Squatter, Bank of America Battle for $2.5M Mansion

Bank of America is taking a Florida man to court after he attempted to use an antiquated state law to legally take possession of a $2.5 million mansion that is currently owned by the bank.

Andre "Loki" Barbosa has lived in a five-bedroom Boca Raton, Fla., waterside property since July, and police have reportedly been unable to remove him.

The Brazilian national, 23, who reportedly refers to himself as "Loki Boy," cites Florida's "adverse possession" law, in which a party may acquire title from another by openly occupying their land and paying real property tax for at least seven years.

The house is listed as being owned by Bank of America as of July 2012, and that an adverse possession was filed in July. After Bank of America foreclosed on the property last year, the Palm Beach County Property Appraiser's Office was notified that Barbosa would be moving in, according to the South Florida Sun-Sentinel.

The Sun-Sentinel reported that he posted a notice in the front window of the house naming him as a "living beneficiary to the Divine Estate being superior of commerce and usury."
On Facebook, a man named Andre Barbosa calls the property "Templo de Kamisamar."

After Barbosa gained national attention for his brazen attempt, Bank of America filed an injunction on Jan. 23 to evict Barbosa and eight unidentified occupants.

In the civil complaint, Bank of America said Barbosa and other tenants "unlawfully entered the property" and "refused to permit the Plaintiff agents entry, use, and possession of its property." In addition to eviction, Bank of America is asking for $15,000 in damages to be paid to cover attorney's expenses.

Police were called Dec. 26 to the home but did not remove Barbosa, according to the Sentinel. Barbosa reportedly presented authorities with the adverse possession paperwork at the time.

Mark Potok, a senior fellow at the Southern Povery Law Center, says police officers may be disinclined to take action even if they are presented with paperwork that is invalid.

"A police officer walks up to someone who is claiming a house now belongs to him, without any basis at all, is handed a big sheaf of documents, which are incomprehensible," Potok said. "I think very often the officers ultimately feel that they're forced to go back to headquarters and try to figure out what's going on before they can actually toss someone in the slammer."

A neighbor of the Boca property, who asked not be named, told ABCNews.com that he entered the empty home just before Christmas to find four people inside, one of whom said the group is establishing an embassy for their mission, and that families would be moving in and out of the property. Barbosa was also among them.

The neighbor said he believes that Barbosa is a "patsy."

"This young guy is caught up in this thing," the neighbor said. "I think it's going on on a bigger scale."

Barbosa could not be reached for comment.

The neighbor said that although the lights have been turned on at the house, the water has not, adding that this makes it clear it is not a permanent residence. The neighbor also said the form posted in the window is "total gibberish," which indicated that the house is an embassy, and that those who enter must present two forms of identification, and respect the rights of its indigenous people.

"I think it's a group of people that see an opportunity to get some money from the bank," the neighbor said. "If they're going to hold the house ransom, then the bank is going to have to go through an eviction process.

"They're taking advantage of banks, where the right hand doesn't know where the left hand is," the neighbor said. "They can't clap."

Read More..

Egypt deploys troops in Suez after 9 killed on anniversary of uprising

CAIRO/ISMAILIA, Egypt (Reuters) - Egypt's armed forces deployed troops in the city of Suez early on Saturday after nine people were shot dead during nationwide protests against President Mohamed Mursi, underlining the country's deep divisions as it marked the second anniversary of the uprising that toppled Hosni Mubarak.

Eight of the dead, including a policeman, were shot dead in Suez, and another was shot and killed in the city of Ismailia, medics said. Another 456 people were injured across Egypt, officials said, in unrest on Friday fuelled by anger at Mursi and his Islamist allies over what the protesters see as their betrayal of the revolution.

Mursi said the state would not hesitate in "pursuing the criminals and delivering them to justice". In a statement, he also called on Egyptians to respect the principles of the revolution by expressing their views peacefully.

The troops were deployed in Suez after the head of the state security police in the city asked for reinforcements. The army distributed pamphlets to residents assuring them the deployment was temporary and meant to secure the city.

"We have asked the armed forces to send reinforcements on the ground until we pass this difficult period," Adel Refaat, head of state security in Suez, told state television.

Friday's anniversary laid bare the divide between the Islamists and their secular rivals.

The schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that already triggered bloody street battles last month.

Thousands of opponents of Mursi massed on Friday in Cairo's Tahrir Square - the cradle of the revolt against Mubarak - to rekindle the demands of a revolution they say has been hijacked by the Muslim Brotherhood, the group from which Mursi emerged.

