Sears CEO D'Ambrosio to step down

Sears Holdings Corp. said Monday night that Chief Executive Officer Louis D'Ambrosio will step down Feb. 2, due to family health matters, and Chairman Edward Lampert will add the role of CEO.

The surprise move fuels uncertainty at the Hoffman Estates-based company, which has struggled for years to re-establish itself as a department store in an ultracompetitive retailing industry dominated by low-price giant Wal-Mart and big box and specialty stores.

Shares of Sears Holdings were down 5.6 percent in mid-morning trading to $40.51  on the news.

The decision by Lampert, a hedge fund operator who is the company's biggest shareholder, to take over day-to-day control represents a reversal from his naming of D'Ambrosio as chief executive nearly two years ago after operating with an interim CEO.

"In light of Lou's decision to step down, the board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings," Lampert said in a statement. "I have agreed to assume these additional responsibilities in order to continue the company's recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy."

Sears Holdings, which operates Sears and Kmart, also updated its fourth-quarter earnings outlook Monday night. The company said it expects to report a net loss $280 million to $360 million, or $2.64 to $3.40 per diluted share, for the quarter ending Feb. 2. The loss includes a charge of about $450 million because of pension settlements and an additional $42 million in pension expenses.

Excluding pension expenses, Sears said it expects to earn $132 million to $212 million, or $1.25 to $2 per share.

Analysts polled by Bloomberg had been expecting adjusted net income of about $137 million.

For the fiscal year, Sears said it expects to lose $721 million to $801 million, or $6.80 to $7.56 per diluted share, which includes pension-related costs and other adjustments reported late last year. Excluding those items, the company said it expects to lose $123 million to $203 million, or $1.16 to $1.92 per share.

D'Ambrosio became CEO after working for the company as a consultant. The 16-year veteran of IBM Corp. had been CEO of a telecommunications company before joining Sears.

"I have worked very closely with Eddie over the past two years. I can say this: there is simply no one in the world that cares more about Sears Holdings and has thought more deeply about our company than Eddie," D'Ambrosio wrote to employees.

Lampert gained control of Sears in 2005 after engineering the merger between Kmart and Sears Roebuck & Co. For years, speculation about Lampert's intentions for the company focused on the value of its real estate, but under D'Ambrosio, Sears appeared to pay more attention to retail aspirations.

The company reported improved performance — it beat Wall Street expectations — in the previous quarter, but Sears stock has lost more than 35 percent of its value since November, closing Monday at $42.92, up 1.7 percent.

 Crshropshire@tribune.com | Twitter: @corilyns 

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House drops assault weapon ban plan, may tackle pension reform

The clock is ticking for Illinois lawmakers to come to an agreement on the pension crisis. CBS 2's Courtney Gousman reports.

SPRINGFIELD — With time running short in the lame-duck session, state lawmakers on Sunday dropped hot-button issues dealing with guns and marijuana but kept alive hopes of reforming pensions and giving driver's licenses to illegal immigrants.

The slimmed-down agenda unfolded rapidly as the House, returning to the Capitol for the first time in a month, pulled an assault weapons ban from consideration and the sponsor of legislation to allow Illinoisans to use marijuana for medical purposes said the chances of quick passage is unlikely.

The spotlight on whether Democratic Gov. Pat Quinn and legislators can come together on financial changes to the state's $96.8 billion government worker pension debt intensified Sunday. House Republican leader Tom Cross of Oswego signed onto a plan offered by two House Democrats and urged GOP members to support it.

Still, Cross acknowledged that Senate President John Cullerton believes a different measure is the only one that meets a state constitutional prohibition against impairing or diminishing public pensions. Cullerton's version, previously passed by the Senate, offers state employees a trade of access to state health care in return for a reduction in retirement benefits.

"Nobody has any idea what the court's going to do," Cross said. "We all have lawyers. There are a lot of lawyers in Chicago. People have opined on what works and doesn't work. The reality is, nobody knows."

Quinn spokeswoman Brooke Anderson said the administration, which wants the package passed before a new Legislature is seated Wednesday, is "encouraged with the momentum."

The pension proposal's fate is uncertain should it pass the House. The Senate went home Thursday but Cullerton left open the possibility of coming back. Cullerton spokeswoman Rikeesha Phelon said senators would return to Springfield Tuesday "to review and hear" a significant pension reform bill if one is passed by the House.

