Medill Money Mavens » Health

The Whole Foods Fight

KatieRogers — Wed, 26 Aug 2009 16:19:35 +0000

Is the “Whole Foods Boycott” impacting the company’s financials? Not yet. (Image via Creative Commons)

Nearly 29,000 people now subscribe to a Facebook group calling for a boycott of Whole Foods Market Inc. since CEO John Mackey wrote an op-ed against proposed methods of health care reform in the Wall Street Journal Aug. 12.

Not surpisingly, after it lead off with Margaret Thatcher’s quote, “the problem with socialism is that eventually you run out of other people’s money,” Mackey’s piece just didn’t seem to sit well with Whole Foods’s left-leaning consumer base.

And now, an online consumer ratings group called YouGov reports that consumer ratings of the company are beginning to plummet. The company, which actually tracks a company’s “buzz” within news and pop culture, posted numbers that indicate positive public perception of the company has dropped significantly in past weeks, according to Mashable.

The boycott doesn’t stop with Facebook. A WordPress blog, Twitter feed and Flickr pool have all been registered, indicating a social media siege from all angles.

The impact of a social media-generated movement like this one remains to be seen, but it’s clear that Whole Foods — and companies that find themselves in hot water on the Internet — won’t get away with a vague response posted in the same forum that houses thousands angry customers.

But financially, it seems there’s still appetite for shares of Whole Foods [[WFMI]]. Shares are rebounding since the first few days after Mackey’s op-ed was published, with shares trading near $28.38, a small jump of 0.55 percent, early in the day Wednesday.

In short, a Facebook-led attack spurred by a CEO’s interpretation of health care reform seems less like a problem for the company than, say, a crashed economy that saw shares tank to around $8 in November 2008.

A snapshot of YTD performance is below:

Via Google Finance

Vice President Biden talks healthcare in Chicago

kellen.henry — Fri, 21 Aug 2009 01:04:09 +0000

By KELLEN M. HENRY and JORDAN MELNICK– MEDILL NEWS SERVICE

Vice President Joe Biden and Secretary of Health and Human Services Kathleen Sebelius hosted a roundtable discussion about health care reform, announcing a $1.2 billion award of stimulus funds for electronic records at the Sinai Community Institute on Thursday. Listen below as Medill students dish about Biden’s visit to the Windy City.

Obamacare under siege

Jordan Melnick — Tue, 18 Aug 2009 19:55:55 +0000

Image via ILIGHT/Flickr.com

BY JORDAN MELNICK – MEDILL NEWS SERVICE

There’s no question about it: Obamacare is officially under siege. While the president might have hoped August would be a quiet month with Congress in recess, it has been anything but. Early in the month, there were reports of fervent protests at meetings around the country convened by lawmakers in their home states. From “Beyond Beltway, Health Care Debate Turns Hostile,” in the New York Times:

The bitter divisions over an overhaul of the health care system have exploded at town-hall-style meetings over the last few days as members of Congress have been shouted down, hanged in effigy and taunted by crowds. In several cities, noisy demonstrations have led to fistfights, arrests and hospitalizations.

President Obama has recently been very proactive in advocating for reform. In an Aug. 15 op-ed in the Times, he tried to shift attention from his vociferous critics to the “millions upon millions of Americans who quietly struggle every day with a system that often works better for the health-insurance companies than it does for them.”

On the same day, he gave a speech in Colorado essentially throwing in the towel on a public option, a government-offered insurance plan anathema to Republicans. From “The Public Option Goes Over,” in the Wall Street Journal: “Whether we have it or we don’t have it, it is not the entirety of health care reform,” Obama said. “This is just one sliver of it.”

Well, unsurprisingly, the president’s efforts to placate one side of the aisle alienated the other. From “Backlash grows on Obama’s health reform,” in Tuesday’s Financial Times:

In a letter to Kathleen Sibelius, the secretary for health and human services, 60 Democratic lawmakers in the House of Representatives warned that they would vote against healthcare reform if it excluded a public insurance option that would provide a state-run alternative to private insurance plans for low-income people. That would leave Mr. Obama needing 22 Republican votes in the lower chamber – a very tall order.

Now the Obama administration is “scrambling,” according to the article.

In his struggles, the president appears to be battling Hydra. Every move he makes to solve a problem creates five new ones. More and more it is looking like this monster – health care reform – cannot be slain.

PhRMA takes issue with drug-rebate proposal

Jordan Melnick — Wed, 29 Jul 2009 19:36:54 +0000

BY JORDAN MELNICK — MEDILL NEWS SERVICE

The Pharmaceutical Research and Manufacturers of America (PhRMA) cited “serious concerns” over a House proposal to have drug companies pay a rebate on certain medications provided under Medicare.