In Suez, the military deployed armored vehicles to guard state buildings, witnesses and security sources said, as symbols of government were targeted across the country.

Street battles erupted in cities including Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings. An office used by the Muslim Brotherhood's political party was also torched.

"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

The Brotherhood denies accusations that it is seeking to dominate Egypt, labeling them a smear campaign by its rivals.

'LEAVE! LEAVE! LEAVE!'

There were conflicting accounts of the lethal shooting in Suez. Some witnesses said security forces had opened fire in response to gunfire from masked men.

News of the deaths capped a day of violence that started in the early hours of Friday. Before dawn in Cairo, police battled protesters who threw petrol bombs and firecrackers as they approached a wall blocking access to government buildings near Tahrir Square.

Clouds of teargas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by youths, a Reuters witness said.

Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.

Protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.

"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.

There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tires set ablaze by youths.

In Cairo, police fired teargas to disperse a few dozen protesters trying to remove barbed-wire barriers protecting the presidential palace, witnesses said. A few masked men got as far as the gates before they were beaten back.

Teargas was also fired at protesters who tried to remove metal barriers outside the state television building.

Outside Cairo, protesters broke into the offices of provincial governors in Ismailia and Kafr el-Sheikh in the Nile Delta. A local government building was torched in the Nile Delta city of al-Mahalla al-Kubra.

With an eye on parliamentary elections likely to begin in April, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Mursi's opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.

The Brotherhood says its rivals are failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.

(Additional reporting by Tom Perry, Ahmed el-Shemi, Ashraf Fahim, Shaimaa Fayed and Yasmine Saleh in Cairo and Abdel Rahman Youssef in Alexandria; Writing by Tom Perry; Editing by Robert Woodward and Peter Cooney)

Read More..

Cycling: Armstrong lied to Oprah, says doping chief

LOS ANGELES: Lance Armstrong lied in his confessional interview with Oprah Winfrey and the shamed cyclist has two weeks to finally come clean, the US anti-doping official who pursued him for years has said.

Travis Tygart said in an excerpt of an interview with the CBS network that Armstrong failed to tell Winfrey the truth about several key points over doping -- including a claim that he raced drug-free in his comeback in 2009 and 2010.

Tygart, the US Anti-Doping Agency (USADA) chief, said he has written to Armstrong to say that if he wants to lessen his lifetime sporting ban he must "cooperate fully and truthfully" by February 6, about drug-taking in the sport.

It is not clear if cooperation from Armstrong, who was stripped of all seven of his Tour De France wins last year, could take the form of testimony before a truth and reconciliation commission.

The International Cycling Union (UCI), which is under pressure from the World Anti-Doping Agency and USADA, on Friday agreed that such a platform would benefit the drug-damaged sport after a series of devastating doping cases.

Armstrong, a cancer survivor who during the Oprah interview admitted doping for the first time after years of vehement denials, said he would be willing to testify before such a commission if he were invited.

He also said that his record seven wins in the tour -- between 1999-2005 -- were fueled by performance enhancing drugs but insisted he was clean when he came out of retirement and raced in the Tour de France in 2009 and 2010.

Tygart, however, in the CBS interview which will air in full on "60 Minutes" on Sunday, said the latter claim is "just contrary to the evidence".

According to Tygart, expert reports based on the variation of Armstrong's blood values in 2009 and 2010 make it a "one to a million chance that it was due to something other than doping".

The USADA chief reiterated the assertions in the report issued last year by the agency on which it based its lifetime ban of Armstrong and the forfeiture of all his cycling results from August 1998.

The report led to Armstrong's demise after more than a decade of denials that he was a drug cheat during which he pursued a series of vitriolic attacks against several individuals who had accused him of doping.

Tygart told CBS that Armstrong may have lied about doping after his comeback because under the statute of limitations for criminal fraud, he would still be open to prosecution.

He also took issue with Armstrong's claim that the disgraced Texan's favored drug cocktail of blood-boosting EPO, blood transfusions and testosterone included just a small amount of EPO.

"He used a lot of EPO," Tygart told "60 Minutes", alleging that Armstrong was less than truthful when he told Winfrey that he had not pushed his teammates toward cheating.

"He was the boss," Tygart said in the excerpt.

"The evidence is clear he was one of the ringleaders of this conspiracy that pulled off this grand heist that... using tens of millions of taxpayer dollars defrauded millions of sports fans and his fellow competitors."

