
Dean:
Employers will drop coverage under Obamacare
By Conn Carroll, Sr.
Editorial Writer
Washington Examiner
September 20, 2011
Former Democratic National Committee Chairman, and doctor, Howard
Dean backed a McKinsey & Co. survey today that found that almost a
third of private-sector employers will drop their employee health
insurance coverage when Obamacare's government-managed insurance
exchanges come online.
Dean told Morning Joe, "The fact is it is very good for small
business. There was a McKinsey study, which the Democrats don't
like, but I do, and I think its true. Most small businesses are not
going to be in the health insurance business anymore after this
thing goes into effect."
The reason Democrats fought so hard to dismiss the McKinsey
survey when it was released is because its conclusion undermines two
major claims Obama made during health care debate: "If you like your
health plan, you can keep it" and "It will not add one penny to the
deficit."
Fellow Morning Joe guest former New York Gov. George Pataki
immediately hit the first point: "The only way its a help is if they
drop coverage and their employees would all of a sudden have to go
on the exchange, which is what of course the president promised
wouldn't happen."
The Congressional Budget Office (CBO) premised their Obamacare
score on the assumption that only 7 percent of employers would drop
their employee health plans. If the percentage is closer to the 30
percent, as the McKinsey survey results predict, Obamacare's price
tag would rise by almost $1 trillion.
A Kenmore
Fridge, at Costco?
Sears Moves to Sell Its Venerable Appliance Brand Through Rival
Retailers
By Karen
Talley - Wall Street Journal
September 15, 2011
NEW YORK—Sears Holdings Corp. appears to be readying its
venerable Kenmore brand to be sold by other retailers, a step it has
already taken with its Craftsman tools and some of its Diehard line
of battery products.
According to a LinkedIn job posting, Sears is seeking a chief
marketing officer for its appliance line whose responsibilities will
include promoting appliance purchases through "external groups,"
such as Costco Wholesale Corp., which recently struck a deal to
carry the Craftsman line.
According to the posting, which was confirmed by Sears, the
executive would also "evaluate evolving marketing landscape to
identify new, emerging ways to reach current and future target
audiences."
An arrangement involving Kenmore would leave Sears with only
Land's End as a marquee name that it carries exclusively, and Sears
sells that line mainly through catalogs and the Web.
"Could we go external with Kenmore? Potentially yes," said Larry
Costello, a Sears spokesman. "When might we is to be determined. It
could be months or longer."
Sears appears to be looking for new markets for its Kenmore line
of washing machines, refrigerators and other major appliances as it
struggles to attract customers to its stores. The retailer's
domestic sales have been falling for several years as it keeps
losing ground to rivals, including Wal-Mart Stores Inc., Target
Corp. and Kohl's Corp. In the second quarter, Sears's latest
reported period, its loss widened more than expected as poor sales
and increased discounting weighed on its bottom line.
The risk of selling any brand through others "is cannibalization,
with Sears potentially losing even more traffic—something it can ill
afford," said Credit Suisse analyst Gary Balter. But, he added, "The
Costco customer likely is younger and more affluent."
Earlier this month, Sears began selling its Craftsman line
through warehouse clubs operated by Costco. The assortment of
Craftsman hand tools, power tools and garage-storage items that
Costco offers varies by location. Sears has declined to discuss the
deal's financial aspects.
The retailer is majority owned by hedge-fund manager Edward
Lampert, and "part of his strategy is that at Sears, "the sum of the
parts is worth more than the total," says Paul Swinand, a retail
analyst at Morningstar Inc. "Given this, he wants to maximize the
value of the brand."
As for Sears's new arrangement with Costco, "It's a good
strategy," Mr. Swinand says. "Costco is fairly premium, so their
customer bases don't overlap very much."
Last spring, Sears began selling Craftsman through stores
operated by Ace Hardware Corp. The arrangement started with 100
pilot locations and has expanded to about 1,000. Sears's Kmart and
Orchard Supply Hardware stores also carry the line.
Also last year, Sears's brand-management business announced a
trademark-licensing deal with a maker of battery accessories to sell
DieHard brand battery chargers, jump starters and other accessories
to outside retailers. That accord with Schumacher Electric Corp.
didn't include DieHard batteries themselves.