Congress examines science behind HGH test for NFL

WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.

Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.

The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.

Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."

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Police: Mall shooting 'could have been much, much worse'

PORTLAND, Ore. (AP) — The gunman who killed two people and himself in a shooting rampage at an Oregon mall was 22 years old and used a stolen rifle from someone he knew, authorities said Wednesday.

Jacob Tyler Roberts had armed himself with an AR-15 semiautomatic rifle and had several fully loaded magazines when he arrived at a Portland mall on Tuesday, said Clackamas County Sheriff Craig Roberts.

The sheriff said the rifle jammed during the 22-year-old's attack, but he managed to get it working again. He later shot himself. Authorities don't yet have a motive but don't believe he was targeting specific people.

Two people — a 54-year-old woman and a 45-year-old man — were killed, and another, Kristina Shevchenko, 15, was wounded and in serious condition on Wednesday.

Roberts, wearing a hockey-style face mask, parked his 1996 green Volkswagen Jetta in front of the second-floor entrance to Macy's and walked briskly through the store, into the mall and began firing randomly, police said.

He fatally shot Steven Mathew Forsyth of West Linn and Cindy Ann Yuille of Portland, the sheriff said.

Roberts then fled along a mall corridor and into a back hallway, down stairs and into a corner where police found him dead from an apparent self-inflicted gunshot, authorities said.

People at the mall were heroic in helping get shoppers out of the building, including medical personnel who rendered aid, Roberts said.

In response to previous mass shootings elsewhere, the first arriving officers were trained to form teams and go inside instead of waiting for SWAT. Employees at the mall also received training to handle such a situation.

"This could have been much, much worse," Roberts said.

The first 911 call came at 3:29 p.m. Tuesday and officers arrived a minute later. By 3:51 p.m., all the victims and the gunman and rifle had been found. Four SWAT teams spent hours clearing the 1.4 million square-foot mall, leaving shoppers and workers to hide in fear.

Roberts rented a basement room in a modest, single-story Portland home and hadn't lived there long, said a neighbor, Bobbi Bates. Bates said she saw Roberts leave at 1:30 p.m. Tuesday wearing a dark jacket and jeans, carrying a guitar case. An occupant at the house declined to comment.

The mall Santa, Brance Wilson, was waiting for the next child's Christmas wish when shots rang out, causing the mall to erupt into chaos.

About to invite a child to hop onto his lap, Wilson instead dove for the floor and kept his head down as he heard shots being fired upstairs in the mall.

"I heard two shots and got out of the chair. I thought a red suit was a pretty good target," said Wilson, 68. Families waiting for Santa scattered. More shots followed, and Wilson crept away for better cover.

Witnesses heard the gunman saying, "I am the shooter," as he fired rounds from a semi-automatic rifle inside the Clackamas Town Center, a popular suburban mall several miles from downtown Portland.

Some were close enough to the shooter to feel the percussion of his gun.

Kayla Sprint, 18, was interviewing for a job at a clothing store when she heard shots.

"We heard people running back here screaming, yelling '911,'" she told The Associated Press.

Sprint barricaded herself in the store's back room until the coast was clear.

Jason DeCosta, a manager of a window-tinting company that has a display on the mall's ground floor, said when he arrived to relieve his co-worker, he heard shots ring out upstairs.

DeCosta ran up an escalator, past people who had dropped for cover and glass littering the floor.

"I figure if he's shooting a gun, he's gonna run out of bullets," DeCosta said, "and I'm gonna take him."

DeCosta said when he got to the food court, "I saw a gentleman face down, obviously shot in the head."

"A lot of blood," DeCosta said. "You could tell there was nothing you could do for him."

He said he also saw a woman on the floor who had been shot in the chest.

Austin Patty, 20, who works at Macy's, said he saw a man in a white mask carrying a rifle and wearing a bulletproof vest. There was a series of rapid-fire shots in short succession as Christmas music played. Patty said he dove for the floor and then ran.

His Macy's co-worker, Pam Moore, told the AP the gunman was short, with dark hair.

Kira Rowland told KGW-TV that she was shopping at Macy's with her infant son when the shots started.

"All of a sudden you hear two shots, which sounded like balloons popping," Rowland told the station. "Everybody got on the ground. I grabbed the baby from the stroller and got on the ground."

Rowland said she heard people screaming and crying.

"I put the baby back in the stroller and ran," Rowland said.

Kaelynn Keelin was working two stores down from Macy's when the gunfire began. She watched windows of another store get shot out. She and her co-workers ran to get customers inside their own store to take shelter.