From the Wall Street Journal:

Under the proposed rebates, drug makers would pay back to the government some of the difference between higher prices charged for medicine under Medicare and the lower prices that are charged under Medicaid. In 2006, low-income seniors covered by Medicaid were moved into Medicare, which provides health care for the elderly.

While PhRMA – and by extension Big Pharma – has generally supported health care reform to date (a historic about-face) questions remain over how the trade association would use its sway to shape a final bill. And that sway is considerable: PhRMA has spent more than $13 million lobbying Congress this year, according to the Center for Responsive Politics.

In a statement Wednesday, PhRMA Senior Vice President Ken Johnson said:

The provision will constitute a tax increase on Part D beneficiaries because of resulting premium increases projected by the Congressional Budget Office (CBO) under a similar proposal.

Also in the statement – an updated version of a July 22 release – Johnson called for “well-designed” comparative-effectiveness research (CER), which would study comparable treatments. Under a public health care plan, the research could be used to determine which drugs the government offers based on cost and effectiveness. Pharma opposes binding CER, as Johnson’s statement suggests:

We believe sound policy is needed to support a long-term, credible, patient-centered program for comparative clinical effectiveness research that empowers patients and doctors with good information while avoiding restrictions on patient access to optimal care.

Some without health care are starting small businesses to get coverage

felicebaker — Wed, 27 May 2009 23:20:41 +0000

Those who are in desperate need of health insurance due to lay-offs or pre-existing conditions are willing to set up their own businesses and pay the higher costs of group health insurance. (The Sacramento Bee)

BY FELICE BAKER – MEDILL NEWS SERVICE

A growing trend among those who are finding it hard to get individual health insurance in the current economic climate, is creating small businesses to get group health insurance.

According to a Wall Street Journal article, the types of people using the “form-a-small-business” strategy to get group health insurance are those who were recently laid off, or who have pre-existing conditions which make them unattractive to health insurers. Group health plans are obligated by federal law to cover those suffering from pre-existing conditions.

The strategy has some catches, however. Group health plans are often more expensive than buying an individual policy. Furthermore, insurers often slap surcharges on small businesses consisting of one to three workers compared with larger small businesses, because they are already aware that some people with pre-existing conditions are forming these businesses for the main purpose of being insured. Those surcharges can add up to about 30 percent more than what a larger business would pay.

But for those whose ailments make them desperate for health insurance at any cost, forming small businesses may seem like the only option.

The types of small businesses that have been formed under this trend are frequently off-shoots of the owner’s previous career.

For example, according to the article, those who were laid off during the recession are forming small consulting businesses to serve their former clients. Other types of small business formed under this trend provide freelance, contract and other types of services.

However, there are also many existing small businesses that do not know they can get group health insurance. According to the article, many owners who qualify for group health insurance, “do not realize it until an insurance agent, accountant or financial planner points out the option.”

This is not the case for Dr. Thomas R. Benthien, optometrist at Eyelines in the Loop, who stopped providing group health insurance for his four employees in 2004. According to optician Marcia Cannon, Benthien dropped group health insurance in order to decrease costs, particularly after his employees told him that they would prefer seeking individual policies, or joining their spouses’ policies.

“Half of the insurance I receive falls under his personal insurance policy, and the other half is my policy,” Cannon said. “Otherwise, the other employees here have their own insurance. Dr. Benthien, himself, has no pre-existing conditions.”

Food-writer Michael Pollan advises consumers to take nutrition information “with a grain of salt”

bcm141 — Tue, 19 May 2009 17:42:12 +0000

BY BRIDGET MACDONALD - MEDILL NEWS SERVICE

More than 400 people flocked to Chicago’s Harold Washington Library Center Monday evening, hungry for kernels of wisdom from watchdog food writer Michael Pollan, author of “The Omnivore’s Dilemma” and “In Defense of Food: An Eater’s Manifesto.”

In the program, a conversation with Chicago journalist Bill Kurtis for Chicago Matters, Pollan advised consumers to take nutrition claims on food packaging “with a grain of salt.” According to Pollan, 90 percent of advertising dollars in the food industry are spent on marketing processed foods.

Since 1977, when the Senate’s select committee on nutrition decided for the first time to set overarching nutrition goals for the country, Pollan said government and industry leaders have been negotiating dietary guidelines that determine how we eat. The result has been the advent of “nutritionism”, the evaluation of food in terms of nutrient parts rather than as just, say, a bunch of broccoli in its own right.

Pollan explained that ironically our overall health has not improved, citing increasing rates of obesity and diabetes; yet food companies have reaped the rewards. While it is difficult to change the image of a whole food, he said, processed foods are easily re-engineered to reflect the latest health trends.

