December 2013

Health Website Problems Weren't Flagged in Time

When warning signs emerged earlier this year, the agency running the HealthCare.gov website mostly kept the problems to itself -- a decision that now looms large in explaining how the project went so badly astray.

Over the weekend, the White House official leading the repair effort, Jeffrey Zients, described a series of improvements that took just six weeks to carry out under a new general contractor, underscoring how an earlier alert might have led to problems being addressed more urgently before the site's Oct. 1 launch. The agency in charge of creating the federal health-insurance website, the Centers for Medicare and Medicaid Services, originally served as its own general contractor. It had several warnings between March and July that the project was going off-track, but didn't seek deep White House involvement or change the leadership structure, according to officials, congressional aides and emails from the period.

Fast Recovery for Health Care Website

[Commentary] The Obama Administration says it has made enormous improvements in its website for enrolling consumers in new health insurance plans. There are still major hurdles to surmount, but the strides made raise the prospects that the website will be able to help millions of Americans buy policies from private insurers on new insurance exchanges, either by Dec. 23, the deadline for policies that will take effect on Jan. 1, or by March 31, the deadline for taking out coverage without being fined.

There will be federal subsidies to help those on modest incomes pay the premiums. The big challenge ahead is to upgrade the back-end systems that transmit information to insurance companies so that they can complete the enrollment process. Consumers have until Dec. 23 to sign up for policies effective on Jan. 1, leaving only three weeks to solve the back-end problem. In some cases, insurers have no record of some people who think they have enrolled or have received inaccurate or incomplete information for some enrollees. One big problem is that some insurers say they have not been told what subsidies a customer will get and what premium should be paid by the customer. If those problems can’t be fixed quickly, the administration will need to find alternate ways for people to enroll and get subsidies without going through the website.

Apple Buys Topsy, a Social Media Analytics Firm

Apple bought Topsy Labs, a research company that could help Apple better understand what people are talking about on social media networks like Twitter.

Topsy focuses on analyzing the half a billion messages sent over Twitter every day. The company has indexed every tweet ever sent and has made them searchable, much like Google does for the web. The company also helps clients analyze tweets for various business trends. While Apple has built some of its software to work with Twitter’s service, it remained unclear why a hardware maker like Apple would be interested in Topsy. Apple was not giving any clues.

Mixed Reactions From Media Critics After One Cuomo Interviews Another

Andrew and Chris Cuomo are as close as brothers can be. They fish together, they vacation together and they tinker on cars together. But when it comes to their careers, the brothers usually draw a line: Cuomo the governor and Cuomo the journalist stay out of each other’s way. Even that barrier seemed to evaporate on Dec 2, when Gov Andrew M. Cuomo (D-NY) popped up on CNN to be interviewed by Chris Cuomo, a host of the network’s morning show, “New Day.” The unusual six-minute segment, which focused on the fatal Metro-North train derailment on Dec 1, did not go unnoticed by media watchers, some of whom questioned whether it was appropriate for a journalist on a news program to interview a close relative.

Ratings Sag for Cable-TV Business News

The US stock market is soaring, but ratings have sunk for the TV networks dedicated to covering it. Most traditional TV networks have struggled to hold on to their audiences in recent years as competition intensifies, including online. But business television has faced the added challenge that individual investors are fleeing the stock market as an increasing amount of trading is done by institutional investors and algorithms, market experts say.

Online-sales taxes are only fair

[Commentary] Companies challenging New York's extension of its online sales tax are concerned by the prospect of navigating a variety of state laws. Even though the U.S. Supreme Court declined to take up the case, the online retailers are not out of options if their issue is consistency. They should go to Congress to set a national standard on the rules for taxing online purchases. The Senate recently passed the Marketplace Fairness Act of 2013, which would require companies with online sales of $1 million or more to apply state sales taxes to purchases.

IG finds holes in DHS’s cybersecurity

The Department of Homeland Security is leading the charge to bolster the country’s porous digital defenses, but it’s also struggled this year to safeguard its own systems against hackers and spies, according to its top watchdog. A report from the DHS inspector general reiterated that the agency for months failed to patch its systems regularly against known cybersecurity threats or scan its networks consistently, in real time, to keep out digital malefactors. Some at DHS even had been using an old, soon-to-be unsupported version of Microsoft Windows, according to the IG, whose conclusions are drawn from earlier studies issued throughout 2013.

DHS also lagged in developing a more secure system to ensure the right employees are accessing the right data, the watchdog found. The IG’s report card isn’t all bad for DHS, which did receive a few high marks. The agency, for its part, told the IG it has remedied some of the worst mistakes, with an eye on additional fixes next year. A spokesman said DHS “continues to improve and strengthen our capabilities to address” cyber risks. But the IG’s critical report nonetheless spells political trouble for an agency that currently lacks a secretary and previously had been dinged for its underperforming cybersecurity programs.

Silicon Valley lures tech talent DC craves

Silicon Valley and its environs continue to lure the tech talent Washington craves.

The perks and prestige of Bay Area companies have always served as a powerful draw for young engineers -- incentives the federal government and its community of contractors can scarcely match. And while the Obama administration has worked to reverse this trend, HealthCare.gov’s pronounced stumbles underscore a public-sector culture that often turns off creative minds, limits ingenuity and fails to attract those hoping to influence the next generation of technology. “It’s perception of opportunity,” said Mike McGeary, co-founder of Engine Advocacy, a San Francisco group that helps engage start-ups in public policy. “I don’t know anyone who majors in computer science at Stanford and says, ‘I’m going to be a government bureaucrat.’”

US students score below international averages in math, reading and science

Showing barely any change in nine years, American 15-year-olds scored below their international peers in math, reading and science. Among 34 developed countries, the United States ranked 26th in math, 21st in science and 17th in reading -- none of them significantly different from previous PISA tests.

The top performer in math was Shanghai, scoring the equivalent of three grade levels above the average. It was followed by Singapore, Hong Kong, Taipei, South Korea, Macau and Japan, then Liechtenstein, Switzerland and the Netherlands. At the bottom were Qatar, Indonesia and Peru. The 34 countries of the Organization for Economic Cooperation and Development and 31 partner countries and economies, ranging from Albania to Vietnam, participated in the Program for International Student Assessment, or PISA for short. In 2012, PISA assessed 510,000 students, mostly 15-year-olds. PISA sampled students in each country and released results for nations and some states. In the United States, state-level results were released only for Massachusetts, Connecticut and Florida.

Pact between government and telcos aims to cut mobile bills in the UK

British telecoms groups have signed up to a government plan to cut the cost of mobile phone bills.

The proposals, which have been debated with the industry over the past few weeks, are part of wider attempt by the government to tackle the cost of basic goods and services. Under plans to be announced on Dec 3, mobile groups such as EE, Three, Virgin Media and Vodafone have agreed to cap bills on a phone that has been reported lost or stolen to £50. The groups will also stop unexpected mid-contract price rises by ensuring transparency for consumers at the start of contracts. This is in line with work already under way by Ofcom, the telecoms watchdog. The government has also agreed with the industry to eliminate roaming charges by 2016. Roaming charges -- the cost of using a mobile device overseas -- are already being reduced across Europe under Brussels regulations. The final plans do not cover landline telecoms, while mobile operator O2 has not signed up to the proposals. BT, Sky and TalkTalk have joined up although they offer limited mobile services.