"If we would have run out, we would have run right into it," she said.

Shaun Wik, 20, was Christmas shopping with his girlfriend and opened a fortune cookie at the food court. Inside was written: "Live for today. Remember yesterday. Think of tomorrow."

As he read it, he heard three shots. He heard a man he believes was the gunman shout, "Get down!" but Wik and his girlfriend ran. He heard seven or eight more shots. He didn't turn around.

"If I had looked back, I might not be standing here," Wik said. "I might have been one of the ones who got hit."

Clackamas Town Center is one of the Portland area's biggest and busiest malls, with 185 stores and a 20-screen movie theater.

Holli Bautista, 28, was shopping at Macy's for a Christmas dress for her daughter when she heard pops that sounded like firecrackers. "I heard people running and screaming and saying 'Get out, there's somebody shooting,'" she told the AP.

She said hundreds of shoppers and mall employees started running, and she and dozens of other people were trying to escape through a department store exit.

Tiffany Turgetto and her husband were leaving Macy's through the first floor when they heard gunshots coming from the second floor of the mall. They were able to leave quickly through a Barnes & Noble bookstore before the police locked down the mall.

"I had left my phone at home. I was telling people to call 911. Surprisingly, people are around me, no one was calling 911. I think people were in shock," she said.

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Associated Press writers Steven DuBois, Nigel Duara, Anne M. Peterson, Tim Fought and Sarah Skidmore in Portland, Michelle Price in Phoenix, Pete Yost in Washington, Manuel Valdes in Seattle and researcher Rhonda Shafner contributed to this report.

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Taliban popular where US fought biggest battle

MARJAH, Afghanistan (AP) — Nearly three years after U.S.-led forces launched the biggest operation of the war to clear insurgents, foster economic growth and set a model for the rest of Afghanistan, angry residents of Helmand province say they are too afraid to go out after dark because of marauding bands of thieves.

And during the day, they say corrupt police and government officials bully them into paying bribes. After 11 years of war, many here long for a return of the Taliban. They say that under the Taliban, who routinely punished thieves by cutting off a hand, they were at least safe from crime and corruption.

"If you had a box of cash on your head, you could go to the farthest part of Marjah and no one would take it from you, even at night," said Maulvi Daoud, who runs a cubbyhole sized-shop in the town of Marjah. "Today you bring your motorcycle in front of your shop and it will be gone. Now the situation is that you go on the road and they are standing in police and army uniform with weapons and they can take your money."

It was in the town of Marjah in early 2010 that some 15,000 NATO and Afghan forces waged the war's biggest battle. They not only fought the Taliban with weapons, they promised to bring good governance to Marjah and the rest of the southern province of Helmand — and demonstrate to the residents the advantages of shunning the militants.

But it appears the flaw in the plan was with the quality of Afghans chosen by President Hamid Karzai to govern and police the area after most of the fighting ended. And that adds to growing doubts about the entire country's future after foreign troops withdraw by the end of 2014.

Despite military claims of gains across the province and an overall drop in violence, Marjah residents told The Associated Press that NATO's counterinsurgency experiment has failed. A bleak picture also emerges from anecdotal evidence collected from dozens of interviews with residents elsewhere in the province, some from the most violent districts.

Many claim the U.S.-funded local police, a type of locally sanctioned militia, routinely demand bribes and threaten to accuse those who do not comply of being members of the Taliban. Good governance never came to Marjah, they say.

In villages of sun-baked mud homes, at crowded bus stops and in local tea houses where residents sit cross-legged on plastic-covered tables drinking tea and eating off communal plates, people scoffed at claims of security and development. They heaped criticism on the Afghan government and officials, accusing them of stealing billions of dollars in aid money meant for the people and on an international community that they said ignored their needs and pandered to a corrupt administration.

Daoud, the Marjah shop owner, said there was more security under the country's Taliban regime that was ousted by the U.S.-led invasion in late 2001.

"They were never cruel to us and the one difference was security. It was better during the Taliban," he said.

His partner in the rickety shop along Marjah's chaotic one-street bazaar, Mohammed Haider, said poppy farmers who planted substitute crops such as cotton are losing money because they cannot sell their harvests. He predicted poppy production would double when foreign soldiers leave in 2014.

At a bus stop in Helmand's provincial capital of Lashkar Gah, residents scrambled for dilapidated old buses and cars to go to parts of Helmand. Hamidullah, who like many Afghans uses only one name, was waiting for a bus to Sangin district — the scene of some of the most violent fighting between the Taliban and British and U.S. forces.

