $700 billion now, into the trillions of dollars.But first, a lot will have to go right.His idea would require major advances in technology and fundamental changes in the way people view cars. The experience of driverless taxi services like Waymo and Cruise in Phoenix, San Francisco and other cities raises questions about when such offerings will become profitable and how much money they will make.Tesla’s technology will face stiff competition from Waymo, a subsidiary of Alphabet, the parent company of Google; ride-hailing services like Uber and Lyft; and Amazon’s self-driving business Zoox. Carmakers including General Motors, which owns Cruise, are also pursuing autonomous driving, along with Chinese tech and auto companies like Baidu and BYD.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China Shows Few Signs of Tilting Economy Toward Consumers in New Plan

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      The Communist Party rebuffed calls from economists to shift away from investment-led growth and toward consumer spending.China engaged in a monthslong drumbeat of anticipation that a Communist Party leaders’ meeting would show the way to a new era of growth for the slowing economy.The outcome was a plan released on Sunday offering more than 300 steps on everything from taxes to religion. It echoed many familiar themes, like an emphasis on government investments in high-tech manufacturing and scientific innovation. There was little mention of anything that would directly address China’s plunging real estate prices or the millions of unfinished apartments left behind by failed developers.Many economists had called for a comprehensive effort to rebalance the Chinese economy away from investment and toward consumer spending. But the document — roughly 15,000 words in the English translation — made a brief and cautious call to “refine long-term mechanisms for expanding consumption.”The Communist Party’s Central Committee doubled down on industrial policy. The party promised to “promote the development of strategic industries” in eight sectors, from renewable energy to aerospace. Those were essentially the same industries as in the country’s decade-old Made in China 2025 plan to replace imports of high-tech goods with locally produced products, as part of a national push for self-reliance.A similar plan in 2013 had many provisions that have never been put into effect, such as a plan to roll out a nationwide property tax to raise money for local governments.Many of these local governments have fallen far into debt since then. Sunday’s plan proposed a different solution: The central government should become responsible for more of the country’s spending. It also called for expanding local tax revenues, but had only a bare mention of a real estate tax.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Climate and the Republican Convention

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      Here’s where the party stands on global warming, energy and the environment.It’s official: Donald Trump is the Republican nominee for the presidential election this November, and Senator J.D. Vance of Ohio is his running mate.The long-awaited announcement of the vice-presidential candidate came as the Republican National Convention opened in Milwaukee on Monday and Trump made his first public appearance since the assassination attempt in Pennsylvania on Saturday.Climate change was not on the agenda. But the convention’s first day, which was focused on the economy, offered fresh signs of what a new Trump presidency might look like in terms of climate policy.Today, I want to share with you some of the reporting my colleague Lisa Friedman has been doing on the Republican ticket and what to expect when it comes to climate and the environment. Lisa has covered environmental policy from Washington for more than a decade.For Republican leaders, it’s all about energyJune was the Earth’s 13th consecutive month to break a global heat record and more than a third of Americans are facing dangerous levels of heat. But climate change is unlikely to be a major theme at the Republican convention, which runs through Thursday. It was not mentioned in any of the main speeches on Monday, which instead focused on inflation and the economy.(The closest thing to a mention of global warming Monday night came from Senator Marsha Blackburn of Tennessee, who derided what she called the “Green New Scam,” saying it was destroying small business.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Germany to Strip Huawei From Its 5G Networks

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      Major telecom companies agreed to stop using critical components made by Chinese companies in their mobile infrastructure by 2029.The German government said on Thursday that it had reached an agreement with major telecom companies to have them stop using critical Huawei and ZTE components in their 5G mobile infrastructure in five years, the latest step by a European country to ban Chinese companies from critical telecommunications infrastructure.“We are protecting the central nervous system of the German economy — and we are protecting the communication of citizens, companies and the state,” Nancy Faeser, the interior minister, said in a news conference in Berlin on Thursday.The agreement with the telecom companies — Deutsche Telekom, Vodafone and Telefonica — comes in two steps. First, use of Chinese-made critical components will be discontinued from core parts of the country’s 5G networks by the end of 2026. Then, the parts made by Chinese manufacturers will be phased out from antennas, transmission lines and towers by the end of 2029.Huawei and ZTE did not respond to requests for comment.Germany, which accounts for roughly a quarter of mobile customers in the European Union , is highly dependent on the Chinese export market and has long delayed taking such a drastic step against Chinese firms. Instead it has chosen to certify components based on a case-by-case security check.Other European countries such as Britain, Denmark, Sweden, Latvia, Estonia and Lithuania have already instituted bans on Huawei and ZTE components. The United States has restricted the use of Huawei equipment since at least 2019.In presenting the arrangement, Ms. Faeser reiterated that it was based on negotiations with German telecom providers. Those providers had long argued that switching from Huawei and ZTE components too quickly would be complicated and expensive.The question of banning Huawei and ZTE from German mobile infrastructure has been discussed in Berlin since the previous government, headed by Angela Merkel, but the decision announced on Thursday comes after an extensive security assessment, said Ms. Faeser.“The current threat situation underlines the importance of a secure and resilient telecommunications infrastructure, especially in view of the dangers of sabotage and espionage,” she said.Adam Satariano More