In the second segment of his interview with Winfrey, which aired over two nights on January 18-19, the 41-year-old Armstrong said he wants to compete again in sport -- perhaps marathons.

Immediately after Armstrong's first confession aired last week Tygart responded by saying that the former cyclist must testify under oath to have any hope of reducing his sanction.

"His admission that he doped throughout his career is a small step in the right direction," Tygart said.

"But if he is sincere in his desire to correct his past mistakes, he will testify under oath about the full extent of his doping activities."

- AFP/fa

Read More..

Cultural heritage, military might on display at Republic Day parade

NEW DELHI: A kaleidoscopic view of the country's rich cultural heritage and military prowess were on display at the 64th Republic Day parade on Saturday on the 8-km stretch from Rajpath to Red Fort.

An eager audience on both sides of the imposing Rajpath, the country's ceremonial boulevard facing the seat of power Raisina Hills, braved the winter chill and cheered loudly as the parade went past them portraying the rich and diverse culture of the country.

The icing on the cake was the 5,500-5,800 km ballistic Agni-V missile mounted on a road mobile launcher which was paraded by the Defence Research & Development Organisation as the crowd lapped it up with loud cheer.

General Officer Commanding (Delhi) Lt General Subroto Mitra led the synchronised military and police contingents as they marched to the cheerful tunes of bands through the 2-km Rajpath where President Pranab Mukherjee, also the Supreme Commander of the Armed Forces, took the salute for the first time after assuming office in July last year.

The impressive march-past was watched by the chief guest, Bhutan king Jigme Khesar Namgyel Wangchuck, Vice President Hamid Ansari, Prime Minister Manmohan Singh, Defence Minister A K Antony, UPA Chairperson Sonia Gandhi, and top political and military brass.

Police and other paramilitary forces turned Delhi into a a virtual fortress for the Republic Day celebrations as helicopters scanned from air, snipers kept a hawk-eye vigil from rooftops and armed personnel at every nook and corner provided a ground-to-air security apparatus.

Minutes before the parade began, Singh, Antony and chiefs of Army, Navy and Air Force laid wreaths at 'Amar Jawan Jyoti', an eternal flame in the memory of those who laid down their lives while defending the nation.

After the customary 21-gun salute and unfurling of the national tricolour by President Mukherjee, the spectacle began with four army helicopters flying above Rajpath carrying the national flag and the three flags of the Army, Navy and Air Force.

The country showed its military strength with the MBT Arjun Tank, Armoured Ambulance Tracked Vehicle, BrahMos missiles and 214 mm Pinaka rockets, 15 Metre Sarvatra Bridging System.

The Army contingent from horse-mounted columns of the 61st Cavalry, Mechanised Infantry Regiment, Maratha Light Infantry, Dogra Regiment, Garhwal Rifles, Ladakh Scouts, 8 Gorkha Training Centre, Army Ordnance Corps and Territorial Army (Punjab) marched to the martial tunes.

The next to follow were smartly-dressed Navy personnel and then the Air Force contingent. The Air Force contingent was led by Flight Lieutenant Heena Pore.

A mini version of INS Vikramaditya which will join the Naval fleet by the end of this year was also part of the parade which highlighted Indian Navy's blue water operating capability.

The DRDO displayed the Armoured Amphibious Dozer (AAD), an indigenously developed versatile Combat Engineer support equipment with excellent earth moving and amphibious capabilities in varied terrain. Airborne Early Warning and Control System and Naval Sonar were also displayed.

Other marching contingents were those of camel-mounted BSF, Assam Rifles, Coast Guard, CRPF, ITBP, CISF, SSB, RPF, Delhi Police, NCC and NSS.

As the country's armed and police forces demonstrated their might, states and different departments put up an impressive show when they showcased their rich cultural diversity in full display in 19 tableaux -- 14 from states and five from ministries. '

This year, the number of tableaux has been reduced to 19 from last year's 23.

Read More..

CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

___

CDC: http://www.cdc.gov/flu/

Read More..

WH, Senators to Begin Push on Immigration Reform

The White House and a bipartisan group of senators next week plan to begin their efforts to push for comprehensive immigration reform.

President Barack Obama will make an announcement on immigration during a Tuesday trip to Las Vegas, Nevada, the White House said on Friday. The Senate group is expected make their plans public around the same time, the Associated Press reported.

See Also: Where Do Labor Unions Stand on Immigration?