Like the majority of those at the stop, he wanted foreign forces to leave Afghanistan.

"All these foreign soldiers are here and it is totally insecure everywhere in Helmand," Hamidullah said. "For the time that they are in Afghanistan we will always have war."

Several of the men scrambling on top the packed buses and jamming themselves into the back of cars seemed to growl at the presence of foreigners in their midst. A single question: "What is the situation like in Helmand today?" brought a cacophony of answers. Many of the voices sounded angry, some sounded weary and a few angry-looking men walked away.

"We are completely destroyed today," said Hamidullah.

"The situation is getting worse and worse," shouted a voice in the crowd. Another yelled: "There is no security because of the foreigners." And from a deeply wrinkled elderly man whose voice seemed both angry and sad: "If the foreigners are out of Afghanistan, all the problems will be solved. Are our lives any better?"

Analysts who know Helmand say a corrupt government poses one of the biggest hurdles to stability, alienating the local population and driving them into the hands of the Taliban.

The province is strategically important because of a massive poppy production that is financing the insurgency and fueling criminal activity. While some success has been achieved at getting farmers to plant substitute crops, Helmand is still one of Afghanistan's largest opium-producing provinces, often blamed on anti-government sentiment and collusion between corrupt government officials and the Taliban.

The NATO-led coalition, known as the International Security Assistance Force, claims there are tangible gains against the Taliban in Helmand and neighboring Kandahar province.

"While insurgent activity remains problematic in several districts, primarily in northern Helmand and western Kandahar, data from the battle space shows a marked decrease in overall enemy activity," ISAF spokesman Jamie Graybeal said recently.

Despite a drop of 8 percent in militant attacks from January to October compared to the same period last year, Helmand and neighboring Nimroz province accounted for 32 percent of all such attacks reported across the country from October 2011 to October this year, according to ISAF.

Ryan Evans, a research fellow at the U.S.-based Center for National Policy, called Helmand the "most dangerous and violent" of Afghanistan's 34 provinces.

"From 2010 to early 2012, one of five ISAF soldiers was killed in this one province — Helmand. And the province has since taken more lives and limbs than any other province," said Evans, who worked with U.S. and British troops in Helmand during 2010 and 2011.

The larger question, of course, is whether what's happening in Helmand is a harbinger of what the rest of Afghanistan will look like after the departure of the international troops.

A report released last month by the British Parliament's International Development Committee offered grim statistics.

Afghanistan continues to be one of the poorest countries in the world, with the average person earning less than one dollar a day despite $32 billion in foreign investment.

The country has also tumbled in corruption ratings assembled by Transparency International. Afghanistan was ranked 117 out of 158 countries in 2005, then slid to 180 out of 183 nations last year. The scandal-ridden Kabul Bank milked millions of dollars from Afghans' savings.

Some Afghans believe their countrymen are responsible for the current state of affairs.

Haji Khalil who moved his family from Marjah to Lashkar Gah during the 2010 offensive, blamed Afghans for the spike in thefts and lawlessness since the defeat of the Taliban.

"During the Taliban no one would steal because we knew the punishment, but when they left everyone began to steal," Khalil said.

"We became worse after the Taliban," he said. "The problem is with us."

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Kathy Gannon is AP's Special Regional Correspondent for Afghanistan and Pakistan. She can be followed on www.twitter.com/kathygannon

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Lawsuit claims A&E's 'Storage Wars' show is rigged

LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E's "Storage Wars" have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.

David Hester's suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley's death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.

Hester is seeking more than $750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.

"Storage Wars" follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.

"A&E regularly plants valuable items or memorabilia," the lawsuit states. Hester's suit claims he was fired from participating in the series' fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.

He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.

"Storage Wars" depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.

Hester, known as "The Mogul" on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.

Nielsen Co. has ranked "Storage Wars" among cable television's top-ranked shows several times since its 2010 debut.

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APNewsBreak: DA investigating Texas cancer agency

AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.

Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.

Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.

His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.

CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.

The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.

Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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W.Va. natural gas line explosion melts road, burns homes

SISSONVILLE, W.Va. (AP) — At least five homes went up in flames Tuesday afternoon and a badly burned section of Interstate 77 in West Virginia was closed after a natural gas line exploded in an hour-long inferno.

No injuries were immediately reported, but firefighters had just begun to reach damaged structures late in the afternoon after the intense flames kept them at bay for several hours.