"I can't make any predictions beyond that," she said.

When the governor and legislative leaders met Saturday, Cullerton said at various points he would lobby against the House plan, Cross said. But Cross also said Cullerton indicated that he would allow for a Senate vote if the pension measure passed the House.

Still, if Cullerton balks at the House pension plan, Springfield could devolve into an all-too-familiar political game: The House passes one version of legislation, the Senate passes another, lawmakers pat themselves on the back and then blame the other chamber for failing to achieve needed reform.

Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years, although the length of time was still under discussion Sunday night. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure among public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.

Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.

The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems, which are considered the worst-funded in the nation.

Meanwhile, a proposal to allow undocumented immigrants to qualify for Illinois driver's licenses could get its first House test today. Sponsoring Rep. Eddie Acevedo, D-Chicago, said he would call the Senate-passed bill on the House floor if it advances from committee.

Also Sunday, a House panel defeated a bill to require companies to file public disclosure forms when they pay no state income taxes.

rlong@tribune.com

rap30@aol.com

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Kuwaiti journalist jailed for Twitter ‘insults’

KUWAIT CITY (AP) — A Kuwait newspaper says an online journalist has been sentenced to two years in prison for posts deemed “insulting” to the Gulf nation’s ruler — the second such ruling this week.

The decision reflects a widening social media crackdown across the Gulf Arab states to quell perceived political dissent.

Kuwait’s pro-government Al Watan newspaper reported Monday that Ayyad al-Harbi, a journalist at news website Sabr, was charged with posting Twitter messages considered offensive to the nation’s Western-allied emir. No other details were given.

Kuwait, which hosts thousands of U.S. troops, has been gripped by months of political unrest led by anti-government groups, including Islamist factions.

On Sunday, Kuwaiti media said a social media activist also has received a two-year prison term for Twitter posts that allegedly insulted the emir.

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Sony, BMG in joint bid for Parlophone, EMI labels – FT

TOKYO (Reuters) – Sony Corp is joining with BMG to bid for Parlophone and other EMI labels on sale by Universal Music, reuniting Sony and Bertelsmann four years after they ended their music joint venture, the Financial Times said on Monday.

Vivendi-owned Universal is being forced to sell Parlophone – EMI’s oldest active label with artists including Coldplay and Pet Shop Boys – to satisfy regulators’ concerns about its $ 1.9 billion purchase of EMI’s recorded music business.

Sony and BMG, a music rights management group owned by Bertelsmann and private equity group KKR, will make a joint bid for Parlophone and other assets, the FT said. The two plan to split the assets and will not form another joint venture, it said.

Sony declined to comment. BMG could not be immediately reached for comment.

Other bidders for the EMI labels on sale include Warner Music and Ronald Perelman’s investment company MacAndrews & Forbes, the FT has said.

(Reporting by Mayumi Negishi; Editing by Richard Pullin)

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Recipes for Health: Sicilian Pasta With Cauliflower

Andrew Scrivani for The New York Times

Every once in a while I revisit the cuisine of a particular part of the world (usually it is located somewhere in the Mediterranean). This week I landed in Sicily. I was nosing around my cookbooks for some cauliflower recipes and opened my friend and colleague Clifford A. Wright’s very first cookbook, “Cucina Pariso: The Heavenly Food of Sicily.” The cuisine of this island is unique, with many Arab influences – lots of sweet spices, sweet and savory combinations, saffron, almonds and other nuts. Sicilians even have a signature couscous dish, a fish couscous they call Cuscusù.

Cauliflower is a favorite vegetable there, though the variety used most often is the light green cauliflower that we can find in some farmers’ markets in the United States. I adapted a couple of Mr. Wright’s pasta recipes, changing them mainly by reducing the amount of olive oil and anchovies enough to reduce the sodium and caloric values significantly without sacrificing the flavor and character of the dishes.

I didn’t just look to Sicily for recipes for this nutrient-rich cruciferous vegetable, but I didn’t stray very far. One recipe comes from Italy’s mainland, and another, a baked cauliflower frittata, is from its close neighbor Tunisia, fewer than 100 miles away across the Strait of Sicily.

Sicilian Pasta With Cauliflower

I found the recipe upon which this is based in Clifford A. Wright’s first cookbook, “Cucina Paradiso: The Heavenly Food of Sicily.” And it is heavenly. I love the way raisins or currants and saffron introduce a sweet element into the savory and salty mix.