Marveling at the shrewdness of the industry, Pollan said food companies have even honed in on his writing for tips on how to remarket products. Among the suggestions in his latest book for helping conscious consumers navigate grocery store aisles is the recommendation to avoid products that contain more than five ingredients.

But he pointed out that Häagen-Dazs recently launched a new line of ice cream called “five,” which contain only five ingredients. “It’s still ice cream!” Pollan said.

In response to the ever-evolving marketing tactics, he offered a new foolproof caveat for shoppers: “Avoid any foods you’ve ever seen advertised.”

Although Pollan’s criticisms weighed heavily on food companies, he called on consumers, educators and policy makers to help reform the American food system, proposing greater financial support for regional farmers, and an overhaul of the national school lunch program as avenues for bringing about key changes in our eating culture.

“When you give kids chicken nuggets and tater tots and ten minutes to eat, you are building the next generation of fast food consumers,” Pollan said.

House Agricultural Committee plants seeds for regulating organic food safety

bcm141 — Fri, 15 May 2009 16:59:11 +0000

BY BRIDGET MACDONALD - MEDILL NEWS SERVICE

In the wake of a succession of food safety scares over the past few years involving the likes of tomatoes, spinach and peanuts, the House Agricultural Committee is taking a preemptive strike against food contamination in the expanding field of organic production.

The subcommittee on Horticulture and Organic Agriculture convened for a hearing Thursday to discuss strategies and standards for preventing, monitoring and controlling potential food safety hazards in this quickly expanding agricultural sector.

Although organic foods are generally perceived as being healthier than conventional foods because pesticides and herbicides are not used in their production, the industry is not immune from the potential hazards of large-scale, commercial distribution.

Within an industrial food system, where the journey from field to plate is interrupted by numerous pit stops, safety issues related to storage, handling and processing can trump responsible cultivation techniques.

The range of testimonials at Thursday’s hearing, from representatives at the Food and Drug Administration, the Agricultural Marketing Service and the U.S. Department of Agriculture, provided an indication of the compartmentalization that has led to cracks in the regulatory system.

Committee chairman Congressman Dennis Cardoza pointed out, “There are currently 15 different federal agencies tasked with monitoring the safety and security of our food supply.”

But given the number of different players with their hands in the food supply, there are inevitably competing interests at stake. Subcommittee Ranking Member Jean Schmidt of Ohio spoke to the likely head butting to come:

“I know many producers in my state have concerns about the FDA regulating on-farm activities. I share these concerns based on the recognition that while FDA has vast expertise regulating food processing, the agency has little expertise or infrastructure to fairly and effectively regulate farm production practices.”

Despite the challenge of finding common ground, the number of voices in the debate and the urgency of the dialogue is another indication that organics are poised to become a larger and more accessible component of the nation’s food supply.

Upwards of 43 percent of Illinoisans lack paid sick leave

lapatton — Tue, 05 May 2009 14:07:09 +0000

More than three-quarters of the lowest-wage workers in Illinois have no paid sick leave at all. (n!ck/FLICKR)

BY LESLIE PATTON - MEDILL NEWS SERVICE

As of Tuesday morning, there have been 286 laboratory confirmed cases of the swine flu, now referred to as influenza A (H1N1)infection by the World Health Organization, in the U.S.

While not exactly the same scenario, this outbreak is reminiscent of a flu that set off some mayhem in a Las Vegas hotel four-and-a-half years ago.

In October, 2004 a virus infected more than 1,200 workers and guests at the Flamingo Las Vegas Hotel. To stem the spread of norovirus, a contagious disease that causes vomiting and diarrhea, hotel management had a novel solution for its employees: six days off with pay.

The Clark County Health District in Las Vegas lauded the efforts of the sin-city establishment, owned by Harrah’s Entertainment Inc. But what efforts are being taken by companies and organizations in Chicago to make sure the flu isn’t passed between those who can’t afford to take a day off? And what about parents who may have a sick child?

In Illinois, 43 percent of the workforce lack paid sick leave, while 28 percent of workers have no paid leave whatsoever, according to a study on the costs and benefits of paid sick days in Illinois by the Institute for Women’s Policy Research, a non-profit think tank in Washington, D.C.

Employers in Illinois are not required to provide any paid time off to employees right now.

The Healthy Workplace Act (HB 3665), pending in the Illinois House, would help remedy this shortage of paid sick days. According to the Illinois Paid Leave Coalition, the act would:

Allow workers to accrue seven paid sick days per year.
Provide leave for an employee’s own illness, to care for the illness of a family member and for medical appointments.
Require employers to pay for this benefit when needed by employees, if the employer does not already provide the seven paid sick days.