Several people were treated for smoke inhalation, and a shelter was set up at Sissonville High School, where Gov. Earl Ray Tomblin planned a late-afternoon press conference

State Police spokesman Sgt. Michael Baylous said a slight risk of a secondary explosion remained, but people were told to stay inside their homes rather than evacuate. The explosion occurred near Sissonville just before 1 p.m. in a 20-inch transmission line owned by NiSource Inc., parent of Columbia Gas.

The gas flow was shut off, but 1st Sgt. James Lee said there was still pressure on the transmission line.

"The gas company is doing a check on it now," he said.

Kent Carper, president of the Kanawha County Commission, said flames had been shooting 50 to 75 feet into the air before the fire was extinguished.

"It sounded like a Boeing 757. Just a roar," he said. "It was huge. You just couldn't hear anything. It was like a space flight."

Trevor Goins lives about a half-mile from the explosion and was watching television in his apartment when he saw a ripple in his coffee cup and the floor shook.

"I thought possibly (it was) a plane crash," said Goins, who immediately went outside with several neighbors. "It was so loud it sounded like a turbine engine. You almost had to put your hands over your ears."

He got in his car and drove closer, seeing fire that stretched as high as the hilltops.

"The flames were so high, they were so massive," he said. "I could only imagine what had happened"

Carper said the flames spanned about a quarter of a mile and ran through a culvert under the interstate.

"It actually cooked the interstate," he said. "It looks like a tar pit."

The interstate will be shut down for two days while engineers and inspectors repair the damage and assess whether a bridge was compromised, said State Police Sgt. Chris Zerkle. Route 21 will also be closed until further notice, he said.

Zerkle said a State Police helicopter team was going up to ascertain the extent of the damage while a command center was being set up nearby.

Mike Banas, communications manager for NiSource, said the company was still gathering facts.

"Our first priority is the safety of our employees and the community," he said, adding that no impacts on customers are anticipated.

Sissonville Fire Chief Tim Gooch said a nursing home is less than a mile from the site of the blast, but the patients are safe. Paramedics were sent to check on them as a precaution.

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Smith reported from Morgantown.

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Pakistan: US drone strike kills al-Qaida commander

DERA ISMAIL KHAN, Pakistan (AP) — A U.S. drone strike has killed an al-Qaida commander in Pakistan's northwest, the second member of the Islamic militant network killed in the area in less than a week, Pakistani intelligence officials and a Taliban militant said Monday.

Mohammad Ahmed al-Mansoor died Sunday when drone-launched missiles hit a house in Tabbi village in the North Waziristan tribal area, the main sanctuary for al-Qaida and Taliban fighters in the country, the officials and militant said.

Al-Mansoor was a close aide to senior al-Qaida leader Sheik Khalid bin Abdel Rehman al-Hussainan, who was killed in a drone strike in North Waziristan on Thursday, said the officials, speaking on condition of anonymity because they were not authorized to talk to the media. Al-Hussainan was also known as Abu Zaid al-Kuwaiti.

Covert CIA drone strikes have killed a series of senior al-Qaida and Taliban leaders in Pakistan's tribal region over the past few years. The attacks are controversial because the secret nature of the program makes it difficult to determine how many civilians are being killed.

Pakistani officials often criticize such strikes as a violation of the country's sovereignty, which has helped make them extremely unpopular in the country. But senior Pakistani officials are known to have cooperated with strikes in the past, and many people believe they still do.

There were conflicting accounts of who died in the strike Sunday along with al-Mansoor.

The intelligence officials said his wife and son were also killed, while the militant said two Punjabi Taliban fighters died with him. The Taliban militant spoke on condition of anonymity for fear of being targeted by the government.

Al-Qaida's central leadership in Pakistan has been dealt a series of heavy blows in the past few years, including the U.S. commando raid that killed Osama bin Laden in the Pakistani town of Abbottabad last year. A significant number of senior al-Qaida leaders have also been killed in U.S. drone attacks in the country.

Also Monday, Taliban militants armed with a rocket, hand grenades and automatic weapons attacked a police station in northwestern Pakistan, killing six people, police said.

The attack occurred in the city of Bannu, which serves as a gateway to the North Waziristan tribal area and which has been hit by repeated attacks over the years.

The militants began the attack by firing a rocket at the gate of the police station and tossing hand grenades, triggering a battle with police that last lasted over an hour, said senior police officer Wagar Ahmed.

Three policemen and three civilians were killed in the attack, said Ahmed. The civilians were coming out of a nearby mosque when they were shot by the militants. Eight people were wounded, including three policemen and five civilians.

Three militants were killed during the attack and one escaped.

Pakistani Taliban spokesman Ahsanullah Ahsan claimed responsibility for the attack in a telephone call to The Associated Press from an undisclosed location.