For Obama, immigration reform is a campaign promise that has remained unfulfilled from his first White House run in 2008. During his 2012 re-election campaign, the president vowed to renew his effort to overhaul the nation's immigration system. It has long been expected that Obama would roll out his plans shortly after his inauguration.

The president's trip to Las Vegas is designed "to redouble the administration's efforts to work with Congress to fix the broken immigration system this year," the White House said.

Ever since November's election, in which Latino voters turned out in record numbers, Republicans and Democrats have expressed a desire to work on immigration reform. Obama has long supported a bill that would make many of the nation's 11 million undocumented immigrants without criminal records eligible to apply for an earned pathway to citizenship, which includes paying fines and learning English.

Charles Dharapak/AP Photo

But the debate over a pathway to citizenship is expected to be contentious. Other flashpoints in an immigration reform push could include a guest-worker program, workplace enforcement efforts, border security, and immigration backlogs.

In a statement, the White House said that "any legislation must include a path to earned citizenship."

Ahead of his immigration push next week, Obama met today with a group of lawmakers from the Congressional Hispanic Caucus (CHC), including chairman Rubén Hinojosa (D-Texas) , Sen. Bob Menendez (D-N.J.), Democratic Caucus Chair Rep. Xavier Becerra (D-Calif.), and CHC Immigration Task Force Chair Rep. Luis Gutierrez (D-Ill.), the latter's office said. CHC members are expected to play a pivotal role in the debate.

"The president is the quarterback and he will direct the team, call the play, and be pivotal if we succeed. I am very optimistic based on conversations with Republicans in the House and Senate that we will do more than just talk about the immigration issue this year," Gutierrez said in a statement following the CHC meeting with Obama. "The president putting his full weight and attention behind getting a bill signed into law is tremendously helpful. We need the president and the American people all putting pressure on the Congress to act because nothing happens in the Capitol without people pushing from the outside."

A bipartisan group of eight senators, which includes Menendez, has also begun talks on drafting an immigration bill and will play an integral part in the process of passing a bill through Congress. Sen. Marco Rubio (R-Fla.), who has been participating in talks with others senators, has also unveiled his own outline for an immigration proposal.

The group of senators have reportedly eyed Friday as the date when they'll unveil their separate proposal, according to the Washington Post.

Read More..

North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

Read More..

Sri Lanka bans women from being maids abroad

COLOMBO: Sri Lanka has said that it would bar women of all ages from travelling abroad to work in menial jobs, following the beheading of a young nanny in Saudi Arabia.

Information Minister Keheliya Rambukwella announced that women under 25 were now banned from going to the Arab state to work as maids, adding that it was the first step towards a worldwide travel ban for low-paying jobs.

The move was in response to the execution earlier this month at a prison in Riyadh of Sri Lankan maid Rizana Nafik, who was only 17 when she was charged with smothering a four-month-old baby in Saudi Arabia in 2005.

"As a first step we are raising the age limit to 25. We will gradually move towards a total ban on our women going abroad to do low-paying jobs," Rambukwella told reporters.

He did not say by when the total ban would kick in, but said the authorities have started to discourage women from going to the Middle East, especially Saudi Arabia where most maids are paid less than $300 a month.

Nafik was beheaded after she was found guilty of smothering an infant in her care after an argument with the child's mother, the Saudi interior ministry has said.

The US and the United Nations led international condemnation of the Saudi authorities over the January 9 execution.

Nearly 1.7 million Sri Lankans are employed abroad and the $6 billion they sent home last year is a key source of foreign exchange for the government.

- AFP/sf

Read More..

Headley's sentencing is on expected lines: Indian officials

NEW DELHI: Indian agencies may be disappointed of leniency shown by US prosecutors to David Coleman Headley which spared him of death penalty but they are not shocked with the 35 years jail term for him by the American court as they think the 26/11 accused had ensured to escape from capital punishment long ago when he had entered into plea bargaining with the FBI.

Headley had, in fact, pleaded guilty on all 12 counts including his role in Mumbai terror attack only after getting such assurance during plea bargaining.

He, in lieu of this concession, had promised cooperation with US agency.

Officials here said that it was quite clear that Headley would not be handed death sentence nor he would be extradited to India as he had got this specific assurance in lieu of his cooperation immediately after his indictment by the FBI.

Considering this, the officials said, the 35 year jail term followed by supervised release for life seemed sufficient. This is exactly what they had expected from the US court, taking in view the Headley's plea bargaining deal, they added.

India is likely to formally react to the sentencing later on Friday.

Read More..

Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

Read More..