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The opioid crisis cost the U.S. economy 1 billion from 2015 through last year — and it may keep getting more expensive, according to a study released Tuesday by the Society of Actuaries.The biggest driver of the cost over the four-year period is unrealized lifetime earnings of those who died from the drugs, followed by health care costs.While more than 2,000 state and local governments have sued the drug industry over the crisis, the report released Tuesday finds that governments bear less than one-third of the financial costs. The rest of it affects individuals and the private sector.The federal government is tracking how many lives are lost to the opioid crisis (more than 400,000 Americans since 2000), but pinning down the financial cost is less certain.A U.S. Centers for Disease Control and Prevention report from found the cost for 2013 at billion. That’s less than half the cost that the latest report has found in more recent years. The crisis also has deepened since 2013, with fentanyl and other strong synthetic opioids contributing to a higher number of deaths. Overall, opioid-related death numbers rose through 2017 before leveling off last year at about 47,000.A study published in 2017 by the White House Council of Economic Advisers estimated a far higher cost — just over 0 billion a year. The new study notes that the White House one used much higher figures for the value of lives lost to opioids — attempting to quantify their economic value rather than just future income.The actuaries’ report is intended partly to help the insurance industry figure out how to factor opioid use disorder into policy pricing.It found that the cost of the opioid crisis this year is likely to be between 1 billion and 4 billion. Even under the most optimistic scenario, the cost would be higher than it was in 2017.The study was released just ahead of the first federal trial on the opioid crisis, scheduled to start next week in Cleveland where a jury will hear claims from Ohio’s Cuyahoga and Summit counties against six companies. The counties claim the drug industry created a public nuisance and should pay.The report found that criminal justice and child-welfare system costs have been pushed up by the opioid epidemic.Most of the added health care costs for dealing with opioid addiction and overdoses were borne by Medicaid, Medicare and other government programs, according to the report. Still, the crisis rang up billion in commercial insurance costs last year. Lost productivity costs added another billion.Businesses have begun noticing. Last week, a small West Virginia home improvement company, Al Marino Inc., filed a class-action lawsuit against several companies, claiming the opioid crisis was a reason its health insurance costs were skyrocketing.Still, the biggest cost burden fell on families due to lost earnings of those who died. Those mortality costs alone came to more than billion last year, the report said.Members of a committee representing unsecured creditors helping guide opioid maker Purdue Pharma’s bankruptcy process have been calling for money in any settlement to go toward to people affected by the crisis and not just governments. 3225
The Dow Jones Industrial Average has been on a wild ride in recent weeks, with record drops and record gains becoming the norm. On Tuesday, the market had another record day. On Tuesday, the index gained more than 2,000 points for the first time in the history of the index, climbing back above 20,000 points to finish the day at 20,685. Overall, the Dow has lost about 8,000 points in the last six weeks. A number of companies that have seen massive losses in the last six weeks regained some ground on Tuesday, including Disney, Boeing, America Express and Visa. It was a better day for oil, which has been hard hit in recent weeks. Chevron shares jumped 18% on Tuesday. 685

The California Public Utilities Commission voted Wednesday to open an investigation into pre-emptive power outages that blacked out large parts of the state for much of October as strong winds sparked fears of wildfires.The decision came after hearing from the public on the many hardships the blackouts caused for residents.The state's largest utility, Pacific Gas & Electric Co., initiated multiple rounds of shut-offs and plunged nearly 2-point-5 million people into darkness throughout northern and central California.Some of the outages lasted for several days.PG&E officials insisted on the shut-offs for public safety, but infuriated residents and a parade of public officials.Southern California Edison and San Diego Gas and Electric also shut off power but to far fewer people.The outages raised concerns about whether the utilities properly balanced the need to provide reliable service with public safety and were properly planned and executed.CPUC President Marybel Batjer ordered the investigation last month and the five-member commission gave its approval given the public frustration.The outages were astonishing for a state that is one of the