Elsewhere in the country, gunmen attacked a checkpoint manned by paramilitary forces on the outskirts of the southern city of Karachi, killing two soldiers, said police officer Azhar Iqbal. Two policemen were wounded in the attack, he said.

In the eastern city of Lahore, an elderly Swedish woman who was shot and critically wounded a week ago by an unknown assailant was flown home for medical treatment, said police officer Zahoorul Haq Qureshi. The woman, Bargeeta Almby, is in her 70s and was a volunteer at a church in Lahore. She was flown home in an aircraft sent by the Swedish government, Qureshi added.

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Associated Press writers Ijaz Muhammad in Bannu, Pakistan, Zaheer Babar in Lahore, Pakistan, and Adil Jawad in Karachi, Pakistan, contributed to this report.

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'Zero Dark Thirty,' 'Lincoln' make AFI top-10 list

LOS ANGELES (AP) — Kathryn Bigelow's Osama bin Laden thriller "Zero Dark Thirty," Steven Spielberg's Civil War epic "Lincoln" and Christopher Nolan's superhero tale "The Dark Knight Rises" are among the American Film Institute's top-10 movies of the year.

Also on the AFI top-10 announced Monday: Ben Affleck's Iran hostage-crisis drama "Argo;" Benh Zeitlin's low-budget hit "Beasts of the Southern Wild;" Quentin Tarantino's slavery saga "Django Unchained;" Tom Hooper's Victor Hugo musical "Les Miserables;" Ang Lee's shipwreck story "Life of Pi;" Wes Anderson's first-love romance "Moonrise Kingdom;" and David O. Russell's misfit love story "Silver Linings Playbook."

The AFI also picked its top-10 television shows for the year: "American Horror Story;" ''Breaking Bad;" ''Game Change;" ''Game of Thrones;" ''Girls;" ''Homeland;" ''Louie;" ''Mad Men;" ''Modern Family;" and "The Walking Dead."

Creative ensembles for the films and TV shows will be honored Jan. 11 at a luncheon in Los Angeles.

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Online:

http://www.afi.com

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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Obama blasts Michigan right-to-work bills

President Barack Obama at the Daimler Detroit Diesel plant in Redford, Mich., on Monday. (Jason Reed/Reuters)

President Barack Obama traveled to the Daimler Detroit Diesel plant in Redford, Mich., Monday to issue a speech on the economy, pressure Republicans in Congress to raise taxes on the nation's top earners, and highlight Daimler's new $120 million investment in the plant.

But it was the president's criticism of Michigan's right-to work legislation that stole the show for the audience of Daimler union employees.

"What we shouldn't be doing is trying to take away your rights to bargain for better wages," the president told the audience, which immediately roared with cheers, applause and whistles. "These so-called right-to-work laws, they don't have to do with economics, they have everything to do with politics." They're about "giving you the right to work for less money," he added, noting that Michigan's history shows how unions have helped "build a better America."

New state right-to-work legislation, which forbids requiring all employees who benefit from a labor contract to pay union dues, is scheduled to move through the Michigan Legislature for final action this week. Republican Gov. Rick Snyder has pledged to sign the final version.

Activists have mobilized against the legislation, which they view to be an anti-union effort, resulting in a state Capitol lockdown last Thursday.

The president's comments Monday were his first public statements on the situation in Michigan.
His appearance was pegged to Daimler's announcement of its investment in the Detroit Diesel plant, which created 115 good, new "union" jobs, the president said. "That's great for this plant, good for this community, but it's also good for American manufacturing."

The president highlighted the plant as a symbol of how American manufacturing and auto industries are rebounding and growing in the new global economy.

"The competitive balance is tipping a little," the president said.

Obama appealed to the audience, which he characterized as middle-class, on the issue of the "fiscal cliff" by warning that the average middle-class family stands to pay $2,200 more in taxes next year if the automatic spending cuts and tax increases go into effect Jan. 1.

The president said America will head into a "downward spiral" if this happens, and placed the onus once again on Republicans to resolve the crisis by agreeing to raise taxes on households making more than $250,000.

"We've got to get past this whole situation where we've manufactured crises because of politics," Obama said.

Obama met Sunday with House Republican Speaker John Boehner, the GOP's lead voice on "fiscal cliff" negotiations, but no details of that conversation have been offered.

White House spokesman Jay Carney, during Monday's briefing on Air Force One en route to Michigan, also would not reveal any information. "I won't characterize yesterday's meeting or other conversations, but the president does believe we can reach an agreement," Carney said.

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