The bill was most recently sent to the Illinois House Rules Committee on March 13 after being introduced on February 24.

The costs and benefits study concluded that the Healthy Workplace Act would save Illinois millions of dollars through improved public health.

Paid sick days would reduce the spread of serious contagious diseases such as the flu and norovirus.
Workers would save $3 million annually in health care expenditures just from lower flu contagion at work.
Getting timely medical care would improve care and treatment, reducing costs for providers and patients.

There will be a briefing on new outbreaks of the influenza epidemic by Dr. Jon K. Andrus of the Pan American Health Organization on Tuesday at 1 p.m. CST.

Social media hit by swine flu

sidvee — Fri, 01 May 2009 18:48:07 +0000

BY SIDDHARTHA VAIDYANATHAN – MEDILL NEWS SERVICE

Few diseases have been so prevalent in the social media world as the ongoing swine flu crisis. Facebook and Twitter are flooded with messages and both sites even offer maps to show the spread of the virus. You can check out the interactive map of the U.S on Twittervese and graphs and analysis on Facebook. Google Maps has done something similar here.

According to Mashable, Monday tweets about the swine flu were at about 10,000 an hour. But many of these were jokes and retweets, so it’s hard to gauge the impact of the messages going out. Many tweets talked about how the Internet had survived the “Aporkalypse”.

The American Red Cross said the swine flu outbreak was the first crisis in which the organization has used social media tools – they are using Facebook, Twitter and YouTube (uploading videos in both English and Spanish).

Search engines saw spikes in searches of phrases such as “swine flu symptoms” or “swine flu pandemic” early this week. According to USA Today, “Swine flu” rose to the top of Yahoo’s searches this week.

And such constant updates have meant a shake-up in the stock markets too. According to a comment in the National Post: ” … the initial market reaction was to cause aviation stocks to fall [not good for travel] but for pharmaceutical stocks to rise, especially those that make flu vaccines [such as GlaxoSmithKline.] Johnson & Johnson makes the Purell hand cleaner.”

Swine flu rebrands to H1N1

Ming Zhuang — Fri, 01 May 2009 12:55:12 +0000

www.mediapost.com

BY MING ZHUANG/MEDILL NEWS SERVICE

The World Health Organization on Thursday dropped the term “swine flu” as pork lobbyists have been persuading to switch the virus name in favor of saving the decline of the pork industry. The flu has a new name now–H1N1.The announcement was briefly mentioned on the WHO’s Web site –

30 April 2009 — From today, WHO will refer to the new influenza virus as influenza A (H1N1).

President Obama and U.S. public health officials also referred to the new virus as “H1N1 flu.”

The $97 billion U.S. pork industry has been facing its most difficult time since the virus outbreak spread. Countries such as Russia, China and Ukraine are moving to ban or restrict pork imports from some U.S. states.

U.S. hog prices have slumped $3 to $5 per hundredweight this week, which also led to lower prices of soybeans and corn, used as hog feed. May lean-hog futures on the Chicago Mercantile Exchange have dropped 12 percent since last Friday.

“That’s not helpful to pork producers. That’s not helpful to people who eat pork,” Richard Besser, acting director of the federal Centers for Disease Control and Prevention in Atlanta, said in a Tuesday briefing.

He acknowledged that the use of “swine flu” label was misleading people that they could catch the new respiratory disease from food.

With the emerging virus strain sweeping around the world, more people are scared away from consuming pork, even though experts point out that people can’t get the disease from food or handling pork. It just increases the worries of agricultural groups.

According to Wall Street Journal, the National Pork Producers Council has pestered health officials to rename “swine flu” since the flu strain made headlines last week.

“The whole industry is talking to the USDA and the White House,” an industry lobbyist said to the Journal.

Chris Novak, chief executive officer of the National Pork Board, said in a news release:

“Calling this swine flu, when to date there has been no connection between animals and humans has the potential to cause confusion.”

Another reason for WHO to cease using the name “swine flu” is that was misleading and triggering the slaughter of pigs in some countries.

Keiji Fukuda, the health security chief of the WHO, said to Hindustan Times:

“We know it is an H1N1 virus. This is scientifically accurate and doesn’t place any stigmas. This is to try to reduce some of the overreactions to swine flu as a name.”

However, even though WHO and U.S. officials have been urging people not to be overreacted, it’s hard to expel consumers’ panic of shunning pork as the Influenza pandemic alert has raised from phase 4 to 5 globally.

Ron Plain, agricultural economist at the University of Missouri, said to Wall Street Journal Thursday that the U.S. pork industry may face losses of about $270 million in income during the second quarter, taking consideration of the current market conditions.

At press time, the phrase “swine flu” was still all over the internet and its counter parts in different languages are still used in media of different countries.