1/4 cup golden raisins or currants

Pinch of saffron threads

1 medium cauliflower, about 2 pounds, leaves removed and bottom trimmed

Salt to taste

2 tablespoons extra virgin olive oil

2 garlic cloves, minced

3 anchovy fillets, rinsed and chopped

1 14-ounce can chopped tomatoes, with juice

3 tablespoons pine nuts or chopped blanched almonds

Freshly ground pepper to taste

3/4 pound perciatelli (also sold as bucatini) or spaghetti

2 tablespoons grated pecorino

2 tablespoons slivered basil

1. Place the raisins or currants in a small bowl and cover with warm water. In another bowl combine the saffron with 3 tablespoons warm water. Let both sit for 20 minutes while you prepare the other ingredients.

2. Bring a large pot of water to a boil and salt generously. Add the cauliflower and boil gently until the florets are tender but the middle resists when poked with a skewer or knife, about 10 minutes. Using slotted spoons or tongs (or a pasta insert) remove the cauliflower from the water, transfer to a bowl of cold water and drain. Cover the pot and turn off the heat. You will cook the pasta in the cauliflower water. Cut the florets from the core of the cauliflower and cut them into small florets or crumble coarsely using a fork or your hands.

3. Heat the olive oil over medium heat in a large, heavy skillet and add the garlic. Cook, stirring, until it smells fragrant, about 30 seconds to a minute, and add the anchovies and tomatoes. Turn the heat down to medium-low and cook, stirring often, until the tomatoes have cooked down and smell fragrant, about 10 minutes. Drain the raisins or currants and add, along with the saffron and its soaking liquid, cauliflower, pine nuts or almonds, and about 1/4 cup of the cooking water from the cauliflower. Season to taste with salt and pepper. Cover, turn the heat to low and simmer 10 minutes, stirring occasionally. Keep warm while you cook the pasta.

4. Bring the cauliflower water back to a boil and cook the pasta al dente, following the timing instructions on the package. Check the sauce and if it seems dry add another 1/4 to 1/2 cup of the pasta cooking water. Drain the pasta and transfer to the pan with the sauce. Toss together and serve, sprinkled with pecorino and chopped basil leaves. If desired, drizzle a little olive oil over each serving.

Yield: Serves 4

Advance preparation: The cauliflower preparation can be prepared up to a day ahead through Step 3 and refrigerated. Reheat and proceed with the recipe.

Nutritional information per serving: 510 calories; 12 grams fat; 2 grams saturated fat; 3 grams polyunsaturated fat; 6 grams monounsaturated fat; 4 milligrams cholesterol; 85 grams carbohydrates; 6 grams dietary fiber; 196 milligrams sodium (does not include salt to taste); 18 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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BofA to pay $11B to Fannie Mae to settle mortgage claims

Tourists walk past a Bank of America banking center in Times Square in New York. (Brendan McDermid/Reuters / September 20, 2012)

Reuters

9:44 a.m. CST, January 7, 2013

Bank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans, in a series of deals meant to help the bank move past its disastrous 2008 purchase of Countrywide Financial Corp.

The settlements and transactions and other charges will result in Bank of America posting only a small profit for 2012's fourth quarter. The bank is due to report results Jan. 17.

Bank of America is paying $3.6 billion to Fannie Mae and buying back $6.75 billion of bad loans from the mortgage company to clear up all claims that government-owned Fannie Mae had made against the bank.

Fannie Mae and its sibling, Freddie Mac, have been pushing banks to buy back loans they sold to the two companies that never should have been sold to them because the loans did not meet the companies' criteria for purchasing.

Bank of America said most of the settlement would be covered by reserves, and another $2.5 billion, before taxes, that it set aside in the fourth quarter.

A separate settlement over foreclosure delays will result in Bank of America paying $1.3 billion to Fannie Mae, the mortgage company said. Bank of America had already set aside money to cover most of that, but took another $260 million charge in the fourth quarter to cover the balance.

Bank of America also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management Corp. Nationstar is paying $1.3 billion for the right to service some $215 billion of loans, while Walter Investment is paying $519 million for the right to service about $93 billion of mortgages.

Reuters first reported that Bank of America was talking to Nationstar and Walter Investment on Friday.

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Bears' list grows with Texans' Dennison, report says

As the number of teams searching for a head coach shrinks, the list of candidates for the Chicago Bears continues to grow.