economic powerhouses in the world.People made frantic dashes for cash and gas as businesses watched their goods spoil.Some elderly and disabled people were trapped in their apartments with elevators out of service.PG&E initiated five rounds of blackouts, with the smallest affecting about 30,000 people and the largest affecting nearly 2.5 million.Residents in San Francisco suburbs and in Northern California wine country were without power for days.Bill Johnson, CEO of Pacific Gas & Electric, said the outages were the right call and kept people safe, although a transmission line in Sonoma County that was not powered off malfunctioned minutes before a wildfire erupted last month, forcing about 180 thousand people to evacuate.The company is in bankruptcy and faces 30 billion dollars in liabilities after its equipment was found to have started several deadly wildfires in 2017 and 2018, including the year-old Camp Fire that killed 85 in Paradise. 2142
The federal agency that oversees the financial condition of U.S. banks says it will offer voluntary early retirement to about 20% of its 5,800 employees.Agency officials say the early retirements could create a more highly skilled workforce with the goal of attracting employees with a new set of skills.The Federal Deposit Insurance Corp. announced the move Thursday, saying it isn’t designed to reduce its budget or the total size of the workforce. About 42% of the current workforce is eligible for retirement within five years, the FDIC says. A wave of potential retirements could sap the agency’s institutional knowledge, especially during a crisis, the FDIC’s inspector general said in a recent report.In addition, the FDIC plans to close a handful of field offices, and to relocate and consolidate others. No staff involved in examining banks will be affected, the agency says.“This program will enhance our agility, preparedness and technological transformation,” FDIC Chair Jelena McWilliams said in a statement. It’s part of the agency’s strategy to “further reduce layers of management and acquire new skill sets,” she said.Sen. Sherrod Brown of Ohio, the senior Democrat on the Senate Banking Committee, questioned the approach of phasing out veteran employees and said it could hurt the FDIC’s ability to deal with another financial crisis. “If the FDIC chair were interested in increasing the agency’s capability to respond to a crisis, she would be focused on hiring and training a new generation of workers, not encouraging experienced and senior staff to rush to the exit,” Brown said. “Let’s be clear –- no matter how Chair McWilliams tries to spin it, reducing FDIC’s workforce will make us less prepared for a financial downturn.”During the 2008-09 financial crisis and the following years, the FDIC closed hundreds of failed U.S. banks and transferred their loans and deposits to other, healthy banks. Bank failures reached a peak of 157 in 2010. With the new plan, the FDIC is looking build up its staff engaged in inspecting banks, and in specialized information technology, computer science and data management. Officials declined to estimate what portion of the employees being offered early retirement is expected to take it. They include executive managers as well as administrative staff at FDIC headquarters in Washington and in the field. The union representing FDIC employees said it’s concerned about employees having enough time to adequately assess their options and make informed decisions. Employees who accept the offer must leave by June 6. Under terms of the offer, most of the employees who choose to leave or retire will receive six months of salary.The union, the National Treasury Employees Union, said it will negotiate with the agency on the office closures and consolidations to prevent involuntary relocations of employees to another FDIC office and allow them to continue to inspect banks in their areas.“We also intend to closely examine the FDIC’s justification for these decisions, and our union will raise concerns if we feel the moves are unwarranted or harmful to FDIC’s ability to accomplish its mission,” NTEU President Tony Reardon said in a statement.In addition to monitoring the banks’ condition, the FDIC was established during the Great Depression to insure deposits of banks that fail. It guarantees deposits up to 0,000 per account. 3411
The body of University of Utah student Mackenzie Lueck has been found in a canyon north of Salt Lake City, police said Friday.Salt Lake City Police Chief Mike Brown said in a news conference that he was "relieved and grief-stricken" to report that Lueck's body was recovered Wednesday in Logan Canyon, about 90 miles north of Salt Lake City. Investigators were subsequently able to forensically confirm it was Lueck, Brown said.The 23-year-old was last seen in the early morning hours of June 17 when she was dropped off at a park in North Salt Lake City. There, police have said, she met another individual and vanished.Last Friday police arrested 31-year-old 673
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