In the News

Anyone who’s shopped for health insurance knows what a headache the process can be. The disorienting maze of features, benefits, and coverage options can leave consumers under-protected even when they’ve overpaid.

The federal Department of Health and Human Services (HHS) is trying to create a clearer, better menu for policy holders to order from. Their idea is “Transparency Reporting,” a move aimed at streamlining the health insurance purchasing process by asking companies to summarize their policies in easier-to-understand ways.

In January, President Obama issued a call for all federal agencies to review their existing regulations, looking for rules that had grown outdated, ineffective, or insufficient over time. Back then, there was much discussion over whether the move was a gift to business or a robust defense of strong protections even in a downturned economy.

Repealing direct ethanol subsidies would help reduce government support of an energy source with many potentially large drawbacks, while making room in the market for emerging, cleaner energy sources.

In the past, investment dollars flowed into ethanol plants in part because protective government policies and subsidies stacked the deck in their favor. It’s harder for promising alternative energy and efficiency technologies to compete for the same investment capital when government is throwing its weight behind more politically favored sectors.

According to some, the housing bubble came crashing down in the fall of 2008 partially due to the predatory lending practices of mortgage banks. Part of the problem may have been consumer confusion when it came to the fine print of complex financing arrangements. Unknowingly, homebuyers might have signed on for more than they could manage — a situation that consumer education could have ameliorated.

With U.S. EPA suddenly putting the brakes on several air regulations, what’s the impact on industry and the states? During today’s OnPoint, Michael Livermore, executive director of the Institute for Policy Integrity at New York University School of Law, discusses EPA’s sudden shift on air regulations and the challenges to finalizing these rules.

Maximizing net benefits for the American public is the most important factor that the Environmental Protection Agency should consider in deciding whether to delay clean air regulations.

The rules in question would all generate vast benefits to individuals and families. As I’ve mentioned on these pages before, rules like these generate large economic benefits because, as air becomes cleaner, incidences of asthma, heart attacks and other ailments are reduced. Fewer negative health effects mean fewer days taken off of work, fewer doctors’ visits, hospital stays and a smaller chance of untimely death. This all translates into economic value for the American public.

From Michael Livermore of the Institute of Policy Integrity, a nonpartisan environmental policy think tank:

“At a time when the price of gasoline is causing pain at the pump, EPA’s decision to forego clear, letter-grade fuel efficiency labels is a missed opportunity.At no additional cost, the simplified labels would convey information in a way that consumers can easily understand, helping them save money over the life of their vehicle. The makers of gas-guzzlers may not like having their products graded for fuel efficiency performance, but consumers benefit from the clearer presentation.”

“At a time when the price of gasoline is causing pain at the pump, EPA’s decision to forego clear, letter-grade fuel efficiency labels is a missed opportunity,” said Michael Livermore, director of the Institute for Policy Integrity at New York University School of Law, a nonpartisan think-tank on law, environment, and consumers. “At the next opportunity, the agency should correct this error, reflect the latest studies on consumer behavior and select the clearer, letter-grade label design,” he said in a statement.

The Institute for Policy Integrity at New York University School of Law also criticized the lack of letter grades on the new labels, saying, “At no additional cost, the simplified labels would convey information in a way that consumers can easily understand, helping them save money over the life of their vehicle. The makers of gas-guzzlers may not like having their products graded for fuel efficiency performance, but consumers benefit from the clearer presentation.”

Of course, a simple letter grade would have been simpler, and there’s already some disappointment at the path not taken. Michael Livermore of the Institute of Policy Integrity, for one, isn’t happy with the decision to scrap the grades:

“At a time when the price of gasoline is causing pain at the pump, EPA’s decision to forego clear, letter-grade fuel efficiency labels is a missed opportunity. At no additional cost, the simplified labels would convey information in a way that consumers can easily understand, helping them save money over the life of their vehicle. The makers of gas-guzzlers may not like having their products graded for fuel efficiency performance, but consumers benefit from the clearer presentation.”