General manager Phil Emery has requested and been granted permission to interview Houston Texans offensive coordinator Rick Dennison, according to ESPN. Dennison becomes the ninth candidate to be identified on Emery’s list and the seventh with an offensive background.

NFL rules dictate that Emery will have an opportunity to meet with Dennison this week before the Texans, a wild-card winner over the Cincinnati Bengals on Saturday, play at New England in the divisional round next Sunday. Emery is expected to interview Denver Broncos offensive coordinator Mike McCoy today.

Dennison, 54, has spent 18 seasons in the NFL with the Texans and Broncos. He has been an offensive coordinator for six years and also has a background as an offensive line and special teams coach. He played linebacker for the Broncos from 1982 to 1990 and was a member of three Super Bowl teams.

Dennison joined Texans coach Gary Kubiak in Houston in 2010 and their offenses have consistently been among the best in the NFL with a power rushing attack led by Arian Foster. The Texans also have a play-action passing game that is effective. Houston ranked eighth in points (26.0) and seven in yards (372.1) this season. In 2010, the Texans were third in yardage.

As Emery continues to add to his list of candidates, now only five teams are seeking a head coach as the Buffalo Bills hired Syracuse coach Doug Marrone overnight and the Kansas City Chiefs already filled their vacancy with Andy Reid. The Cleveland Browns and Philadelphia Eagles are reportedly locked in a battle for the services of Oregon coach Chip Kelly. The Arizona Cardinals and San Diego Chargers are also seeking a coach.

On Saturday, the name of Montreal Alouettes head coach Marc Trestman surfaced. He is a former offensive coordinator and quarterbacks coach in the NFL. Emery interviewed Cowboys special teams coordinator Joe DeCamillis on Saturday. He has already interviewed Falcons special teams coordinator Keith Armstrong, Buccaneers offensive coordinator Mike Sullivan and Saints offensive coordinator Pete Carmichael. He is scheduled to have interviews this coming week with Packers offensive coordinator Tom Clements and Colts offensive coordinator Bruce Arians.

Emery said his search would involve coaches with a defensive background but none have been indentified yet. The plan is for the Bears to develop a small group of finalists and have them go through a second round of interviews that would involve ownership and likely team president Ted Phillips. With so many candidates remaining to be intrerviewed, Emery’s first round could stretch through the entire coming week.

bmbiggs@tribune.com

Twitter @BradBiggs

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RIM unveils a new BlackBerry phone! (But it’s only a Curve for T-Mobile running BlackBerry 7)

Research In Motion (RIMM) on Thursday took the wraps off a brand new BlackBerry smartphone — but it’s not the kind of smartphone BlackBerry fans have been waiting more than a year for. Instead, it’s a low-end BlackBerry Curve 9315 that will launch later this month on T-Mobile. The phone features the BlackBerry 7.1 operating system, a 3.2-megapixel camera, microSD memory expansion and a full QWERTY keyboard, and it will launch on January 23rd… just seven days before RIM unveils its first BlackBerry 10 phones. Pre-sales for the Curve 9315 begin on January 16th and the phone will cost $ 49.99 out of pocket plus a $ 10 payment each month as part of Equipment Installment Plan. T-Mobile’s full press release follows below.

[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]

BlackBerry Curve 9315 Smartphone Introduced By T-Mobile and RIM

[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]

T-Mobile’s most affordable BlackBerry smartphone provides productivity tools and features to keep customers connected

BELLEVUE, Wash. and WATERLOO, ON – Jan. 3, 2013 – T-Mobile USA, Inc. and Research In Motion (RIM) (NASDAQ: RIMM; TSX: RIM) today announced the most affordable BlackBerry® smartphone on T-Mobile’s nationwide network – the BlackBerry^® Curve^™ 9315. Powered by the BlackBerry® 7.1 operating system with 3G connectivity, the sleek new smartphone is easy-to-use and provides tools that enable customers to stay connected to the people and information that matter most.

“At T-Mobile, our goal is to delight customers. The new BlackBerry Curve 9315 will delight customers with unprecedented value while also allowing them to combine their mobile business and personal use in one great device,” said Brad Duea, senior vice president of product management at T-Mobile. “The Curve 9315 is the most affordable BlackBerry smartphone on our nationwide network and provides our customers with a wide variety of productivity and social features to keep them connected and make their mobile lives easier.”

“We’re pleased to work with T-Mobile to bring the BlackBerry Curve 9315 to customers,” said Richard Piasentin, managing director for the U.S. at Research In Motion. “The Curve 9315 is designed to make it incredibly easy to stay connected with friends, family and coworkers and will be popular with customers upgrading to a smartphone for the first time, as well as existing Curve customers looking for a step up in speed and functionality.”

Combining an intuitive interface with a QWERTY keyboard, the BlackBerry Curve 9315 features built-in Wi-Fi® connectivity for voice and data, enabling customers to access the information they need when and where they need it, and Wi-Fi calling, allowing calls and messages over an available Wi-Fi network. With a dedicated BlackBerry® Messenger (BBM™) key, preloaded apps for Facebook® and Twitter® and the Social Feeds 2.0 app, customers can easily interact with their friends, coworkers and social networks whether it’s instant messaging, posting or tweeting.

The new BlackBerry Curve 9315 offers a 3.2-megapixel camera with LED flash and digital zoom as well as video recording capabilities. Customers also have the ability to geo-tag the location of their pictures by utilizing the smartphone’s built-in GPS. In addition, the smartphone features a microSD card slot for up to 32GB of additional media storage and a built-in FM radio letting customers tune in to local FM stations. With the BlackBerry App World™ storefront, customers have exclusive access to a wide range of apps, allowing them to enhance their smartphone experience with entertainment, personalization and productivity apps of their choosing.

The BlackBerry Curve 9315 will be available in an exclusive pre-sale for T-Mobile business customers beginning January 16 and is expected to be available in T-Mobile retail stores, via http://www.T-Mobile.com, and with select dealers and national retailers beginning January 23, 2013. For well-qualified customers, the Curve 9315 will require a $ 49.99 out-of-pocket down payment and 20 equal monthly payments of $ 10 per month via T-Mobile’s Equipment Installment Plan (EIP)¹, with a two-year service agreement and qualifying T-Mobile Value voice and data plan. Customers may also purchase the Curve 9315 for $ 49.99 after a $ 50 mail-in rebate card, with a two-year service agreement and qualifying T-Mobile Classic voice and data plan.²

This article was originally published by BGR

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French actor Depardieu gets Russian passport

MOSCOW (AP) — The day after receiving his new Russian passport from President Vladimir Putin, French actor Gerard Depardieu flew Sunday to the provincial town of Saransk, where he was greeted as a local hero and offered an apartment for free.

Depardieu had sought Russian citizenship as part of his battle against a proposed super tax on millionaires in France.

Putin granted his request last week and then welcomed the actor late Saturday to his residence in Sochi, the host city of the 2014 Winter Olympics. Russian television showed the two men embracing and then chatting over supper, discussing a soon-to-be-released film in which Depardieu plays Russian monk Grigory Rasputin.

Depardieu flew Sunday to Saransk, a town about 500 kilometers (300 miles) east of Moscow, where he was met at a snow-covered airport by the governor and a group of women in traditional costume singing folk songs. He flashed his new passport to the crowd before setting out on a tour of the town.

The governor invited Depardieu to settle in Saransk and offered him an apartment of his choice, according to reports on state television.

Depardieu has not said where he would take up residence in Russia, only that he did not want to live in Moscow because it is too big and he prefers a village.

The Frenchman has spent a fair bit of time in Russia in recent years, including for the filming of the French-Russian film “Rasputin,” and he expresses an admiration for Putin. But it is Russia’s flat 13 percent income tax that appears to be the biggest draw at the moment as he flees high taxes in France.

France’s new Socialist government tried to raise the tax on income above €1 million ($ 1.3 million) to 75 percent from the current 41 percent. That plan was struck down by the highest court, but Budget Minister Jerome Cahuzac said Sunday that the government is reworking the law so the superrich will still be asked to pay an elevated rate. He said the government is also considering putting the new tax in place for longer than the two years initially imagined.

“I find it a bit pathetic that for tax reasons this man — whom by the way I admire infinitely as an actor — has decided to exile himself,” Cahuzac said.

___

Sarah DiLorenzo in Paris contributed to this report.

.

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Despite New Health Law, Some See Sharp Rise in Premiums

Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.

Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.

Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.

In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.

 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.

The proposed increases compare with about 4 percent for families with employer-based policies.

Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.

The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.

New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.

The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.

Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.

“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.

While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.

The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.

Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.

“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.

Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.

“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.

As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.

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